Why do some first time buyers pay ludicrous prices for property, when prices are expected to crash?
Friday, July 24th, 2009 at
12:13 pm
According to the IMF, Ernst and Young, and the Office for National Statistics, house prices are still considerably overvalued. Given that prices rose from £57k in 1997 to £198k in 2007, and have only fallen to £161k despite rising unemployment and tightening lending criteria, why are FTB’s even considering paying such absurd amounts for property when the average salary is only £23k?
Repossession
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Tagged with: Average Salary • Crash • House Prices • Imf
Filed under: property crash
Sometimes because they make the terms so easy for first time buyers to get them sucked into buying.
The statistics you quote house prices have started rising again albeit slowly in parts of.
omdat prijzen arent die wordt verondersteld om te verpletteren. zij verpletterden vorig jaar, maar de neerstorting werd gecompenseerd door huistekorten die de neerstorting ondieper en dan verwacht korter maakten. mits there' s ook weinig huizen voor teveel mensen, bezit zullen worden overgewaardeerd.
Those wouldn’t be the same “experts” who 2 or 3 years ago told us that house prices couldn’t go down, would they?
Hint: It’s ALWAYS a good time to buy and it’s NEVER a good time to buy. Take your pick.
Because they buy into the lie perpetrated by all Governments.
Inexperience and they think that mommy and daddy are always going to be there to bail them out.
El FMI dijo que los precios de la vivienda en el Reino Unido eran cerca los alrededor 30% demasiado caros. Pienso que son incorrectos – son demasiado caros por m
For the same reason others buy gold.
Like gold, land is finite, not least land in a reasonably benign part of the world such as the UK. There is only one Earth to support a human population that demands three. So anyone with land is sitting on an appreciating asset for as long as the world’s human population keeps exploding.
When the value and meaning of many major currencies is brought into doubt – because of bubbles, deregulated creative accounting and precious little industry to support that currency – then anyone with any money at all or cheap access to it (remember the base rate is 0.5% and will remain so for a while) will buy either into gold or into land. You can’t live in a house made of gold bars, unless you are very wealthy indeed!
If there is a hyperinflation when interest rates become a burden, then even 6-figure debts will vanish into dust. Imagine if they were in Zimbabwe dollars a year or two ago…
Iedereen wordt toegestaan minstens één fout in het leven.
Desperation to get on the property ladder, and don’ forget if it all goes pear shaped it is now much easier to declare themselves bankrupt and let everybody else pay for their mistakes.
Sometimes I think there may be a bit of a scam involved.