Typical wage £20K. Typical house £150K

the_ash_and_the_oak

chucky wrote: »

you've missed the point tonto

the house was worth £100k - that house isn't and was never worth £500k
the value of the house was made up in lalala land:T

where have you seen 500% HPI in 10 years without wages increasing

May have missed but I can't see where carolt says this was 10 years ago?

Graham_Devon

chucky wrote: »

where have you seen 500% HPI in 10 years without wages increasing

This was possible in Devon, and as stated in another thread recently, actually happened to my parents, but was over 600% from 1997 when they bought to 2007 when they sold. The just so happened to buy at the right time and sell 3 months before the bust.

This was selling for other reasons though, not to make a profit, as they still had to buy another house anyway so made no difference.

Wages of course, did increase over that 10 year period however. Not sure how much!

chucky

the_ash_and_the_oak wrote: »

May have missed but I can't see where carolt says this was 10 years ago?

the last time that London had an average house price of £100k was 1997.

ok, ok it was 12 years, i was out by 2 years - accept my apology

[IMG]http://www1.landregistry.gov.uk/houseprices/housepriceindex/report/default.asp?g=1&gt=1&a=London&s=01 January 1995&e=01 September 2009&t=1[/IMG]

chucky

Graham_Devon wrote: »

This was possible in Devon, and as stated in another thread recently, actually happened to my parents, but was over 600% from 1997 when they bought to 2007 when they sold. The just so happened to buy at the right time and sell 3 months before the bust.

this is London not Devon - i know what happened in London...

here's when the house price average was last £100k in London - it's not gone up by 500% since then... :rolleyes:
[IMG]http://www1.landregistry.gov.uk/houseprices/housepriceindex/report/default.asp?g=1&gt=1&a=London&s=01 January 1995&e=01 September 2009&t=1[/IMG]

Graham_Devon

chucky wrote: »

this is London not Devon - i know what happened in London...

Fair enough. You just asked where.

IveSeenTheLight

the_ash_and_the_oak wrote: »

the average price in capital terms was even cheaper in the period carolt was talking about, yet fewer people were able to buy

I mean, this is the thing - prices are cheaper than two years ago yet fewer people are able to afford them

The thing is, mortgage availability was very restrictive back then either.

My father in law, despite working in a secure employment, having good savings and a long term relationship with the building society practically had to threaten the building society manager that he would withdraw his funds and move them elsewhere in order to get a mortgage.

That was only 30 years ago.

I think some people have either a short memory or an inaccurate one when reflecting on the past

the_ash_and_the_oak

IveSeenTheLight wrote: »

The thing is, mortgage availability was very restrictive back then either.

My father in law, despite working in a secure employment, having good savings and a long term relationship with the building society practically had to threaten the building society manager that he would withdraw his funds and move them elsewhere in order to get a mortgage.

That was only 30 years ago.

I think some people have either a short memory or an inaccurate one when reflecting on the past

totally agree w this - as availability of credit has extended and cost of credit has reduced, this has enable owner occupancy to rise, and prices with them as gradually more and more people had access to funds at decreasing cost

Emy1501

the_ash_and_the_oak wrote: »

The problem imo is that those FTB flats might not be quite so easy to sell over the next few years as they have been the last few

Totally agree with you there. My parents are in the BTL game. When they started out hardly any flats in the blocks they bought in were also BTL. When you look now its at least half if not more. BTL is on its knees now. Yields in the South East are pretty poor unless you are on a low SVR and there is little point in getting into now.

Also if we see hardly and HPI over the next few years then many FTB's will just by pass flats and save up until they can afford a starter house etc. it would not surprise me if flat prices have not seen any HPI this year.

I sold a flat back in 2004 in South London for 180K. They were worth 200K in 2007 and 175K this time last year. There is one on now in the same block for 189K its been on now for over a month and I would be surprised if they can get more than 175K for it. It took me 1 week in 2004 and it wasn't an easy market back then easy.

There also another block not far away which was totally repossessed in 2007-2008. At the back end of last year these were selling at auction for 130-150K. Theres a couple on now which I assume have been flipped. There on at 165-180K but again are not selling.

I can see flats struggling over the next few years which will mean that many couples who would have used the equity out of their sale of a FTB to trade will struggle to get the equity needed. I know one person this has already happened to.

wageslave

the_ash_and_the_oak wrote: »

totally agree w this - as availability of credit has extended and cost of credit has reduced,

Wasn't there some kind of tax relief on your mortgage at one time?

Google is a Godsend:j

It was called Miras and it was abolished in 1990. If I am reading it right a basic rate tax payer got 25 percent tax relief and higher earners 40 percent.

http://www.mortgages.co.uk/mortgage-information/tax-relief.html

EDIT Sorry I normally frequent the kind of boards where I have to code the links...

lostinrates

PasturesNew wrote: »

I remember the programme being on. It also had one of those orange spivs (too much time on the sunbed) who had made loadsamoney in the area. Whichever one he is, he said he'd stopped buying a few years ago I think.

I can't remember the programme or the presenter though. I'm useless with names.

http://forums.moneysavingexpert.com/showthread.html?t=1144097&highlight=notting+hill+market

I think I might remember the thread here rather than the programme

I'm atually huffed that for one I have atually found what I was looking for in old threads.:o