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Showing content with the highest reputation on 04/06/11 in all areas

  1. 1 point
    A house price crash is invariably the trigger to a deep and nasty recession. If you want falling house prices, you have to accept that they'll probably take down the wider economy with them. Perhaps that's a compromise you're happy with. But having just lived through my third recession, and seen first hand the misery that friends and family have endured, I struggle to see that it's remotely a price worth paying for a cheaper house. Well that's certainly an interesting perspective. Thing is though, it's not the multiple property owners that get hurt the worst. In fact in the UK crash, they've been the ones to make out like a bandit as rents have soared to record high levels and low rates have made their profit margins that much bigger. The people that got hurt the worst by the UK crash were the formerly priced out generation, now the locked out generation, unable to get mortgages without a stupidly high deposit, forced to be stuck in rentals for a decade enriching their landlord. And the young of course, as youth unemployment has soared to a million, hurting the very "children" you claim to be looking out for. I know a bloke in the UK that looked forward to falling house prices.... Until he lost his job from the associated recession and had to spend that hard saved deposit fund paying the bills for 18 months til he found a new one. On less money.... He's now further away than ever from buying, and is quite happy to admit he was dead wrong about wishing for a crash. It'd be great for houses to be more affordable, but only a fool or a masochist wishes for a crash. What sane people should be hoping for is a decade of stagnation whilst wages rise and house prices fall in "real" (inflation adjusted) terms.
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