Property does not exist in a vacuum. Situations differ.
Would you have told Freddy to have bought at the height of the last crash; say a flat in Manchester circa 2008 using this same logic?
Context is key.
Both Spyguy, myself and others have asked you a simple question; why do you defend/diffuse the potential impact to the wider economy IO mortgages may have, which directly affects a momentous purchase such as a house?
I would contend that you simply do not understand how housing is not a linear purchase. To re-iterate the obvious no-one here has told "Freddy," NOT to buy a house. We have simply asked YOU why you feel a massive tranche of suspicious loans maturing at once with no repayment provisions being confirmed (Beyond "Cos the people said they have them and I believe them; Y'know the same ones that lied to get the mortgage in the first place")
You have created a fictional person to press home a point that was never made; namely, what effect if any will IO mortgages issued during the credit boom have on the housing market and economy. You contend continually that it will have no impact. Many disagree with you. No-one said anything about Freddy until you brought this up and even then you assumed we're all telling him to NEVER buy; which we're not.
On to Freddy and all of us denying him a life of splendor. Tell us:
Where is Freddy in his life?
What does he do for work?
Who does he have a responsibility for?
What is his inheritance?
What are his savings?
What are his goals?
How is his health?
What are HIS values?
Where does he wish to to take his life?
Or are you the
"Rent is dead money; buy anything NOW NOW NOW NOW or you'll regret it" Irrespective of context brigade?
We can advise Freddy accordingly. For example 2 friends of mine both with families were happy to buy as they had a good deposit, could weather/didn't care about falling house prices and were happy to live in one play for the next 20 years in an area away from the most inflated of house prices.
You know what their good knowledge of the current market and info I provided allow them to do? Make better offers and make better decisions for themselves devoid of hubris or blind faith.
You misunderstand if you think anyone here critiquing you is against buying a home NOW; in fact MANY HPC posters have bought, are buying, will buy and have fully paid houses/ current mortgages etc. You should take your own advice and stop straw manning and answer why you think IO mortgages, despite all the evidence, are not really a systemic issue that will affect the economy further? So far you've said:
Muh Freddy has to buy
I believe the respondents to that survey about IO repayment vehicles
anything else we're missing as to your point vis-a-vis this thread?
Well everyone felt they "Needed to" so as to grow their "Money," but I understand your general point; housing is ALWAYS needed. The point I was raising was how speculation can irrationally drive high prices for any market; which housing has become. Housing IS a speculative market NOW.
If you must know, I think everyone deserves a good home but call me a hippie commie.
You've literally laced yourself in irony also. It's not "Us," but the very mortgage holders you have trusted to tell the truth on repayment plans for IO mortgages, that have treated housing as a speculative asset and that have caused the very issue of denying Freddy a necessary home at a reasonable price wither through social housing, political economy or correct pricing of rent or sale price.
2 and a half house price crashes in 40 years, say that you need to read more history on house prices. What you've stated is literal financial illiteracy. The sentiment that the benefit to oneself that a home gives - which may be true - is itself beyond loss or gain is just sheer ignorance on your part.
Just ask anyone who was in negative equity or anyone forced to keep a roof over their head as "They have to keep up with mortgage repayments," following a career change or job loss.
You do realise people move for work? Or rent? Or have inheritances? Where is Freddy in this? Or is Freddy a working-class non-family wealth lad?
When i moved to London I rented something small; as I gained promotion I had the option of renting better or purchasing via saving for a deposit and still have both options. It's not a binary choice of "Mum or Die trapped." You also ignore grandparents which are proper chill btw. 😎 Especially those with large freehold 5 bed houses enjoying HPI and perhaps a nice BTL portfolio of houses with the very IO mortgages you see as being a non-issue.
So stick with the issue; what makes you think IO mortgages issued during the credit boom years do not pose a systemic risk to both the economy and house prices?