Age of home ownership coming to an end...

ILW

chucky wrote: »

because house price drops don't really come on their own exclusively of anything else happening in the economy.

house prices drops are due to issues with the economy which results in unemployment, inflation, lack of economic growth, falls in the availability of credit, shrinking output, currency issues, reductions in trade etc... etc... to take it a bit further if you want lower house prices you also have banks collapsing or suffering massive issues - you know what that means right...

if you want lower house prices you need all of this to be happening around you.

lower house prices are a lovely romantic idea and are probably a good thing but the price will be paid for lower house prices.



be careful what you wish for...

I have no vested interest one way or the other (I own a house which is now mortgage free) but I can see that lower prices overall would benefit many. If this were to mean some pain for a short time for a relatively low number of owners (those that have bought in the last 5 years with high LTVs or those that have taken on additional borrowing) this may or may not be a price worth paying.

StevieJ

ILW wrote: »

To be frank, if a percent or so on your mortgage payments is going to make you default, then you have over commited in the first place, and are at the mercy of any interest rate increase.

If someone has lost their job, the proposed new govt mortgage support is likely to tip the balance if you are on a poor mortgage deal.

ILW

StevieJ wrote: »

If someone has lost their job, the proposed new govt mortgage support is likely to tip the balance if you are on a poor mortgage deal.

I would suggest that cases like that would only be on the margins and very few in number. paying a mortgage with no income can only be for a short period.

Damaged

ILW wrote: »

I have no vested interest one way or the other (I own a house which is now mortgage free) but I can see that lower prices overall would benefit many. If this were to mean some pain for a short time for a relatively low number of owners (those that have bought in the last 5 years with high LTVs or those that have taken on additional borrowing) this may or may not be a price worth paying.

it would only benefit people for so long and I don't think you'll ever see property staying low for a period of time. People will always pay the maximum they can afford.

Exocet

Damaged wrote: »

People will always pay the maximum they can afford.

Rather than the minimum they can get away with?

Graham_Devon

Exocet wrote: »

Rather than the minimum they can get away with?

Isn't it how you shop?

How extraordinary. You don't pay the most you can for everything?

Damaged

Exocet wrote: »

Rather than the minimum they can get away with?

yes good point, but you don't have the same supply of equal goods in the identical location.

Damaged

Graham_Devon wrote: »

Isn't it how you shop?

How extraordinary. You don't pay the most you can for everything?

Indeed but you are talking about consumables not assets!

Graham_Devon

Damaged wrote: »

Indeed but you are talking about consumables not assets!

I'm talking houses. I class them as somehwere to live, not an asset.

Damaged

Graham_Devon wrote: »

I'm talking houses. I class them as somehwere to live, not an asset.

Well most people call them an asset, including the banks, the government and society as a whole.