Czuch: Home prices do not double every ten years, that is only in an economy that has no recessions or depressions... And from what I learnt from economic classes and from watching the worlds economy over the last 20++ years no economy is without down periods.

(V): No, that is an average, no matter the conditions... yes sometimes it will not be true but other times it will be even higher! But it still is a good general rule of thumb!

BTW, this is a great time to purchase real estate, low prices and low interest rates, in 5 years from now you will be kicking yourself wondering why you didnt buy something right now!

Czuch: It's dependent on certain %'s being true for the whole period. It's no guarantee... I don't think those with houses now think their houses are going to double in price.

(V): I think if you buy a house today, at the discounted prices, its very likely that your house will more than double in the next 10 years!

Czuch: Possibly.. but not for the owners of today. In the end it is determined by how long this 'depression' goes on for and how long the recovery period is.

Plus prices are likely to fall more before rising. We are at the start not the end of this economic down turn.

(V): you might be surprised... a house bought for 200k last year might not be worth 400k in 9 years, but its likely to be worth 800k in 19 years, and is probably going to be worth at least 1.6 million in 29ears, and my guess is that the house you buy next year will be 5 times in 19 years!

Czuch: It's not something I'd take as a certainty until governments stop this boom and bust system.

Czuch: I paid cash for my home in 1995.....it has increased in value 300%+ in the last 13 years but has stabilised at the moment.....now would be the time for me to sell BUT what can I get for the money....not very much, at least not as nice and comfortable and well equipped as the one I have.

***edit*** also the interest rates are still too high over here ....no one will buy when interest rates are about 7%, they might buy if it goes down to about 3%, but the safest way is the way I did it.....PAY CASH

Bernice: I agree, I dont think you should buy anything that you dont have the cash up front for, the exception probably a car, but I dont even know about that, and a house. But paying cash for a house, thats awesome, congrats on that one, except I am sure there has to be something about it that wasnt ideal, if you know what I mean?

Anyway, thats the down side, that you always need a house to live in, and when you sell your house for double the cost or whatever, you still have to buy a new one at the current rates, so it does us no good, really unless we only need less of a house or we move to a cheaper area, or like me, you have two and you can sell one when the value gets up there!

Czuch: the house was in great condition, it had been transported from another suburb and had been renovated to a very high standard, newly painted, new carpets etc. I have this year had a new kitchen installed as the old one was a bit dated and also I have added another room on. In 1996 I had the house fully insulated and cladded and also had all the concrete driveways put down. The inside has been painted because after 13 years it needed it. Everything was paid for with cash money and as you know MONEY TALKS, so I was able to get some good deals. Also the floors were varnished as the carpets were getting worn. I have also installed a spa, which is great in the summer, it can also be used in the winter but I havent used it. The spa was 2nd hand but in fabulous condition so I got a great deal on it :).

Bernice: Sounds great, I hope you have a spare room for me, I will be there for a christmas spa!

Czuch: spare room is clean and ready for occupation <:)