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Debate House Prices
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CITY AM--- Housing no longer overvalued
Comments
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I would fully expect this to be the case with the newfound british propertymania and higher population.
The long term average will catch up eventually.
That and it's a less valid measure than mortgage payments to disposable earnings, which is now at only 29%, well below the long term average of 35%.
We don't have 15% interest rates any more, and are unlikely to see them ever again. They were a historical anomoly. Without 15% rates, the 3.5 income rule becomes obsolete.
Thats why mortgage payments were 70% of disposable income in 1990, and 29% today. Even though houses are more expensive today.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »That and it's a less valid measure than mortgage payments to disposable earnings, which is now at only 29%, well below the long term average of 35%.
We don't have 15% interest rates any more, and are unlikely to see them ever again. They were a historical anomoly. Without 15% rates, the 3.5 income rule becomes obsolete.
Thats why mortgage payments were 70% of disposable income in 1990, and 29% today. Even though houses are more expensive today.
Of those taking out a mortgage.
It's a bit like saying talking about the affordability of ferraris. IE there is no useful statistical sense in there.0 -
Of those taking out a mortgage.
Well yes, there seems little point including those on benefits in a council house....:rolleyes:It's a bit like saying talking about the affordability of ferraris. IE there is no useful statistical sense in there.
Not at all. But theres also no point including those who cannot afford to buy a house.
70% of houses are owned by the occupier. That is a staggeringly large number compared to most other European countries. In fact, it's probably too high already, as to get it that high we had to dip into the sub-prime pool and look where that got us.:rolleyes:
The percentage of FTB's is currently higher than it has been for years. Affordability is better than it's been for a decade or more. Ironically, with prices down and more affordable than they have been for years, and mortgage costs down and more affordable than they have been for a decade or more, the biggest barrier to entry is now the huge deposit for most potential FTB's. Which is a direct result of the crash that improved affordability so much.
Law of unintended consequences and all that.....;)“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
What a pointless article, i think you could get more factual information out of the Sun or Peter and Jane books.
Who is going to be stupid enough to fall for this argument that housing is affordable. Interest rates are at 0.5% in a panic measure due to the biggest economic downturn since the 1930s.
Rates are going up and anyone buying on the basis of 0.5% affordabilty is at increased rate of lossing their purchase.:exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
Save our Savers
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Rates are going up and anyone buying on the basis of 0.5% affordabilty is at increased rate of lossing their purchase.
Is anyone buying on the basis that their mortgage will be 0.5%? I'd love to find one of those mortgages, the ones I'm looking at are about 6%, which is around the average rate for the last 10 years or so."I can hear you whisperin', children, so I know you're down there. I can feel myself gettin' awful mad. I'm out of patience, children. I'm coming to find you now." - Harry Powell, Night of the Hunter, 1955.0 -
Harry_Powell wrote: »Is anyone buying on the basis that their mortgage will be 0.5%? I'd love to find one of those mortgages, the ones I'm looking at are about 6%, which is around the average rate for the last 10 years or so.
i've asked this question to Brit about three hundred and twenty two times now and he still hasn't answered.
maybe in his Walter Mitty life he has access to secret funds on a preferential rate as he's a [STRIKE]landlord[/STRIKE], [STRIKE]police man[/STRIKE], qualifed risk analyst now0 -
Graham_Devon wrote: »Hamish posted it, so yes. When he highlights "property is once again attractive to investors" and says excellent news, he's just trolling.
Let me see if I've got this right.
On a moneysaving forum, in the section specfically devoted to Debating (forum emphasis) house prices, anyone posting an article with professional advice that those interested in purchasing a house might save money by buying now rather than later, is trolling?0 -
Let me see if I've got this right.
On a moneysaving forum, in the section specfically devoted to Debating (forum emphasis) house prices, anyone posting an article with professional advice that those interested in purchasing a house might save money by buying now rather than later, is trolling?
You've got to love that bear logic.....:rotfl:“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
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Harry_Powell wrote: »Is anyone buying on the basis that their mortgage will be 0.5%? I'd love to find one of those mortgages, the ones I'm looking at are about 6%, which is around the average rate for the last 10 years or so.
Both the Nationwide and Halifax SVR are around 4%. You don't have to fix or track.0
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