Quote:
mini-
The analogy is poor. Property values consistently trend upwards over time and I have yet to see a roller coaster do that.
As Shrewdy has correctly pointed out property is an illiquid asset so anyone in property does not get to experience the “roller coaster ride” pictured here. Its simple really: you buy and then either sell at a higher value, sell at the same value or sell at a lesser value. There’s only one start and one dip or rise. Not much a roller coaster there. Even if you are using property equity as leverage it’s a dull ride. You have equity and at some point you’ll use that equity for a bigger loan. There’s no roller coaster there either – just a commitment to meet your extra loan payments.
I’d liken it to a Christchurch tram ride. You get on at some point and trundle along observing interesting stuff (but not affected by it) and at some point you can either jump off at a really exciting place, or wait a bit longer and get off at a boring place – or you just take the trip and get off where you started. If you can afford the tram ticket you can afford to decide where you get off.
Mini,