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Recession 'good for getting on the property ladder'
11/07/2008 17:18:00
Looming fears of recession and property companies "slashing" their prices as a result could mean good news for people who do not have debt problems and have put money aside.
The comment from independent money adviser Fool.co.uk says "recession brings both opportunities and threats", suggests a silver lining for first-time buyers who have actively saved funds for an opportunistic moment.
Property agents are likely to cut prices in order to conjure up demand for housing again, the source claims, perhaps giving access for people wanting to get on the property ladder.
David Kuo, head of personal finance at the company, said: "This is one opportunity that comes around once every ten years", adding some individuals have probably "been on their knees" praying for a housing recession.
In contrast, he advised the recession would constitute a threat for people "with huge amounts of debt".
Figures from the Council of Mortgage Lenders recently showed first-time buyers typically took out loans for house purchase for 3.3 times their income.
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