Tuesday, May 15, 2007
The question is can I sleep at night ??
scotsman.com: House costs at crash point
We have reached the point for the first time in our history when our housing wealth now exceeds all other wealth. Housing wealth now stands at £3.8 trillion, while our other savings and investments amount to £3.5 trillion.
In other words, if house prices were to come crashing down, we would all be vulnerable.
"Homebuyers have been taking mortgages of up to seven times their salaries to get on the property ladder, which doesn't leave much wriggle room."
Posted by chris @ 08:50 PM (335 views) Add Comment
2 Comments
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1. Night said...
"We may be facing a £1.1 trillion debt mountain, but this credit is secured against £3.8bn worth of equity."
Sorry?
2. cyril said...
The experts seem to think that the financial problems will be confined to a few people who have overstretched themselves, which may be true for reposessions and that sort of thing, but these things spill over into the general economy.
Just a couple of percent off GDP and the mindset switches from boom to gloom. Especially as most home owners have got used to the idea of getting rich just by sitting on their arses. What will they do if their 'wealth' begins to disappear at an equally alarming rate? Not much they can do really except moan about it because they'll still have to live somewhere.