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Debate House Prices
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Fantasy house prices
Comments
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Have a think about this.
The average price paid by first time buyers was £147,576
(I presume you are not challenging me on this)
According to your sources, the true income multiple for FTBs is closer to 4 times income. (I am not challenging you on this)
Now divide £147,576 by 4 and you get £36,894.
In other words, a first time buyer today is on over £35k. That is why house prices are unsustainable.
surely the average first time buyers are a 'couple' .. so each only has to earn 18,447 per annum to afford the average house.0 -
I can see where you're coming from, and I agree with your maths and your reasoning.
However, consider this: I like to sail. I would like to buy a yacht for around 150k, but I can't afford it. Does the fact that I (and many others) cannot afford it cause a national or world-wide slump in yacht prices? No, because there is a big enough pool of people who can afford it.
In the meantime...I charter from people who can afford it. In house-purchase terms, it's called 'renting'.
The vast majority of people get along quite nicely without a yacht - either owned or chartered. But we all need somewhere to live, and must either buy or rent.Do you know anyone who's bereaved? Point them to https://www.AtaLoss.org which does for bereavement support what MSE does for financial services, providing links to support organisations relevant to the circumstances of the loss & the local area. (Link permitted by forum team)
Tyre performance in the wet deteriorates rapidly below about 3mm tread - change yours when they get dangerous, not just when they are nearly illegal (1.6mm).
Oh, and wear your seatbelt. My kids are only alive because they were wearing theirs when somebody else was driving in wet weather with worn tyres.
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Then the bank comes along and says. It doesn't matter that you can't afford it. Yacht prices only ever go up. Fill in this form and if you tell us your salary is £50k you can sail out of here in a brand new yacht.
lol - I agree with you my friend. The banks have caused a lot of problems by allowing people to speculate. A lot of house-buyers are in trouble today because banks funded a gamble...(not the purchase of a home) and they lost.
This does not alter that fact though, that there are many people who have the money to buy multiple properties and will continue to do so. Will they get them cheaper if they can? Absolutely! Will some people lose a lot of money when selling and never be able to 'buy' again? Absolutely! But it does not alter a thing, because one mans negative equity is another mans opportunity to make a killing.Marching On Together
I've upped my standards...so up yours!0 -
The vast majority of people get along quite nicely without a yacht - either owned or chartered. But we all need somewhere to live, and must either buy or rent.
It's called an 'analogy', but I still don't whine because I cannot afford to buy one and there are others who can.
However, you are quite right, we must either buy or rent. But which one we take must surely be decided upon our ability to pay for it, not a gamble.Marching On Together
I've upped my standards...so up yours!0 -
http://www.thisismoney.co.uk/mortgages-and-homes/house-prices/article.html?in_article_id=497308
Average incomes in the UK are around £25k and falling (due to rising unemployment and pay cuts in the private sector). The average income of a 'would be' first time buyer is probably only 60% of this, i.e. £15k.
Therefore, at £147,576, the average price of the first time home is 10X (or more) the income of young people looking to buy their first home. That is crazy.
The yawning gulf between price and affordability may satisfy the greed of some but it does so at the price of social division, deprivation and erosion of UK's competetive position.
House prices are patently unsustainable but buyers are still being suckered in with tantalisingly cheap short term deals. When normal rates return however, today's buyers will see their domestic finances torn to shreds and their house prices murdered. Think about this before you buy.
Yet another fantasy post from the monkey
'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
surely the average first time buyers are a 'couple' .. so each only has to earn 18,447 per annum to afford the average house.
:rotfl:
More spin to try to justify overvalued house prices. No people use to quite happily buy houses on there own on lower wages. It was greed, lowering interest rates to much, loose lending conditions and fraud that rose the prices so much. Not some new marriage thing.
Strange it went potty when we took house prices out of inflation (RPI - CPI) all those years ago.:exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
Save our Savers
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:rotfl:
More spin to try to justify overvalued house prices. No people use to quite happily buy houses on there own on lower wages.
When was that in the fifties
'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
People need to move on with the times I think.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0
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nollag2006 wrote: »According to my dear friends at HPC, the true income multiple for FTBs is actually closer to 4 times income:
http://www.housepricecrash.co.uk/graphs-ftb-average-house-price-to-earnings-ratio.php
But then again, much of their analysis is complete nonsense.
Pity so many of them missed the bottom of the market 12 months ago
:rotfl:
Glad I bought when I did0
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