From: "cqmman" 
Newsgroups: uk.politics.misc uk.finance
Subject: Re: Home repossessions soar. Up 61% from last year.
Date: 26 Oct 2005 02:23:16 -0700
   posting-account=qYAApAwAAAAKwWVWW79tzKNiICqUTKWT


Time will Tell wrote:

> You were lucky enough to be in a situation when house prices were only
> 3x the average salary. Now they are 6x and rents are very high.

Have house prices really doubled in five years? I didn't think so (but
then I don't pay too much attention to house prices since I am not
thinking about buying (in this country) or moving). Even so, if I was
to purchase a house now, it would be a smaller house to compensate for
the rise in prices. It would have to be.

> The
> whining and complaining is due to the government, yet again, not being
> able to balance the the economy. I am self employed Historian, earn
> about 60K per year. I could afford to buy now, but there is no point as
> the UK is going into a serious recession.

Not sure how the recession relates, unless you are buying to sell for a
profit at X point in the future (in which case, I have even less
sympathy!) If you are buying because you want to own the place you live
in, the fact that prices might either fall, or simply stagnate for the
next few years doesn't really make much difference. Negative equity
only matters when you can't afford the repayments or are in a position
where you must sell. By buying within your means (and expected means),
the majority of people can avoid that completely. If the average price
in my street halve in the next few years, my mortgage may well stay the
same (or in fact be even lower due to falling interest rates that I
would expect would be necessary to get the economy on track). So I am
still living in the same house paying the same (or a similar) amount
each month back to the bank.

> I understand this from past
> performance. As you stated, most people live do not look long term.
> Peer pressure is high to own your own property in the UK. Life is short
> & we all want to progress with our life quite quickly.

Yep. Unfortunately too many people associate "progress" with owning a
large house and having the newest car. People who complain about house
prices while driving around in their =A310k+ car need a good slap to
wake them up.
Especially when that car is on finance!