What purchase changed your life?

[Roger Hicks]

Congratulations on your good fortune. But the collapse of a bubble is much more than just a fluctuation in selling price. It's a real loss of wealth for many people. Just look at real estate markets in the attached chart. You can't just ride out a 50% collapse in prices if you bought near the top. Particularly if you've just been laid off due to a deteriorating economy.

And I am sorry to hear of your ill fortune, but getting laid off is a separate matter, and would equally affect your ability to pay regardless of the bursting of a bubble: the repayments don't change, after all. As long as you can afford the repayments; as long as you don't have to sell for some other reason (divorce, posted overseas, etc.); and as long as the house is a roof over your head and not an investment, the actual value of the house is meaningless.

Cheers,

R.