For some maybe, but I don't follow her logic for most.
If prices crashed the buy in price would be cheaper. The deposit would be a greater percentage of the purchase price and any loan required would be less. Interest rates would be lower.
Of course finance would be more difficult to get and more people would be unemployed (but still, most people would be employed).
What makes houses more affordable is people having the funds to pay for them. Good paying jobs and job security is the key.
Common sense is a curse - those who have it need to suffer dealing with those who don't have it.
The bull logic in this thread is a NONSENSE: "If houses aren't dearer the banks won't be able to/want to lend you enough money to buy them" ...
Fuck orff ...
It's not bull logic. It's the way the system works. In a rising market valuers are prone to overvalue and in a falling market they are prone to undervalue. Banks also go risk-off when the market has been falling. It's a positive feedback loop and it sucks, but it is what it is.
The truth will set you free. But first, it will piss you off. --Gloria Steinem AREPS™
Your name can be thrown in as another shill, paid or unpaid. This site is a joke at times, it becomes increasingly harder to see it as a genuine forum when characters like this a rolled out as the voice of the 'average' bloke next door who just worked hard and built wealth through property.
The psychology behind such characters is quite interesting. If you wre so inclined to believe this site was a mouth peice for vested interests then you need to consider their motives. Some would say it's a means to net those people, mainly 24-35 yrs old who are frustrated with the inequality in the market and are looking for answers for what they believe is a helpless situation.
Disillusioned they turn to the only place they get information, doctor Google. They search property forums to become more educated and what do they get? They get an education from a bunch of paid shills working on behalf of vested interests on multiple sites who tell them they are fucked if they don't buy now, that they will be poor for a life time and that buying is really easy and hesitation or contemplation is a sign of weakness and a sign that you will never be successful in life.
I used to laugh at people like BB from bubblepedia who talked at nausea about so called paid posters but Emmanuel might be swaying me, along with Bardon, Shadow, Skamy to name a few.
In reality I know two people who have been very successful with property, both laugh at the thought of posting on a forum about it and or arguing with ransoms about its pros and cons. You then have to question who are these people who come on here day in day out raging against any negative comments made against australian property.
Bears raging is logical but Bulls posting on here with such passion is really non sensical, then you need to consider why a site like bubblepedia was fire bombed?
Food for thought, might be just me but BB seems to of been onto something.
Bubblepedia shut as Dan thought his mission done, let the domain laspe and history.... Paid shills woul not be value for buck on a forum like this, MSM comments, yes, APF, no way. No the raging bulls are here as they have time on their hands and think they have property to support being a non paid anon poster... or not...lol
... If there's no money to buy, then there's no money to build too, so supply will dry up ...
In theory one might assume that. But not necessarily so in practice perhaps with the article stating: "official figures show that, even after the housing driven financial crisis, the US is still building more homes that it has new households to occupy them".
Super simple. Look at US and Ireland (the cases she was added to discuss, plus UK).
Huge housing price crashes, but hardly an improvement in affordability. Some combination of worse income prospects (unemployment, weak wages), tighter credit (do you think the banks will be as happy to lend so much when prices have fallen so far?) and reduced new supply. Dismiss her all you like but there has never been a case of a major crash on prices that made it massively easier for FHBs.
Super simple. Look at US and Ireland (the cases she was added to discuss, plus UK).
Huge housing price crashes, but hardly an improvement in affordability. Some combination of worse income prospects (unemployment, weak wages), tighter credit (do you think the banks will be as happy to lend so much when prices have fallen so far?) and reduced new supply. Dismiss her all you like but there has never been a case of a major crash on prices that made it massively easier for FHBs.
FHBs were not mentioned by Ellis - But it's 'touching' to see bulls continue to state their 'concern' for their plight of course ...
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