Looking on the positive side: Why falling house prices are a good thing

carolt

http://www.guardian.co.uk/business/2008/apr/13/housingmarket.houseprices

"Amid the horror-struck headlines at the prospect of a substantial fall, we are in danger of missing an important point: high property prices are not a good thing. Most homebuyers have not genuinely become richer as a result of the runaway property market. People who bought a number of years ago have made large gains on paper, but if they are still in the same house, the reality of their life has not improved, and if they traded up, they have had to pay commensurately more for the privilege.

Those with children have either had to release large amounts of equity to help them on the ladder, or to allow superannuated offspring to stay in the family home. High prices are socially divisive and act as a brake on aspiration; young people without housing-rich parents have had little chance of buying themselves, even in a well-paid job."

nearlynew

..* bump *

Dirk_Rambo

nearlynew wrote: »

..* bump *

by anyones standards this is a quality bump

nearlynew

Dirk_Rambo wrote: »

by anyones standards this is a quality bump

Thank you.


I hope carol and her fans like it.

Dirk_Rambo

nearlynew wrote: »

Thank you.

no nearlynew, rather thank you for the timely bump. its much apreciated

carolt

Some good searching there.

Congratulations.

new_home_owner_3

carolt wrote: »

Some good searching there.

Congratulations.

ive done some of my own i hope you apreciate it.....

bigheadxx

Rising property prices, the price we must pay for Labours borrow and spend of the last few years.

Sibley

The only people who dont want property to rise dont own.

I think it's seeing your asset has risen. Your future is much better.

wymondham

Sibley wrote: »

The only people who dont want property to rise dont own.

I think it's seeing your asset has risen. Your future is much better.

Not Here!!

I benefit nothing by my (mortgage free) house increasing in value as it's not in isolation. Maybe if oil was discovered in the garden it would be a different matter!

I would be happy if it were the same price today as it was when I bought it (£36k!)

Prices need to drop so standard people on standard wages can afford a standard house. simples!

Emy1501

Sibley wrote: »

The only people who dont want property to rise dont own.

I think it's seeing your asset has risen. Your future is much better.

Are you sure about that? my parents own 5-6 properties but they want prices to fall because they have seen how hard it is for the young to buy at a reasonable price.

Can you and other tell me the benefits of prices rises for those who own one house?

From what I can see if my house doubles in value it makes no difference to me because either the next house costs more money or if its my last house then I live in it till I die and pass on the money to my kids. In the meantime my kids pay double interest on buying a house until I die. The only people I can see really making money are the banks who are making money from the those who are taking on more and more debt at higher and higher margins.

How many people actually own 2 or more homes and therefore actually make any real money from HPI. Its an illusion all this HPI wealth. There are old people around living in a house with maybe 100K+ equity who can't afford their heating bill because the wealth only gets realised when they die as Downsizing is only really suitable for rich and well off not average joe.

I don't agree falling prices are great for the country I suspect in the end the debt will have to be inflated away and everyone will have to start again. I'm amazed though that people after seeing what the Credit Crunch did to US and especially the middle to lower class actually still want to believe that HPI is good for the country as a whole.