What are reasonable house prices?

chucky

FoxtonsRIP wrote: »

Fantasy arithmetic

http://www.statistics.gov.uk/downloads/theme_labour/ASHE_2008/tab7_7a.xls

so.... £33k is the median and £49k the mean, look at London

£33k x2 = £66k
£66k x 3.5 salary = £231k
£231k + £58k (25% deposit) = £289k


£49k x 2 = £98k
£98k x 3.5 salary = £343k
£343k + £86k (25% deposit) = £429k

which part of that is fantasy

Dan:_4

I don't think there is any such thing as 'reasonable' house prices. It will all depend on the indvidual/couple, how much they earn, what are their outgoings, how much do they want to spend etc...

What you think is a reasonable house price is likely to be different to what someone else thinks.

ukcarper

I paid £8000 for above house in 1972 working on same size deposit and mortgage in relation to salary I think the same house would be about £140,000 that’s what they were selling at in 2002. Still a lot more than £90,000 and it’s a terrace not semi.

Highest price I could find was £220,000 in March 2008 so approx. 36% drop to get to £140,000.

mitchaa

Nixxx wrote: »

The average uk salary is just under £25k, which should mean that the average house price should be £75k - assuming the average house is a two bed. As much as I wish is would, I just think it will be a long time before house prices come down that much. I think most people are in agreement that house prices are over inflated, but at what point do we start saying thats a "good price"?

Figures and arguments are flawed, been done to death on here already.

Put it this way, they better start building a lot more 6 bed mini mansions for all these average earning couples.

Your logic states that if Mr average can afford his 3bed SD, and Mrs average can afford her 3bed SD, they can combine and afford 5/6 bed houses?

Not realistic, what about if Mr £50k middle earner meets Mrs £50k middle earner, or what about Mr £100k high earner meeting Mrs £100k high earner, will they buy castles and islands?

Average house price should be ITRO £140k. At this level they will be deemed as affordable considering the average household income is reported to be £37000. (Average household income, not average working household income)

chucky

mitchaa wrote: »

Figures and arguments are flawed, been done to death on here already.

yes but it's always good to say that the average salary is £15k and all property should only be £40k for a 3 bed semi

why should facts get in the way?

ukcarper

As an aside house prices it that area almost doubled in 1972/73 and the mortgage to salary ratio remained the same and wages certainly didn't double..

Nixxx

mitchaa wrote: »

Figures and arguments are flawed, been done to death on here already.

It might have been done to death but there question still remains! What *should* a house be worth. What *should* the average be??

1 bed flat <£80k
2 bed flat <£120k
2 Bed house <£150k
3 bed house <£200k.

When houses come close to that again then i would feel that house prices have become reasonable.

chucky

Nixxx wrote: »

It might have been done to death but there question still remains! What *should* a house be worth. What *should* the average be??

1 bed flat <£80k
2 bed flat <£120k
2 Bed house <£150k
3 bed house <£200k.

When houses come close to that again then i would feel that house prices have become reasonable.

do you want to add proxomity to schools, transport links or even location

there are too many variables to say what is reasonable.

every area will have different values

Cannon_Fodder

Why the continued expectation that joint incomes should be the norm for house purchase?

Any second income can/should be for luxuries, pensions, holidays, car purchase, whatever.

Where is it written, "and lo, woman shall work to keep the roof over their head because the bloke doesn't earn enough".

chucky

Cannon_Fodder wrote: »

Why the continued expectation that joint incomes should be the norm for house purchase?

Any second income can/should be for luxuries, pensions, holidays, car purchase, whatever.

Where is it written, "and lo, woman shall work to keep the roof over their head because the bloke doesn't earn enough".

yes you're right let's go back to bartering or on the other hand buy a property that can be afforded on a single income - makes much more sense