Casual Observer Posted February 14, 2006 Share Posted February 14, 2006 (edited) Today I got to thinking about the amount of equity i have had in housing since I first bought in 1975, and it's relativity to my annual income. This ought to provide some kind of indication about the financial sense of buying property. At the foot of the last crash, in 1994, I sold my house for 98k, and traded up. This meant I carried forward equity of 70k (98k minus outstanding mortgage) which was just less than twice the annual salary I was on. I remember thinking that this wasn't a tremendously brilliant achievement after 19 years on the housing ladder, especially in light of all the booms we'd been through. Since we're now at a peak in the cycle, my ratio of equity to income (which, with age is much higher) is now about 6. But I wonder what it will be in 5 years time (assuming I'm still earning) I'm not sure whether there's anything in this, or what others' experience is. I suppose the main message for me is that, after the last crash housing had proven to be a good, but not spectacular, long term investment. Any thoughts? Edited February 14, 2006 by Casual Observer Quote Link to comment Share on other sites More sharing options...
Time to raise the rents. Posted February 14, 2006 Share Posted February 14, 2006 Just think hey, in 1995 I started with 2,700 pounds & look where I am (see Smell The Fears sig for close enough numbers). You were there with 70k 1 year before me and could have exceeded what I've done. Life is for the taking. I'm not having a personal jibe at you, but I would like to point out for the younger posters that the decisions we make now, impact on us later. So make the right decisions. Quote Link to comment Share on other sites More sharing options...
MarkG Posted February 14, 2006 Share Posted February 14, 2006 I would like to point out for the younger posters that the decisions we make now, impact on us later. So make the right decisions. Indeed. All the younger posters should follow your example, and buy their first house at the bottom of the market, not the top. Quote Link to comment Share on other sites More sharing options...
?...! Posted February 14, 2006 Share Posted February 14, 2006 Just think hey, in 1995 I started with 2,700 pounds & look where I am (see Smell The Fears sig for close enough numbers). You were there with 70k 1 year before me and could have exceeded what I've done. Life is for the taking. I'm not having a personal jibe at you, but I would like to point out for the younger posters that the decisions we make now, impact on us later. So make the right decisions. You need to get out now. You are sentimentally attached to your assets. You must realise this by now? Just think if you step out pre dive you will be able to re-enter the market and buy up much more property with lower overheads in the form of smaller mortgages. Unless of course you think there is an infinite amount of money to be leant. In which case we are all trillionaires anyway. Quote Link to comment Share on other sites More sharing options...
Casual Observer Posted February 14, 2006 Author Share Posted February 14, 2006 Just think hey, in 1995 I started with 2,700 pounds & look where I am (see Smell The Fears sig for close enough numbers). You were there with 70k 1 year before me and could have exceeded what I've done. Life is for the taking. I'm not having a personal jibe at you, but I would like to point out for the younger posters that the decisions we make now, impact on us later. So make the right decisions. I've seen the figures. I do have more than you. But not in property, and not dependant on loans. And my family house is probably better than yours. Quote Link to comment Share on other sites More sharing options...
Time to raise the rents. Posted February 14, 2006 Share Posted February 14, 2006 I've seen the figures. I do have more than you. But not in property, and not dependant on loans. And my family house is probably better than yours. Yeah, I'll bet you do..... Quote Link to comment Share on other sites More sharing options...
Casual Observer Posted February 14, 2006 Author Share Posted February 14, 2006 (edited) Yeah, I'll bet you do..... Why? Do you think that just because you brag, you're the only one with money? Edited February 14, 2006 by Casual Observer Quote Link to comment Share on other sites More sharing options...
Given Up Posted February 14, 2006 Share Posted February 14, 2006 I got a valentine's day card from my spouse. To me that is worth £10,000,000 so therefore I'm the richest! Quote Link to comment Share on other sites More sharing options...
Without_a_Paddle Posted February 14, 2006 Share Posted February 14, 2006 I got a valentine's day card from my spouse. To me that is worth £10,000,000 so therefore I'm the richest! She sent us ALL one...... Quote Link to comment Share on other sites More sharing options...
Casual Observer Posted February 14, 2006 Author Share Posted February 14, 2006 I got a valentine's day card from my spouse. To me that is worth £10,000,000 so therefore I'm the richest! I got one from her too, so now I'm considerably richer than you! She sent us ALL one...... You beat me by a nanosecond! Quote Link to comment Share on other sites More sharing options...
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