Have you been seduced by a property porn show

whislt reading my MoneySavingExpert email, which is all about saving money like an expert. This week had a link to the fact the main man Marty had been on the BBC talking about the possibility of house prices going down.

This in many ways is quite a scary thought, especially as I have just brought a house, I thought they were just meant to keep going up and up. I have been thinking that for the past few years there is surely going to be a point where people have too much borrowed on their credit cards, inflation (oil, gas, water, electricity) all go up a bit and then interest rates on top of that, surely there will be some people who are going to be affected by this combination of factors. The danger is of course that once a few people start to go, housing demand drops and then off pop the lots of more. I think the biggest danger facing England is if credit cards take away the interest free promotions, woah there is going to be some people in trouble then.

Here is the link, he makes an interesting point, I suppose the constant showing of lovely houses on TV probably has had an affect and people see the impossibly lovely houses for cheap prices on TV shows and then they are up and moving. I like the fact he calls it property porn.

He makes a number of good points in the article, although he makes a few I don't agree with. The major problem is he says this is a myth

Not owning a house is a terrible thing for your finances

obviously his wording is a bit cheeky and he is avoiding the real issue if truth be told. Not owning house isn't bad for your finances but it isn't good for them because usually house prices go up and the longer you wait to jump on the bandwagon the bigger the mortgage you are going to have to borrow.

I like the point he mentions, just because a bank will lend it to you doesn't mean you can afford it, darn right, they will give you as much debt as you will take, it doesn't mean you can afford it.

It's an interesting article but of course the people with houses will disagree and the people without houses will agree.

don't forget to check out my new blog it's a funny blog about IT and the office and the first edition is this friday. I am looking for contributions from people so please please please email me any amusing stories and other stuff.