"Why I hate high house prices"

mewbie_2

Quizzical_Squirrel wrote: »

You could argue it's progress for the younger generations but older people were assured the state would look after them 'from cradle to grave'.

Our generations know it's coming and can make provision. They didn't and can't.

Oh I was being sarcastic, sorry it didn't show.

As for knowing it's coming and preparing. For many I think it would be knowing it's coming and not being able to do a damn thing about it.

But hey, this is supposed to be the fun section of the forum. We're not the DFW board in here.

Fly_Baby

HAMISH_MCTAVISH wrote: »

If you think it's easy to save 40K, you probably make more than most people who would struggle for housing, or do not have the typical persons bills.

40K is almost 3 years ENTIRE take home pay for the type of person that genuinely deserves sympathy about being "priced out". Or more like 10 years if they have to live and pay rent/bills in the meantime.

That is a decade or more of saving for many people. By which time house prices will be well out of reach again.

You're living in La-La Land if you think most FTB's can save 40K in a couple of years.

I didn't say "a couple of years". But I know that my OH and I have been saving about 10K a year. First, he was on 15K and I was pregnant. Then he was on 25K - which sounds a lot but it's not if you are in South East. We managed to save by living really cheap - how about a studio flat for two adults and a baby,? For £550 pcm plus all bills? Yet, we lived like that and were quite happy because we knew what it was for. I went back to work when our son was just 5 months old. Sacrifies must be made but it can be done. And yes, we have been priced out all along, for 7 years - and it's only now that we are likely to be able to buy a house that we want.

I am not saying that it is normal to live like that and I wouldn't advocate this to anyone - but what other option did we have apart from saving - all due to houses being unaffordable for a professional couple with salaries above average? A family that's too rich for council housing but too poor for a mortgage. What's good in paying a small deposit and then being stuck with a huge mortgage - if you can get one, of course - otherwise you are stuck paying a ridiculous rent. High house prices are not normal and far from good.

Fly_Baby

HAMISH_MCTAVISH wrote: »

Seriously, you need to think about the facts a bit more. The original scenario discussed a 25K to 40K deposit on a 100K to 150K house.

The mortgage payments would be closer to £500 a month than £1000 a month.:rolleyes:

But even on your £1000 per month payments, with a 40 K deposit, you're well into 200K house territory..... Which in most parts of the UK is well above the normal FTB requirements.

And of course, with inflation, £1000 a month will seem like peanuts in 10 or 15 years anyway.

I am not too concerned about "originial scenario" TBH - it doesn't apply to me and a lot of people who can only dream of paying £100K for a house. Where I live, house prices start at £200K - it's the absolute mininun you can expect to pay. The same about mortgages of £1000 per month.

If you still suggest talking about average then I really don't see a problem for a couple to save £25K over a few years - with double income and no children, renting a cheap studio or a 1-bed flat. That's £500 from each salary to save per month to reach this deposit in 2 years' time. Less than that if you allow 3 years. That's the money that can be made just working evening shifts in a bar/pub- again, I did that myself.

And then they can buy that £100K house and happily pay £500 a month.

Framps

mewbie wrote: »

Yes. Need care? Then sell your home.

I think it's called progress.

I think it's called you can't take it with you

chucky

Gorgeous_George wrote: »

What is needed is stability. Maybe imposing Capital Gains Tax on residential property would do the trick.

MEWing should be VAT-able.

GG

what a smashing idea!! it's actually a stupid idea.

let's charge businesses VAT for gearing or leveraging their debt too. :rolleyes:

PasturesNew

Afriend wrote: »

I wasn't aware Landlords could let sheds as accomodation. It sounds a little illegal to me.

There's a lot that goes on that isn't legal.... it doesn't stop it happening.

Where I was, I had a friend living in an illegally and badly converted garage that had black walls, my neighbour had 3 in his shed (one man had died in that shed a couple of years before), across the road somebody was living in a shed too (he was found dead too) ... you usually find out that sheds are being lived in only because you live next to them, or somebody is found dead in them.

If people cannot afford proper accommodation, they start to slip down the quality ranks of what's available .... and a shed is better than a hedge.

PasturesNew

HAMISH_MCTAVISH wrote: »

Then theres also career progression. I'd suggest very few people would expect to still be making todays wage in 15 years.....

Au contraire. For a lot of people, wages are the same now as they were 10 years ago or more.

In fact, I can state that in about 1990 I was earning £6.60/hour to do a job; if I were to go and do that job again today I'd get £6-7/hour. No wage inflation.

In 1997 I started a new job on £17,500 - I looked up on their website at what that job pays today and I think (from memory) it is about £18,500.

In 1994 I was paid £14,000 as a Centre Manager for serviced offices. I suspect a similar job would attract a similar salary today.

Many salaries have literally sat still - and waited for minimum wage to catch them up. Paying WTC to part-timers with families who work only 16 hours a week has helped this to happen. Employers now have a raft of cheaper people whose salaries are topped up by benefits, rather than paying a living wage and taking somebody on full-time.

IveSeenTheLight

Fly_Baby wrote: »

I really don't see a problem for a couple to save £25K over a few years - with double income and no children, renting a cheap studio or a 1-bed flat. That's £500 from each salary to save per month to reach this deposit in 2 years' time. Less than that if you allow 3 years. That's the money that can be made just working evening shifts in a bar/pub- again, I did that myself.

And then they can buy that £100K house and happily pay £500 a month.

I agree with you that an average couple can save a substantial deposit.
This is how my wife and I started.

Didn't need to live fruigly, but then again we probably did have less outgoings than average (was not into going out clubbing every week, takeaways all the time, not smokers etc)

This however leads to part of the reason why house prices have risen.
Why by a £100k property when on joint salaries you can get a much better property in a nicer area.

On average, our society is driven to want the best we can get.

IveSeenTheLight

PasturesNew wrote: »

Au contraire. For a lot of people, wages are the same now as they were 10 years ago or more.

PN, there are always exceptions to the rule as in your case.

Taking the 10 years ago same wage you say a lot of people are now on, that may hold true in some cases.
On average however: -

Table 1.7a
http://www.statistics.gov.uk/downloads/theme_labour/ASHE_1999/1999_all_employees.pdf
1999 = Average wages (of all employees, male female part time etc) was £14,888 median and £17,702 mean

Table 1.7a
http://www.statistics.gov.uk/downloads/theme_labour/ASHE_2008/2008_all_employees.pdf
2008 = Average Wages (again all employees, male female part time etc) was £20,801 median and £26,020 mean

NOTE 2009 data not released yet

So this proves that for Mr Average, they earn more now than they did 10 years ago

HAMISH_MCTAVISH

PasturesNew wrote: »

Au contraire. For a lot of people, wages are the same now as they were 10 years ago or more.

In fact, I can state that in about 1990 I was earning £6.60/hour to do a job; if I were to go and do that job again today I'd get £6-7/hour. No wage inflation.

In 1997 I started a new job on £17,500 - I looked up on their website at what that job pays today and I think (from memory) it is about £18,500.

In 1994 I was paid £14,000 as a Centre Manager for serviced offices. I suspect a similar job would attract a similar salary today.
.

I'm sorry, I didn't realise I had to explain the term "career progresssion" to you.:rolleyes: