CEO of mortgage distributor Firstrung Paul Holmes has warned homebuyers and landlords to remember that "property is not a game".

A report by claimed that buyers who do not purchase new build properties are likely to make the biggest fiscal gains.

Typical properties have seen a rise in value of 349 per cent over the past 26.5 years while new property rose by 6.3 per cent per year, the report said.

Buyers were advised by the website to "avoid entering the market near the top –for example overpaying for a new-build flat."

Mr Holmes disagreed, saying that new build homes are sometimes "a great purchase". also commented that those who stay with one house for decades could be operating "the wrong strategy".

But if property crashes and loses value, those who have regularly bought houses are left with large mortgages, claimed Mr Holmes.

Clever people will pay off mortgages as soon as they can, he added.

The Halifax House Price Index noted a rise in house prices of 1.4 per cent in November 2009.

"Property is not a game, but a place to live and we all need to remember that", Mr Holmes advised.

Written by John WeeksADNFCR-2002-ID-19505710-ADNFCR

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