How times have changed....

gabyjane

well isnt this a post about how houses were so much cheaper years ago etc and wondering how people afford them now? nothing has changed really, houses are more than they were and people earn more than they did?

Cissi

gabyjane wrote: »

well isnt this a post about how houses were so much cheaper years ago etc and wondering how people afford them now? nothing has changed really, houses are more than they were and people earn more than they did?

Umm, house price to earnings ratio is still at an all-time high?!?

nearlynew

gabyjane wrote: »

well isnt this a post about how houses were so much cheaper years ago etc and wondering how people afford them now? nothing has changed really, houses are more than they were and people earn more than they did?

Yes, it is a thread about how house prices were so much cheaper years ago.

And plenty has changed - that is the point.
Earnings have not kept pace with house prices.

But that doesn't matter - because even though we don't earn any more, HPI was to come to our rescue.

HPI was fuelled by cheap and easy credit. Cheap and easy credit was available because of HPI. A magic self-fuelling perpetual money machine

And this is the magic bit.....................

Not only could you borrow shed loads of money to spend however you like but your house was worth more as well. So you're double flush.

What could possibly go wrong?

stuartm1

Graham_Devon wrote: »

Firstly I never said everyone.

Secondly, do you REALLY need evidence that people are renting instead of buying as they can't afford to buy?!

Really!?

It's all around you.

Graham, I must have thanked every post you made on this thread as it rings very true.

I'm 35, moved out of my parents in Glasgow at 20yrs old, have privately rented in Heathrow for 15yrs and why??? I was never earning enough - 15 years ago I earned 13.5k and now I earn 25k but house prices in my area of work have always been atleast +4 times my wages and when you're paying 40-50% of take home pay on rent alone it's impossible to save a decent deposit. I have managed to save 25k over last 5 years but that's worth tuppence where I live so I've given up and will rent till I die

I live near Heathrow and my type of job needs me to live near an airport where unfortunately earnings don't match property prices. There is nobody at my work place (approx 100 people) under 30 who has a mortgage which just highlights the social/housing problems in certain areas.

Finally I privately rent and as I work full time, have no kids, claim no state benefits I am not considered a priority by local council. Had I stayed in Glasgow yes I would be a homeowner but I moved to one of the biggest boom areas in the country which was my mistake.

You are correct there are 35 yr olds who are renting cos they can't afford to buy and there's many of us.

lostinrates

gabyjane wrote: »

well isnt this a post about how houses were so much cheaper years ago etc and wondering how people afford them now? nothing has changed really, houses are more than they were and people earn more than they did?

People do earn more than they did, but proportionally more to the price of houses, most examples here suggest not. Our stories are hardly comprehensive research, but some tories really do indicte real issues with the failure of earningsto keep pace with the cost of living.

Of course its not as simple as that and the amount we pay in tax and other costs of living are also important.

wymondham

gabyjane wrote: »

well isnt this a post about how houses were so much cheaper years ago etc and wondering how people afford them now? nothing has changed really, houses are more than they were and people earn more than they did?

... yes, but my wage did'nt double every 7 years or so...

StevieJ

lostinrates wrote: »

People do earn more than they did, but proportionally more to the price of houses, most examples here suggest not. Our stories are hardly comprehensive research, but some tories really do indicte real issues with the failure of earningsto keep pace with the cost of living.

Of course its not as simple as that and the amount we pay in tax and other costs of living are also important.

It is a good job interest rates are a lot lower than they were then, why do people keep ignoring this?

Yakubu22

D1zzy wrote: »

This an old faarts fact but: when we were looking for a mortgage in the 70s - 3x mans salary + woman's salary (maybe), was the max; you had to have been saving with the building society; and you had to apply at the beginning of the month 'cos once that month's funds were spent there was no more; so getting any morgage was difficult.

Oh and the mortgage rate was 15%

An old faarts facts?
Why is it whenever anybody states something like this (something that ACTUALLY happened). It's ridiculed as not realistic.

The fact is i'd rather be borrowing 1x Salary @ 15%, then 3x Salary at 5%.
I'm not denying it wasnt hard to get a mortgage "back in the day"...but it's hardly easy today either...plus today we get the added kick in the teeth of inflated prices.

Yakubu22

StevieJ wrote: »

It is a good job interest rates are a lot lower than they were then, why do people keep ignoring this?

Stevie, its harder now for FTBs that its ever been, not even the rates are that good;

http://www.guardian.co.uk/business/2009/jun/13/mortgage-first-time-buyerd

StevieJ

Cissi wrote: »

Umm, house price to earnings ratio is still at an all-time high?!?

And interest rates are at an all time low BTW I am not sure how it can be at an all time high when it has come down