Typical wage £20K. Typical house £150K

chucky

PasturesNew wrote: »

The thing is, if one is earning £20k you need to be looking at entry level properties. Then 10 years later buying a larger one if you want, or during that time going in with a 2nd person.

If a 1-bed flat is £150k, that's when there's a problem

stop trying to be sensible here Pastures - common sense or even reality doesn't apply here...

Max says "bottom end two and three bed family houses" - by this definition anyone on £20k should be able to buy an average house, even though they may not be on the average wage which is higher anyway.

worldtraveller

Don't worry Max! Forget the self-important, fancy, pointless, Ivory Towered economist/analyst numbers! Give it around another 18-24 months and they will be much more affordable! Let the sheep jump in, when, usually, the sheep jump in! :rolleyes: Just have the balls to wait out IMHO!

chucky

Max_Headroom wrote: »

And the money comes from.....?

money for rent comes from salary

money for mortgage (if they can afford it) come from salary.

quite simple really - i would have thought an intelligent chap like you would understand

chucky

PasturesNew wrote: »

You can't just choose. Buying a house needs a salry multiple and a deposit etc. Many people are renting because they can't obtain a mortgage on the house, but they are paying their LL's mortgage.

This is exacerbated by the fact the LL doesn't have to make capital repayments, but people in their own home do. When a LL sells a BTL he's still got his home to live in as the BTL isn't his primary residence, so OOs have to pay back the loan.

oh i agree with you - Max is trying to be ingenious comparing less than average salary with an average house. if he wanted to be sensible or at least realistic he would have chosen a dual income.

for a single income buying a property is very difficult.

Max_Headroom_3

At seven times salary multiples?

Max_Headroom_3

chucky wrote: »

oh i agree with you - Max is trying to be ingenious comparing less than average salary with an average house. if he wanted to be sensible or at least realistic he would have chosen a dual income.

for a single income buying a property is very difficult.

I'm comparing above average (for the area) income with very bottom end housing.

chucky

Max_Headroom wrote: »

At seven times salary multiples?

whatever multiple you'd like to make up - what you're comparing doesn't make sense.
you're comparing oranges and apples.

single people on less than average salary do not buy 2 to 3 bedroom family houses as you're trying to imply and insist on.

single people buy smaller property that will be cheaper and probably smaller.
if they can't afford to buy they rent - it's quite simple really.

HAMISH_MCTAVISH

Max_Headroom wrote: »

I'm amazed to find that in my area (where £20,000 is considered a pretty decent wage) bottom end two and three bed family houses in the cheapest areas are still hovering around £150K (or seven times salary with a £10K deposit).

Seems to me that the numbers are still a long way from adding up...

:rolleyes:

I was going to mention the obvious.....

3 bed houses are not "bottom end" properties, they are usually bought by those who have built substantial equity on the bottom rung or two of the ladder.

20K is not considered a "pretty decent" wage anywhere. It's well below the average median wage of all people, let alone the average median wage of actual house buyers, or the average income of a dual income household.

According to the CML stats, the average FTB mortgage is just over 3 times income. The average FTB property is around 90K.

The people actually buying those second or third rung 3 bed houses are typically couples, with dual incomes, 50K or more of equity from their starter flat, and borrowing around 2.5 times income.

etc

...... But then I thought, nahhh, nobody could be stupid enough not to realise all that, so the OP is just on a wind up mission.

So I'll leave it with this instead. :rolleyes::rolleyes::rolleyes::rolleyes:

chucky

Max_Headroom wrote: »

I'm comparing above average (for the area) income with very bottom end housing.

right - now you've changed from "bottom end two and three bed family houses" :rolleyes:
you're area doesn't have one bed property!? that's bottom end housing :rolleyes:

chucky

HAMISH_MCTAVISH wrote: »

...... But then I thought, nahhh, nobody could be stupid enough not to realise all that, so the OP is just on a wind up mission.

So I'll leave it with this instead. :rolleyes::rolleyes::rolleyes::rolleyes:

maybe he can add it to his blog :rotfl: