4 ms·

Or you upgrade to a bigger house, and roll the profits into a bigger down payment on the next property, keeping a similar sized mortgage. My friend did this, s

Or you upgrade to a bigger house, and roll the profits into a bigger down payment on the next property, keeping a similar sized mortgage. My friend did this, sold his old place and bought a bigger nicer house, keeping his monthly mortgage payment roughly the same, which now is well below market rent.

onion2k 12y ago
Except as all equivalent property prices have also gone up, and consequently the price differential between a flat and a house has probably led to a bigger gap in the prices than than the profit than the flat in 1995 and 2015. Eg £32,000 flat in 1995 -> £660,000 flat in 2015 is an increase of 2062%, or £628,000. £100,000 house in 1995 increasing at the same rate of 2062% now costs £2,062,000, up by £1,962,000. To move from the flat to the house you now need to find that additional £1,962,000. Obviously not all properties increase at the same rate, and presumably the author of the article got a quite lucky with her 2062% increase. But even if the house only increased at half the rate of her flat it still costs £1,000,000 now, so she's £300,000 short. Price increases only benefit you if the lower end moves up faster than the higher end (which is very rare) or if you're cashing out.