What are reasonable house prices?

ukcarper

Literally yes but it’s very nice in 25 years time when your rent is 0

adr0ck

ukcarper wrote: »

What makes you think that we didn't need two incomes to buy our first house

When I said I couldn’t buy it now I was using same mortgage requirements as in 70s. With 4x joint salary and 10% deposit I could.

i wasn't saying that you didn't need two incomes

simply saying that it is now more common for there to be two incomes than it was in the 1950's, 1960's, 1970's thats all

apologies if it wasn't clear

nalin

chucky wrote: »

because people have the money or have borrowed the money to pay that amount for the property.

median salary in london I believe is £40k maybe slightly higher

joint income of £40k x 2 = £80k
£80k x 3.5 salary = £280k
£280k + 25% deposit = £350k

not that unreasonable really

£40K - must be working for our MPs.

Please have a look in the Vacany columns of the newspapers and find how many jobs are there in LONDON which pays £40K?:rotfl: :rotfl: :A

ukcarper

Even in the 70s most people needed two incomes to buy a house but with lower salary multiples and only a proportion of the second income taken into account after a couple of years it was easier for one person to stay at home or a least go part time to bring up child. So I think we agree and in the area I live house prices have more to fall to get back to relative 70s figures that’s not to say they will no one really knows what’s going to happen.

chucky

nalin wrote: »

£40K - must be working for our MPs.

Please have a look in the Vacany columns of the newspapers and find how many jobs are there in LONDON which pays £40K?:rotfl: :rotfl: :A

there are some really blunt instruments on this forum or media was a bad career choice

http://www.statistics.gov.uk/downloads/theme_labour/ASHE_2008/tab7_7a.xls
follow the instructions below :rolleyes:

mitchaa wrote: »

Chuckys link above is from the ONS survey carried out of just shy of 30m employees.

A good snapshot i would say

Look at line 252 in the table, the mean salary for London per person, never mind household = £40,354 so already higher than your household income figure of £39,832

treliac

ukcarper wrote: »

Even in the 70s most people needed two incomes to buy a house but with lower salary multiples and only a proportion of the second income taken into account after a couple of years it was easier for one person to stay at home or a least go part time to bring up child. So I think we agree and in the area I live house prices have more to fall to get back to relative 70s figures that’s not to say they will no one really knows what’s going to happen.

That would be great. Women ought to be able to bring up their own children. They're being denied their biological rights by being denied the choice.

And that's leaving aside the disadvantage to countless children with poor and inadequate childcare arrangements, leading to consequences in their adult lives and the knock on effect on society. A vicious circle that should be stopped.

SingleSue

My parents bought in late 1969 on a single salary - FTB's, 10% deposit, 3 bed semi.

We bought in 1990 on joint income - FTB's, 10% deposit, 1 bedroom rabbit hutch (it wasn't really, just felt like it!).

1 bedroom rabbit hutch (like the one we bought) now would require approx 3.2 joint normal salary around here. I won't say average or anything like that because the figures released bear no relation to what is advertised or indeed any of the salaries barring a few that I have ever heard my wide cirlce of friends talk about!

The 40k salary? I would think of myself as being very highly paid with that! Even 25k I would deem myself to being in a well paid job...although I was earning close to that in 1990/91.

wolfman

chucky wrote: »

there are some really blunt instruments on this forum or media was a bad career choice

http://www.statistics.gov.uk/downloads/theme_labour/ASHE_2008/tab7_7a.xls
follow the instructions below :rolleyes:

It says the Mean is £40k (which you originally mentioned). The Median is actually only £29k, and is a much more representative figure. In fact it may drop a little lower if you take out the extreme cases that skew the figures.

joint income of £29k x 2 = £58k
£80k x 3.5 salary = £203k
£203k + 25% deposit = £253k

Still not too bad, but just under £100k short of your original calculation. And it means saving £50k worth of deposit!

Plus you have to take into account maybe £3k in expenses prior, and probably another £1k or so (maybe more) when you initially move in. So nearly £55k.

I'm sure that will take most people a fair amount of time. Saving £1.5k a month it would still take around 3 years to save. Which I would say is about right, but my point is that people thinking of buying soon might not have that sort of money, and it's taking them longer to save because of the poor interest rates.

If I find a nice £180k flat, then I'll buy but at the moment they're still listing them at around £250k or even more where I'm looking. So I just wait and save. If it doesn't get down to reasonable prices then I may look to other countries (Oz/Canada etc...).

chucky

wolfman wrote: »

It says the Mean is £40k (which you originally mentioned). The Median is actually only £29k, and is a much more representative figure. In fact it may drop a little lower if you take out the extreme cases that skew the figures.

joint income of £29k x 2 = £58k
£80k x 3.5 salary = £203k
£203k + 25% deposit = £253k

Still not too bad, but just under £100k short of your original calculation. And it means saving £50k worth of deposit!

Plus you have to take into account maybe £3k in expenses prior, and probably another £1k or so (maybe more) when you initially move in. So nearly £55k.

I'm sure that will take most people a fair amount of time. Saving £1.5k a month it would still take around 3 years to save. Which I would say is about right, but my point is that people thinking of buying soon might not have that sort of money, and it's taking them longer to save because of the poor interest rates.

If I find a nice £180k flat, then I'll buy but at the moment they're still listing them at around £250k or even more where I'm looking. So I just wait and save. If it doesn't get down to reasonable prices then I may look to other countries (Oz/Canada etc...).

further up the thread i had done both averages - mean and median.
my view is that the affordability sits somewhere in the middle of these amounts

i agree on the deposit - 90% isn't widely available so took 25% deposit.
also took 25% of the mortgage amount instead of the property price so not totally accurate - the expenses would probably be covered there.

my point was that buying isn't really for everyone due to affordability - if it should or shouldn't be is another discussion

charliee_3

I think it is all relative.. for example there are some flats in the village where my mum lives, when they were builtin the mid 90's they were in the 20k's. a few years later i was horrified when they were selling for 40k as i was sure trhey werent worth more than 30k, but now i;m guessing these same flats are more like 90k and that seems reasonable in this day and age...