Obviously if you have multiple properties and they all go up in price, then yes you can make very handsome profits as their values will far exceed the mortgage costs when you come to sell them, but if you only own one main property then the story is less clear-cut.

It's a common misconception that every homeowner is rolling in cash after the recent property boom that has lasted several years now, but the truth is somewhat different.

The fact is that you can only realise any profits when you come to sell your home, but if you want a similar sized property in the same area, then you be paying roughly the same amount to buy another property. So in this instance, you haven't actually made any money yet from owning property.

One way to realise profits from rising house prices is to sell your property that has risen in value and buy a smaller property in the same area, although this isn't always desirable unless you're retiring or your kids have left home and you don't need as much space.

Another way is to consider moving to a cheaper area as this will allow you to buy a similar sized property and realize some profits at the same time.

The basic point I want to get across is that any profits you may have locked into your main property is only paper profits until you come to sell the property, and even then you can only realize any profits by spending less money on your next home.

Rising property prices are all well and good but unless you've struck gold by buying in a booming up and coming area, then yes your property may have gone up in value, but so as everyone elses as well, which makes it extremely difficult for you to climb up the next rung of the property ladder.