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MONEY COMMENT
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And so, as we say goodbye to 2003, the homeowners among us can look back on a pretty good year. Our homes have increased in value by an average of 15.6%, according to the latest survey from the Nationwide BS. When you consider that most of us are paying annual interest of around 5.5% on our home loans, that's a pretty good return on our investment. Except, of course, our homes can't really be thought of as an investment - unless we're in a position to realise our profit and still provide ourselves with a roof over our heads. Still, this does mean that when the occasional housing pundit warns of a 20% fall in house prices over the next three years, it softens the blow. We've made almost that in the last year alone and, besides, most commentators are predicting continued growth in 2004. This includes Nationwide, which is predicting a rise of 9%. Nationwide's report also reveals that turnover is at its lowest since the mid-Nineties, because first-time buyers can't afford to get onto the property ladder. While this is unpleasant for those wanting to buy their first home, Nationwide sees it as a good thing for the housing market as a whole. It says that the housing market is cooling naturally, because people aren't making the mistake made by some buyers in the late Eighties: taking on too much debt. You can't get growth without fresh blood, so it remains to be seen who will be proved right over the coming year... Find out more about Homeowning.