property scams, page-33

re: property scams 4 cnrs program Grant62, you write
"In other words, whilst housing affordability is currently falling (due to higher prices), it still remains broadly comparable to that of the post-war years (and particularly, since the mid-60s)."

You are basically saying that the only reason affordability is similar is due to low interest rates now. What are the chances of low interest rates lasting throughout the life of the loan though? and what happens when they go up. What happens if unemployment rises. People are struggling even at current rates.

HAd a client come in at my work today who has to declare bankruptcy because he bought a piece of land for $90,000 as an investment in a "potential growth area". Even at these low rates the interest payments were too much.
Everyone seems to be buying up anything and everything at the present moment with no regard to future income streams. They foolishly believe that what isn't returned in rental yields they will get in capital gains. Pure Greed and a good dose of stupidity.

Do the sums everyone, work out what a property should be priced at to make a 9% rental yield like you could in the 80's. Then see what it is selling for now. then make up your own mind.

as i've mentioned I don't own a property at the moment. Why would I, when I can rent for 2% of its current cost.
I'm not saying that property WILL definitely drop by 40%. But i am saying that I won't be surprised when it does. I wont be surprised if it drops 70-80%. I am certain though it wont stay where it is though. I'd put my house on it, if I had one.
Cheers