Blog Stuck On You

Most House Owners who are in work or self employed, and have been handling their affairs in a reasonably conservative fashion over the last few years shouldn’t be concerned too much about all the economic mayhem erupting all around them.

If you’ve been in your present House, paying a mortgage for more than 4 or 5 years, and as long as you’ve not done crazy things like taking out a bigger than 100% mortgage, it’s not likely that you’ll drop into a negative equity situation, even in the short to medium term.

Also, it’s important to bear in mind that, although there’s no guarantee, in the medium to long term your investment in your House is far more apt to rise rather than fall, because, paradoxically, due to the Economic Crisis, new House construction has almost ground to a standstill. This is right at a time when the government is forecasting that we have to construct 3 million new Properties over the next few years, simply to stop house prices spiralling out of control UPWARDS!

This same dormant pressure of demand for House ownership is still there. It’s merely being artificially subdued at the present time , but as soon as some measure of normality comes back to the finance sector, and even before the real economy itself begins to completely recover, we should reasonably expect to see House prices beginning to pick up.

The most important thing for now is to make a rational plan to make sure that you can get through the worst of the downturn with negligible impact on your core assets. If you’ve been giving way to all the pressures around to live right up to your limit, now is a good time to make some cautious economies to make sure your borrowings are controllable, and smaller than your assets.

It’s not a case of making your life miserable, it’s just about considering what you need to be comfortable & happy. For example, if you do the average ten thousand miles per annum & your car’s approaching 3 years old, why don’t you just keep hold of it for a little longer? The extra depreciation on a new one will wipe out a lot of any fuel savings, even if you downsize.

If you own a second House, consider off loading it to cut down your living costs and monthly outgoings on your mortgage. Of course, it’s not an easy time to sell a House, but if you’ve had the House for more than a few years you could sell it without problems to one of those Companies that buy Houses, or one of the growing number of Cash House Buyers who’ve come into the market recently because they feel that property feels much safer than even cash in the bank. These people are just waiting for your invitation to Buy my House.

Tags: Credit, Debt & Personal Finances