Average cost of a home 'to hit £300,000 in five years'

meanmachine_2

Excellent news.

That means we're all about to enjoy a period of absolutely massive wage inflation to pay for it.

Although what that'll mean for interest rates....

Or for public sector workers on their 2% a year.

Load of old cobblers. Paid for by people whose aims are to scare the govt into building more homes (not that affordable housing isn't needed, of course).

meanmachine_2

bamberbamboo wrote:

Hi property magnate, brought 1st 24,500K, renting at 420.00 per month (just valued at 110k,)

brought 2nd in may, 54k renting at 368, in process at buying 3rd completing end month, that will just be keeping itself probably won't do anything on it in a long while but I want it as it is opposite my own house and I want it for when daughter is ready for her own home as no way will she be able to get on property ladder.

Interesting. So when the average property is "300K", and renting for the same as it is now, who will be buying exactly?

Sounds like the worst investment ever. (in 2010, not now).

And I thought rental yields at today's prices were pitiful.

Robert_Sterling

Not allowing buy to let mortgages would slow the rate of house price inflation.

BobProperty

Robert_Sterling wrote:

Not allowing buy to let mortgages would slow the rate of house price inflation.

So calling them low rate commercial mortgages should do the trick then?

sportbeth

Finally a sign of recognition for the woefully inflated market we're suffering in the south east.

We've just bought a 3 bed link detatched house with a garage with a reasonable sized garden. £300k. Will be paying it off with a dangerously large mortgage until we're in our 60's. The only option for us though as we both work in London and house prices here are now all pretty much the same whichever side of london you go to.

When we have kids I will have no choice but to carry on working to make the mortgage payments, sprogs to be will be in daycare.

sarah_elton

manhattan wrote:

looks like im spending my house deposit on flash cars, and cheap women then, lol

*waves* :kisses3:

manhattan

sarah_elton wrote:

*waves* :kisses3:

cheeky lol

vishpatel

sportbeth wrote:

Finally a sign of recognition for the woefully inflated market we're suffering in the south east.

We've just bought a 3 bed link detatched house with a garage with a reasonable sized garden. £300k. Will be paying it off with a dangerously large mortgage until we're in our 60's. The only option for us though as we both work in London and house prices here are now all pretty much the same whichever side of london you go to.

When we have kids I will have no choice but to carry on working to make the mortgage payments, sprogs to be will be in daycare.

Apparently the consensus on here is 'tough'. Thats the market. Supply & demand!

Dead_Eye_Jones

sportbeth wrote:

We've just bought a 3 bed link detatched house with a garage with a reasonable sized garden.

hmm I dunno, we just bought a large 3 bed, recently modernised, nice garden, admittedly a semi, in zone 6. 20min train ride for me into the City, door to door 40mins - quicker than some of my central living peers! All for 200k. Area is nice, not much here, which suits us, Surrey open spaces below us, or keep going to the coast. All good.

I think the trick is to not buy until you've saved some cash. Its hard because we live in a world where we are expected to spend, money is eeked out of us at every opportunity, we feel we have to go holiday, we have to have nights out, we have to spend money to have fun, etc, etc.

But shunning this commerical message is easily done and with good money saving skills I save over half my salary each month to go on over payments (I think im around average income for London, so this is Mr.Average talking !). You dont need to spend money in London to have fun, there is so much free stuff going on and can afford to bring a packed lunch rather than spend £30 on food on a day out etc...


As ive said in other threads, most of us arent lucky enough to have it all, its a house or its luxury items, you make your choice and suffer the consequences. If you spend money wildly then tough luck! Life doesnt owe us a living, we have to go and earn it (save the lucky few who have mum and dad, but hey good luck to them, they'll have their own probs for sure). Buying a house should be difficult, I dont understand why we'd expect to just walk in and pluck one of the estate agents shelf, as UK citizens we lead rich and privileged lives relative to most of the world's population.

If I can buy a family house on an average salary then it must be possible for others to buy property - it just must be! Im all for social housing for those who cant look after themselves, thats a great thing. But those that didnt listen to teacher at school and wasted their opportunities - tough luck! Its an insult to us that did put the hrs in to think that society should reward people who dont try, its a tough lesson, but then life is tough. I again draw a distinction between those that genuinly had difficulties, of course society needs to help these people.

Get saving those pennies! Get working hard! If you dont you wont get a house, and with the increasing population and pressure for land I really dont see the situation changing any time soon. Ive said it before, my generations seems to expect things handed to them on a plate, theyve grown up with parents who have given them everything, and credit cards that later filled that role. Now something is out of reach and a challenge, they seem lost and dont know what to do - other than moan of course!

One thing Id like to see is more protection for tennants and more stability for long term lets so that renting becomes more acceptable and accessable. We need to ensure a landlord cant kick a tennant out on a whim, like I once was, and that the tennant doesnt have to be committed to a long contract should their situation change. A landlord simply doesnt need as much notice as a tennant does, its common sense.

Anyways, there is no way to know what will happen next and there is no way to determine whether the media really has as much power as suggested above, im sure economics plays a small part too !

F_T_Buyer

There has been another thread on this report, but i'll state why it is flawed:

They make an assumption that interest rates will stay the same (currently 4.5%), but assume wages will rise 30%. For wages to rise 30%, they would have to rise 5.4% a year. The Bank of England has clearly stated if wage inflation picks up, interest rates will go up.

Also, who would support the market? It's not FTBs, as they are not doing this now. Will BTLs continue to support the market? If so, rents would have to rise. Again, if rents rise to make property investment feasible, general inflation will also rise. Causing interest rates to go up.

The above clearly shows how contridictory and flawed the forecast is.

I don't know why they do it, because it undermines the whole company. Remember Channel4 where best to invest? They quoted a company that was purely set up to forecast future house prices. And they did this by assuming prices would continue to rise as they have done since 1995 - no other economic input.

It just shows how spun the news is about the housing/property market.