Friday, April 18, 2008

The price is…?

David Cameron:

At a time of falling house prices and lack of affordability, the Government should do what it can to support first-time buyers.

Now, I’m not an economist – although I am a first-time buyer – but I think that the falling house prices are rather taking care of the lack of affordability.

1 comment:

m said...

For first time buyers with other debts or a new family with the rising costs of living, I think housing affordability is still an issue.

I think the relationship between the average salary and the average house price is still a bit of a problem (generally, prices have yet to fall that much)? Gone are the days where you can buy a decent starter home for 4 times your annual salary?

I’d have to compare that with inflation, but I still think it is more difficult today; and I suppose one should take into account a couple with both parties working? That would help even out the home price/salary relationship. I think Bernanke had it right when he said we’re experiencing a financial and cultural problem (lack of focus on saving and what not).

My back up plan is to find an area with cheap land and ship in one of those square, LV homes.