B2B Markeplace

So once more the countrys’ economy has gone bust and we are in the grips of a recession. This despite the much vocalised protestations of the preceding Labour administration that the days of boom and bust were over. But don’t be in so much of a rush to pin the complete thing on conniving , self-serving politicians. The current low point in the economic cycle was very closely linked to the home 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 absolutely got to give.

I am maybe in a more fortunate position than some of the country’s population in that at the moment 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 twenty to twenty five percent under what it would have sold for at the peak of a couple of years ago. Obviously when We Buy Homes it’s not always going to be a purely investment based transaction but no person likes to think of a thirty percent drop in value of something is invariably their main and greatest investment.

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

1. Our adversarial political system means that every few years there must be changes to our administrative and governmental bureaurocracy . This won’t bring anything other than times 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 may be a bit reluctant to dole out cash for mortgages at the moment but we should consider 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 idea is that we are buying a stake in the country’s assets and that we have our own tiny castles. A for instance is when searching through the personal dating ads on the local paper or on the internet a very desirable acronym is OHAC (Own House And Car). Thus 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 processes in place to regulate the property market. There may be rules and regulations governing 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. Finally population numbers are ballooning . This can only mean pressure on the whole market and government initiatives to provide so called affordable housing falls desparately 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 think that it’s all going to be plain sailing. Prepare for the down times as well as the good. Boom and bust has always been with us and I predict that it’s here to stay despite what the politicians say!