I do have a house (at least I have a mortgage), but because of when I bought the house, our value, overall has not gone up. We are currently just above breaking even on the current value, which I know is better than some our my area.
Ahah, I'd say you have a house yes, as long as you pay the mortage... That's the issue with many owners, they buy houses in geographical areas that don't value and they are stuck with it, sometimes with less value than when they bought it.
We bought in 2007, when we thought that the bubble had burst and gone to its lowest level...but unfortunately we were wrong. 2009 our house dipped below our equity point...luckily now (as per Zillow) our house is valued about 10% up over what we owe. Just checked it today.
Not bad that the house has valued 10%, mine since 1998 has valued nearly 75%, so it's a huge huge bonus for me because if I sold it now I'd profit a lot of money.
I don't know if I could do that maths really, I think that if we pay for example, 100k for a place and ten years later it's worth 200k, this means 100% profit right?
Not if you take into account the normal rate of inflation. That for the last 30 years has been about 3% per year. So, over that ten years, if I am doing my math correctly, your money would be worth 30% less, so your profit would only be about 40% (as 30% of 200k is 60k).
JR, Thank you. Without the algorithm that would prove it out, I am guessing that would be more like 43% or 44% after ten years. But that is only a guess.
The housing market in Canada has yet to pop, and I don't know when it will. My brother bought a house a year ago and it is already worth $50,000 more today according to him. It is almost impossible for a lot of young twenty-somethings to own over here.
