I have read in newspapers etc comments like, "the property market is having a healthy recovery"
Can someone tell me how house prices at 7/8 time income and rising is healthy?
I would have thought it would unhealthy as more dept, more household income has to go to service a HUGE morgage (comapared to international standards that are usually about 3 times income in USA etc)
Even if you own a property and the price rises in REAL TERMS you are no better off because if you want to sell the property and buy a similar one, it would have risen about the same rate to.
So why is this seen as healthy by the media, when it reall UNHEALTHY
Alexis when you say lower interest rates are doing their job, whats going to happen in a few months when interest rates rise, and you have to have a 25/30 year loan to service it?
How can people be so short-sighted not to realise this?
Can someone tell me how house prices at 7/8 time income and rising is healthy?
I would have thought it would unhealthy as more dept, more household income has to go to service a HUGE morgage (comapared to international standards that are usually about 3 times income in USA etc)
Even if you own a property and the price rises in REAL TERMS you are no better off because if you want to sell the property and buy a similar one, it would have risen about the same rate to.
So why is this seen as healthy by the media, when it reall UNHEALTHY
Alexis when you say lower interest rates are doing their job, whats going to happen in a few months when interest rates rise, and you have to have a 25/30 year loan to service it?
How can people be so short-sighted not to realise this?