Musings of an elder board member

zygurat789

ukcarper wrote: »

Yes wage inflation did make your payment easier but we mustn’t forget the high interest rates although to be fair I must mention mortgage tax relief. But then a 20in TV did cost you 2 months wages instead of the 2 days it would cost you now.

In a few years time the house will, in all likelyhood have increased in value whereas your TV will be not worth a visit to the tip.

ukcarper

I think you missed the point I was trying to make and that is that although I could buy a house in the seventies there was no way I could have afforded luxury goods to go with it.

chucky

Graham_Devon wrote: »

This is very simple. Let's be realistic here.

i don't disagree - that's why i said

chucky wrote: »

there is another moving factor that a FTB could of take advantage of - which you couldn't in your time Pobby - interest rates... in the last 12 months there have been some attractive rates for FTB's with a decent deposit.

if everyone could take advantage of these situations house prices would have gone up even more. not all have 25% deposits.

despite what people think there have been large numbers of people sitting with cash deposits ready for property and interest rates to reach the right value for them to buy.

i've always said that property and credit combined are like a commodity - in combination their price is what determines the market. once credit starts to reduce or gets too expensive is when house prices will be an the issue again.

Pobby

chucky wrote: »

but wouldn't wage inflation have driven other inflation - reducing your disposable income?

there is another moving factor that a FTB could of take advantage of - which you couldn't in your time Pobby - interest rates... in the last 12 months there have been some attractive rates for FTB's with a decent deposit.

as ukcarper says - the timing of buying in the cycle combined with interest rates is key

Also I must add that both of us hit the promotion trail which of course helped things a lot.

MatteH

Please don't post sense on how the housing market actually used to function. You'll only go and upset the Scottish bloke who insists that rising house prices 'actually helps people move up the ladder'.

ukcarper

MatteH wrote: »

Please don't post sense on how the housing market actually used to function. You'll only go and upset the Scottish bloke who insists that rising house prices 'actually helps people move up the ladder'.

Can you please tell me how the housing market used to function so I don't inadvertently post about it?

carolt

ukcarper wrote: »

I think you missed the point I was trying to make and that is that although I could buy a house in the seventies there was no way I could have afforded luxury goods to go with it.

Did you need luxury goods?

carolt

Graham_Devon wrote: »

This is very simple. Let's be realistic here.

Most FTB's do not have a 25% deposit (lets think about it in real terms here, around £40,000) just lying around in bank accounts, ready to jump in with an extremely face paced market in terms of changes. (the 25% deposit being what you need to get the good interest rates you were referring to).

Let's also be realistic in that mortgage interest rates are not that astounding compared to 2 years ago for people entering the market.

But the main point is, it is a moving market, but normal people cannot keep up with the money required to just jump in when something changes.

Mortgage rates could be 1%. Thats great. But only great for those who have a couple of years wages just sloshing around doing nothing, and considering the average savings of everyone in the country comes to a grand total of 800 quid, I don't think this suggestion of jumping in when the market changes is going to catch on anytime soon.

We need a stable market. One where someone can say right X is how much I need to save, Y is the time it will take, I will aim to buy a house in Z.

Absolutely great post, Graham. One of your best.

Should add long-term fixed rates for FTBs are now poorer than they were at the peak of the market. And any FTB who takes out a variable rate or short-term fix now whilst looking at a 25 year mortgage wants their head seeing to.

wageslave

chucky wrote: »

despite what people think there have been large numbers of people sitting with cash deposits ready for property and interest rates to reach the right value for them to buy.

There's a lot you say that makes sense but that I can't agree with. I honestly wish I could.

But most of us Chucky have to sell our souls for a deposit for a house.

chucky wrote: »

i've always said that property and credit combined are like a commodity - in combination their price is what determines the market. once credit starts to reduce or gets too expensive is when house prices will be an the issue again.

We are frightened of credit us ordinary people. Dont get me wrong we have credit cards and did the whole interest free for a nice telly thing but we are in a different place now.

We now live in a much more uncertain world. We still have, by the skin of our teeth, jobs. But we are on overtime bans and wage freezes and, frankly, we don't know what another day is bringing.

You and Hamish make it sound so easy. I am never sure if it is arrogance or stupidity.

It certainly isn't any reality I recognise.

Mr.Broderick_2

wageslave wrote: »

There's a lot you say that makes sense but that I can't agree with. I honestly wish I could.

But most of us Chucky have to sell our souls for a deposit for a house.



We are frightened of credit us ordinary people. Dont get me wrong we have credit cards and did the whole interest free for a nice telly thing but we are in a different place now.

We now live in a much more uncertain world. We still have, by the skin of our teeth, jobs. But we are on overtime bans and wage freezes and, frankly, we don't know what another day is bringing.

You and Hamish make it sound so easy. I am never sure if it is arrogance or stupidity.

It certainly isn't any reality I recognise.

This is a good post for you.In a nutshell it is the feel good factor.Want a new car? Bang it on the mortgage the house you paid £90k for 5 years ago was suddenly worth £200k. People were rich and they did absolutely nothing to get there. Unfortunately it all went pear shaped. I thought utd did well this evening by the way.