I would say though Andrew, that if you bought at £40,000 in 95 and it is now worth £200,000 you could sell at any price below that and still make a fantasic profit.
A house is only worth what someone is willing to pay, and a lot of people are greedy in the hope that someone will pay an inflated price.
I agree though that mortgage companies are very irresponsible when they lend 6 times peoples salaries on whatever property they want.
I work with someone who earns possibly $15,000 a year, he is married and he and his wife, who only does a small amount of child minding and they have 6 kids between them. Last year they bought a house for £325,000 which needed a fair amount of work doing, and he self certified because there was no way he would have got the money otherwise.
Perhaps if the mortgage companies made a deeper check people wouldn't be trying to overstretch themselves.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
