Juan:'Peter, do you own your house?'
Peter:'Yes, I do. It's mine. I purchased it 5 years ago. And you? Do you own your house?'
Juan:'No, I don't. I rent mine.'
Peter:'If you don't mind me asking, how much money do you pay in rent each month?'
Juan:'I pay £900 each month to the owner of the property. But I want to buy a property, you know a house or an apartment.'
Peter:'I understand. But you should be carefully. When I bought my house, it cost me £450,000. But because of the crisis in the economy, its value has decreased a lot. So, if I tried to sell it now, I would get a lot less. But at the moment, nobody wants to buy property. Plus, when I bought the house I had to pay for a solicitor (which is a type of lawyer) to organise the legal documents. And solicitors charge a lot of money for doing this service. My solicitor charged me £4,300.'
Juan:'So, what is your house worth now? How much money could you sell it for?'
Peter:'A similar house in my street was sold for £360,000 last month. So I suppose it's now worth between £360,000 to £370,000. So, if I could sell it I would make a loss of about £80,000. But to be honest, I think when I bought the house, I overpaid. 5 years ago, my house wasn't worth £450,000. I should have paid £420,000 for it at most.'
Juan:'My god! You have lost a lot of money.'
Peter:'Yes, I have. But the property I had before my current house, I made a profit when I sold it, a very big profit. When I bought it, I paid £92,000. When I sold it 8 years later, it was worth £230,000. So I made a profit of £138,000.'