Debate House Prices


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who came in to power here?

geoffky
geoffky Posts: 6,835 Forumite
in Debate House Prices & the Economy
make of this what you will..:rotfl::rotfl::rotfl:

[IMG]file:///C:/DOCUME%7E1/geoff/LOCALS%7E1/Temp/moz-screenshot-2.jpg[/IMG]

9116.jpg
It is nice to see the value of your house going up'' Why ?
Unless you are planning to sell up and not live anywhere, I can;t see the advantage.
If you are planning to upsize the new house will cost more.
If you are planning to downsize your new house will cost more than it should
If you are trying to buy your first house its almost impossible.
«1345

Comments

  • Cleaver
    Cleaver Posts: 6,989 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Sorry for being thick Geoff, but can you explain the graph to me? It is currently at around 160. What does the 160 mean?
  • geoffky
    geoffky Posts: 6,835 Forumite
    CLEAVER % to income/debt

    http://ftalphaville.ft.com/blog/2009/07/06/60536/the-culpability-of-central-bankers/
    It is nice to see the value of your house going up'' Why ?
    Unless you are planning to sell up and not live anywhere, I can;t see the advantage.
    If you are planning to upsize the new house will cost more.
    If you are planning to downsize your new house will cost more than it should
    If you are trying to buy your first house its almost impossible.
  • Cleaver
    Cleaver Posts: 6,989 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    geoffky wrote: »
    CLEAVER % to income/debt

    Sorry, I was always like this at school, asking questions until I understood. :)

    So you divide your income (yearly?) by your total debt? All of your debt, including mortgage? Sorry, don't get it and I want to understand!
  • 1984ReturnsForReal_2
    1984ReturnsForReal_2 Posts: 15,431 Forumite
    geoffky wrote: »
    CLEAVER % to income/debt

    http://ftalphaville.ft.com/blog/2009/07/06/60536/the-culpability-of-central-bankers/


    It says disposable income not income.

    :o
    Not Again
  • geoffky
    geoffky Posts: 6,835 Forumite
    looks like disposable income. to debt .but what or how the measure is done i do not know but that is one hell of a climb ...maybe this is a clue but here he measures household income????

    That almost seems impossible. Are those stats definitely correct?

    Here in the U.S. household/income is like 129% and it was a steady rise from ca. 1980-2000, then a jump 2000-2005. But nothing at all like that.
    It is nice to see the value of your house going up'' Why ?
    Unless you are planning to sell up and not live anywhere, I can;t see the advantage.
    If you are planning to upsize the new house will cost more.
    If you are planning to downsize your new house will cost more than it should
    If you are trying to buy your first house its almost impossible.
  • 1984ReturnsForReal_2
    1984ReturnsForReal_2 Posts: 15,431 Forumite
    Percentage cost of debt in relation to the amount of money you have left in your pocket after the cost of living (utilities, food, pertrol, insurances & probably mortgages & definately rent)
    Not Again
  • Cleaver
    Cleaver Posts: 6,989 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    geoffky wrote: »
    looks like disposable income. to debt .but what or how the measure is done i do not know but that is one hell of a climb ...maybe this is a clue but here he measures household income????

    Oh, so you don't know. I was hoping you'd know what the graph meant before you posted it. :)
  • gfplux
    gfplux Posts: 4,985 Forumite
    Part of the Furniture 1,000 Posts Photogenic Hung up my suit!
    I think it is the other way round

    say you earn £10000 NET per year the average debt is 160% of that

    = £16000

    If you have a mortgage and a vehicle to pay it off - repayment mortgage, life insurance, salary insurance it does not appear such a big deal.
    However a lot of people in the UK do not own their own home so if you live in rented accommodation £16000 debt at ?15% interest (if you are lucky) could mean 25% of their income is needed just to pay the interest. So they face being in debt for life!

    BUT remember we are looking at averages here.
    There will be no Brexit dividend for Britain.
  • geoffky
    geoffky Posts: 6,835 Forumite
    returns how do they measure? would not mortgage be a debt
    It is nice to see the value of your house going up'' Why ?
    Unless you are planning to sell up and not live anywhere, I can;t see the advantage.
    If you are planning to upsize the new house will cost more.
    If you are planning to downsize your new house will cost more than it should
    If you are trying to buy your first house its almost impossible.
  • Hair_Bear
    Hair_Bear Posts: 49 Forumite
    Cleaver wrote: »
    Oh, so you don't know. I was hoping you'd know what the graph meant before you posted it. :)
    It's an old MSE adage: If in doubt, post a graph.
This discussion has been closed.
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