neils

Well you're 'renting' but keeping all the capital appreciation over 20+ years (oh sorry, forgot what forum I'm in - prices will have crashed by then...) Seriously, an approach I think will be used by more and more people, voluntarily or not, is to downsize on reaching end of mortgage, therefore clearing mortgage which should be a small % of equity by then. Benefit is having lots more cash every month that you're not spending on Repayment. If you make money through business, investment etc.. then you can clear it that way in 20+ years Neil

You'd have bought at the right price back then, generated positive cash flow during those years, remortgaging when possible to buy other properties to generate more positive cash flow... now you have a portfolio of properties generating cash, in which you have no money invested. Many investors actually don't sell. Why sell a cash-generating asset when you've got any deposit out of it long ago ? (that's if you didn't find a bmv deal in the first place) Neil

Good summary Magpie. Gold and other commodities tend to be counter-cyclical. When the stock market performs poorly, commodities are usually good. And vice-versa. Gold has always been seen as a safe haven in troubled times, though it's recent rise can;t be fully explained by that theory. Neil

The housing market doesn't move at the speed of internet forums. I'm new to this forum, and see incredible short-termism in the replies and analysis. If you're a sensible property investor you don't even care about these short-term cycles. Buy at right price, rent for positive cash flow, and any capital appreciation (which will come in the long term) is a bonus. Neil

If you have 25% equity, then you can do whatever you want. If your mortgage is Interest Only then how do monthly payments increase if mortgage term is shorter ? Neil

Hey mancghirl love your summary... you should be an estate agent ! But this does bring up a serious discussion about new build. Obviously the massive number of developments could not be viable, and city centre manchster, didsbury etc. seem really hard hit. I've had emails and calls from people trying to sell their new builds (1 year old with tenants), with excuses of special mortgage deal coming to an end etc.. Quick calculations show the deals don't even remotely stack. Guess they really need some property investment education...

Hi Jon - thanks for your good work on the site. Graphs would be valuable for this kinda trend data. I'm surprised how many negative number show, but I guess it's very specific location dependent. Neil