Home ownership pays whatever the market. 07/11/11

At Heywoods, we've seen a big surge in demand in recent months for rental properties across the North Staffordshire area. And understandably so, given the difficulty that many people are still experiencing in getting a mortgage.

However, if you really do want to enjoy the benefit of owning your own home and are able to get a foothold on the property ladder then don't let the current uncertainty in the housing market prevent you from doing so.

We're continually hearing market predictions from mortgage lenders, estate agents and other so-called property experts, with completely differing forecasts for house prices over the next couple of years.

Some are talking of an upturn in prices, while others are predicting a fall. But as nobody really has a crystal ball then the outlook for house prices in the short- and mid-term is anybody's guess.

But as anyone who bought property at the end of the 1980s will tell you, home ownership still pays whatever the current state of the market.

These people bought their home during the previous house price peak and saw the value of property drop significantly over the course of the early 1990s.

Yet within little more than ten years the asking prices of their homes were typically double what they had originally paid.

So if history is anything to go by and property prices do actually fall again, the long-term prospects still remain good and you're almost certain to be quids in as time goes on.

Moreover, there is one other thing to remember. Mortgage payments are like a yo-yo. There will be times when they go up and times when they go down. And, as it happens, times are particularly good right now with interest rates at an all-time low.

But even when interest rates are high, as time goes by your earnings go up with inflation and a mortgage steadily becomes easier.

By contrast, nearly every year your rent will go up and will rarely ever go down. So when you're a tenant, your monthly rent always is and always will remain a significant chunk of your income.