Renting vs Mortgage

Oyanji

I read a news story online earlier saying that the majority of people will probably rent for life due to it being harder to get on the housing ladder, what effect will this have in the future? Surely nobody buying houses would force prices down, leading to people who are renting now being able to buy? Which would in turn mean that most people will still end up buying a house, just not at this moment in time.

powerwin

The main effect of it being harder to get on the housing ladder will be a greater inequality between the rich land owning classes, and the poor first time buyers.

Presently artificial factors are at play in the housing market, as the taxpayer has bailed out the banks, when in reality the banks should have faced their dues of bad risk management from the capitalist system which they embrace. Had the bail out not happened, there would have been a major correction in the property market and less inequality. As it is, inequality has just been increased.

Rgds

CLAPTON

Oyanji wrote: »

I read a news story online earlier saying that the majority of people will probably rent for life due to it being harder to get on the housing ladder, what effect will this have in the future? Surely nobody buying houses would force prices down, leading to people who are renting now being able to buy? Which would in turn mean that most people will still end up buying a house, just not at this moment in time.

obviously complete and utter nonsense
of course the majority of people won't rent for life
yes it is currently harder to buy property than it was 5 years ago but still the majority will end up buying there than renting albietly a little later than formally