FTB expectations too high?

IveSeenTheLight

mbga9pgf - You've not considered the deposit which you should add to you 122.7 figure.

Adding 20% to secure a decent interest rate means the average would be 147.24

155/147.24 = only 5.27% further to fall to realistic affordable levels (on average);)

SandC

mbga9pgf wrote: »

I have not been on 50K for the past 3 years. Had a big payrise last feb.

Saving, as I have said elsewhere, for 40% of 250K = 100K.

Why would I buy joe average property on 50K? I wasnt comparing buying an average house in 1995, I was comparing the typical house I could expect on 50K with a wife that is working as well - and its not a 3 bed semi! Not that you would get one of those for 150K either any more :mad: more like some paper thin walled newbuild flat!

Start using realistic figures please! :mad:

Why are you so angry?

It depends where you live. £150k where I live would get you a very nice 3/4 bed semi in a good area - 1930s build type of thing so the generous garden that goes with it.

If you are away 6 months of the year is it imperative that you stay in some area that is so expensive?

IveSeenTheLight

Really2 wrote: »

Depends where you live in london £50K wage is around average (if not below)
Where do you live?

I purchased a 5 bed detached for £250K?

I purchased a 4 bed semi detached 4 1/2 years ago for £140k
Given that it is "reported" we are back to 2004 levels (although not yet in my area) theoretically, there are very good properties out there for circa £150k

mbga9pgf

Yes I have as with the Median calculation. 3X joint salary +10% As I have said time and time again, mean figures mean nothing. you have to use the median figures to determine realistic value.

I live in Wiltshire. 50K is most definitely not the mean wage round here.

Really2

mbga9pgf wrote: »

Yes I have as with the Median calculation. 3X joint salary +10% As I have said time and time again, mean figures mean nothing. you have to use the median figures to determine realistic value.

I live in Wiltshire. 50K is most definitely not the mean wage round here.

4 Bed detached swindon £210
http://www.rightmove.co.uk/property-for-sale/property-15934447.html?locationIdentifier=REGION%5E61328&minBedrooms=4&maxPrice=210000&pageNumber=1&backToListURL=%2Fproperty-for-sale%2Ffind.html%3FsearchType%3DSALE%26locationIdentifier%3DREGION%255E61328%26radius%3D0.0%26displayPropertyType%3D%26minBedrooms%3D4%26maxBedrooms%3D%26minPrice%3D%26maxPrice%3D210000%26maxDaysSinceAdded%3D%26_includeSSTC%3Don%26sortByPriceDescending%3D%26primaryDisplayPropertyType%3D%26secondaryDisplayPropertyType%3D%26oldDisplayPropertyType%3D%26oldPrimaryDisplayPropertyType%3D%26oldSecondaryDisplayPropertyType%3D%26newHome%3D%26retirement%3D%26auction%3Dfalse%26partBuyPartRent%3Dfalse%26x%3D79%26y%3D7

3.5X your single wage + 20% deposit.
Not a 3 bed semi

Also the more people on a lower wage is going to make mean lower than median.

SandC

Well you can certainly get more than a flat in places like Chippenham and Devizes. Maybe not the character property desired but many 2 bed houses and plenty of 3 bed semis too.

If you are currently renting you could use those savings, buy somewhere that will suit you for a couple of years, overpay what you would have saved and before you know it you will be very comfortable. You could be eating into a mortgage on that sort of salary rather than paying rent.

mbga9pgf

[FONT=Verdana, Arial, Helvetica, sans-serif]A property located in South West which was valued at £43000 in Q1 of 1995, would be worth approximately £156011 in Q3 of 2007. [/FONT][FONT=Verdana, Arial, Helvetica, sans-serif]This is equivalent to a change of 262.82%.[/FONT]

from nationwide.

Comparable wage in 1995 to 2008 using government cpi data: 40K (1.73% average CPI over 13 years).

take home per month:2100 (80% of = 1700 quid)

I could have saved for that average 155K house today in a year and a half back in 1995 and you reckon FTBs arent priced out?

Well you can certainly get more than a flat in places like Chippenham and Devizes. Maybe not the character property desired but many 2 bed houses and plenty of 3 bed semis too.

WHY WOULD I LIVE IN A 2 BED HOUSE ON 50K????

why would I move out of rented when prices on 250K properties are dropping 3K on average at the moment a month?

Really2

mbga9pgf wrote: »

from nationwide.

Comparable wage in 1995 to 2008 using government cpi data: 40K (1.73% average CPI over 13 years).

take home per month:2100 (80% of = 1700 quid)

I could have saved for that average 155K house today in a year and a half back in 2005 and you reckon FTBs arent priced out?

Ok you used Q3 07 the peak and how the hell do we know that the property had not been improved?

If you want to back up an argument dont use sales prices 1.5 Years ago.

PS also as you say you have only been on 50K for one year your average £50K earner buys a three bed when on a lower wage then gets a bigger house as their wages go up.

What do you do you say your job is safe, 50% undermaned and on £50K?

chucky

you've got to stop looking at averages and look at specifics.

and stop getting so angry!!!

mbga9pgf

chucky wrote: »

you've got to stop looking at averages and look at specifics.

and stop getting so angry!!!

Well people shouldnt get so angry when I tell them their house is 20% overvalued!

And I suggest you try getting priced out by D!ckheads when you are trying to do the best for your future kids!