I have a pal who asked my advice a three years back on buying a place. I told her she ought to wait until things settle down, but she went ahead, and did not speak to the financial advisor I set her up with.
Now she is struggling, and has had to take a couple in and work a second job. All to serve a mortgage that could have been 20% less if she had waited a while.
Have to agree a little with Techno, people buy as though it is always a secure investment, when it is actually a massive long term binding debt.
The problem isn't even one of prices, mortgages or markets; it's greed pure and simple. Even buying a few years ago at the peak wouldn't have been a problem if you had a decent deposit and only took say 70% of what you were offered. That would give enough slack to get away with most of any future fluctuations in house prices or interest rates.
Trouble was some spivvy wee ned in a shiny suit told them they could get £xxx and 'buy' the house of their dreams. And any sense of self-restraint went out the window.
Property is a sound investment if done properly. Even in a downturn. I know several people who have been very smart and made a lot of money. Which is indirectly coming out the pockets of the gullible and greedy masses. This time next year all going well the same plebs will be securing my future as well.
Klein Attitude 2003
(unknown) Carrera singlespeed
Muddy Fox Monarch Team 199?