What is the Problem IF PRICES FALL? For anyone MOVING it changes nothing since the price of the house you’re moving to will fall proportionately.
If you’re selling to put all the proceeds into prime Florida swampland then you’ll get less cash, but EVEN IF PRICES FALL you’ll probably get vastly more than you paid for the house.
The UPSIDE is that HOMELESS PEOPLE or those living in rented accommodation start to have a chance to buy their own home. The headline writers never seem to bother about those people. This is really bizarre.
And property prices MUST fall. The humungous and ultimately catastrophic “booms” in Japan and Ireland were caused partly by housing bubbles, and bubbles, as we NOW all know (though Woolverstone Hall School pupils knew this already because we studied the “South-Sea Bubble”), tend to BURST at some point.
Property rising at above increases in wages is ONLY good news for the haves, not for the have-nots, and even then it is NOT good news for anyone in the long-term.
To be honest, houseowners gloating about how much their properties have risen in value is pretty nauseating if you are excluded from the trough ……
PS RENTING v OWNING?
You rent a home for 20 years. At the end of that, you own nothing. You pay a mortgage for 20 years, and at the end you own your house. If your income drops for some reason, at least you don’t have to worry about the rent. And living in your OWN home gives you – in my opinion of course – a totally different outlook on life and your position in society. I have both owned and rented properties in the last 10 years and this opinion derives from the experience.
Apart from all that, if you own nothing then A) you can’t flog it and use the money to pay for a retirement home and B) you have nothing to leave to your kids, and if that is the case then THEY may well have to spend many years or all their lives renting, too.
I have to say that all the above seems to me to be bleedin’ obvious, but politicians of all hues rarely seem to refer to the desirability of increasing as far as possible the number of homeowners.
The last person who DID make a fuss about this was, errmmm, Oh dear … I’ve forgotten …… and anyway she was always accused of trying to do it for the wrong reasons.