May 2, 2008
Property prices do not make people wealthier
Could the current property crisis be good for the economy? This is something that is being put around by various organisations. They are saying that high property prices do nothing for the added wealth of the individual.
So could the current price drop in house prices be a good sign for the country as a whole?
It has been suggested that the rise in property values is a money illusion that does not bring in anything that can make a person or families life any different. After all they have to live somewhere and if the property is sold they would need to buy another which would cost them money in fees etc.
However as with many things, the value is in what people are prepared to pay, as we have seen recently first time buyers are not prepared to step up and put their foot onto the ladder at the present time, which has caused this problem in the market.
Source [Telegraph]
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/04/30/bcnhouse130.xml
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