Sell and then rent for a few years. Then the decline in equity is someone else's problem. Calc the interest on your proceeds, plus what you pay now in mortgage, and then look at what's available in that price range. If it's like the US, you'll find that you actually could live in a BETTER house for that money via rental because prices / rents are so out of wack.
I'm pretty sure it wouldn't work out like that over here in London, The place I'm in now is worth about £900,000 with around £80,000 left on the mortgage. I could sell and rent a similar place for around £2000 per month, though the mortgage I'm paying is only around £1000 pcm. The problem in the UK is a housing shortage, the only time it would make sense to sell is if I moved abroad, selling and renting I'd be losing money as house prices are increasing all the time. 3.1% in March which would equate to a loss of almost £30,000 if I'd have been renting! It would make sense to sell before a crash, but I don't see that happening. Prices will level off, but not fall dramaticaly.
that is what they were saying about where I live, there is almost a building moratorium and half the houses are oceanfront etc Its different here Prices have drop 20% this year and there is no end in sight
To be honest I'd love to see a crash. I'm saving up to get a second place, so I'm waiting to see what happens before I buy. I 50% fall in prices will suit me fine
ummm but you would have 820,000 pounds in the bank wouldn't you? You would be earing 41k in interest a year at 5%, thats 3400 a month in intrest. Whats that in dollars almost $7000 , you could live in the states and never work again, do you like working?
Yes but at the moment with property rising a minimum of 1% per month I'm making about $18,000 per month in appreciation. I don't mind working either The long term plan is to buy up a couple more places and then move to the country. I can SEO for clients and run my own sites at a tidy profit and also have the rent coming in from 3-4 houses.
Property will crash because things went too far. People don't want to be reasonable (banks, politicians, home owners), so the market will regulate itself (crash).