why do people complain about high house prices?

JamesU

Euphoria1z wrote: »

your thoughts?

My concern in not about a quest for higher wages or the high price of houses, but the obvious shift in the differential between annual salaries and house prices. Irrespective of what mortgage terms you take, a x3 mutiplier on annual salary alone is and was a significant commitment and responsibility for most to take on, especially first time buyers. I find the shift upwards to x4, x5, x6 multipliers incomprehensible, I cannot see how this is sustainable and for everybody's sake I hope this changes irrespective of people's salaries. I guess the most painless way forward would be for house prices to stagnate as salaries rise, maybe they will, particularly when there is a real number of properties back for sale in the market and when interest rates start to rise again, but who knows.

What I find just as incomprehensible is how the government can make such good spin announcing a freeze on stamp duty for first time buyers on purchases up to £250K. If one sticks to sensible borrowing a ftb would need a salary of £83K/yr and a couple £100K each per year (2.5 multiplier on a couple). I doubt this is the average salary of ftb's somehow. Do you want your children mortgaged to the hilt like this?

For those who do actually benefit from the stamp duty freeze, great. But do I have any confidence in the framework the government has put forward with the stamp duty freeze "to help the housing market and buyers involved?" I doubt it somehow.

JamesU

StevieJ

JamesU wrote: »

What I find just as incomprehensible is how the government can make such good spin announcing a freeze on stamp duty for first time buyers on purchases up to £250K. If one sticks to sensible borrowing a ftb would need a salary of £83K/yr and a couple £100K each per year (2.5 multiplier on a couple). I doubt this is the average salary of ftb's somehow. Do you want your children mortgaged to the hilt like this?

JamesU

I know I am going to regret this :eek: but why do you concentrate on the FTB at £250k what about the one who wishes to buy a property for £130k they will be saving the stamp duty as well.

JamesU

StevieJ wrote: »

I know I am going to regret this :eek: but why do you concentrate on the FTB at £250k what about the one who wishes to buy a property for £130k they will be saving the stamp duty as well.

I am not concentrating on the £250K, just feel that a ftb earning £83K buying a £250K house would benefit less from a stamp duty holiday. For sure it is a real help at £130K which is more of a reasonable multiplier on average household income benefiting lost of ftbs. But surely a more responsible policy that would benefit more people would be to reduce the £250K level for ftbs to a reasonable mutiplier on average income and then grade the stamp duty lower on house purchases in the higher range. It is not all about ftbs, people need to buy and sell with changed jobs, larger families, desire simply to upgrade or whatever else, and making such changes to stamp duty make more sense to me, would benefit even more people and maybe get the cogs and wheels of the housing market moving again (for better or for worse...).

JamesU

JamesU

StevieJ wrote: »

Not you again, had enough with the NS&I certs

Oops. Rumbled between threads, see end posting in link below. Happy Easter:)

JamesU


http://forums.moneysavingexpert.com/showthread.html?t=2382861

JamesU

stueyhants wrote: »

If people earnt more .... wouldn't house prices just rise to reflect this ?

Sounds right to me. From schooldays I remember this being called a wages-prices spiral.

JamesU

breadlinebetty

JamesU wrote: »

Excuse my ignorance, but what is trolling?

JamesU

What CarolT (and a few others) do on here several times a day. They try and talk the market their way - but they're still down on their heels. You'd think they'd have given up by now.

breadlinebetty

Generali wrote: »

People complain that house prices in the UK are too high for the same reason that they complain that petrol prices are too high: they'd rather pay less.

Wouldn't we all rather pay less!!!! Wow - revelation - not!

You'll find that prices have risen in most countries, especially fuel prices! Nothing odd about that. I'd like it if I could fill my car up for nothing - but there ain't such a thing as free lunch, love!

Kohoutek

Higher house prices mean buyers have to take out bigger and bigger debts (i.e. a mortgage) and pay a larger proportion of their income to service those debts.

If you want house prices to go up and up, then people will have to become more and more indebted. Not everyone can call on the 'bank of mum and dad' and the liar loan market (self-cert) is over. Would society be better off with more consumer debt or less?

breadlinebetty

phil_b wrote: »

The thing is, how many people do you hear from who arent particularly perturbed about high house prices? It's the same with everything else, you only hear from the ones who moan. How big as a percentage of the population are the ones who moan? It might be miniscule, i.e most people can find away to buy a suitable house for the money they have, somewhere.

You've only got to look at the Land Reg or Rightmove to see what properties have sold for to see that people are buying left right and centre. It's the failures and flops who are angry that they've missed out. So they start moaning that the price is too high. Oh didums! Let's knock a load of money off just for these poor sods!

Maybe if they got off their backsides and stopped spending all their time writing boring old rubbish on sites such as this they might find they could earn a bit extra somewhere towards that lovely home they so desire!

All they do is vent their frustration and jealousy on these boards - and it's so boring to read.

All the millions of homeowners in this country are getting on with their lives and enjoying their homes - pity these boring have-nots couldn't do the same! Maybe they'd then find the means to enjoying themselves instead of cursing everyone who's more successful than they are.

PasturesNew

I may be just one week away from Plan B.... which is: bugg4h houses .... have vehicle, will sleep in it

Two to see this week... it takes time when you're in the sticks ... you have to wait 1-2 weeks for the next one for sale to potentially appear within a radius of 40 miles. Also awaiting quote for solar panel to be fitted