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Debate House Prices
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12 reasons to not buy a house
Comments
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Those that benefitted from the boom yes. Many haven't.
Many lost because of the bust - and are stuck with negative equity.
That's the only reason we are even having this 'discussion'. Some bad experiences due to buying high back in 2005-2007.
But right now the sense in buying, particularly now at unbelievably low prices, is more clear than ever.
Don't let the unlucky people's experience completely cloud your judgement.
150k can buy a stunning house/home right now - something that was worth 400k just a few years back. To OWN. Anyone just starting out - like myself - can profit massively from this recession.
But yeah, we need renters too to keep the market working.0 -
The market is still not stable and the risk of a severe bust is higher than ever. The Eurozone is on the brink now and if that goes under debt is going get very expensive.Many lost because of the bust - and are stuck with negative equity.
That's the only reason we are even having this 'discussion'. Some bad experiences due to buying high back in 2005-2007.
But right now the sense in buying, particularly now at unbelievably low prices, is more clear than ever.
Don't let the unlucky people's experience completely cloud your judgement.
150k can buy a stunning house/home right now - something that was worth 400k just a few years back. To OWN. Anyone just starting out - like myself - can profit massively from this recession.
But yeah, we need renters too to keep the market working.0 -
That is the benefit of buying many years ago. This way clearly unsustainable and a correction is taking this back to a realistic level.A lot is made of the boom but if prices had just kept up with wages my house would be worth about 10 to 15% less but I would still own it and living here rent free which would not be the case if I had rented.0 -
The market is still not stable and the risk of a severe bust is higher than ever. The Eurozone is on the brink now and if that goes under debt is going get very expensive.
So buying is too risky in case of complete economic collapse?
Is that what you're saying?
How would debt get "very expensive"? Please expand.0 -
The money that people borrow is leant to the banks. The banks rely on a decent credit rating to get this cheaply. Eurozone collapse will decimate the credit rating of the UK and banks as so much money will be lost. Those that can still borrow will be doing so at incredible prices. There are of course other issues to consider such as increased joblesses etc. The base rate will do nothing to help as it will be so small relative to the cost of borrowing. You're in a good position if you have no mortgage or will pay back within your fixed interest window.So buying is too risky in case of complete economic collapse?
Is that what you're saying?
How would debt get "very expensive"? Please expand.0 -
That is the benefit of buying many years ago. This way clearly unsustainable and a correction is taking this back to a realistic level.[/QUOTE
This correction is taking things back to a normal levels but lets not confuse the mid 90s with normal levels and most people will have bought a long time ago when they have paid for it. But as I said what real difference does the 30k or so my house has increased above wages make to me but if I had rented I would still be renting.0 -
The market is still not stable and the risk of a severe bust is higher than ever. The Eurozone is on the brink now and if that goes under debt is going get very expensive.
Why will it get very expensive?
Sorry I've just seen you answered that.
So hostorically, you think after a major debt crises that we have deflation rather than inflation?0 -
That is the benefit of buying many years ago. This way clearly unsustainable and a correction is taking this back to a realistic level.[/QUOTE
This correction is taking things back to a normal levels but lets not confuse the mid 90s with normal levels and most people will have bought a long time ago when they have paid for it. But as I said what real difference does the 30k or so my house has increased above wages make to me but if I had rented I would still be renting.
I don't think renting is good long term. It is a good short term position, especially when the Eurozone storm is just about to get started. It will make the last credit crunch look like bonus day.0 -
heathcote123 wrote: »Why will it get very expensive?
The debt will be borrowed at incredible rates, well over 6%. This is especially high considering it is currently negative interest.0
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