Keep in mind that I dont advocate this for investment property context, but rather your primary home. As long as your loan is affordable, and that means different things to different people, and you can pay it off then it doesn't matter what house prices do in principle. If prices stay flat, then so what? You bought at a price you were comfortable with. The goal becomes to pay the loan off as quick as you can within reason. Why do I say that? Because generally a home loan will be the cheapest money you'll be allowed to borrow. If your money can be put to work getting higher returns then its worth considering taking the risk of investing it elsewhere. Otherwise hit the home loan as hard as you can. It's a form of enforced saving. Your interest payments will be comparable to rent prices, and your principal payments will grow as you 'save' this way. In a rising market, you have locked in your purchase price and can exit at any point without losses. Your initial investment has floated up with the rest of the market and you can buy a similar home, or upgrade by taking on a loan that is again within your capacity. In a flat market, you are comfortable with your repayments and stay busy paying the loan off. You dont lose any more than a renter. In a falling market, there are two possibilities. In a generalised decline of prices you are not losing money in a real sense. You were happy with the price you bought in at, you keep on paying off that loan as you were without concern for prices. Why? Because in a generalised decline your house is still retains its relative state compared to other houses. Similar houses will be priced the same. In a decline in one localised area, then you'll have to live with the possibility you made a bad choice of locale etc. In the generalised falling market, as long as you pay your house off, you can always count on the fact you'll be able to sell your house later "at a loss" and buy a similar house that has also declined the same amount. Or upgrade the same way you would if the market was rising by putting more money in. If you have borrowed within your means then no market scenario should worry you imo.