3x income

Graham_Devon

Really2 wrote: »

Graham should you be able to buy with your first wage packet at 18?

If the answer is yes I am worried.

Minimum wage is unskilled or fist jobs in a caffe etc. They are not average wages, add to that because of the low earnings they are likely to struggle with the debt do you think it is wise?

We did minimum wage mortgages in 2007 at 100-125%. turned out they were called sub-prime.

Ps the bar is getting lower with HPC but it aint going to get low enough for everyone on the minimum wage to buy a house.
There are not enough houses!!!!

pps bar is currently set at a max by most banks of 3X joint income, then affordability.
That is a MAXIMUM.
The Minimum is set by demand not banks.

You are taking what I have said to the far extreme with the 18yr old analogy.

Minimum wage are NOT first jobs. They are advertising for senior carers at 5.98 an hour in my paper.

Do you call a senior carer a first time job? Just had a quick look at the paper that was on my doormat, the council is advertising for housing advisors, £6.03 per hour. There is a job working for a woodland trust, requires qualification, £6.20 per hour.

Why is it better to have people who are working, cut out of the housing market, and a whacking great welfare bill, now more than double the entire NHS bill, to keep these people with a roof over their heads.

Please explain why that is better.

mitchaa

Graham_Devon wrote: »

Why? Why is it unrealistic?

Two people, working, shouldnt be able to buy a starter home?

Isn't that a bit of a crazy world we live in? You can have a better prperty on benefits than you can going to work all year?

You do realise that if you set the bar at say 38k average wage, the bar just keeps getting higher and higher as we say "well they shouldnt be able to buy because they aint got a better job".

We have just witnessed this, where the bar to get on the ladder kept getting higher and higher as people already with houses enjoying their equity expected others to find more and more to buy their first property.

It got so bad that at one point in 2007 here, you would need to be earning 65k per year and have no debts to buy a starter home.

So where are you setting the bar? If it's above the point of 2 people who are working full time, where do you want it set? Cus once you set the minimum income level to buy a house, it just keeps getting higher and higher, until.....pop.

I would personally say a £25k joint income is already enough to buy a home in 80% of the regions around the UK. In every single town and city in Scotland, Wales and Northern England, £80-85k will buy you a 1/2 bed ex council flat no probs.

They should not be aiming higher than that.

In reality, a £25k joint income with most lenders just now will secure purchasing power of around £100-120k. I know a lot of areas where you can buy decent family homes in not so bad areas for these amounts.

Not everyone is living in these greatly unaffordable southern regions Graham. I think perhaps your mind is skewed because of what you take in from your own area and are relating that unaffordability to everywhere else.

Dan:_4

Graham_Devon wrote: »

You are taking what I have said to the far extreme with the 18yr old analogy.

Minimum wage are NOT first jobs. They are advertising for senior carers at 5.98 an hour in my paper.

Do you call a senior carer a first time job?

I would call it a low paid job

boyse7en

£75k will easily buy a house, depending on where you want to live of course.

A quick search on Rightmove found loads of 2 bed houses under £75k in South Wales, Manchester and Birmingham areas. Even South Devon (Plymouth) Cornwall and Dorset have some 2 beds available for that sort of money.
I guess if they live in the south east, or want sea views or 4 beds it would be difficult, but you cut your cloth to suit.

StevieJ

boyse7en wrote: »

£75k will easily buy a house, depending on where you want to live of course.

A quick search on Rightmove found loads of 2 bed houses under £75k in South Wales, Manchester and Birmingham areas. Even South Devon (Plymouth) Cornwall and Dorset have some 2 beds available for that sort of money.
I guess if they live in the south east, or want sea views or 4 beds it would be difficult, but you cut your cloth to suit.

You forgot Detroit, you can pick one up there for under a thousand USD :eek:
,

Really2

Graham_Devon wrote: »

You are taking what I have said to the far extreme with the 18yr old analogy.

Minimum wage are NOT first jobs. They are advertising for senior carers at 5.98 an hour in my paper.

Graham if it pays the same as an unskilled job what I think is irrelevant.

We are talking about the thread not what a job is worth.:rolleyes:

mitchaa

boyse7en wrote: »

£75k will easily buy a house, depending on where you want to live of course.

A quick search on Rightmove found loads of 2 bed houses under £75k in South Wales, Manchester and Birmingham areas. Even South Devon (Plymouth) Cornwall and Dorset have some 2 beds available for that sort of money.
I guess if they live in the south east, or want sea views or 4 beds it would be difficult, but you cut your cloth to suit.

Hit the nail on the head.

I think its peoples expectations that are perhaps set far too high

treliac

boyse7en wrote: »

£75k will easily buy a house, depending on where you want to live of course.

A quick search on Rightmove found loads of 2 bed houses under £75k in South Wales, Manchester and Birmingham areas. Even South Devon (Plymouth) Cornwall and Dorset have some 2 beds available for that sort of money.
I guess if they live in the south east, or want sea views or 4 beds it would be difficult, but you cut your cloth to suit.

Also depends where the work is. A lot of these places are the ones least likely to provide employment!

StevieJ

treliac wrote: »

Also depends where the work is. A lot of these places are the ones least likely to provide employment!

Or mugged in the street at night or day :eek:

baileysbattlebus

I think people's expectations are too high to be honest - people mention the 1970's and a single average income buying an average property.

We got married in 1975 and contrary to popular belief we were not able to buy a house - we could at a push have bought a pair of North Tyneside flats to do up, with a sitting tenant on fixed rent in one of them, as my sister (civil servant) and her husband (fireman) did 2 years later, in Wallsend. Complete with mortgage rentention until works completed. They couldn't afford a house in the area they wanted to live in - it was quite a few years before they could. And neither could we. And neither could most young married couples that I knew. We mostly rented.

It was 1982 before we bought a house, because I wanted a decent house in a decent area. As it happened OH was transferred to Edinburgh Airport in 1979, the area we chose to live in was cheaper than the North East coastal area, I was brought up in Tynemouth and there was no way on earth we could buy in the village although we wanted to.

Yes, mortgages were 3.5 of main salary +1 of lower or 2.5 x joint - the multiples were that because the industry was regulated - after Mrs T's deregulation of the financial sector those multiples disappeared.

I do feel for people who want to buy a house and can't afford it - but it has always been like that - there has always been a proportion of society who couldn't afford to buy a house and a proportion who never wanted to - there always will be. We were part of that at one time. As I would imagine most people on here were at some point in their lives.

No one has the automatic "entitlement" or "right" to buy a house, the only entitlement or rights in this country are taxes and death. Nothing else is a given.