FTB expectations too high?

IveSeenTheLight

mower5 wrote: »

Link? or source?

Wouldn't you know it.
I summarised in this very thread

http://forums.moneysavingexpert.com/showpost.html?p=17868173&postcount=84

IveSeenTheLight

mower5 wrote: »

I have found a document via the CML site called, Understading FTB's.
Published by CML/research July 2005

In the Executive summary it says "average age of FTB moved from around 30 in the mid 80's to 34 in 2004".

Link? HeHeHe

IveSeenTheLight

mower5 wrote: »

I have found a document via the CML site called, Understading FTB's.
Published by CML/research July 2005

In the Executive summary it says "average age of FTB moved from around 30 in the mid 80's to 34 in 2004".

Link?

Ok, here it is http://www.cml.org.uk/cml/filegrab/pdf_pub_resreps_56.pdf.pdf?ref=3875

Interesting there spreadsheet showed differently
I did however point out in my summary that there could be a difference between median and mean averages

mower5

IveSeenTheLight wrote: »

Link?

Ok, here it is http://www.cml.org.uk/cml/filegrab/pdf_pub_resreps_56.pdf.pdf?ref=3875

Interesting there spreadsheet showed differently
I did however point out in my summary that there could be a difference between median and mean averages

Thanks for providing the link. Maybe the anomally between the statistics been caused by the inclusion of those who have pre-owned then sold up for whatever reason (travel,devoice, STR, etc) then buy again later in life?

daveb975

penguine wrote: »

Yes I'm talking about average flats (I'm a she BTW). I've used our own flat as an example on this forum before, it's a 2-bed in a London suburb where average salaries are no more than £30k per year (and probably less). It was valued at approx £200k last January (we were told to price it realistically at £180k if we wanted to sell). It's a typical starter property, decent size but in need of some improvements and in a not very well maintained building. That someone just getting onto the ladder should have to borrow more than 6x their salary to buy it seems absurd.

Apologies for making the wrong assumption:doh:

I agree it seems absurd. It is even worse where we are, but as I said in an earlier post, some places were really expensive even before the current boom. It is likely that your flat would have been about 3x salary which is a lot more reasonable. Larger houses would still have been quite pricey, though.

mower5

IveSeenTheLight wrote: »

Wouldn't you know it.
I summarised in this very thread

http://forums.moneysavingexpert.com/showpost.html?p=17868173&postcount=84

I have tried each of the 3 links in your summary and they are closed to non CML members.

IveSeenTheLight

mower5 wrote: »

I have tried each of the 3 links in your summary and they are closed to non CML members.

Thats why I said: -

IveSeenTheLight wrote:

I wish the CML had not closed their statistics.

they only closed it this month

thegibdog

IveSeenTheLight wrote: »

On the contrary, I believe that in general, those that delayed buying for whatever reason would not have been saving up such a deposit for property, especially given the rapid rise in house prices everyone was aware of.

Surely this negates your "all being equal" statement?

daveb975 wrote: »

In a flat market I would agree, but it depends on the level of HPI...

So the argument reads "People trading up deserve a better property than first time buyers because of house price inflation"??

penguine

daveb975 wrote: »

I agree it seems absurd. It is even worse where we are, but as I said in an earlier post, some places were really expensive even before the current boom. It is likely that your flat would have been about 3x salary which is a lot more reasonable. Larger houses would still have been quite pricey, though.

Our area was actually very affordable until about 2001. Prices around here have almost tripled in the past decade, which I think happened in many places.

penguine

thegibdog wrote: »

So the argument reads "People trading up deserve a better property than first time buyers because of house price inflation"??

I think you've hit the nail on the head, this is the flaw with the argument that it's better to get on the "property ladder" young. If house prices rose in line with inflation and salary increases, there would be no real advantage to getting on the ladder sooner. Those who were renting could build up their savings and as their salaries would be likely to increase over the years, they would not have to get onto the "bottom rung" of the ladder the first time they buy a property.

Those who bought near the beginning of latest bubble have had an advantage over FTBs only because the rising market had just about priced out anyone who wasn't already a property owner or was willing to borrow a huge multiple of their salary.