Jayne raised an interesting point in her comment recently 'how can my money be going down when it's accruing interest?' The answer is that the amount of money is/will be increasing but it's value (what it can buy) is decreasing, especially in terms of buying property. House prices are continually going up in the Uk and, even though I made a £45k profit on the house, the amount I got isn't enough to buy something comparable anywhere I would want to live in the UK.
I am thinking of buying in Northern Italy and settling down there. House prices are rising in Italy but nowhere near as much as in the UK. There is much less mobility in the housing market there (people tend to move only when they need to and to buy their final property early on) and therefore prices are much more stable. However, it is almost inevitable that property prices will increase over the next year at a faster rate than the interest I accrue on my money.
That's why my money is going down.
Sunday, March 25, 2007
Economics
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1 comment:
Hello, here is a landlord from north italy...cannot prete nd to be anonymous....althougth i'm now in china struggling to gain few bucks, i can tell you much about build an house in italy.
just before my departure i give the axe to the building company,the surveyour AND the guy who make the iron works (sorry i forgot to install the dictionary on my new laptop)...so don't trust anyone!!
A fiend of you, former workplace manager south europe ( so someone who is supposed to know about...)
Mr Jam
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