DonnieDarker Posted January 22, 2006 Author Share Posted January 22, 2006 Not really interested in the potential gains in the flat because I will always need somewhere to live and will not have the stomach for STR. Quote Link to comment Share on other sites More sharing options...
Without_a_Paddle Posted January 22, 2006 Share Posted January 22, 2006 (edited) That time taught me two things, debt is a mugs game, home ownership can be a very stressful business. Over the last few decades the economy has tended to REWARD debtors because of inflation. I remember the last crash too and took on debt to buy my first property in the mid 90s. Within 7 years the debt was gone due to wage inflation (and the odd promotion). I couldn't have bought this house so 'cheaply' without taking on the initial debt. I don't think I was a mug. When I was househunting back then (mid 90s) I did notice that there were plenty of poor properties on the market. They stayed unsold for long periods. Average properties took a long time to shift too. BUT, anything good (right house, right street, good plot etc) sold within a day or two. I found that you had to be quick to buy the good stuff. I wasn't the only one who knew property was a bargain back then! TBH I was AMAZED how flat the market was from 1994-1996. I just shows how STUPID the average person in the street is when it comes to property. It was cheaper to buy than it was to rent and rates were falling. It took a couple more years for people to wake up to this and the rest is history... Edited January 22, 2006 by Without_a_Paddle Quote Link to comment Share on other sites More sharing options...
Harry Sacks Posted January 22, 2006 Share Posted January 22, 2006 Over the last few decades the economy has tended to REWARD debtors because of inflation. I remember the last crash too and took on debt to buy my first property in the mid 90s. Within 7 years the debt was gone due to wage inflation (and the odd promotion). I couldn't have bought this house so 'cheaply' without taking on the initial debt. I don't think I was a mug. Yeah, the mid '90's when you could buy a three bed terrace for £40, how much lower could they have gone? No you weren't a mug, you don't represent the untold who took on huge mortgages for one bed studio flats and remained living in them for nearly 15 years because of -equity. Quote Link to comment Share on other sites More sharing options...
Without_a_Paddle Posted January 22, 2006 Share Posted January 22, 2006 Yeah, the mid '90's when you could buy a three bed terrace for £40, how much lower could they have gone? No you weren't a mug, you don't represent the untold who took on huge mortgages for one bed studio flats and remained living in them for nearly 15 years because of -equity. Some of my colleagues who started out alongside me in 1990 chose to buy 1 bed flats. They advised me to keep renting (in 1994/5) after they had plunged into -ve equity. they were not happy. But, they are better off today than they would have been had they rented for 15 years. I think they came out of -ve equity back in the late 1990s. I'm guessing but I think they would have paid around £55k back in 1990 for the flats. Obviously, they are not still in their flats today. I think they all climbed the ladder a few years back. Quote Link to comment Share on other sites More sharing options...
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