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Debate House Prices
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House Prices - Radio 4 Program Money Box
Comments
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Please use some comon sense. I have about a 20% deposit on a good wage, now it is the lending multiples which put me out even getting to that bottom end property.
It took me 6 years to save that deposit and costs, it can not be done overnight. I'm sure you are making up about the majority saving these 25% deposits.
I did not say 25% deposits, 10% is all you need.
Since when was 6-7 times normal salaries the historical average, this is either a joke or you are deluded. Go back and check your facts.
6-7 times normal salaries?? You must earn a crap wage? If so, can I suggest to get yourself a bird and buy together?0 -
On a far higher mortgage rate despite 0.5% interest rates. Your argument is weak and all you are trying to do is use soundbites to undermine the issuse without addressing the facts or reality.I did not say 25% deposits, 10% is all you need.
May I say it reminds me of tabloid journalism6-7 times normal salaries?? You must earn a crap wage? If so, can I suggest to get yourself a bird and buy together?
Where I live a starter 1 bed property costs £200,000. A 10% deposit costs £20,000 and mortgage at £180,000. So you are looking at typically a £60,000 a year salary and put on a extra high interest rate. This is for a home which traditionally bought by low earners ie dock workers in the war which now is split in two flats.
House prices are overvalued and there is no way you can defend it.
I like the way you want me to have a partner pay for a overvalued property, are you worried about the falling equity in your buy to let portfolio?:rotfl::exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
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On a far higher mortgage rate despite 0.5% interest rates. Your argument is weak and all you are trying to do is use soundbites to undermine the issuse without addressing the facts or reality.
May I say it reminds me of tabloid journalism
You have answered your own question brit. Mortgage rates are high despite a 0.5% base rate, so when rates rise it will make little difference to current products, your argument that rising interest rates will cause another house price crash is the weakest of all. You accuse me of using soundbites when you use silly images to support your weak arguments!Where I live a starter 1 bed property costs £200,000. A 10% deposit costs £20,000 and mortgage at £180,000. So you are looking at typically a £60,000 a year salary and put on a extra high interest rate. This is for a home which traditionally bought by low earners ie dock workers in the war which now is split in two flats.
House prices are overvalued and there is no way you can defend it.
£200k for a 1 bed property! Where are you looking to buy, so this would have been around 240k-250k at the 2007 peak?
Anyway, using your figures, the Halifax will lend you the 180k on a salary of 37k. Not unrealistic if you work in London, which I assume you do if your looking at 1 beds at 200k (even though they are cheaper then this in London)
I like the way you want me to have a partner pay for a overvalued property, are you worried about the falling equity in your buy to let portfolio?:rotfl:
Most people buy with a partner, there is no escaping this fact. This makes it considerably easier to buy, and is nothing new.
I do not have a buy to let portfolio.0 -
Hmmm. This argument is being used frequently. Rates are high because the banks are rebuilding balances. Are you, and the others, saying that when rates start to rise as they must (in 12 months?), the balances will have been rebuilt by then? Therefore the banks will be able to narrow the margins?Mortgage rates are high despite a 0.5% base rate, so when rates rise it will make little difference to current products, your argument that rising interest rates will cause another house price crash is the weakest of all.
If that is correct then maybe as Boe rates go up they will just squeeze the margins of mortgages.
If it is not correct then the margins will need to be maintained, and rates will rise.
Actually though - scrap all of that high fallutin' economics bollox.
House price bubble. End of. Crash to come. Simples.0 -
Hmmm. This argument is being used frequently. Rates are high because the banks are rebuilding balances. Are you, and the others, saying that when rates start to rise as they must (in 12 months?), the balances will have been rebuilt by then? Therefore the banks will be able to narrow the margins?
If that is correct then maybe as Boe rates go up they will just squeeze the margins of mortgages.
If it is not correct then the margins will need to be maintained, and rates will rise.
Rates will not rise until the economny is ready for it, and even then it will likely be gentle 0.25% rises, and the base rate will probarly stick around the 2%-3% mark for a good few years.
Over the next few years, banks will start to compete for business again, so the margins will decrease.
Actually though - scrap all of that high fallutin' economics bollox.
House price bubble. End of. Crash to come. Simples.
Did you not notice that house prices fell around 20%. The crash that you refer to, has happened.0 -
Rates will rise when the market dictates it is neccessary. You can try and ignore the bond markets, but the simple fact remains that they and not the BOE realistically set rates.0
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On a far higher mortgage rate despite 0.5% interest rates. Your argument is weak and all you are trying to do is use soundbites to undermine the issuse without addressing the facts or reality.
May I say it reminds me of tabloid journalism
Where I live a starter 1 bed property costs £200,000. A 10% deposit costs £20,000 and mortgage at £180,000. So you are looking at typically a £60,000 a year salary and put on a extra high interest rate. This is for a home which traditionally bought by low earners ie dock workers in the war which now is split in two flats.
House prices are overvalued and there is no way you can defend it.
I like the way you want me to have a partner pay for a overvalued property, are you worried about the falling equity in your buy to let portfolio?:rotfl:
Thank you for a very sensible post. I guess you live in London.0 -
[STRIKE]Apart from the fact that you don't need a salary of 60k to obtain a mortgage for 180k
But don't you see? Doesn't anybody get it? Its a risk ratio. It's borrowing within sensible limits.
It's why the whole stupid pyramid is going to crash.
[/STRIKE]
Actually I give up. 180k. 180,000 pounds. Madness.0 -
Thank you for a very sensible post. I guess you live in London.
Maybe he should be even more sensible and move to a lovely area where you can buy a detached for a similar outlay, then again that would be ooooop north (forget what I said, it is orrible up here, honest
). 'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0
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