Sunday, Aug 30, 2009
The Advantages of a Falling Market
This is Money: Monday view: Will a recovery in house prices be sustainable?
More than a quarter of people don't live in a house they own. Some of these folk aspire to do so. For them, the greater the fall in prices, they happier they are: a home of their own comes within easier reach.
"Many home-owners would like to trade up - move to something with an extra bedroom, a larger garden, a place in a smarter neighbourhood. For them, too, a slide in prices as a whole is welcome.
Should we feel sorry for those who have seen a collapse in the value of the equity in a home bought two years ago? Of course; their folly has cost them dear.
But not everyone wants to see a resurgent housing market. For some, low prices are thoroughly welcome"
Posted by sybil13 @ 09:09 PM (454 views) Add Comment
5 Comments
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1. Dave said...
Good Evening.
I resent the way you accuse people like myself as acting in folly by buying a HOME two years ago. If I hadn't done so I would have not been able to buy a home now as there are no mortgages available unless you have a massive deposit of around 25% or 69k!!! No it wasn't folly that bought my home it was sound financial judgement. You IDIOTS at HPC as the ones who have committed folly as you pay rent to a landlord who is raking in the cash as you flush it down the drain never to have any return on your money. YOU are committing the folly as I am afraid to say that you have missed the boat or should I say house(!!!) Face up to it your FOLLY has cost you dear!
Dave
2. tenyearstogetmymoneyback said...
"More than a quarter of people don't live in a house they own."
Where did this figure come from ?
People with a mortgage do not "own" their house.
In fact as we have been hearing recently quite a few don't have any equity in it at all.
3. James said...
Does that anger stem from the fact that your house has massively devalued Dave?
I really do feel for you.
Ive been angry, despondent, depressed, felt worthless etc at having worked my ass off for ten years, unable to afford anything.
[Ive already been through the emotional rollercoaster that you are facing.]
The people who are priced out have already lost tens of thousands of pounds having to pay rent.
Likewise.
The people who bought at peak, will lose tens of thousands of pounds of the value of their house, when the market plummets at some point over the next 18 - 36 months.
There are no winners here.
But try directing your anger at the b@stards who deserve it.
Labour let this happen. Encouraged it. And the banks and the property speculators.
If you can afford your repayments then your fine.
If you cant.
Sorry mate, but you should not have borrowed more than you could repay.
4. tenyearstogetmymoneyback said...
Daves post wasn't there when I posted.
However, despite the risk of trolling I will respond.
Having "owned" a house for ten years which wasn't worth what I paid for it
in a Neighbourhood I hated I think I am qualified to say that the property ladder
isn't as great as some people make out. Back in May I could have bought
an identical house at the other end of the terrace I was in for cash, so I certainly
haven't missed the boat (or should that be dinghy).
Instead I am renting a place that (at current prices) I couldn't dream of buying.
In fact even if I got 0% mortgage then I would probably be dead before I had paid
off the capital.
I do intend to buy again. In fact I would buy the place I am in if prices fell to 2002
Land Registry levels.
I hope for your sake that when we get to 2019 you can still feel the same way about your financial judgement.
:- Duncan
Bought 1989 £65500
Sold 1999 £70500
5. Tenyearstogetmymoneyback said...
The finally irony here is that Dave posted his comments about "Missing the Boat"
while Channel 5 was showing Titanic. If you don't know the story, it doesn't have
a happy ending for most of the passengers.
:- Duncan
p.s James. In 1989 I knew lots of people in your situation. By 1995 they were moving straight into affordable
three bed houses (the one I had was worth £48000 back then).