FALLING HOUSE PRICING...
Nothing could be more natural than UK house prices falling. I read various estimates about just how far and for how long they will fall but fall they will and there ain't NOTHING that our politicians can do to stop it. Why? Because prices have risen to an unsustainably high point and they now need to come down. I reckon that anybody who has bought a property in the past year or so will find themselves in negative equity and will be faced with the short-term prospect of paying out more than their property is now actually worth. If they sell short-term, they lose out big-time. In a way that is a good thing since it is the only way to take the heat out of an already inflammatory market and the expression caveat emptor remains the best advice anyone can get.
David Vance
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Seeing as the country still has a shortage of homes I can't see house prices doing anything other than rise again in the long term. House prices today are still far higher than they were right before the last big price crash so even someone who bought at the peak of the market last time round still made money in the long term.
I've never understood why governments, the media and pretty much everyone else considers rising house prices to be a good thing when inflation in any other field is considered a bad thing. When property prices rise it is in effect a transfer of wealth from those that aren't on the property ladder to those who are.
it will affect different people in different areas. id say plenty of outlying rural and suburban commuter developments are fairly overpriced, the same could possibly be said of urban apartment complexes, which are in a pretty saturated market. either way, if you have been living in houses to make a profit then the game is up.
I've never understood why governments, the media and pretty much everyone else considers rising house prices to be a good thing when inflation in any other field is considered a bad thing. When property prices rise it is in effect a transfer of wealth from those that aren't on the property ladder to those who are.
inflationary systems suit anyone with assets. but as for why the government etc consider it a good thing, id ask yourself the question what else has been propping up the economy for the last 8 years? answer, a consumer credit bubble that has relied on asset equity growth to secure future credit.
Its a great scam the banks have going. and worth learning about just how they operate. as the saying goes, its so easy that the mind is repelled.