Sunday, April 25, 2004

Unwanted second home 

As though to emphasise the point I made last Sunday, The Sunday Times published a report today on homeowners who bought new houses and ending up paying for two mortgages because they could not sell their old houses.

The problem is that many people buy new houses thinking that they can easily offload their existing homes at good prices. It turns out that there are relatively few buyers in the market. Many homes can only be sold at a loss. The new houses that they bought at what seemed like bargain prices turns out to be not such a good deal after all, since their old homes have to be sold at similar bargain prices.

For these home-buyers, I say: Welcome to the new economic reality, where houses are no longer a good form of investment.


Post a Comment

<< Home