Jump to content
House Price Crash Forum
Sign in to follow this  
alabala

Houses Are For Living In!

Recommended Posts

http://mortgages.blogs.ie/2007/07/03/house...ling-good-news/

The media here in Ireland can’t make their minds up. If house prices are rising - it’s bad for new buyers who can’t afford a house - but when house prices fall they start acting worried and make out it’s a bad thing.

Houses are for living in - lower house prices should be good for people who want to own their own house. Lower prices of housing and easier affordability should be seen as a positive thing. Of course developers and speculators and estate agents will not see it that way - because it means less profit for them. Home owners who have already bought a house may feel that lower prices mean that they are living in a house that they have paid too much for. They might think that lower prices may make it more difficult for them to trade up to a bigger house. This might not be the case - because if house prices generally fall - then bigger houses will fall by the same percentage as smaller houses and will be more affordable.

People who are planning on downsizing might not have as much capital left over if house prices drop - but why should we worry too much about these people who have the mortgage paid off?

Landlords and people who buy and sell property for profit will be worried - but should the rest of us who buy houses to live in be worried? I don’t think so. Would we be upset if the price of dvd’s or computers fell? I don’t think so. Prices fall because people won’t pay high prices and the market has to adjust accordingly.

Negative equity affects 10,000 homeowner

http://www.sbpost.ie/post/pages/p/story.as...5184-qqqx=1.asp

Up to 10,000 first-time buyers who bought homes over the past year are experiencing negative equity - meaning they now owe more than their home is worth.

Share this post


Link to post
Share on other sites
http://mortgages.blogs.ie/2007/07/03/house...ling-good-news/

The media here in Ireland can’t make their minds up. If house prices are rising - it’s bad for new buyers who can’t afford a house - but when house prices fall they start acting worried and make out it’s a bad thing.

Houses are for living in - lower house prices should be good for people who want to own their own house. Lower prices of housing and easier affordability should be seen as a positive thing. Of course developers and speculators and estate agents will not see it that way - because it means less profit for them. Home owners who have already bought a house may feel that lower prices mean that they are living in a house that they have paid too much for. They might think that lower prices may make it more difficult for them to trade up to a bigger house. This might not be the case - because if house prices generally fall - then bigger houses will fall by the same percentage as smaller houses and will be more affordable.

People who are planning on downsizing might not have as much capital left over if house prices drop - but why should we worry too much about these people who have the mortgage paid off?

Landlords and people who buy and sell property for profit will be worried - but should the rest of us who buy houses to live in be worried? I don’t think so. Would we be upset if the price of dvd’s or computers fell? I don’t think so. Prices fall because people won’t pay high prices and the market has to adjust accordingly.

Negative equity affects 10,000 homeowner

http://www.sbpost.ie/post/pages/p/story.as...5184-qqqx=1.asp

Up to 10,000 first-time buyers who bought homes over the past year are experiencing negative equity - meaning they now owe more than their home is worth.

You (or the writer of the blog, if it's not you) have rebutted your/his own argument: the people who will lose out directly will be those who end up in negative equity (whether they are landlords or OOs). The exchequer will also lose out from falling property transaction taxes; essentially house buyers have been subsidising other tax-payers through this levy, so you could argue that all tax payers will have to start paying a fairer share. Downsizers will also suffer compared to their previous position.

In a broader sense, everybody who has been living high on the back of the miracle economy will have to tighten their belts. Holders of pension funds or other vehicles invested in mortgage-backed securities might also suffer.

Winners will include FTBs and debt-free OOs who wish to trade up (less stamp duty).

EAs will suffer mainly because of falling volumes, not falling prices, IMO.

Edited by huw

Share this post


Link to post
Share on other sites
You (or the writer of the blog, if it's not you) have rebutted your/his own argument: the people who will lose out directly will be those who end up in negative equity (whether they are landlords or OOs). The exchequer will also lose out from falling property transaction taxes; essentially house buyers have been subsidising other tax-payers through this levy, so you could argue that all tax payers will have to start paying a fairer share. Downsizers will also suffer compared to their previous position.

In a broader sense, everybody who has been living high on the back of the miracle economy will have to tighten their belts. Holders of pension funds or other vehicles invested in mortgage-backed securities might also suffer.

Winners will include FTBs and debt-free OOs who wish to trade up (less stamp duty).

EAs will suffer mainly because of falling volumes, not falling prices, IMO.

Agreed, but me thinks the thread of a good argument does lie with in the title.

With the exception of investments, which we want to see rise in value, there is very little else that we are not happy to see fall in price? If house are not investments, as many people seem to keep saying, then lower house prices should not be threatening.

I know is it not as simple as this, but the only point I am trying to make is that the Title of this thread does pose food for thought.

AFP

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 350 The Prime Minister stated that there were three Brexit options available to the UK:

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.