(Untitled)

[wickedcherub]

There's nothing that makes me more ill than looking at property prices. The area I want to buy - some of those houses have risen in price by 200k in the last eighteen months while I've been looking and my house value has gone up maybe 40k? Like I don't understand how the value of my house could have gone up a paltry $180k in the past ten years when

Comments

[suze2000]

I dunno. Get back to me in 10 years and I'll tell you if our house 9km north of the city has been worth the $4000/month mortgage. :(

Just keep in mind that it's land that grows in value, not the buildings. It's great to have a nice house on the land, but if it's pocket size it will rise in value more slowly. You can always decide to sit it out. There are lots of people who bought in what was once an ordinary suburb thirty years ago, and is now highly desirable because of the proximity to transport or other facilities (such as the beach). I think it's important to buy near transport (preferably train lines which aren't hampered by traffic like trams and buses), so look at that first. Good luck! xx

[sarahlouise]

Oh believe me I understand. The house I'm interested in sold the same day I bought mine. It was $60k more then. Now it is listed for $90k more than I've been offered for mine, and will probably go above that.

I am afraid of prices falling too. It seems an unfair amount of risk to take on for a house to live in. It's not like we're speculative investors. I kinda wish is gone for the better place then, the 60k looks like nothing considering I'll be re-paying stamp duty

Fwiw I think in the medium to long term it's unlikely to fall. If you hold it long enough you should be ok, in my opinion.

[skittish_derby]

I wouldn't trust it, definitely not. It sounds like a speculative growth value that isn't sustainable. 18 months is literally nothing in the lifetime of a house, to go up so extravagantly is.. well, its dangerous. I would wait it out. There has to be better options, more affordable options. Less risky ones anyway.

course, I am in the US and have literally no idea how house values are or have been where you are, except through your little entries occasionally. We saw a huge market bubble burst back in 2008 and apparently people have learned nothing because prices are back where they were and people are going nuts.

The house we bought was reasonably priced when we bought it in 2012, has only gone up a small amount in the last 3 years... I try not to pay attention to it since I know we got a good deal. if we had paid as much as it was worth back before the bubble burst then I would probably be dismayed by the drop.

you're right though, adulting sucks.

[science_of_life]

Property bubble = will burst.

[ffarff]

Thats Nuts! The Interest Rate On Mortages Are Way Up Too, Right? How Do People Manage!