Housing Affordability has peaked, now decreasing

Emy1501

If HPI continues as many want that there will come a time when the young will not be able to buy regardless of how much they earn. I wonder how my Kids in 20 years will be able to buy if HPI is roughly 3% above inflation each year. What will that be 8 maybe 9x wages? Of course why should we care though as we will be further up the tree and will have made a bit

Thrugelmir

Emy1501 wrote: »

If HPI continues as many want that there will come a time when the young will not be able to buy regardless of how much they earn.

Without the bottom of the market buyers there won't be any HPI.

Something all those relying on making large capital gains prior to downsizing, as their property is there pension fund. Will realise in the next 15 - 20 years.

HAMISH_MCTAVISH

Thrugelmir wrote: »

Without the bottom of the market buyers there won't be any HPI.

Something all those relying on making large capital gains prior to downsizing, as their property is there pension fund. Will realise in the next 15 - 20 years.

People will ALWAYS find a way to put a roof over their heads.

If you want lower prices, build more houses!!!!!!

But unless we build 250,000 houses a year, every year, for the next few decades, HPI is absolutely inevitable.

Young person can't afford to buy? They'll have to rent and pay a landlords mortgage instead. Can't afford to pay rent? Get a flatmate and use two incomes.

Couples can pay twice as much as singles, people with parents willing to help can pay more again. We only build a third of the houses we need. And when the shortage is that great, only the top earning 35% of households need to afford a house for prices to rise.

25 year mortgage not enough? Get a 30 year, or 40 year, or 50 year product, which will surely become available when the market decides there is a need. Which there will be, if we continue not building enough houses.

House prices will rise by at least 100% in real terms over the next 15-20 year cycle. There is simply no way we can build enough houses in time to see any other outcome.

And that, to quote our resident village idiot, "is 100% guaranteed".

Graham_Devon

50 year mortgage. LOL. Many would still be paying their rmortgage at 80 years old having paid 6 times for the house

Their kids would be 50-60 waiting for an inheritance in order to buy as first time buyers

nearlynew

HAMISH_MCTAVISH wrote: »

Couples can pay twice as much as singles, people with parents willing to help can pay more again. We only build a third of the houses we need. And when the shortage is that great, only the top earning 35% of households need to afford a house for prices to rise.

25 year mortgage not enough? Get a 30 year, or 40 year, or 50 year product, which will surely become available when the market decides there is a need. Which there will be, if we continue not building enough houses.
.

Spoken like a true debt-junkie.

Well done McTittish.

Graham_Devon

nearlynew wrote: »

Spoken like a true debt-junkie.

Well done McTittish.

Which is weird, cus Hamish himself doesn't want debt. :think:

nearlynew

Graham_Devon wrote: »

Which is weird, cus Hamish himself doesn't want debt. :think:

No, but he wants someone else to get into massive debt in order to buy his crumbling sh1thole of a wreck in the highlands.

F*cking joker.

...... and very silly boy.

Graham_Devon

LOL, I'd hate to see you holding back nearly

[Deleted User]

I think the point is that people need to have a roof over their heads. Some will be lucky enough to have the cash to buy a house outright. The others have the choice of borrowing to buy their own home or paying rent to pay off someone elses mortgage. That's just the way it is. Prices won't come down because if people can't buy they'll pay rent so that landlords can buy. Either way there is competition for property which pushes prices up.

Now a question to those of you that want property prices to fall. Are any of you home owners?

For those of you that are home owners how many of you are willing to sell your house at substantially less than people are willing to pay for it in order to give youngsters a chance? If you really are sincere then lead by example.

Thrugelmir

HAMISH_MCTAVISH wrote: »

People will ALWAYS find a way to put a roof over their heads.

and many of them require no financial investment. People will adapt to the circumstances they are in.

There's already been a generational shift of wealth between 1999 and 2007 in property. Estimated at around £250 billion. This will take a generation of homeowners to rebalance as people spend a huge part of their working lives servicing their debts and repaying capital debt.