What are reasonable house prices?

chucky

baileysbattlebus wrote: »

I posted a link from the Halifax on another thread about first time buyer affordablity. The figures are based on a single salary.



Here is the link

http://www.hbosplc.com/economy/includes/31_12_08FTBAffordability.doc

Using their criteria hardly anywhere is affordable by a single income FTB on average salary for the area they live in. But they say it is getting better.

this would only be relevent to certain types of properties or for those that were buying and veing single earners. did you know that the average salary or household income for a mortgage is £40k - that should tell you that buying a home isn't for everyone.

it's quite simple really; if you can't afford it, move to somewhere that you can or just don't buy.

i don't understand why it's such an issue.

pickles110564

chewmylegoff wrote: »

(ii) the price that market supply and demand sets, which if it is sensible supply and demand [i.e. not warped by 125% mortgages, and idiots desperate to make their fortune from property] should be a reasonable approximation of (i).

The problem with most people on this forum is that they think they should be able to go and buy a four bed detached with an acre of land.
They are just unrealistic, they should do what we all have done and set your sights at the bottom end of the market and work your way towards the top.
Their attitude is just typical of todays generation of wanting everything now and not prepared to save to get it.

b0rker

I suppose it depends on how much of a disposable income you think people should have on the average wage. The average wage where I live is £20K. I am on about that and have about £1,350 a month after tax. At the top of the market in 2007 a 1 bedroom flat was £100,000 here in Inverness. That is a FTB house in my opinion.

Assuming the FTB would have a 10% deposit then we are looking at a £90K mortgage. So a £90K repayment mortgage at 6% interest rate over 30 years would be a monthly repayment of £544 a month. That would leave me on my local average wage with £806 a month. My bills and living standard (no luxuries) expenses are £455:

Council Tax 120 Internet & Phone 25 Eletricity 120 House Insurance 25 Food 100 Petrol 30 Mobile 15 Car Insurance 20

Total: £455

So that would leave me with £400 a month to either save or overpay my mortgage or spend on luxuries.

So going by that then I would say that house prices at the top of the market in 2007 were affordable in Inverness.

Unless of course if you think that £400 a month is not enough money to play with. Personally I think it is a load of money to do with what you please!

mewbie_2

b0rker wrote: »

Unless of course if you think that £400 a month is not enough money to play with. Personally I think it is a load of money to do with what you please!

Gym - £60.
Cocaine - £140
Ho's - £200

Good job my banks giving me a bonus this year.

b0rker

mewbie wrote: »

Gym - £60.
Cocaine - £140
Ho's - £200

Good job my banks giving me a bonus this year.

Haha.

Being from the Scottish Highlands I am incredibly tight so £400 goes a lot further I am sure. Especially when your pastimes are sheep (my ho's) and fishing (my cocaine)...

What is this gym you speak of? I know a Jimmy? See you?!?!?

besonders1

Nixxx wrote: »

What are reasonable house prices?

Not 2007/8 prices LOL :rotfl:

ukcarper

I was born in the surrey stockbroker belt and still live in surrey and i think £400 is ok and whats that £30 mobile phone you should be using Skype or your landline and only use mobile for incoming calls

ninky_2

pickles110564 wrote: »

The problem with most people on this forum is that they think they should be able to go and buy a four bed detached with an acre of land.
They are just unrealistic, they should do what we all have done and set your sights at the bottom end of the market and work your way towards the top.
Their attitude is just typical of todays generation of wanting everything now and not prepared to save to get it.

although at one time we would all have had a birthright to the land and could have set up shop and made our lives as we wish. it's only this ridiculous society us humans have come up with that has parcelled things up, divorced us from the means of production and made the vast majority wage slaves. is it really to much to ask that for the price of the theft of the right to roam and the freedom to live you should have a nice little home where you can live out your days.

chewmylegoff

ninky wrote: »

although at one time we would all have had a birthright to the land and could have set up shop and made our lives as we wish. it's only this ridiculous society us humans have come up with that has parcelled things up, divorced us from the means of production and made the vast majority wage slaves. is it really to much to ask that for the price of the theft of the right to roam and the freedom to live you should have a nice little home where you can live out your days.

you seem to be conveniently forgetting that back in those golden days, you "birthright" wasn't particularly respected by someone else who wanted what you had, and happened to have a bigger stick and a few more mates than you.

wage slave vs. life long uncertaintly and battle for survival

i'd take wage slave any day.

Nixxx

pickles110564 wrote: »

The problem with most people on this forum is that they think they should be able to go and buy a four bed detached with an acre of land.
They are just unrealistic, they should do what we all have done and set your sights at the bottom end of the market and work your way towards the top.
Their attitude is just typical of todays generation of wanting everything now and not prepared to save to get it.

I know you said "most" people and not all people but I get soo frustrated because I earn an above average salary but cant even get a below average property with a deposit and without resorting to silly multiples. :mad: