Why house prices aint rising anytime soon

ad9898_3

the_ash_and_the_oak wrote: »

people didn't used to buy average houses as their first buy

tbf dont really think people bought flats/apartments either tho

Said it before, my sisters bought in the late 70's, 3 bed semi's they were in their early twenties, worked straight from school as secretaries on a pittance, their husbands were welders and electricians, repectively and were of the same age.

All this 'flat' business that are supposed to first homes is rubbish, hell, twenty years ago there wasn't even any flats within 10 miles of where I lived. It's just brainwashing these days, the fact is the 'average' house of 150k isn't within touching distance of the average wage (25k), it's 5.5x salary +10% deposit.

The simple fact is, try going into any bank or building society now, with 15k in your pocket, wage slip proving your on 25k, and asking for a mortgage for 135k, I expect you will be swiftly shown the door, and I don't buy that a couples wages who buy a house should be counted together, there are too many variables over the life of a 25 year mortgage to expect 2 people being constantly in work over that period of time.

pickles110564

ad9898 wrote: »

The simple fact is, try going into any bank or building society now, with 15k in your pocket, wage slip proving your on 25k, and asking for a mortgage for 135k, I expect you will be swiftly shown the door, and I don't buy that a couples wages who buy a house should be counted together, there are too many variables over the life of a 25 year mortgage to expect 2 people being constantly in work over that period of time.

Ad, I would also say that most will split up before they make ten years together.

ukcarper

ad9898 wrote: »

Said it before, my sisters bought in the late 70's, 3 bed semi's they were in their early twenties, worked straight from school as secretaries on a pittance, their husbands were welders and electricians, repectively and were of the same age.

All this 'flat' business that are supposed to first homes is rubbish, hell, twenty years ago there wasn't even any flats within 10 miles of where I lived. It's just brainwashing these days, the fact is the 'average' house of 150k isn't within touching distance of the average wage (25k), it's 5.5x salary +10% deposit.

The simple fact is, try going into any bank or building society now, with 15k in your pocket, wage slip proving your on 25k, and asking for a mortgage for 135k, I expect you will be swiftly shown the door, and I don't buy that a couples wages who buy a house should be counted together, there are too many variables over the life of a 25 year mortgage to expect 2 people being constantly in work over that period of time.

Your sister might have bought a semi in the late 70s but in the early 70s there was no way I could buy a semi. The only thing I could afford where I worked was a flat but I move 20 miles from where I worked to buy a terraced house.

whathavewedone

I don't know where you lived 20 years ago.

Back in 1986 my sister was earning a lot of money as a sales rep for a big firm but still her first time buy was a one bedroom flat in south east London.

My dad started going out with a hairdresser in the early 80s. She had never married and was manageress of a branch of Tony and Guy's in London - was earning reasonable money. Again, lived in a one bedroom flat in Hackney.

I don't really know where this idea comes from that properties were so cheap 20 plus years ago that no one needed to buy flats. Maybe that was true up north but London has always been pretty expensive it seems.

pickles110564

whathavewedone wrote: »

I don't know where you lived 20 years ago.

Back in 1986 my sister was earning a lot of money as a sales rep for a big firm but still her first time buy was a one bedroom flat in south east London.

My dad started going out with a hairdresser in the early 80s. She had never married and was manageress of a branch of Tony and Guy's in London - was earning reasonable money. Again, lived in a one bedroom flat in Hackney.

I don't really know where this idea comes from that properties were so cheap 20 plus years ago that no one needed to buy flats. Maybe that was true up north but London has always been pretty expensive it seems.

Spot on, times were even harder then due to the low multipliers and still expensive housing.

StevieJ

whathavewedone wrote: »

I don't know where you lived 20 years ago.

Back in 1986 my sister was earning a lot of money as a sales rep for a big firm but still her first time buy was a one bedroom flat in south east London.

My dad started going out with a hairdresser in the early 80s. She had never married and was manageress of a branch of Tony and Guy's in London - was earning reasonable money. Again, lived in a one bedroom flat in Hackney.

I don't really know where this idea comes from that properties were so cheap 20 plus years ago that no one needed to buy flats. Maybe that was true up north but London has always been pretty expensive it seems.

The were not cheap, in fact 20 years ago we were right at the pinnacle of the last masssive bubble :eek: Not only that but interest rates were heading for 15% Now 30 years ago, I still don't believe that prices were cheap but the debt was soon washed away by the great inflation.

ad9898_3

whathavewedone wrote: »

I don't know where you lived 20 years ago.

Back in 1986 my sister was earning a lot of money as a sales rep for a big firm but still her first time buy was a one bedroom flat in south east London.

My dad started going out with a hairdresser in the early 80s. She had never married and was manageress of a branch of Tony and Guy's in London - was earning reasonable money. Again, lived in a one bedroom flat in Hackney.

I don't really know where this idea comes from that properties were so cheap 20 plus years ago that no one needed to buy flats. Maybe that was true up north but London has always been pretty expensive it seems.

Places do exist outside London you know, a lot have acres of rolling fields to look over as well. Never understood people paying 100's thousands for pokey flats in London, they could live in a bigger house and live the life of Riley for a fraction of the cost of living there, and yes I know wages are higher, but I'd think something was wrong if I was earning 50k a year, yet living somewhere that you couldn't swing a cat in.

ukcarper

There are still places where you can buy 3 bedroom houses for less than £100k which would be affordable for someone on average salary

ukcarper

ad9898 wrote: »

Places do exist outside London you know, a lot have acres of rolling fields to look over as well. Never understood people paying 100's thousands for pokey flats in London, they could live in a bigger house and live the life of Riley for a fraction of the cost of living there, and yes I know wages are higher, but I'd think something was wrong if I was earning 50k a year, yet living somewhere that you couldn't swing a cat in.

A lot of people in London commute long distances because house prices are cheaper out of London. When mortgages were based on lower multipliers your travelling expenses were not taken into account. For example I got the same size Mortgage 20 miles from work as I would have if the house I bought was next door to where I worked. So according to the banks I couldn’t afford the extra Mortgage but I could the travelling.

dervish

Dan: wrote: »

would you care to explain?

and what about your rubbish posts, infact i've never seen a decent post by you?

I dont see any need to be personal.