Reduced cost of buying property

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blanc
Junior Member

Posts: 14

Reduced cost of buying property Jul 27, 2016 11:28:45 GMT -6

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Post by blanc on Jul 27, 2016 11:28:45 GMT -6

I have had this discussion on several occasions with different people and have never had consensus over it. What will happen 20 or 30 years from now if home owners are unable to service their mortgages? Will this lead to a decline in the cost of property since financial institutions will auction most of them?

murray
Junior Member

Posts: 14

Reduced cost of buying property Jul 27, 2016 11:35:03 GMT -6

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Post by murray on Jul 27, 2016 11:35:03 GMT -6

It would be interesting to have an actuary's perspective regarding this subject. My assumption is that value may not necessarily drop but again this is not measurable without taking into account some of the risks involved. Prevailing market conditions 2 or 3 decades from now may also have a bearing on whether or not the cost of buying property will be low.