I'm sick of hearing with the increasing population and housing shortage, it means property prices will rise.
OK, let's say interest rates rise to 15% and oil goes to $200, so that existing properties become completely unaffordable. That's right, we get to a point where lots of people simply cannot stretch their budget any further. You tell me how properties can continue to rise under this scenario.
Wezwaz. Heven forbid that they do, but if they do, It will be time to invest in tent manufacturing. There is always an opportunity.
You could always buy a house with lots of bedrooms and rent out by the room. As you say the property may not rise in value by much, but think of the return on investment you could get. Peopel still ned a roof over their heads and the Govt only has a few roofs.
hi jon,
do you now much about renting houses out by the room?
can you still get landlords insurance.
will realestate agents still manage your property for you, renting in this manner?
are there any other difficulties in doing this?
thanks for any reply.
frosty1
Yes, the cost is more expensive.. some real estate agent charged up to 10%
landlord insurance… give them a ring… as they are different depending on which insurance company you are with.Off topic. Please start another thread.
So no-one disagrees with what I said in my original post?
In the 1980's I was selling property when interest rates were over 18% and while oil wasn't $200 a barrel, most families only had one car. Perhaps we will learn to adapt and change our lifestyle to suit our circumstance. I don't see house prices dropping significantly just because some people want them to. We forget very quickly that house prices dropped by around 30% in the 80's around 12% in the mid 90's and again in 2003 abd yet we still have record prices. Even if they drop by 20% this time the real question should be how quick will they return to the past highs? The smart money is on aquisition if it is affordable.
Fosty1. Sorry I have no experience with flats or multiple occupancy. My comments were a throw away line.
wezwaz wrote:I'm sick of hearing with the increasing population and housing shortage, it means property prices will rise.OK, let's say interest rates rise to 15% and oil goes to $200, so that existing properties become completely unaffordable. That's right, we get to a point where lots of people simply cannot stretch their budget any further. You tell me how properties can continue to rise under this scenario.
Who says this? if they are saying that and assuming everything else stays constant then its probably true……academic supply and demand stuff but true. You would think that population growth will sustain demand for houses and that it may inflate rentals. Added to this housing stocks in desirable locations (in some places in any location) are low. Increasing population is a reality and is impacting some cities more than others. This must add to the demand side of the equation.
You can "OK lets say (insert bad thing here)" and people dont have enough money to spend on housing then yes prices may flatten or go down. Who knows really, if the market is (roughly) 1/3 owners , 1/3 buyers and 1/3 renters I would expect us to trend towards more renters and the landlord class to expand , like parts of Europe. If the landlords and owners can still afford to do business with each other prices may not retreat.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
