House Prices Going Crazy Again

Mr_Matey

chucky wrote: »

on a single income or for a couple?

i agree with you here - just wanted to get some more structure on your statement

Fair enough, let's go as close to like-for-like as possible with the examples given. Say, 2 young married "joe-blows" at coke or a young builder. What's it like for them?

I understand Conrad's perspective is based on what he's experienced, but I'd suggest that as a mortgage advisor, he sees the richer end of the spectrum, i.e. those who can afford to buy rather than those priced out of the market. It's kind of like a financial advisor saying "my clients are rich... what recession?"

The area he's in is also key to the equation - perhaps it has done well for whatever reason.

chucky

Mr_Matey wrote: »

Fair enough, let's go as close to like-for-like as possible with the examples given. Say, 2 young married "joe-blows" at coke or a young builder. What's it like for them?

I understand Conrad's perspective is based on what he's experienced, but I'd suggest that as a mortgage advisor, he sees the richer end of the spectrum, i.e. those who can afford to buy rather than those priced out of the market. It's kind of like a financial advisor saying "my clients are rich... what recession?"

The area he's in is also key to the equation - perhaps it has done well for whatever reason.

he's on the commuter side of West London I believe - so the home counties.

a single person on £30k can get 3.5 times income mortgage = £105k + 10% deposit of £10,500 = £115k property

dual income on £30k each can also get a 3.5 times income mortgage = £210k + 10% deposit of £21k = £231k property

for a single person it's very hard to buy.

for a couple i think it's not too much of an issue but it gets all messy when you start thinking about when the young lady has children or goes part time etc... or they don't want a £210k debt for example.

another question is here is what you think an average Joe's salary is - i've taken £30k which i don't believe is far off.

ukcarper

I’m not so sure it’s the 30-year-olds that are suffering my children and their friends who are in their early 30s are doing reasonably ok. But friend’s children who are in their early twenties and do not have degrees are not doing very well.

Pete111

Conrad wrote: »

What I see at the coal face is a huge amount of wealth, and I'm talking a lot of ordinary folk here.

Just take a completely normal couple I saw yesterday. Both work for Cokeacola. He's on £48k, she's on £35k, not graduates, just ordinary joe blows.

Thier C&G tracker costs them 9 pence per month - honestly.

They are to let the existing home, making them a cool and easy £800 per month profit. They arebuying a new one.


The gloom in the news just does'nt tally with the reality I see every day. There is a huge disconnect somehow.

I see what you see Conrad .

If I take my extended group of mates only 1 has lost his job in the last year and he found another within his notice period at the same money. Everyone else is enjoying cheaper mortgages and stable or increasing salaries.

Noone I know appears unduly concerned about losing their jobs at this point and plenty of thought is being given to decent holidays, moving house, new cars, getting married, starting a family etc (all the usual boring dinner party topics!) within the group this year.

Guess we are lucky?

smartn

I think most people are thinking too short term about all this though. In my opinion this thing has only just started and will take years to work its way through. The government has done a great job of delaying things, but thats all they have done, delay it.

[Deleted User]

ukcarper wrote: »

I’m not so sure it’s the 30-year-olds that are suffering my children and their friends who are in their early 30s are doing reasonably ok. But friend’s children who are in their early twenties and do not have degrees are not doing very well.

I'm actually often suprised to see how well many 30 somethings are doing. My perception is that people had less at that age in my day.

I'm 46 now. When I was 20 I think all my friends were still living at home (or in Uni accomodation)! By early to mid 20's most started renting flats. One or two had bought small flats (1 bedroomed tenements or even less) and a couple had one roomed terraced houses.

At about the age of 22 I started working for the Civil Service with scores of early to late 20's. It was VERY unusual for anyone to have a house, and if they did it was a tiny little terrace. But that was below average wage.

The kids that went to uni didn't even start work until early 20's. Many didn't get jobs right away. And those that did had to save for a few years before they could aford more than a tiny one bedroom (or less) tenement flat.

I think now people EXPECT more from an early age. So they're less satisfied. But seeing how people live nowdays I don't think they're that much worse off!

abaxas

Deleted_User wrote: »

I'm actually often suprised to see how well many 30 somethings are doing. My perception is that people had less at that age in my day.

I'm 46 now. When I was 20 I think all my friends were still living at home (or in Uni accomodation)! By early to mid 20's most started renting flats. One or two had bought small flats (1 bedroomed tenements or even less) and a couple had one roomed terraced houses.

At about the age of 22 I started working for the Civil Service with scores of early to late 20's. It was VERY unusual for anyone to have a house, and if they did it was a tiny little terrace. But that was below average wage.

The kids that went to uni didn't even start work until early 20's. Many didn't get jobs right away. And those that did had to save for a few years before they could aford more than a tiny one bedroom (or less) tenement flat.

I think now people EXPECT more from an early age. So they're less satisfied. But seeing how people live nowdays I don't think they're that much worse off!

Maybe as a society we expect things to improve over time? We want better cars, more choice in food etc etc.

With the exception of housing. We know we can do improve it, just we choose not to, we activly encourage it to move backwards.

Maybe that is the problem?

michael1983l

mr_fishbulb wrote: »

Does not compute. Does not compute.

How is it good news for you then? As you say the only way you benefit is by downsizing. If you trade up or just move to a different house of the same value, you will now pay more in any percentage fees selling your place (Estate Agents, mortgage costs, etc).

Well when I eventually come to retire I will have a greater equity to cash in if I want to. I also if stupid enough could remortgage and reinvest my equity else where.

jetta_wales

It's not the 60 year olds or the 30 year olds that are being hit the hardest it's the under 25's that didn't buy a house 10 years ago which rocketted in value through the boom before the bust.

The under 25's who can't get work because all the decent free jobs are snapped up by the new pool of older experienced men and women who've been made redundant by the recession. I'm not suprised older people have seen their friends loose their job but then get another one straight away but ordinarily that job would have gone to someone younger and been a great oportunity for them. My partner's only 19 the company he worked for went bust and just 6 months from the end of his 4 year electrical instalations apprenticeship but there's no new job for him to just walk straight into because why pick a young lad when there's now loads of guys in their 40's and 50's looking for work too who've been doing it for decades.

We were very lucky to be able to buy a house last year but only because my parents helped us to, he still can't get a job and finish his course and just to drive a car costs us £2,000 in insurance which we definatly can't afford this year. I'm 25 buthave very poor sight so I can't drive.

Anybody who thinks it isn't that bad really should just count themselfes luck it really hasn't been that bad for them but there are a lot for whom it has been.

doire_2

Pete111 wrote: »

I see what you see Conrad .

If I take my extended group of mates only 1 has lost his job in the last year and he found another within his notice period at the same money. Everyone else is enjoying cheaper mortgages and stable or increasing salaries.

Noone I know appears unduly concerned about losing their jobs at this point and plenty of thought is being given to decent holidays, moving house, new cars, getting married, starting a family etc (all the usual boring dinner party topics!) within the group this year.

Guess we are lucky?

Where is this magical place you speak of? Perhaps we should all move there