With house prices seeming like they are in a perpetual downward spiral, many people are in the headset of buy or not to buy. With leading people in the mortgage and housing side of business saying the wise move at the present is to rent for a while and see how the market develops. Obviously for those attempting to get onto the housing ladder there is hope that the ridiculous trend of disproportianate housing prices that has developed through the irresponsible behaviour of all the major and lesser lenders will finally shift in the other direction. At the other end of the spectrum those that have just got on the housing market with house prices bloated by the excess of credit, they are hoping that prices wont drop to much and interest rates will stay low so that they don’t fall into negative equity and not be able to afford the repayments. As always those that have been on the market for some time are in a better place though interest rates affect us all.
It does seem though that the those that we give some credit in being responsible e. g. mortgage lenders and bank managers have no interest in the people they are lending cash to and are in fact just looking for the money line, if this isn’t the case then surely the cash wouldn’t have been loaned out to people that really couldn’t afford the repayments in the first place. But after all who am I to say, after all the managing director’s of any of the banks will get a healthy bonus for just appearing in a position of irresponsibility and we cant do anything about it, other than hand over the keys to our homes that we can no more afford or lash out rent in greater than that of a mortgage repayment but be incapable to save enough to build up the 5 – 10% down payment (not including solicitors costs, removal, and survey costs, but ah well, maybe I’m just being pessimistic!).
If you remove the stupidly rich out of the figures and look at the real amount of what people are earning in this country (meaning anywhere other than the bubble that is London) f20,000 a year between a couple is more normal than f20,000 each. How then are house prices in the state they are? Again we need to look at how the banks are gambling our credit to make themselves (sorry, I mean the share holders!) more by selling it on, to the highest bidder, and every party in government and out of it, lets these people (whose main objective as a business is to make money for themselves) manage parts of the economy?