FTB expectations too high?

Maisie11

If a 26 year FTB on a reasonable income is planning to buy a 4 bed house as a first purchase what can a couple on high incomes buy - a small village?

I think we are in difficult times. However I think the wealth in this country will ensure that people start off with a small house and then build up from there. You dont start a job and expect to earn a large salary immediately. It is good to wait and not want everything immediately. A 26 year old person saying they are working hard - well I work hard and have done for over 25 years. They have had what 3-4 years in the market place if they went to uni.....

Have some patience

SandC

mbga9pgf wrote: »

SandC, could you show me please a single area where price rises kept in line with wage inflation? Genuinely interested in your last point.

I didn't say they kept in line with wage inflation, I said they didn't go 'completely loopy'.

£92.5k highest price paid for a 2 bed terrace with yard in my street. £134,950 from nearby street for 3 bed semi with garden/garage in March 2007.

We probably have a higher proportion of people earning considerably less than average wage but there would be just as many people in, say Manchester area on similar pay structures.

mbga9pgf

SandC wrote: »

I didn't say they kept in line with wage inflation, I said they didn't go 'completely loopy'.

£92.5k highest price paid for a 2 bed terrace with yard in my street. £134,950 from nearby street for 3 bed semi with garden/garage in March 2007.

We probably have a higher proportion of people earning considerably less than average wage but there would be just as many people in, say Manchester area on similar pay structures.

So, in terms of multiples of local salary, what are we we talking about here?

SandC

I'm not sure the average local salary to be honest (there are high earners who skew the figures!). I'd say £15-£20k perhaps. Bear in mind that £92.5k was in my street, go a couple of miles away in different directions and it varies greatly - more usual selling price during 2007 was £85k.

I know these are a lot more than 3x multiples but the areas where these sorts of houses were £120k say, were/are people all on above average salaries down south?

mbga9pgf

No, probably not, however, the local average is higher making it more difficult for the few that did earn significantly less than the "average" I think what I am trying to say here is the spread of salaries is wider down south, weighted toward the upper end.

Does put it in perspective though, Correct me if I am wrong, 2 bed terraces in the 80s were going for less than 10K?

SandC

Not sure if they were that low. Mine was £32.5k in 1995 and didn't rise in value for a full 5 years after that. There seemed to be a smaller gap between your ftb type 2 bed terrace (this was and is the general ftb property in the area due to saturation of such properties being a manufacturing city - what flats there were tended to be higher priced than your bog standard 2 up 2 down) and your next step up the 3 bed semi.

See, min wage is min wage and there are as many jobs on that level down south as there are up north, that's what makes the divide in prices all the more unfathomable to me.

skap7309

Maisie11 wrote: »

If a 26 year FTB on a reasonable income is planning to buy a 4 bed house as a first purchase what can a couple on high incomes buy - a small village? A 26 year old person saying they are working hard - well I work hard and have done for over 25 years. They have had what 3-4 years in the market place if they went to uni.....

Have some patience

I am guessing this is aimed at my previous posts.

Over ten years in full time employment (left school at 16 and still with same company) and i have been saving (re. your have some patience comment :rolleyes:) for this deposit for 4 years now. Believe me, whilst i am working 12 hours a day 6 days a week my mates are out having a good time but this is my choice and i'm planning for the future where i can enjoy myself. If i was out doing the same i would probably have my sights set on a 1 bed flat but my priorities lie elsewhere.

As i also mentioned, i am not aiming for a 4 bed detached, it is just they are slowly slipping into my budgeted price range. Cant hide from that.

Maisie11

We have a 4 bed house on the outskirts of London but we have spent between us 25 years getting to this point, it is worth a lot as we live in an expensive area but I think it comes back to some of the other posters. There are averages and then there is YOUR area. A 4 bed house in say Weybridge is likely to be considerably more than a 4 bed house in say mid Wales. I dont particularly like averages, the average house at this present time is I believe £150K ish. Not in this area it isnt.....

mbga9pgf

Thats why they need to fall dramatically!

Maisie11

I dont agree. Nicer areas will always be more expensive, if all areas were the same noone would want to live in the less attractive ones.