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Originally Posted by jonboy
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how do people afford to buy houses nowadays?
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It's a huge problem. One day the property market will have to crash big time. Property is bizarrely over-priced and first time buyers haven't a hope in hell unless they have two full-time incomes and mortgage themselves up to the neck - and then realise that it's actually impossible to have kids unless they give up and go on the dole.
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Ive been waiting for this to happen too but since the changes in the law to allow pension funds to purchase residential property as inverstments means that we will all end up as tennants paying off other peoples mortgages for them as there will be very little actually worth buying that hasnt already been bought by fund managers who dont care what they pay for the property (ie value for money wise) as long as they can let it and hav it cover its costs.
Some of my clients i have even advised o take a loss on the monthly rental figure as the growth of the asset over the 5 or 10yr period will mean hey are quids in when they sell it.
Its a bit of a joke really but i cant see how or why the market will crash. Its gonna go on like this, imho, until the buying public just refuse to buy anymore as they have lost confidence in the market and then sellers will be forced to sell. But that may put them in a negative equity situation which means they wont be able to sell or will end up banrupting themselves too cos they are so mortgaged to the eyeballs.
Either way, its not agood situation and one of the primary reasons why i left the property sales industry. Its just so wrong and soul-less.