Housing at its most AFFORDABLE level for more then six years

Dan:_4

davilown wrote: »

Oh come on!

I earn 35k, meaning I can get a mortgage of 122,500. with a 10% deposit
average wage in UK can get 87,500
- house prices have to come down.

BTW, I have an MSc and BSc and earn well abve the national average.

Stop spouting rubbish just for once Dan.

Assuming you have no dependants and zero debt, Halifax will lend you £168000 on a 35k wage. + a 10% depoist will mean you can look for somewhere around the £185k mark, above the average house price.

JayScottGreenspan

Dan: wrote: »

It's a myth, dreamed up over at hpc.co.uk

I can highly recommend reading post #12 and then checking out the data:
http://www.lloydsbankinggroup.com/media/excel/26_02_09Affordability.xls

I think Kenny's 3.5-4.0x earnings is about right.

Dan:_4

I see I have received the usual attacks and insults for posting this.

Well, I didn't write it - Im merely passing it on, like the 'doomers' like to do with their very far-fetched material they dig up.

davilown

chucky wrote: »

well done on the degree and the masters.

house prices in certain areas do need to come down but what has average wages and average house prices go to do with buying a house? is that what the average person buys?

I'm trying to say I believe that it is still too expensive for regular earners like myself (near impossible for single nat ave earnings) to be a FTB in the current climate. IMO the people who are buying at the moment are those who have money in the bank and those who are able to utilise goverment schemes ie equity loans.

I don't believe market has another 50% to go, perhaps around 15% over a longer period - say 4-5 years.

Dan:_4

JayScottGreenspan wrote: »

I can highly recommend reading post #12 and then checking out the data:
http://www.lloydsbankinggroup.com/media/excel/26_02_09Affordability.xls

I think Kenny's 3.5-4.0x earnings is about right.

Yes this is correct.

The myth I refer to is the people who think lending was capped at either 3 or 3.5x earnings. You will see from this data the average mutiple lending was betwen 4 and 5 during the 1980s.

davilown

Dan: wrote: »

I see I have received the usual attacks and insults for posting this.

Well, I didn't write it - Im merely passing it on, like the 'doomers' like to do with their very far-fetched material they dig up.

I only attacked because you said people should retrade to get a better paid job.
Why should they pay for the bankers, and those who bought at the height, mistakes?

ukcarper

davilown wrote: »

I'm trying to say I believe that it is still too expensive for regular earners like myself (near impossible for single nat ave earnings) to be a FTB in the current climate. IMO the people who are buying at the moment are those who have money in the bank and those who are able to utilise goverment schemes ie equity loans.

I don't believe market has another 50% to go, perhaps around 15% over a longer period - say 4-5 years.

Just because it's very hard for FTBs doesn’t mean prices will fall so that it isn’t.

inspector_monkfish

ukcarper wrote: »

Just because it's very hard for FTBs doesn’t mean prices will fall so that it isn’t.

yes it does

inspector_monkfish

ukcarper wrote: »

Just because it's very hard for FTBs doesn’t mean prices will fall so that it isn’t.

no it doesn't

Dan:_4

davilown wrote: »

I only attacked because you said people should retrade to get a better paid job.
Why should they pay for the bankers, and those who bought at the height, mistakes?

I said 'maybe' they should as an option. If you want something bigger and better you need to earn the right money, so need to be in the right job, hence need to be appropriately trained.

Buying a house as a FTBer is not going to be easy, and it never has been.