Today we stepped off the property ladder with the sale of our house in London completing for the asking price and with the money that we’ve gained over the last 10 years of house price inflation being placed in a high interest savings account.
Our feeling is that the worst that’ll happen is that we’ll lose out on a further gain but that most likely our savings at today’s rates (if you shop around) of around 6.2% AER will likely beat the median estimations of HPI at around 5% for the next 2 years or lower. There are also many camps that are screaming about a crash but there are so many factors to consider that our heads begin to spin so we’re simply going to sit it out for a while and see what happens. My gut feeling is that a price correction downwards is most likely.
Of course there’s much, much more to owning a home than simply making some cash. Renting for the past 12 months has shown us the negative aspects of being a tenant including the general insecurity that you may get kicked out next month and simple things like not being able to replace - say - the crap cooker or boiler. It’s also very important to have a stable environment for the little ones to grow up in and not have to deal with things like changing schools every 12 months; we can see that this sort of thing is certainly worth a premium.
Hence we may still buy, indeed over the past few months we’ve looked at over 20 houses, but with another baby coming and general uncertainty over the stability of the economy - what with being self employed and all the US shenanigans too - we’re very definitely going to hold off now until the new year at an absolute minimum.









Wed, Oct 31, 2007
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