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Housing affordability improves, despite price increases

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Your Investment Property | 28 Nov 2013, 10:05 AM Agree 0
Widely publicized house price increases across parts of the country haven’t stopped affordability levels improving, with only a few exceptions among regions
  • Vladimir | 28 Nov 2013, 02:17 PM Agree 0
    This affordability is fake and temporary.

    Low interest rates allow more people to be able to take their mortgage, it leads to increasing demand and growing house prices in nearest future.

    Everybody knows that Banks can not hold low interest rates forever. It is not profitable for them.

    As soon as rates will be back to their normal level- no many people could afford themselves to pay off their debts. This situation will push them to downsize or even sell their dwellings off. But their potential buyers won't be able to get mortgage with higher rates. As a result, there will be more people willing to sell than the ones who are able to buy.

    Prices can not grow forever! Look around- we have the highest house prices in the world! This is a financial pyramid which is about to crush. This is my own opinion.

    Anyone who read this-please, show me where I am wrong.
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