House prices and Equity release?

Question

I can now borrow lots of money on my house or I can sell it for lots more money because, apparently, it is worth more.

Since my house is an even worse shithole than it was a couple of years ago I'm wondering how that happened.....

I've sort of noticed that shitholes similar to mine have also risen in price so if I sold mine to realise the profit I could buy a similar shithole for the same price.

I have also noticed that if I did not have a shithole in the first place I could borrow more money than I could before to buy one.

I think I am then allowed to remortgage it, put a plastic thing in the garden, buy a new sofa and have an MDF kitchen.

Then I can get a loan to pay off all of my debts.

I'm sort of confused.

Has someone got some good advice?

DNA

Robert Baer · Accepted Answer

Yes; *NEVER* borrow money!   Most especially, !RUN! away from "easy" plans, "cheap" plans, etc ad nauseum (almost as good as the Nigerian scams).   If you cannot pay for it now, do without it.   Exception: buying a house to *live* in for 5+ years; never refi unless you can get a FIXED rate at least 2% lower than what you have at present (roughly speaking, that 2% will pay the fees, etc).   A car?   Get a good used one that you can afford; if you can maneuver a better price by signing a finance contract, look very carefully for pre-payment penalties before signing.   Make sure that if you pay the balance in full within 30 days, that the net cost is *less* than Cash.

TT_Man · Answer

Have another drink mate.

martin griffith · Answer

martin

Paul Hovnanian P.E. · Answer

You could sell your house and move in under a bridge. ;-)

-- Paul Hovnanian mailto: snipped-for-privacy@Hovnanian.com

------------------------------------------------------------------ Entropy: When your shoelace comes untied, you can't fix it by walking backwards.

amdx · Answer

Just forget about it and do electronics!

Dirk Bruere at NeoPax · Answer

Emigrate to somewhere where your shithole buys a luxury house.-- Dirk - The UK's only occult talk showPresented by Dirk Bruere and Marc Power on ResonanceFM 104.4

martin griffith · Answer

martin

House prices and Equity release?

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