Lack of supply pushing up prices

Really2

Sir_Humphrey wrote: »

So two average people on a joint income of 70k. In the current climate they could only expect to get 2.5x joint income. They would need at least a 25% deposit to get a payable rate of interest, which in practise means some sort of gifted deposit.

Why are you making things up.
Go on HSBC or FD (the strictest lenders) and check it out before making stuff up.:rolleyes:(hint it around 3X. Most high streets could get you 3.5X joint)

chucky

penguine wrote: »

I don't think that mortgages based on two income households are necessarily here to stay. I think they're one of the things that fueled the boom and if a lot of those two-income households end up being unable to make their mortgage payments as unemployment rises I think banks may well reconsider their lending policies.

i agree with your post expect for the bit in bold - i do think that dual income mortgages are here to stay. in London anyway.

i would have to say that while unemployment is increasing there will be less dual income mortgages.

Sir_Humphrey wrote: »

Exactly what I was implying before. All these bulls go to show with their drivel is just how divorced from reality they are.

the only person divorced from reality is yourself who can't afford where they'd like to live.

as i've previously said; either lower your expectations or get yourself a better paid job. it's quite simple really.
maybe you won't be so bitter and angry because you can't live where you want just because your job doesn't pay you enough and you are on a single income.

lostinrates

chucky wrote: »

what are you talking about - there are thousands of properties on Rightmove at less than £230k in London

Chucky, I haven't run a london search on Rightmove for ages: but there are some nice places in that search. Interesting I think. And are prices recovered in London, or in patches? Because some of that looks reasonable...has my perception changed or has pricing changed? I don't know, but did just send a few links to DH from that search.

chucky

lostinrates wrote: »

Chucky, I haven't run a lonon search on Rightmove for ages: but there are some nice places in that search. Intersting I think. And are prices covered in London, or in patches? Because some of that looks reasonable...has my perception changed or has pricing changed? I don't know, but did just send a few links to DH from that search.

i guess it's what you pay for, there will be good and bad in that list - prices definetely have softened but there is still expensive stuff out there.

Sir_Humphrey

chucky wrote: »

as i've previously said; either lower your expectations or get yourself a better paid job. it's quite simple really.
maybe you won't be so bitter and angry because you can't live where you want just because your job doesn't pay you enough and you are on a single income.

I am quite happy how I am at the moment. I am on UK national average earnings, I enjoy my work, I have loads of time for hobbies/interests, I have wonderful friends and a hot date this weekend. I have six years experience in data analysis, one year in policy and an Oxford degree so am very employable. Within the next year I will almost certainly be £30k plus. I could do with a little more room at home, but that is also true of most houseowners.

Prices only have to fall another 10-15% for me to buy the sort of flat I am after. If that doesn't happen, then I'll just move up North. This is no big deal for me. The point (which as usual you have missed) is that if lots of people like me do that, demand for housing will fall in London, pushing down prices.

Really2

Sir_Humphrey wrote: »

This is no big deal for me. The point (which as usual you have missed) is that if lots of people like me do that, demand for housing will fall in London, pushing down prices.

It's not missed I am not sure demand will decline in London as people will replace the job you leave etc.

But for sure people from down south have been pushing up prices north of Oxford for years now (selling up or bringing large deposits with them).

How else does a town with an average house price of over £220K have an average wage of £18K (OK it's not all true as we have a lot of self employed here which skew the stats a bit).

It's a funny old business this housing lark, but it seems to me outside London some of the better wage areas also seem to have some of the fairest price housing.

chucky

Sir_Humphrey wrote: »

I am quite happy how I am at the moment. I am on UK national average earnings, I enjoy my work, I have wonderful friends and a hot date this weekend. I have six years experience in data analysis, one year in policy and an Oxford degree. Within the next year I will almost certainly be £30k plus. I could do with a little more room at home, but that is also true of most houseowners.

good for you - however, it doesn't come across that way

Sir_Humphrey wrote: »

Prices only have to fall another 10-15% for me to buy the sort of flat I am after. If that doesn't happen, then I'll just move up North. This is no big deal for me. The point (which as usual you have missed) is that if lots of people like me do that, demand for housing will fall in London, pushing down prices.

i don't think i've missed it all. London is and will always have demand for property.

it may go up and it may go down. if for whatever reason London does have a low demand for property what will happen to towns like Birmingham, Manchester or where ever you like?

London property market has too many supporting factors that make it more resilient than any other town in England.

so a few Sir Humphreys leaving London will have zero impact.

Sir_Humphrey

Really2 wrote: »

It's not missed I am not sure demand will decline in London as people will replace the job you leave etc.

Only if they pay enough, or lower their standard. If other people leave before me, then I could in effect bluff it.

As I said, I am in a position to be flexible as I am not married and have no kids. If I were five years older, it would be a different position (but then I would have bought back in 2001-02 in all likelihood - I did not become bearish until 2006).

Sir_Humphrey

chucky wrote: »

i don't think i've missed it all. London is and will always have demand for property.

it may go up and it may go down. if for whatever reason London does have a low demand for property what will happen to towns like Birmingham, Manchester or where ever you like?

I agree that prices will always be more expensive in London for those reasons, and I would always be able to buy more up North.

But prices cannot divorce themselves entirely from the rest of the country. London was still the most expensive place to live in 1995. It also says nothing about whether the current price level is the right one - not relative to up north, but in more absolute terms.

I could have bought a dodgy flat in a dodgy-ish area at any time since late 2005 (thanks to parents). I have calculated that (based on the prices in that area) that my decision not to do so has me over 10k quids in, even after the recent bounce.

I don't need much more of a fall to be buy somewhere which will do me for five years and my financial strength is far better since I moved to a better paying government job a few years ago.

This is why your "advice" is so fatuous. Of course I am improving my circumstances as times go on. :rolleyes: The way you bulls go on, you sound like you forgot what happened the last time house prices got out of control. :rolleyes::rolleyes:

chucky

Sir_Humphrey wrote: »

This is why your "advice" is so fatuous. Of course I am improving my circumstances as times go on. :rolleyes: The way you bulls go on, you sound like you forgot what happened the last time house prices got out of control. :rolleyes::rolleyes:

advice!?! you actually take advice off people on an internet forum!?!?