What a charming bunch of people.....

ukcarper

doire wrote: »

So you first bought in 1972. How would you feel about trying to buy from 2006 to now?

Like I said I would prefer it if prices were lower but I would have to buy smaller or moved further or possibly rent which wasn’t an option then.

ukcarper

Emy1501 wrote: »

I think what is being said is people want to be able to take out a 25 year mortgage and at least have some money left over over to live etc.

My first home was 3X wage by 2001 it was 4-5X Now its 7-8X in 10 years time maybe 10-15X if things carry on as they are.

I'd like to know where people get all these figures my first house was 5.3x average earnings in mid 1972 and the same house is now 7.2x ok it's gone up but not to the extent that some of you claim. By the way the same house went up 25% between may and Dec 1972. I suppose where you buy in the cycle can make a big difference.

ukcarper

doire wrote: »

A nice amount...but when council houses in my city are for sale for £180,000 then i think i'll need quite a bit more if im to have any kind of life other than spending all my wage on a mortgage.

how far are you prepared to move

HammerSmashedFace

Dan: wrote: »

Sorry, but that is not how it works in the real world.

The way I see it, you have 2 options:

1) Have some balls and take a risk, get a mortgage and buy a home for your family. For most families, this is likley to be a struggle for the first few years - it will get easier over time as your salary increases and your outstanding mortgage balance reduces.

Salaries have not matched HPI for a long time, so it's hard enough for FTB'rs to buy a house as it is. If you get yourself a mortgage and are struggling now with rates so low you're highly likely to be fooked at some point. ( My opinion is that mortgage rates could easily reach 8-10% within a decade)

If you buy now on these ridiculous teaser rates and terms of 2-3 years, you mortgage payments are highly likely to go up when the term ends, not down.

Pobby

HammerSmashedFace wrote: »

Salaries have not matched HPI for a long time, so it's hard enough for FTB'rs to buy a house as it is. If you get yourself a mortgage and are struggling now with rates so low you're highly likely to be fooked at some point. ( My opinion is that mortgage rates could easily reach 8-10% within a decade)

If you buy now on these ridiculous teaser rates and terms of 2-3 years, you mortgage payments are highly likely to go up when the term ends, not down.

Yes strongly agree. BOE rate @ .5% ! Just how long will that last?

Dan:_4

HammerSmashedFace wrote: »

Salaries have not matched HPI for a long time, so it's hard enough for FTB'rs to buy a house as it is. If you get yourself a mortgage and are struggling now with rates so low you're highly likely to be fooked at some point. ( My opinion is that mortgage rates could easily reach 8-10% within a decade)

If you buy now on these ridiculous teaser rates and terms of 2-3 years, you mortgage payments are highly likely to go up when the term ends, not down.

Pobby wrote: »

Yes strongly agree. BOE rate @ .5% ! Just how long will that last?

The base rate might be at an all time low, but new mortgage product rates are not. FTBers are typically on rates between 5 - 8% depending on depoist - this is not much different from ten years ago.

doire_2

ukcarper wrote: »

how far are you prepared to move

That isnt an option. Im getting married in may. She is very settled here with work and i guess i am too.

Emy1501

ukcarper wrote: »

I'd like to know where people get all these figures my first house was 5.3x average earnings in mid 1972 and the same house is now 7.2x ok it's gone up but not to the extent that some of you claim. By the way the same house went up 25% between may and Dec 1972. I suppose where you buy in the cycle can make a big difference.

Based on my own experience? The flat i bought in 2001 for £110K reached a peak of 200K in 2007 and is now worth £175K.

I dont know about the early 70's but my parents bought in 84 for about 4.5X dads earnings. It now worth about 10X what someone doing what he did then would be on now.

HAMISH_MCTAVISH

doire wrote: »

A nice amount...but when council houses in my city are for sale for £180,000 then i think i'll need quite a bit more if im to have any kind of life other than spending all my wage on a mortgage.

In some parts of the UK, you can buy a 3 bed terrace for 60K. In other parts of the UK a similar 3 bed terrace costs 600K. Credit is available equally everywhere in the UK. Therefore the cost differential is driven by supply and demand. There are not enough houses of the types people want, in the places they want them, and where the employment exists to support them.

In a free market, anything in short supply is rationed by price. The differential between prices in different areas is nothing more than a reflection of the different levels of supply and demand between areas.

There are really only 3 ways to lower prices.....

People can move from expensive areas to cheaper areas, equalising demand across the housing supply. This will reduce prices in the more expensive areas, but raise them in the cheaper areas.

You can introduce artificial price caps on housing, such as via mortgage lending restrictions or tax rises. This seems to be the preffered solution of the keyboard warriors here and on hpc. This will lower house prices, (at least temporarily) but what many don't seem to realise is that because more people can afford them it will result in rationing being imposed through other means. Waiting lists for example, which have now reached 33 years for some housing in the social sector.

Or you can build more houses..... Which would be the most effective solution by far. And yet it's the one thing we never hear the local house price critics campaigning for.:rolleyes:

mbga9pgf

Interesting Hamish, for once we agree. Looking in depth at Chapter 7 planning laws at the mo to see if I can purchase land with a view to building when I retire. The 200 quid per month rent I am currently paying will mean I will be able to have a tidy half mill in the bank by that stage, and the ability to retire at 38 if I so choose.