"South West Home Truths"

chucky

Thrugelmir wrote: »

The numbers I am finding in the report are more in line with the opening post.




Why does anybody need a bigger house than actually need? An average 3 bed house is hardly a mansion.

Thrugelmir wrote: »

Why does anybody need a bigger house than actually need? An average 3 bed house is hardly a mansion.

which more often than not be purchased by a family.
most families that own a home do have a joint income... not sure why you put all your figures up with single incomes :rolleyes:

Sedgemoor: £194,243 average house price (10.2 x £19,022 average income)

Real World - £194,243 average house price (5 x £19,022 average income)

out of interest why are they looking at the house price - shouldn't the average mortgage amount be what you work out your multiples against to give you an indication of affordability :rolleyes:

also, some people are being quite ingenious here (again)... why look at the average income - not everyone you are including in that average income (minimum wage for example) will be able to buy a house. therefore that average income will become higher thus reducing the multiple...

purch

Wage stats are here.

West somerset seems to have a average full time wage of nearly £30K

I have no particular axe to grind, but I do find it hard to work that one out.

There are only 9,000 'jobs' in the survey and they list no median wage, but they do a mean wage, plus if you look at the percentiles, they only relate to lower numbers

Maybe if they took me out of the equation it would give a more realistic figure :eek:

Really2

purch wrote: »

I have no particular axe to grind, but I do find it hard to work that one out.
Maybe if they took me out of the equation it would give a more realistic figure :eek:

I don't know the area so can't comment, but they do not include self employed either.

the_ash_and_the_oak

chucky wrote: »

out of interest why are they looking at the house price - shouldn't the average mortgage amount be what you work out your multiples against to give you an indication of affordability :rolleyes:

isn't this because average mortage amount will include people who bought in 1996 or 1977?

Hypothetical example: If there are 10 houses and 9 were bought 22 years ago then does the average mortgage amount owed on them relative to salary tell us much about the affordability of the one currently for sale

the_ash_and_the_oak

chucky wrote: »

why look at the average income - not everyone you are including in that average income (minimum wage for example) will be able to buy a house. therefore that average income will become higher thus reducing the multiple...

this I can agree w more. But if we are comparing like with like - then if we compare ave sal vs ave house today with at times in the past then - we would also have the non-buying sector of society present in both examples? So if this stat is useful (if!) then its use is in comparing time periods?

Really2

the_ash_and_the_oak wrote: »

isn't this because average mortage amount will include people who bought in 1996 or 1977?

So would the average house price be irrelevent to FTB's also as they include all house purchases.

chucky

the_ash_and_the_oak wrote: »

isn't this because average mortage amount will include people who bought in 1996 or 1977?

Hypothetical example: If there are 10 houses and 9 were bought 22 years ago then does the average mortgage amount owed on them relative to salary tell us much about the affordability of the one currently for sale

i was going by the current salary by the current value

today you would need a 20% average deposit plus whatever multiple loan that you needed. on a single salary of course a 3 bedroom house woul have a high multiple. on a joint salary it would be much lower.

the_ash_and_the_oak

Really2 wrote: »

So would the average house price be irrelevent to FTB's also as they include all house purchases.

If you are saying "ave ftb salary should be compared with ave ftb property" then I agree!

the_ash_and_the_oak

chucky wrote: »

i was going by the current salary by the current value

today you would need a 20% average deposit plus whatever multiple loan that you needed. on a single salary of course a 3 bedroom house woul have a high multiple. on a joint salary it would be much lower.

Happy to go with current salary vs current value (but not current salary vs current amount owed).

I'm not sure we should include deposits!

chucky

the_ash_and_the_oak wrote: »

Happy to go with current salary vs current value (but not current salary vs current amount owed).

I' not sure we should include deposits!

no what i'm saying is if you want to compare affordability, compare it using the average deposit and rate (which would give you the average mortgage required) vs the the average salary at the current time. not the average price of a house otherwise it distorts the multiples higher.

the current amount owed - it has very little to do with it.

you're agreeing with me btw