Monday, October 30, 2006
As for the property market...
...it is bloated with grossly inflated house prices. Yes, the rise of house prices is inflationary - there is too much money chasing after unaffordable housing. I watched one advert yesterday where it showed this squeezing into a left-luggage locker sized flat; the Woolwich advertised if the house is too small then they would dish out more money for you to buy your development.
Who is fool enough to buy a house these days. It seems that the economic lessons have not been learned - an economic downturn results in severe negative - houses get revalued and one is lumbered with a headache of large mortgage, in addition economic bring along the obligatory increases in interest rates.
Funny thing is that there appears to be an apparent slow-down in buying a property but, oddly enough, no slow down in the price increases. Property developers and banks will have a lot to answer for when the chickens come home to roost.
Who is fool enough to buy a house these days. It seems that the economic lessons have not been learned - an economic downturn results in severe negative - houses get revalued and one is lumbered with a headache of large mortgage, in addition economic bring along the obligatory increases in interest rates.
Funny thing is that there appears to be an apparent slow-down in buying a property but, oddly enough, no slow down in the price increases. Property developers and banks will have a lot to answer for when the chickens come home to roost.
