Greater Michigan Realty

So once again the British economy has gone bust and we are in the grips of a recession. This despite the much vocalised declarations of the previous Labour administration that the days of boom and bust were over. But don’t be in so much of a rush to pin the whole thing on scheming , self-serving politicians. The current nadir in the economic cycle was very closely linked to the house ownership market and it’s obvious that when We Buy Homes that we cannot afford to pay for in the longer term then something has really got to give.

I am quite possibly in a more fortunate position than some of the country’s population in that currently I don’t need to Sell My House to pay the bills or because I am struggling to keep up with the mortgage. Just as well really, because If I were to Sell My House then I estimate that it would go for some nineteen to twenty three percent under what it would have sold for at the peak of a few years ago. Obviously when We Buy Homes it’s not always viewed as a purely investment based transaction but no one likes to think of a twenty five percent drop in value of something is invariably their main and greatest investment.

But still I think that the cycle of home price rises and falls is inextricably linked to the economy in general. They are both absolutely reliant on one another and here are five reasons why the cycle of boom and bust must go on .

1. Our adversarial political structure means that every few years there must be changes to our administrative and governmental systems . This plainly can’t bring anything other than periods where focus changes as far as the economy goes and this simply must affect the housing market either for the negative or the positive .
2. The lending institutions might be a bit reluctant to dole out finance for mortgages currently but we should bear in mind that they make their business out of lending money, usually on property, and so new and innovative products are bound to emerge which will allow people to borrow money against property despite their particular financial situation. They are working on this all the time, trust me.
3. Property ownership in general is seen as a “Good Thing” throughout the country. When We Buy Houses the view is that we are buying a stake in the country’s assets and that we have our own small castles. A for instance is when looking through the personal dating ads on the local paper or on the net a very desirable acronym is OHAC (Own House And Car). Therefore there is an underlying desire to own houses that is robustly fuelling property price increases even to the point where prices are unsustainable and we see a crash such as we have seen over the past couple of years.
4. There are no systems in place to regulate the property market. There may be rules and regulations supervising the financing of mortgages these days but the housing market itself is as free as a bird and a bird that has a marked tendency to soar and swoop!
5. And to cap it all population numbers are increasing . This can only intensify pressure on the whole market and government initiatives to provide so called affordable housing falls woefully short of the demands of the population as a whole. Again this provides an upward pressure on property prices once more raising the possibility that property prices may become unsustainably high in the good times.

My premise is therefore when We Buy Houses don’t assume that it’s all going to be plain sailing. Prepare for the down times as well as the good. Boom and bust has constantly been with us and I propose that it’s here to stay despite what the politicians say!

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