PPRuNe Forums - View Single Post - Property v Flight Training (Calculated Risk?)
Old 24th May 2007, 08:11
  #19 (permalink)  
portsharbourflyer
Educated Hillbilly
 
Join Date: Dec 2004
Location: From the Hills
Posts: 978
Likes: 0
Received 1 Like on 1 Post
What you forget is Alphamale, is between 2001 and 2007 house prices have effectively doubled, hence any one whom purchased property before 2001 would easily be able to remortgage to fund flight training. However even if property prices don't fall, the rate of price increase has now slowed, hence prices will at least stabilise, so it would be wise to say that you are now unlikey to see a significant rise in your property value in the next five years that would give you the equity to remortgage in order to fund flight training.
I was in a similar situation to yourself a few years back and opted for the flight training, for me that was a mistake as I missed out on the housing boom, however as said the boom has already happened, you will not see your property rise significantly in value. Also with low inflation rates, inflation will no longer errode your mortgage.
Also if you are "mortgaging" yourself to the limit for a 130,000 mortgage then I would say the gamble of investing in a career that could (not necessarily) improve your earning potential would have to be worth it. Rememeber with a repayments mortgage in the early years of a mortgage you will find most of your repayment is covering interest rather than paying off the capital, hence in five years you may not gain that much equity. Also you will find that the average rent for a one or two bedroom flat will rarely cover the mortgage on a place if buying at todays prices.

Last edited by portsharbourflyer; 24th May 2007 at 08:26.
portsharbourflyer is offline