devaluation is a relative concept. If you own your home(ie no mortgage) then it doesn't matter because if you wish to sell up and move to another premises then relatively speaking you will be able to purchase another home at a 40% discount....and if you wish not to move and stay where you are then it doesn't make any difference at all. On the other hand if you bought at the peak and borrowed the lot, and you can't pay it off and are forced to sell....then you are in trouble!!
