Houses arent that Dear!!!

kriss_boy

Is it not possible that houses prices rose to the levels they did as there generally became a greater desire to own a nicer home?

People say staying in is the new going out afterall! Is it not possible there has simply been a shift in peoples priorities putting more importance on that dream home than a nice car or regularly holidays for example.

On paper the bricks and mortar cost of a building may be 40% less than the price it achieves in the open market but could be because people are simply happy to pay x per month for 35 years to live in that property?

I know Scottish house prices are dwarfed by those south of the border but the general concensus UK wide is that property is overpriced.

I however find myself looking at many of these so called overpriced properties with a mortgage calculator and thinking Im probably one of many people who would happily a mortgage on that property at that price.

I dont think Scottish house prices will fall considerably more before picking up again in a few years time.

sjaypink

Well may be biased living in the most unaffordable county an' all that...

.....and not having had any nicotine in my system for 2 weeks......

....and having just had a LMGTFY reply - which to me is, like, the most worstestest thing in the world ever....

but I think you're talking shoite.

I may return later to give you an actual explanation to back that belief up.

Off to find tobacco. And more wine

PS. I am allowed to write that on the sensible forum because it is Sunday. I will delete this on the stroke of midnight if someone can work out what £180k per month is so I actually have some figures to debate with.

And if you tell me to google it I will hunt you down and shove a large rolling pin in every orifice

the_ash_and_the_oak

Do you think there is greater desire now than there was 20 or 25 years ago? Not sure I can agree with that. Though I think demand has certainly increased (would be weird if it hadn't imo - a defining element of any boom - or bubble - is increased demand)

kriss_boy

sjaypink wrote: »

PS. I am allowed to write that on the sensible forum because it is Sunday. I will delete this on the stroke of midnight if someone can work out what £180k per month is so I actually have some figures to debate with.

And if you tell me to google it I will hunt you down and shove a large rolling pin in every orifice

I dont follow...

sjaypink

kriss_boy wrote: »

I dont follow...

I am peed off and rambling- sorry! :A

kriss_boy wrote: »

I however find myself looking at many of these so called overpriced properties with a mortgage calculator and thinking Im probably one of many people who would happily a mortgage on that property at that price.

I meant the mortgage calculator. Monthly cost of an £180k house?

kriss_boy

Depends on many things...

On paper my girlfriend and I could afford a property of that value, just providing the interest rate didnt creep up near 10% as it has done historically.

But thats what I mean- If we were risk takers we would buy our dream home tomorrow and happily pay a £1200 per month mortgage to live in it.

bumpoowee

kriss_boy wrote: »

Depends on many things...

On paper my girlfriend and I could afford a property of that value, just providing the interest rate didnt creep up near 10% as it has done historically.

But thats what I mean- If we were risk takers we would buy our dream home tomorrow and happily pay a £1200 per month mortgage to live in it.

So you plan to never have kids and never lose your jobs?

michaels

Way I see it - say in real terms incomes have doubled in the last 30 years but food, motoring, holidays are all only up 50% in real terms. Now suppose 30 years ago 50% of disposable went on housing and 50% on everything else - now the 'everything else' could be bought with 33% of income leaving the option to spend 66% of income (if desired) on housing - net result - as incomes rise in real terms the proportion available for housing increases so housing costs are likely to rise as a proportion of income and relative to other spending. The market response would be to build more houses but planning policy prevents this.

the_ash_and_the_oak wrote: »

Do you think there is greater desire now than there was 20 or 25 years ago? Not sure I can agree with that. Though I think demand has certainly increased (would be weird if it hadn't imo - a defining element of any boom - or bubble - is increased demand)

bumpoowee

michaels wrote: »

Way I see it - say in real terms incomes have doubled in the last 30 years but food, motoring, holidays are all only up 50% in real terms. Now suppose 30 years ago 50% of disposable went on housing and 50% on everything else - now the 'everything else' could be bought with 33% of income leaving the option to spend 66% of income (if desired) on housing - net result - as incomes rise in real terms the proportion available for housing increases so housing costs are likely to rise as a proportion of income and relative to other spending. The market response would be to build more houses but planning policy prevents this.

There is certainly truth in this, and it is a real shame that people in this country, rather than use the money to buy nice holidays, cars, food, clothes and generally anything you can enjoy, have chosen to just exchange the same lumps of brick for vastly increased prices.

The way I see it is that it is very unwise to use all the spare disposable income just on property, as it is a long term commitment and you never know when any of the other expenses you mentioned may go up for whatever reason (eg oil shortage).

Cleaver

bumpoowee wrote: »

So you plan to never have kids and never lose your jobs?

You've pretty much summed up my life plan in one simple sentence.

sjaypink

http://www.rightmove.co.uk/property-for-sale/property-23547676.html?locationIdentifier=OUTCODE%5E724&insId=1&sortByPriceDescending=false&minPrice=150000&minBedrooms=3&includeSSTC=true&_includeSSTC=on&pageNumber=1&fromSummary=true&backToListURL=%2Fproperty-for-sale%2Ffind.html%3FlocationIdentifier%3DOUTCODE%255E724%26insId%3D1%26sortByPriceDescending%3Dfalse%26minPrice%3D150000%26minBedrooms%3D3%26includeSSTC%3Dtrue%26_includeSSTC%3Don
Here we are, found a 'cheap' one. Small semi on large council estate

Is £800pm (£135k mortgage @ 5%) 'not dear'? After you've saved your £25k deposit? Hmmmmm....