Residential Rental Sector Collapses

[just_society]

Canny Non-Savvy best option is to sit tight as the more people panic the worse it gets as proven in previous property slowdown. The beauty of the market is that it corrects itself over time, dogs will still be dogs but investing in anything comes with the caveat that you can lose all your money.

True, but I know quite a few people who bought 2/3 years ago in cities that they no longer live in. If the value falls then the best case for them is a lot of hassle keeping the place maintained for tennants. Worst case is an inability to sell, or find tennants.

[HanleyS]

Its like the crap about negative equity. If the €300,000 house is now worth €250,000 and you are paying the mortgage, have no intention of moving and are happy then what relevance has the drop in price or for that matter the property to be worth €350,000.

Negative equity is only avoidable for those who can afford the time to wait until the prices fall. It would be silly for these buyers to catch a falling knife. It's cheaper to rent than buy and have the luxury of saving some of the "surplus".

People don't save the surplus they find other things to spend it on.

It's better than donating it to the bank and it's shareholders. I can think of more deserving charity cases.

[odie1kanobe]

Its like the crap about negative equity. If the €300,000 house is now worth €250,000 and you are paying the mortgage, have no intention of moving and are happy then what relevance has the drop in price or for that matter the property to be worth €350,000.

Negative equity is only avoidable for those who can afford the time to wait until the prices fall. It would be silly for these buyers to catch a falling knife. It's cheaper to rent than buy and have the luxury of saving some of the "surplus".

People don't save the surplus they find other things to spend it on.

It's better than donating it to the bank and it's shareholders. I can think of more deserving charity cases.

Not really because they donate it to the retailers or breweries who are foreign owned or import most of the stuff they sell hence bugger all assistance to the the underlying economy.

[HanleyS]

Its like the crap about negative equity. If the €300,000 house is now worth €250,000 and you are paying the mortgage, have no intention of moving and are happy then what relevance has the drop in price or for that matter the property to be worth €350,000.

Negative equity is only avoidable for those who can afford the time to wait until the prices fall. It would be silly for these buyers to catch a falling knife. It's cheaper to rent than buy and have the luxury of saving some of the "surplus".

People don't save the surplus they find other things to spend it on.

It's better than donating it to the bank and it's shareholders. I can think of more deserving charity cases.

Not really because they donate it to the retailers or breweries who are foreign owned or import most of the stuff they sell hence bugger all assistance to the the underlying economy.

Why would helping the economy factor in the decision to buy a house?

And when people spend their money in shops or pubs they get something in return, it's not a donation.