Typical wage £20K. Typical house £150K

treliac

Mr.Brown wrote: »

No need for the minutiae of every detail. As the rather excellent and amusing hamster on the insurance advert puts it. Simples.

No dear, it's a meercat.

the_ash_and_the_oak

Pobby wrote: »

Oh come on. I have a lot of very bright posters on this thread. So answer me this, why has my home increased, 1998 to 2007 by 350%. I dunno and so far no one here knows.

The money to buy it with got cheaper and more accessible. The cheaper the money the more expensive the house

chucky

the_ash_and_the_oak wrote: »

The money to buy it with got cheaper and more accessible. The cheaper the money the more expensive the house

this where people don't really understand how it works...

it is usually the case that when houses are cheap - mortgage lending is not cheap.
when houses are more expensive - mortgage lending isn't as cheap.

the first half of 1996 and the first half of this year where when this wasn't the case - cheaper houses and cheap mortgage rates

the_ash_and_the_oak

chucky wrote: »

the first half of 1996 and the first half of this year where when this wasn't the case - cheaper houses and cheap mortgage rates

not sure about this part for first half of this year - agree that houses were cheaper but given that large deposit requirements excluded many from the better deals I wouldn't say that finance was cheaper during this period (though its kind of a strange period - w v cheap rates for existing owners on existing trackers)

chucky

the_ash_and_the_oak wrote: »

not sure about this part for first half of this year - agree that houses were cheaper but given that large deposit requirements excluded many from the better deals I wouldn't say that finance was cheaper during this period (though its kind of a strange period - w v cheap rates for existing owners on existing trackers)

yes you're right maybe should have qualified it better - finance was v. good for people with 25% plus deposits.

the_ash_and_the_oak

chucky wrote: »

yes you're right maybe should have qualified it better - finance was v. good for people with 25% plus deposits.

This is the thing - imo its sort of a mix of price of finance and accessibility of finance (and those already with capital will always be able to get a better deal on further finance) -so for me while cheap finance=expensive houses that cheapness has to be accessible otherwise there aren't enough people borrowing the larger sums that cheap rates allows - to facilitate higher prices

BritRael

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...

Yup, many people are renting because they can't afford a mortgage. And your point is??
The fact is, a LL is offering to sell a product; in this case a temporary roof over your head. If you choose to rent off him, surely that's good for both parties? What he does with the rent is his business, not yours or anybody elses.

PasturesNew wrote: »

...This is exacerbated by the fact the LL doesn't have to make capital repayments, but people in their own home do....

I assume you're talking about an IO mortgage? Again, whats your point? Some LL's make capital payments, some don't. Their choice. Likewise, people 'in their own home' decide what they want to do. I would imagine most people would have a repayment mortgage (or an endowment) not an IO anyway. In which case, they don't have to do anything except keep up their repayments.

PasturesNew wrote: »

...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.

PasturesNew

BritRael wrote: »

Yup, many people are renting because they can't afford a mortgage. And your point is??

My point was clear ... I was responding to a previous post and now you've taken it out of context and got all uppity.

Well, I'm not playing your game.

BritRael wrote: »

The fact is, a LL is offering to sell a product; in this case a temporary roof over your head. If you choose to rent off him, surely that's good for both parties? What he does with the rent is his business, not yours or anybody elses.

I assume you're talking about an IO mortgage? Again, whats your point? Some LL's make capital payments, some don't. Their choice. Likewise, people 'in their own home' decide what they want to do. I would imagine most people would have a repayment mortgage (or an endowment) not an IO anyway. In which case, they don't have to do anything except keep up their repayments.

Completely missed any point. Really.

skiTTish

20 k is not 'average' I would say its the lower end of the pay scale
And traditionally buying a house has never been an option for people at the lower end of the pay scale ,thats what social housing is for.

PasturesNew

skiTTish wrote: »

20 k is not 'average' I would say its the lower end of the pay scale
And traditionally buying a house has never been an option for people at the lower end of the pay scale ,thats what social housing is for.

There isn't any social housing though. Not for "normal people".