The Inside Edge
TBPL has been following with interest the recent debate on citywire.co.uk between those who believe the time is right for First Time Buyers and use expressions like ‘a window of opportunity’ and those who believe the market has further to fall and that all the old axioms do not apply anymore.
Lorna Bourke of Citywire proposes that first time buyers are in a strong position with mortgage interest rates at parity with 2007 levels, property prices down up to 20% on that same year and the temporary abandonment of stamp duty tax on properties under £175,000 – even if a bigger deposit is now required.
However in an article two days ago, Ms Bourke’s Citywire colleague Tony Bonsignore launched a reluctant broadside stating that to compare anything to 2007 is lunacy given that ‘it was a housing marlet at its maddest’. Central to his argument are his beliefs that housing prices are still too high based on affordability and that interest rates are at a temporary low which will not last forever.
The comments posted on the website footing each of these articles reveal a pent up hostility from many and nearly all agree with Tony’s viewpoint. Many accuse Ms Bourke of writing in the interests of the homebuilders and mortgage lenders and others with a vested interest in an rising and active property market.
The best advice we’ve seen came not within either of the articles but from a comment posted by a reader (‘al’) who says ‘buy your house when you are comfortable with affordability, or you will end up with a millstone around you for 25 years plus‘.
Sound advice indeed.
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