PROPERTY CRISIS: 'The lower prices go, the better'
UNLIKE many other parts of Europe, where people spend a lifetime renting their homes, people in the British Isles have a deep-seated desire to own their house.
Despite a study from mortgage lender Abbey showing that in Northern Ireland it was 46 percent cheaper to rent than to service a mortgage, most people who don't own a home are at least thinking about buying in the future.
But, although that is unlikely to change for a long time, increasing numbers of young people are indefinitely suspending their desire to buy and instead choosing to rent, while they watch property prices plunge.
Ryan Kilfedder, a 24-year-old IT graduate from Ballymena, rents a house in Donaghadee.
But, like many young professionals, he said that plummeting house prices are the only chance he has of owning a home.
"The lower house prices go, the better for me because the less money I have to borrow," he said.
"I know that doesn't suit everyone but about this time last year I had no chance of buying a house.
"Now, if I stretch myself it's at least close to becoming a possibility.
"That said, I know a few people who have bought their first homes over the last year and I'm sure it's a worry for them. I guess if they keep the repayments going the market will recover eventually."
Mr Kilfedder said that prices had reached "stupid levels" when graduates were unable to afford a house.
"It's not sustainable – if someone at a graduate level wage cannot afford to buy anywhere then someone starting work at 16 has no chance."
And the web developer said he was still surprised that the media reported falling house prices as a negative thing, when many stood to benefit.
"A couple of weeks ago I was walking through a shop and saw a headline on a newspaper which said something like 'Good news – property prices to be 25 per cent higher by 2013'.
"I read the front page and wondered, 'Who is it actually good news for?'. It's not good news for people on low incomes or for first-time buyers.
"It's only good news for people who already own homes."
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Weather for Belfast
Wednesday 15 February 2012
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