Get ready for the storm

IveSeenTheLight

92203 wrote: »

You are wrong. The nation average wage (which I exceed) is £25K PA. This AVERAGE means there are lots of people earning below, above and at this level.

Many of the people I know (and work with) earn significantly less than the National Average wage and have no hope of being able to afford even a low end house in a rough area.

Something to consider.
The average wage includes low earners and part time personnel, which are extremely unlikely to be able to afford a property.
Indeed with the current owner occupancy rate being something circa 67%, there is an argument therefore that only the top 67% of earners need to be able to afford.
The top 67% of earners would be a more realistic average wage to consider as property purchasers.

It's also not just as simple as that.
the amount of deposit laid down via bank of mum and dad, inheritance, joint savings etc all factor into what would therefore result in what affordable moretgage payments would be.

Cleaver

92203 wrote: »

I am not a chav, do not focus my life around the football or celeb culture, do not act inconsiderately to my neighbours, do not want to call my kid Tyler or Beyonce, do not claim benefits, do not wear branded sportswear all the time, yet the only way I can afford to buy is to live amongst such people!

By the sound of your condescending and patronising attitude, I doubt they are that keen living next door to you either.

Blacklight

92203 wrote: »

You are wrong. The nation average wage (which I exceed) is £25K PA. This AVERAGE means there are lots of people earning below, above and at this level.

Where are you looking that you can't buy a house for £117k? (4x income + 15% deposit).

I would suggest, if you can't, then average wages in your area are well above the national average.

The average wage in London isn't £25k.

Harry_Powell

Blacklight wrote: »

Where are you looking that you can't buy a house for £117k? (4x income + 15% deposit).

I would suggest, if you can't, then average wages in your area are well above the national average.

The average wage in London isn't £25k.

It amazes me how people still continue to quote the average UK wage and the average UK house price and shout "See! They don't match, therefore houses are overpriced!!!". Ridiculous.

Just as bad is to quote the average UK wage and then relate it to a specific area (i.e. the most expensive one - London) and then say "See! They don't match, therefore houses are overpriced!!!".

I'm on an average sort of wage for London and so is my GF. We bought a run-down house in a part of London that neither of us had any connection with (Hayes) and we're slowly renovating it. Once we've finished renovating we're going to blitz the mortgage to get it down to a really good LTV ratio so we can access the really cheap mortgage rates. To all those moaners out there, stop whinging on and either put up or shut up. Don't expect to move into a 4 bed house on studio apartment income.

StevieJ

92203 wrote: »

I am not a chav, do not focus my life around the football or celeb culture, do not act inconsiderately to my neighbours, do not want to call my kid Tyler or Beyonce, do not claim benefits, do not wear branded sportswear all the time, yet the only way I can afford to buy is to live amongst such people!

You sound like a class A snob, maybe it is Karma

beccad

Harry_Powell wrote: »

It amazes me how people still continue to quote the average UK wage and the average UK house price and shout "See! They don't match, therefore houses are overpriced!!!". Ridiculous.

Just as bad is to quote the average UK wage and then relate it to a specific area (i.e. the most expensive one - London) and then say "See! They don't match, therefore houses are overpriced!!!".

I'm on an average sort of wage for London and so is my GF. We bought a run-down house in a part of London that neither of us had any connection with (Hayes) and we're slowly renovating it. Once we've finished renovating we're going to blitz the mortgage to get it down to a really good LTV ratio so we can access the really cheap mortgage rates. To all those moaners out there, stop whinging on and either put up or shut up. Don't expect to move into a 4 bed house on studio apartment income.

More to the point, people often look at central London as their marker for average prices, which obviously puts the £38k average London salary massively out of whack with the million-pound properties they're looking at

I think people forget that the baby-boomers in their nice four-bed detached houses didn't start off there. They probably started off in one of those little 2-bed terraces in a not great area and worked their way up. Most people have to start off in the cheap seats when it comes to property. Bit like a job - you don't stay in your entry level job all your life do you. As your experience grows so does your salary, enabling you to buy a better property as you go along.

beccad

And also, save up a fricking deposit! When most people buy their property they have a deposit of 10% minimum (or should do if they're financially sensible), although I suspect a higher percentage is becoming more common these days. People tend to forget that when they quote the salary versus average property prices.

The-mouth-of-the-south

Cleaver wrote: »

By the sound of your condescending and patronising attitude, I doubt they are that keen living next door to you either.

Cleaver who would you rarther live next door to 99203 or the rough and ready types?

The-mouth-of-the-south

StevieJ wrote: »

You sound like a class A snob, maybe it is Karma

Come off it, he has already stated that he is a good neighbour - there is nothing wrong with saying openly you want to live around like minded people who look after there homes, are respectful etc - Its a horrible thing to be living in a neiughbourhood full of rough people who dont work, who like to steal, who dont look after there provided homes etc

Procrastinator333

IveSeenTheLight wrote: »

Here's the latest link
http://www.lloydsbankinggroup.com/media/excel/2010/AffordabilityQ12010.xls

Q1 2010 is 30.9%

Should really have carried on my thought in the next paragraph, the rising house prices won't have made a difference to affordability and rates are pretty much unchanged over last year, so makes sense the % is the same.

Don't quite get what the smiley is for?

I'm purely speculating as I can't find the methodology, but what is the spread on the %s, with some in negative equity on crap deals, and some on 0.25% trackers, there could easily be many at each end.

Anyway, bit of a mute point as all this really shows is that mortgage costs have gone down with interest rates, not the moat controversial of points.