FTB expectations too high?

neas

all the competition does is means the poor class... get council houses and get a house or flat subsidised by an associated earlier in life than those who work hard to save an ever increasing asset.

And i believe this house price inflation was unsustainable totally, with 6x salary and liar loans, sub prime and the lot all the banks did by lending more money was further fuel the over-pricing of housing assets.

Now with them stopping lending, and eventually (hopefully) returning to 3-3.5x earnings houses wont cost so much. If theres no funds available, people will either have to build a bigger deposit up to buy a house or rent.

Thats where we went wrong... banks used to lend 3x... as they increased this to 5,6,7 times salary silly individuals as a collective pushed prices up.

Really2

mbga9pgf wrote: »

I presume the c is 100 so they say there are 2.2M stock houses and only 2.1M households.

So say we use averages for the UK population 2 adults 2.4 kids

61M /4.4 = 13,860,000 3 bed accomdations required.

Reality is there are 25M homes (inc flats etc)

61M/25M = 2.4 So the average house is a 2 bed:)

SandC

mbga9pgf wrote: »

No, of course not. You must take the area into the big equation. But some of the rises do start to annoy you when you look at how mcuh people have made since 1995 using the likes of nethouseprices. For example, the above house, was originally on at 390K It was originally bought for 150K in 2001. apart from a new kitchen and a lick of paint, the house was relatively undeveloped. why they saw a 255K offer as derisory when you consider what they bought it for is beyond me. Not fussed; they have my number and my offer still stands.

I don't consider myself to have 'made' anything. I would still have to live somewhere if I sold the house and pocketed the equity at the height of the boom. It's not real money to those of us who bought in the mid nineties and haved used the equity as pocket money/slush fund. It's a home. My home didn't grow in value at all for more than 5 years so all these massive price rises have been somewhat alien to me too.

I feel for first time buyers desperately right now - but it's not my or my peers who bought back then's fault. It is, or seems, pure greed what a lot of people are still asking. My next door neighbours had theirs on the market for a very short time at waaay over the sold price of any similar places on my street. I believe this was because being youngsters they thought that despite only having owned the property 18 months they deserved to make a profit when they had to sell. It is rented now.

You are right though, when I suggested buying somewhere I didn't necessarily mean right now as you would be wise waiting a bit - I just meant that why wait until a 4/5 bed detached with character gets into your price range when you could be eating into the mortgage earlier than that.

Edit: haven't used the equity I should have said

mbga9pgf

Your figures are absolute rubbish!

Your earlier example of couple salary Did not use 1X female income + !1X male income!!!

http://www.statistics.gov.uk/cci/nugget.asp?id=285

The results of the 2008 ASHE show that median weekly pay for full-time employees in the UK grew by 4.6 per cent in the year to April 2008 to reach £479. Median earnings of full-time male employees was £521 per week in April 2008; for women the median was £412.

The top 10 per cent of the earnings distribution earned more than £946 per week, while the bottom 10 per cent earned less than £262. Between April 2007 and April 2008 the distribution of gross weekly pay widened, with a 3.5 per cent increase at the bottom decile, and a 4.4 per cent increase at the top decile.

Median gross weekly earnings for full-time employees were highest for 40 to 49-year-olds at £539. Male employees reached their highest earnings in this age group at £598, whereas women reached their highest earnings for 30 to 39-year-olds at £480. Earnings increased until employees reached these age groups and steadily decreased thereafter.

Median full-time weekly earnings in London were £613, significantly higher than in other regions, where they ranged from £418 in Northern Ireland to £500 in the South East.

from the government website

THE MEDIAN FROM THE TABLE England and wales median 26K

that 35K includes the likes of banking bosses that massively alters the average data, hence the use of median data.Median doesnt include high % low wages as the same % of higher salaries as lower salaries are not included! Just becuase the figures dont explain your pathetic attempt to explain higher salaries doesnt mean they are not right.

Do you also want to explain why your made up, completely false homemade couples mean income is higher than the average income?

I tell you why, its because you are talking @rse.

Pobby

neas wrote: »

all the competition does is means the poor class... get council houses and get a house or flat subsidised by an associated earlier in life than those who work hard to save an ever increasing asset.

And i believe this house price inflation was unsustainable totally, with 6x salary and liar loans, sub prime and the lot all the banks did by lending more money was further fuel the over-pricing of housing assets.

Now with them stopping lending, and eventually (hopefully) returning to 3-3.5x earnings houses wont cost so much. If theres no funds available, people will either have to build a bigger deposit up to buy a house or rent.

Thats where we went wrong... banks used to lend 3x... as they increased this to 5,6,7 times salary silly individuals as a collective pushed prices up.

Yep, about right. I have the feeling that 3 to 3.5 times your income was about right. Certainly it served well for many a year. It was there for a purpose. I don`t know who worked out that figure originally but one things for certain when we bought years ago I had never heard of folk losing there homes. Quite unheard of.

The debate about wanting it all is also correct. When we bought our first house we kept the old carpet, a black and white portable, mattress on the floor, we never gave a second thought. Too busy enjoying ourselves.

dervish

triple-clones wrote: »

Are you just posting this to make me sick

Dont take it personally.

Everyone feels sick after his posts - they are nauseating!

mbga9pgf

SandC wrote: »

You are right though, when I suggested buying somewhere I didn't necessarily mean right now as you would be wise waiting a bit - I just meant that why wait until a 4/5 bed detached with character gets into your price range when you could be eating into the mortgage earlier than that..

ITs ok, my mortgage Interest on 150K at typical rates is still well in excess of the rent. I am putting away evey penny I can so in effect I am paying off double the capital every month I wait without taking into account of price drops.

But thanks for the advice.

Really2

mbga9pgf wrote: »

ITs ok, my mortgage Interest on 150K at typical rates is still well in excess of the rent. I am putting away evey penny I can so in effect I am paying off double the capital every month I wait without taking into account of price drops.

But thanks for the advice.

How I am paying less than £300 IO (the rest goes in offset) on £175K Rent on the house would be £1100-£1200?

Even at 4.49% you would be looking at £560 IO payment?

mbga9pgf

I presume the c is 100 so they say there are 2.2M stock houses and only 2.1M households.

So say we use averages for the UK population 2 adults 2.4 kids

61M /4.4 = 13,860,000 3 bed accomdations required.

Reality is there are 25M homes (inc flats etc)

61M/25M = 2.4 So the average house is a 2 bed:)

No, the housing stock has increased proportionately with the number of households. Unless you can cut a child in half I think you will find the average home is a three bed. And I cant think of that many single-child families these days.

mbga9pgf

Really2 wrote: »

How I am paying less than £300 IO (the rest goes in offset) on £175K Rent on the house would be £1100-£1200?

Even at 4.49% you would be looking at £560 IO payment?

Because I have already told you, I pay 450 per month for my quarter.