We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Debate House Prices
In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
House Prices, Interest Rates and Affordability
Comments
-
Yeah, the plague is pretty tame nowadays
Bit like the mortgage approvals for the last two months, but hey we have the spring bounce.
Nobody knows which spring though 0 -
Because... before the HPI madness over the last decade, they could.
I did and so did many of my friends.
How many people in the last decade have been able to buy?
I did and so did many of my friends.
I also know people who completed last year and people that are in process of buying now.
Not everywhere is unnafordable.
http://www.lloydsbankinggroup.com/media/excel/01_05_09Affordability.xls
Here's a link that shows that: -
House Price - Earnings Ratio is 4.35 as opposed to the 27 year average of 4.02
Mortgage payments as a percentage of income is 30.56% as opposed to the 27 year average of 37.29%
Why is it that your perception that it is so unnafordable now given these facts? Is it because it would impact your ability to have multiple holidays, new cars, have a full social schedule etc etc etc etc?
Guess what, people before had to make do before with much less than they do now, including the ability to purchase your own home.:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
I have sent a PM to Nutella asking why this post is abusive
http://forums.moneysavingexpert.com/showthread.html?t=2317529&page=63
Post 1255. I wait to hear.
It dawned on me why he might have reported me I used GPO meaning General Post Office he probably thought I mean something different as to your post no idea. I bet you have to wait a long time for a reply well a sensible one anyway.0 -
IveSeenTheLight wrote: »How many people in the last decade have been able to buy?
I did and so did many of my friends.
I also know people who completed last year and people that are in process of buying now.
Not everywhere is unnafordable.
http://www.lloydsbankinggroup.com/media/excel/01_05_09Affordability.xls
Here's a link that shows that: -
House Price - Earnings Ratio is 4.35 as opposed to the 27 year average of 4.02
Mortgage payments as a percentage of income is 30.56% as opposed to the 27 year average of 37.29%
Why is it that your perception that it is so unnafordable now given these facts? Is it because it would impact your ability to have multiple holidays, new cars, have a full social schedule etc etc etc etc?
Guess what, people before had to make do before with much less than they do now, including the ability to purchase your own home.
Despite this not backing up the point I was making initally, I'm not sure we should be looking at the 30.56% figure. That will be heavily influence by tracker mortgages that have followed the base rate down. When interest rates return to "normal" which they must do eventually the figure could look quite high. In 2007 Q3 it was at 47.73 which is quite a bit above average. Not so much that it would require 50% fall in house prices that some people are predicting though.
The most alarming figure on there is the max of 99.81% for south east. No matter how bad some people think it is now, it could be much much worse.0 -
IveSeenTheLight wrote: »How many people in the last decade have been able to buy?
I did and so did many of my friends.
I also know people who completed last year and people that are in process of buying now.
Not everywhere is unnafordable.
http://www.lloydsbankinggroup.com/media/excel/01_05_09Affordability.xls
Here's a link that shows that: -
House Price - Earnings Ratio is 4.35 as opposed to the 27 year average of 4.02
Mortgage payments as a percentage of income is 30.56% as opposed to the 27 year average of 37.29%
Why is it that your perception that it is so unnafordable now given these facts? Is it because it would impact your ability to have multiple holidays, new cars, have a full social schedule etc etc etc etc?
Guess what, people before had to make do before with much less than they do now, including the ability to purchase your own home.
Lets be honest, if you buy a place to live in that's cool - price shouldn't be a factor if you can afford the repayments.
To say prices are not overpriced is total rubbish though, everyone knows they are from MP's to the chairman of the BOE and even people on the street.
No matter how many articles you post or quote, nobody but the others who absolutely need prices to rise will agree.
Sorry that's a bit blunt, but sometimes people need to be told how it really is...0 -
I have sent a PM to Nutella asking why this post is abusive
http://forums.moneysavingexpert.com/showthread.html?t=2317529&page=63
Post 1255. I wait to hear.
I have had an offensive pm from the idiot. How do I report that?0 -
Despite this not backing up the point I was making initally, I'm not sure we should be looking at the 30.56% figure. That will be heavily influence by tracker mortgages that have followed the base rate down. When interest rates return to "normal" which they must do eventually the figure could look quite high. In 2007 Q3 it was at 47.73 which is quite a bit above average. Not so much that it would require 50% fall in house prices that some people are predicting though.
The most alarming figure on there is the max of 99.81% for south east. No matter how bad some people think it is now, it could be much much worse.
Your quite right that those on trackers are currently benefitted, similarly historically trackers would have skewed the average higher.
The average is however based over 27 years which will take account the current lows and previous highs.
How many people were on fixes a few years ago but are happy to sit on the SVR while it is low and will then fix as rates start to rise?
As time passes, the number on SVR is likely to increase meaning going forward there are likely to be more people fixing at lower rates than the historical average.
There is a lot of discussion as to how long rates are going to be low for with many believing it will be quite some time before thay can rise substantially. The current country debt would point to a desire for rates not to increase dramatically in order to make the servicing easier.:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
To say prices are not overpriced is total rubbish though, everyone knows they are from MP's to the chairman of the BOE and even people on the street.
No matter how many articles you post or quote, nobody but the others who absolutely need prices to rise will agree.
Sorry that's a bit blunt, but sometimes people need to be told how it really is...
I agree, house prices are on average currently over valued and above the long term average.
It's not too far above though and everyone could benefit from have a steady inflation linked increase rather than the boom and bust.
sorry to be a bit blunt, but house prices have corrected to thelong term average and some people need to accept that.
:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
Lets be honest, if you buy a place to live in that's cool - price isn't a factor if you can afford the repayments.
To say prices are overpriced is total rubbish though, everyone knows they aren't from MP's to the chairman of the BOE and even people on the street.
No matter how many articles you post or quote, nobody but the others who absolutely need prices to fall will agree.
Sorry that's a bit blunt, but sometimes people need to be told how it really is...
Fixed that for you.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
You mean the timebomb that is currently setting off the second us housing downturn and causing uk banks further writedowns?
http://thetimes-tribune.com/news/sheriff-s-sales-on-foreclosed-properties-reaching-record-highs-1.701569
A week or (should I say three days) is a long time in the Sub-Prime, Alt-A and Option Arm theatre.
Sub-Prime mortgage securities are rising at an accelerating pace as the U.S. begins to encourage reductions to homeowners’ balances, which may lead to fewer foreclosures and a quicker end to the housing slump.
Treasury department said for the first time it would seek to cut the size of mortgages, reducing the likelihood that loan modifications will fail, according to JPMorgan Chase & Co., Morgan Stanley and Barclays Plc.
http://www.bloomberg.com/apps/news?pid=20601010&sid=avSJnnOE4pQQ'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
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352K Banking & Borrowing
- 253.5K Reduce Debt & Boost Income
- 454.2K Spending & Discounts
- 245K Work, Benefits & Business
- 600.6K Mortgages, Homes & Bills
- 177.4K Life & Family
- 258.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards