Fear

Fear and its impact on the housing market.

Fear in terms of the housing market is being afraid that if you do not buy now then you will lose out by not being able to afford to buy in the future.

Fear has driven the housing market almost as much as greed. In the same way as greed, fear also clouds judgement and also makes common sense go out of the window when it comes to taking risk. Fear makes you lose the ability to judge a property's true value and fear will also make you mortgage yourself up to the hilt and beg, borrow and steal to get on the housing ladder.

The danger here is that many people are stretching themselves too much and exposing themselves with very narrow margins to probable financial difficulties.

Having an interest only mortgage a few years ago withough having some other form of investment with which to pay back the capital at the end of the term was alost unheard of but now it has become common place...all because of fear!