It is too crazy for words that house prices are so rising, says Pauline van Neck. Today, one acquires a million-dollar building as if it were half a loaf of bread.
This is possible because many are betting excess value on their old home plus the low interest rate. But what if interest rates are going to rise later? This bubble will blow one day and the turnips will be cooked, for the buyers that is, but not for the housing market itself, because that will be a blessing.
Starters can hardly start because of these absurd prices, so some parents stick their necks out by going to borrow, but not everyone can do that because sometime they want to retire. Rental prices are not affordable at all, if you can find a home at all. In addition, there are many starters who cannot find a permanent job and depend on flexible work where your income per month is always uncertain, especially at this time.
Every market forces are driven by supply and demand, but of course it is ridiculous that you have to pay 5 times for the same brick because thats what it is and nothing less. There is a housing shortage and this has been caused by our policymakers, there is little to be built and immigration continues, and that must stop in a country that is clearly overcrowded.
You can now see people moving to the countryside because the houses are still somewhat affordable, but due to increased demand, they also start to rise. In addition, there are people who are looking for an alternative, but it does happen; campers, caravans, holiday homes, gazebos (allotments). Previously one could not lose a gazebo on the pavers but now there is even a waiting list, well better a gazebo roof over your head than nothing…
Pauline van Neck, Rotterdam