Support grows for 70% crash

macaque_2

Deleted_User wrote: »

On another thread I've demonstrated that you can still buy a house similar to my 'first rung' on the property ladder even if you're on minimum wage. It might not be to your liking but that's what most of the generations before you had to do. It's not always been as easy as you think.

When I saw this, I thought; Hello? Have they started doing Jackanory repeats on MSE? Surely not! Then I read on and solved the mystery:

it's gotten easier

Gotten + affordable property?!

Aha, you have wandered onto a UK website without realising it. Sorry 'buddy' but you're on the wrong continent (and I don't like what you do to our language)

carolt

Very entertaining, macaque.

carolt

Deleted_User wrote: »

On another thread I've demonstrated that you can still buy a house similar to my 'first rung' on the property ladder even if you're on minimum wage. It might not be to your liking but that's what most of the generations before you had to do. It's not always been as easy as you think.

I've also explained that my parents (married in the 50's) had to live in a rented room for 10 years while they saved up a 50% deposit on a house. They were only allowed to borrow 1.5% of the man's wage back then. Both my parents were Civil Servants so not exactly on poverty wages.

It hasn't been as easy as you think in the past. In fact, just over Christmas my cousin and I were talking about how our grandparents scrimped and saved and how it's gotten easier for each generation since then. The youngest generation (my neices and nephews who are in their early 20's) are doing the best of all of us. Of course, they don't realise that!



This is fair comment. A lot of the reason why young people today *THINK* that they should be able to by a 90k house as a first time home is because that's what has been happening very recently. But people have been living outwith their means and that can't be sustained. You can't expect to have what they have had.

Tell us about your parents, grandparents. Where did they live? How long did it take them to buy their homes. That's more realistic than looking at the yuppy generation or later.

Funny that, my parents bought in the 50's too. Not as posh as your parents, of course - my dad was only a manual worker.

But they didn't have to live in a rented room at all - they'd actually bothered saving a deposit before marrying. They got a 2.5 or 3 X times multiple (of the single salary) mortgage that enabled them to buy a 3 bed semi in a very nice north London Zone 3 suburb. Price in 2007 - approx 500K.

Your parents must have been really rubbish with money. Or have seriously annoyed their bank manager.

My parents certainly found it much easier to buy than their children. None of whom, on far, far better paid jobs, could have afforded an equivalent purchase as FTBs.

Gorgeous_George

So, if i understand this right...

.. people should put their lives on hold just in case macaque is right and prices crash (or fall gradually) by 70% over an indeterminate length of time.

That is really useful advice.

What a clown. Have you ever thought about training to be financial adviser Mr macaque?

GG

carolt

I don't think he's suggesting anyone put their lives on hold.

But surely it's better to live your life aware of all the possibilities that may affect you?

Then you're in a position to make an informed choice, rather than just jumping in like a lemming.

Chris_Hinds

For me, what has already been mentioned previously is pertinent.

The Average house price is £170k, the Average salary is £25k. So what?!

A first time buyer doesn't go and buy a 3-bed Semi (the assumed average house). A single person living on their own doesn't *need* a 3-bed semi. A 1 or 2 bed house or flat is pretty much ideal and the Average price for those properties bought by First Time Buyers according to Findaproperty.com is £108k in December 2009. Based on a reasonable (20%) deposit as expected in times past, that would mean someone on £25k would put a £22k deposit down with an £86k mortgage which equates to a 3.4x earnings to mortgage ratio.

Some first time buyers will be lucky, maybe they have a deposit saved or parental help, maybe they have a job with a bank and access to a staff mortgage rate or perhaps they are the next Einstein and have a high paid job straight out of Uni. These buyers will push up the average First Time buyer house price, others will buy lesser properties. There are currently 376 properties in Derby for sale on Rightmove for £100k or less ignoring those with Shared Ownership. The cheapest is barely more than £55k.

Averages conceal all manner of things. Bare that in mind when using statistics.

Regards

Chris

julieq

You *might* get hit by a meteorite. You *might* suffer from a flesh eating infection. There *might* be a 70% crash in 10 to 20 years, but 10 to 20 years of rent is a big price to pay for certainty.

And Graham, the question of being for or against repossessions is an idiotic rhetorical question, the aim is to create a false dichotomy to trap someone else into apparent hypocrisy.

You can be in favour of the principle of repossessions in case of default without being against measures to bolster the economy which work against repossessions actually happening.

Similarly you can be against repossessions (because of the effect they might have on the wider economy) and not require everyone to be able to buy a house as a basic right.

You can be for repossessions in certain circumstances and against them in others. It's like being for or against taxes, to take another example. You can be for income tax but against VAT. You can't lump everything together in a generalisation.

In other words it's a spurious question.

HAMISH_MCTAVISH

Chris_Hinds wrote: »

For me, what has already been mentioned previously is pertinent.

The Average house price is £170k, the Average salary is £25k. So what?!

A first time buyer doesn't go and buy a 3-bed Semi (the assumed average house). A single person living on their own doesn't *need* a 3-bed semi. A 1 or 2 bed house or flat is pretty much ideal and the Average price for those properties bought by First Time Buyers according to Findaproperty.com is £108k in December 2009. Based on a reasonable (20%) deposit as expected in times past, that would mean someone on £25k would put a £22k deposit down with an £86k mortgage which equates to a 3.4x earnings to mortgage ratio.

Some first time buyers will be lucky, maybe they have a deposit saved or parental help, maybe they have a job with a bank and access to a staff mortgage rate or perhaps they are the next Einstein and have a high paid job straight out of Uni. These buyers will push up the average First Time buyer house price, others will buy lesser properties. There are currently 376 properties in Derby for sale on Rightmove for £100k or less ignoring those with Shared Ownership. The cheapest is barely more than £55k.

Averages conceal all manner of things. Bare that in mind when using statistics.

Regards

Chris

Great post.

In most parts of the country, ordinary people in ordinary jobs can easily enough afford to buy a place to live on sensible multiples.

Except of course in the areas where supply has failed to keep up with demand. The solution is obvious, build more houses where they are needed and wanted.

Graham_Devon

HAMISH_MCTAVISH wrote: »

:rotfl::rotfl::rotfl::rotfl:

Theres no way in hell our resident village idiot nearlynew owns any houses at all, let alone 4 of them.....

Actually, I take that back, I did some research and it seems he does after all. I even found a picture.....




And here he is hard at work expanding his property empire......




Look at his childish posts, nearlynew is obviously a teenager on the dole living at home with mummy and daddy, angry at the world because he failed to get a job and can't afford a house!!!!!!!!

Just put him on ignore, best thing I ever did.:T

1. I beg your pardon? Look at HIS?

2. I beg your pardon? This kind of contradicts number 1 and your entire post. You are hardly "ignoring" him.

Graham_Devon

julieq wrote: »

You *might* get hit by a meteorite. You *might* suffer from a flesh eating infection. There *might* be a 70% crash in 10 to 20 years, but 10 to 20 years of rent is a big price to pay for certainty.

You *might* have your house burgled, or you *might* have a fire.

You pay insurance for these.