Handy little website courtesy of the IFS - "Where do you fit in"?

HAMISH_MCTAVISH

mbga9pgf wrote: »

Well be surprised then. Because it blows your entire argument on here that households in the UK can easily afford house prices as they stand without overextending out of the water.

It certainly does not.

The numbers are clear.

People that buy houses average only 3 times income for FTB's, and less than that for second buyers. Even at peak it was less than 3.5 times income. There is therefore no doubt that the people buying houses are not, on average, over extended.

As 70% or so of households are owner occupied, the highest level in history, it cannot even be argued that high prices exclude people from owning.

There is some doubt that home ownership can be extended beyond the 70% or so of the population that already own. But thats not exactly surprising. Not all people can afford to buy a house.

But more people have been able to do so in the last decade than at any time in history.

HAMISH_MCTAVISH

mbga9pgf wrote: »

You are truly, truly disillusional. My OH is a teacher and she doesnt know of a single experienced teacher earning anything like 35K a year. Maybe a head of department, but not a teacher.
.

I have a family member that is a teacher, and is on 34K. Not a department head, just an experienced teacher. A dept head is on closer to 40K.

mbga9pgf

HAMISH_MCTAVISH wrote: »

People that buy houses average only 3 times income for FTB's, and less than that for second buyers. Even at peak it was less than 3.5 times income. There is therefore no doubt that the people buying houses are not, on average, over extended

Based on affordability criteria set by the lenders. FTB figures also include numerous sell to renters and the CML admitted that as many as 1 in 4 purchases by FTBs are no such thing.

If you look at the types of houses that people are living in these days there is no comparison. As for Multiples, you are talking a complete crock of Sh*t. multiples for FTBs as defined here: http://www.nationwide.co.uk/hpi/historical.htm

are still higher for FTBs than at THE PEAK OF THE LAST CRASH. Admit it, you are WRONG and just had your A$$ handed to you on a plate.

fc123

I am too embarrassed to say where we came up.....but I don't feel like a 'top earner' at all. I voted though as the poll is anon.

kissjenn

At the risk of being horribly wrong I thought you were to use net not gross income and then deduct your council tax. To have £70k you need to earn around £100k - or has everyone else done it differently?

mbga9pgf

kissjenn wrote: »

At the risk of being horribly wrong I thought you were to use net not gross income and then deduct your council tax. To have £70k you need to earn around £100k - or has everyone else done it differently?

No, 70K is Gross, although the calc is entered as Net. But its a valid point. 70K gross still equates to the top 5% of household incomes.

As for hamishes Teacher salaries, he may want to take a look at this:

http://www.118student.co.uk/student-careers/teacher.html

Higher pay scale is relatively rare and 35K is the absolute maximum, once again proving you completely wrong.

HAMISH_MCTAVISH

mbga9pgf wrote: »

Higher pay scale is relatively rare and 35K is the absolute maximum, once again proving you completely wrong.

You are an idiot.

I was right, and you just proved it.

I didnt say all teachers were on 35K, I said its the sort of money an experienced teacher can make.

LydiaJ

Maybe the person Hamish knows is in inner London. MP6 gets you £34k in inner London although only £30k elsewhere.

mbga9pgf

LydiaJ wrote: »

Maybe the person Hamish knows is in inner London. MP6 gets you £34k in inner London although only £30k elsewhere.

Yeah, because London prices are representative of the piddly extra you get as a teacher!

Fair point though.

HAMISH_MCTAVISH

mbga9pgf wrote: »

Based on affordability criteria set by the lenders. FTB figures also include numerous sell to renters and the CML admitted that as many as 1 in 4 purchases by FTBs are no such thing.

If you look at the types of houses that people are living in these days there is no comparison. As for Multiples, you are talking a complete crock of Sh*t. multiples for FTBs as defined here: http://www.nationwide.co.uk/hpi/historical.htm

are still higher for FTBs than at THE PEAK OF THE LAST CRASH. Admit it, you are WRONG and just had your A$$ handed to you on a plate.

You are determined to make yourself look foolish today.:rotfl:

I said the average FTB loan never crossed 3.5 times income even at peak, and second loans were even lower.

I was right. Again.

You then try and bring in a stat that shows average house price to average income of all people, not just house buyers, and try to confuse the issue. It's irrelevant. I've already stated not all people can afford to buy a house, and many of those that do buy one for far less than the "average" price.

Give it up, you're just embarrasing yourself now.