Support grows for 70% crash

chucky

macaque wrote: »

Here's the real truth.
The average income today is around £25k and the average house price is £167,664. In other words around 7 times average income. And that is at a time when incomes are falling and jobs are evaporating.

here's the thing with the bears - they're always looking and obsessed by the ticket price...

did you forget mortgage rates in your in depth analysis when looking at the actual cost of a property?

Graham_Devon

macaque wrote: »

I love the way stats can be used to turn reality on it's head. Have a look at the actual wording on the Halifax chart:



The crafty little tinkers at the Halifax have rigged the stats. Why didn't they compare all houses will all incomes or average house price with average income. We all know the answer.

By choosing buyers incomes versus house prices Halifax have used a completely artificial sample. Over the past 2 years, mortgages have been rationed to people with large deposits or high incomes. In other words, the more parlous the state of the market, the better looking, the Halifax stats.

Here's the real truth.
The average income today is around £25k and the average house price is £167,664. In other words around 7 times average income. And that is at a time when incomes are falling and jobs are evaporating.

This is why the Nationwide's average wage comes out at something like £36k. Hence the low income multiple.

I suppose in fairness, the incomes of the buyers is what they have to work on.

It's basically the average wage of people who can afford houses, and the multiples of those people. Not the multiples of the average wage. Nationwides multiple will never go that high, as as people are priced out, they will only sample even richer people, meaning mutliples will stay pretty much the same.

ILW

macaque wrote: »

I love the way stats can be used to turn reality on it's head. Have a look at the actual wording on the Halifax chart:



The crafty little tinkers at the Halifax have rigged the stats. Why didn't they compare all houses will all incomes or average house price with average income. We all know the answer.

By choosing buyers incomes versus house prices Halifax have used a completely artificial sample. Over the past 2 years, mortgages have been rationed to people with large deposits or high incomes. In other words, the more parlous the state of the market, the better looking, the Halifax stats.

Here's the real truth.
The average income today is around £25k and the average house price is £167,664. In other words around 7 times average income. And that is at a time when incomes are falling and jobs are evaporating.

I dont believe that an average income would ever but the average property.

chucky

ILW wrote: »

I dont believe that an average income would ever but the average property.

what's an average property and which average road could i find one on?

Percy1983

I am figures from this I am a bear? fair enough, but as mentioned I want prices to come down for the good of the people (me included).

Nobody (a none bear) has told me why they want prices to keep going up, what do they have to gain? surely we all want prices to drop?

Graham_Devon

Percy1983 wrote: »

Nobody (a none bear) has told me why they want prices to keep going up, what do they have to gain? surely we all want prices to drop?

A lot of the "bulls" on this site are invested in property, either for retirement or business purposes.

The houses are therefore not classsed as homes, but investments, and everyone wants their investment to go up.

I will re-itterate, a "lot" of the bulls. Not all.

I remember reading not too long ago on here someone hoping prices would rise as they would get a bigger inheritance etc.

Percy1983

I see, so its a selfish gain then... So they are basically the people who have bought more than 1 property and have been getting young 'priced out' people to pay there mortgages for them so they have a free house after long enough. They believed prices would keep going up forever to make there free pension even bigger...

Now that things seem to be adjusting themselves back to reasonable levels, there 'investment' which they have paid very little towards is de-valuing and they are getting annoyed because all that free money they thought they would get is going.

Now they are hoping for many people to stay priced out so they can still use them to pay there mortgages, but with falling prices more people are getting there own place and there is starting to be more bulls with property to rent than rentees so they have to reduce there rent and actually have to start paying something towards there own second mortage.

I can see why the bulls are getting angry actually... but I have no sympathy to be honest, they made there choices and they can sell at any point, they might have to make a loss but thats down to believing the hype of these get rich quick TV programmes.

I think I vented my feelings on the matter, bit of a rant maybe but I know many people in the same boat with the same feelings.

chucky

Percy1983 wrote: »

I see, so its a selfish gain then... So they are basically the people who have bought more than 1 property and have been getting young 'priced out' people to pay there mortgages for them so they have a free house after long enough. They believed prices would keep going up forever to make there free pension even bigger...

yes - i bought 12.857 properties just in 2008. what's your problem with that?

if you had saved your cash instead of spending it on loose women and mars bars you wouldn't be in the state you're in now blaming everyone else for your misfortunes.

get a grip and sort yourself out before blaming everyone else - it's only an internet forum!!

StevieJ

What about the people with negative equity who can't remortgage at the moment I am sure they would wish house prices to increase, for pure selfish reasons obviously.

nembot

i'd go with what you're saying Percy, it's pretty pointless trying to debate with Hamish, Chucky and the smurf. They'd all say black is white to avoid losing money on their assets, same goes for Haliblag, Nationlies and any other company with potentially billions to lose.