Chapter Two: Uses of property – private
A privately owned house or flat is often someone’s main asset, or at least financial commitment. Millions of long term owners have seen the value of their property increase hugely in the course of a series of property booms. Even if, as is usual, the property was purchased with the aid of a loan, the difference between the loan and the value can be considerable. This difference is often referred to as the “equity” in the property – i.e. the realisable net value. The gain is of course a “paper” gain until the property is sold. Even then it may not be possible to use the money for anything other than the purchase of another home.
Since the World War Two prices have risen so much that a high ...