It is true that property investment has slowed down in the last year or so but that hasn't curbed the unwarranted price rises we are seeing. I blame the media, real estate agents and the goverment for this. Yields are pathetic at the moment and yes, is one major reason for the slowdown. Property as you know is a long term investment, but in recent times greed has gotten hold of many and as such people are willing to pay that little bit extra because they will make it back plus more in a few months time......sorry, it shouldn't work like that.
What I meant by spending is too high is just that. There is nothing wrong with spending but when we are doing it with other people's money, something is wrong. We are a nation that borrows to spend, we are spending more than what we earn. If nothing is done about it then, as I have previously said, we will be in far worse trouble later on.
