Losing on housing - Investors Chronicle
But here's the thing. Because more people buy when prices are high than when they are low, the number of people who have suffered a loss in recent years exceeds those who made a profit by buying in the years just before 2003. Yes, people who bought in 1997 are still sitting on big profits; prices even now are 80 per cent higher than they were then. But fewer people bought in 1997 than in 2007, when prices were at their peak; HMRC statistics show that there were 1.44 million property transactions in 1997 but 1.79 million in 2007.
If we add up the "winning" buys (those before May 2003) and the losing buys (those since then), then the number of losers exceeds the number of winners since April 1996*. In this sense, most house purchases in the last 15 years have led to real losses.
But here's the thing. Because more people buy when prices are high than when they are low, the number of people who have suffered a loss in recent years exceeds those who made a profit by buying in the years just before 2003. Yes, people who bought in 1997 are still sitting on big profits; prices even now are 80 per cent higher than they were then. But fewer people bought in 1997 than in 2007, when prices were at their peak; HMRC statistics show that there were 1.44 million property transactions in 1997 but 1.79 million in 2007.
If we add up the "winning" buys (those before May 2003) and the losing buys (those since then), then the number of losers exceeds the number of winners since April 1996*. In this sense, most house purchases in the last 15 years have led to real losses.
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