House prices down to at least 115K... Thans FSA! 3X here we come!

lostinrates

moggylover wrote: »

I haven't got that:( - can you get free downloads?:rotfl: :rotfl: :rotfl:

Actually it did open for me but not sure why, I have nothing on this laptop, no Office package at all....just the basic and safari oh, and my photographs!:o

chewmylegoff

moggylover wrote: »

I haven't got that:( - can you get free downloads?:rotfl: :rotfl: :rotfl:

there is a free office package called open office, which is basically a simple version of microsoft office, which has spreadsheet program in it which will read .xls files.

tommy75

b0rker wrote: »

I posted some of this previously on another thread about affordability. I have since redone the figures as some of them had been based on a 2 bedroom house with 2 people using the facilities (my actual current circumstances).

I think that affordability comes down to how much of a disposable income you think people should have on the average wage for the local housing market. 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. A 1 bedroom flat is traditionally a single persons FTB property.

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 standard living expenses (no luxuries) are £355:

Council Tax 100
Internet & Phone 25
Eletricity 90
House Insurance 25
Food 100
Mobile 15

Total: £355

So that would leave me with £451(!) 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 as I consider £451 a month to be plenty of money left over after living expenses/mortgage.

I think I could pick up the same 1 bedroom flat for about £85K (15% down from the top of the market in 2007) today with a lot of haggling.

So £85K with a 10% deposit then we are looking at a £76,500 mortgage. So a £76,500 repayment mortgage at 6% interest rate over 30 years would be a monthly repayment of £382 a month. That would leave me on my local average wage with £968 a month. My bills and standard living expenses (no luxuries) would still be £355 so I would have £613 (!!) a month to do with what I like.

And that is at a 4x multiplier!

So assuming that the house prices come down to 3x multiplier a FTB 1 bedroom flat would be £60K. Again the sums:

So £60K with a 10% deposit then we are looking at a £54K mortgage. So a £54K repayment mortgage at 6% interest rate over 30 years would be a monthly repayment of £280 a month. That would leave me on my local average wage with £1070 a month. My bills and standard living expenses (no luxuries) would still be £355 so I would have £715 (!!!) a month to do with what I like.

So going by what you guys are suggesting (a fixed ceiling of 3x income multiplier plus a 10% deposit) I should only be allowed to borrow £60K on my £20K salary. Which would mean that I was only allowed to spend roughly one fifth (1350/280) of my income (after tax) a month on my mortgage. Despite the fact that I may desire to spend more on a bigger property as I can clearly afford to.

Is it just me or does that seem a little bit entirely insane?

Reading a few of your posts lately has led me to believe you are living in cloud cuckoo land.

moggylover

chewmylegoff wrote: »

there is a free office package called open office, which is basically a simple version of microsoft office, which has spreadsheet program in it which will read .xls files.

Thanks for that - will see if I can find and download that: not too wonderful with technology me:D

But! Have found it on majorgeeks and it is currently downloading:T :j .

Many thanks:T

chucky

moggylover wrote: »

Thanks for that - will see if I can find and download that: not too wonderful with technology me:D

here you go Miss Moggy
http://download.openoffice.org/index.html

moggylover

chucky wrote: »

here you go Miss Moggy
http://download.openoffice.org/index.html

Thanks chucky, very much appreciated, but I was clever (for once ) and already found it:D

GDB2222

Or just upload a copy of the spreadsheet to Google Docs and view it in your web browser.

moggylover

Managed to download everything without messing up the puter: and have actually had a look at the spreadsheet - wow, some very interesting reading there!

Ceredigion does not fare well (as I expected) As I thought it is around the same figures as GD gave for his: median 16,056 and mean 17,581! That would mean a return to prices in the region of the early 90's around here I think and an even more unfair balance between local buyers and incomers in the race for the better houses is the biggest problem I see in that happening:o .

lostinrates

moggylover wrote: »

Managed to download everything without messing up the puter: and have actually had a look at the spreadsheet - wow, some very interesting reading there!

Ceredigion does not fare well (as I expected) As I thought it is around the same figures as GD gave for his: median 16,056 and mean 17,581! That would mean a return to prices in the region of the early 90's around here I think and an even more unfair balance between local buyers and incomers in the race for the better houses is the biggest problem I see in that happening:o .

FWIW I answered you question about FTBs like me being greedy on teh other thread, but then it got lost in pages of accountants arguments.

moggylover

lostinrates wrote: »

FWIW I answered you question about FTBs like me being greedy on teh other thread, but then it got lost in pages of accountants arguments.

I don't think all FTB are being greedy Lost - but I do think some definitely are. I had to start at the bottom of the ladder and work up: flat (above commercial premises at that) then 1st house then 2nd etc., and yet I have had young people turning up to look at mine or my mums and they think that that should be the starting point just because they already have kids (which is just bad planning and lack of responsbility on their part) despite having no savings and having wasted much of what they have earnt since leaving school.

It isn't one size fits all: but for those that have wasted every penny they ever earnt until they suddenly want their own house in their late twenties/early thirties I find it rather greedy to then think that others should make it easy for them. Sorry:o