Wage vrs House Prices

Thrugelmir

Batchy wrote: »

OK... what part of GUESTIMATE dont you understand?

You win I don't, so I looked it up in the Urban dictionary.

The way stupid people say "estimate". They either think they're being cute or clever, or else that it's an actual word. Since it's not any of these, science has yet to offer an explanation for people who consider use of this word acceptable.

chucky

Batchy wrote: »

Cause 30% of the population arnt buyers... or likely to be as they are potentially in social housing etcm, 70% has been a long run average.

Averages are just that... averages... nothing to do with the fact that any ONE person might even be ON THE AVERAGE.

im not sure it's as much as 30% but the easiest way to do it is look the salaries by quintiles - you can see straight away that the lower quintile cane be removed in this calculation anyway.

RosieDG

Thrugelmir wrote: »

You win I don't, so I looked it up in the Urban dictionary.

I've always understood "guestimate" to mean "something based on more information than a guess but less information than an estimate". I don't use the word myself, though.

Bullfighter

Blacklight wrote: »

No I don't think there's any reason why, in time, the ratio of earnings to borrowing will come down again. It's cyclical; boom and bust.

Prices will stagnate now just as they did after previous booms, leaving wages to rise and catch up a bit. They will become more affordable until people realise how cheap they have become and then they'll be another boom.

It took massive restriction on the supply of credit, some large banks going under, a global decline in GDP, a run on banks in the UK, unprecedented QE and low interest rates and hundreds of thousands of job losses for falls in the face value of property. Unlikely that's going to happen again any time soon (unless you believe those chaps in their bunkers eating cold beans with heads wrapped in kitchen foil chatting to each other on internet forums to make each other feel better).

So you think that the worst is behind us then?

Even if the magical unicorn !!!!!! miracles all over the economy and rates stay low for 25 years, banks net interest margins will drop to virtually nothing and they will be unable to replace high-yielding assets. They will have to make their profits elsewhere which will damage growth.

Seriously, there is little point comparing the economic situation to 1976, 1929 or 1685 there are several fundamental differences which will mean that the financial landscape will look entirely different in the next few years. Personally I wouldn't want to be owing hundreds of thousands of pounds in that climate.

Thrugelmir

RosieDG wrote: »

I've always understood "guestimate" to mean "something based on more information than a guess but less information than an estimate". I don't use the word myself, though.

The Urban dictionary is a useful tool for comprehension....;)

diable

Hsarcgib wrote: »

What will the ratio be we hit the bottom?

I guess it will get near to 3x earnings again, or 2.5 times joint earnings.

cooL I await the day you can buy a house in London for 90k