FTB - Would you?

Malcolm.

Procrastinator333 wrote: »

I personally think the FTB will likely be better off by waiting.

Financially, in the case given perhaps. There is something lost by living in a smaller accomodation in the meantime.

If I were looking to hold off from buying, my financial concerns would be how high inflation is allowed to run and whether demand for properties will have increased in a couple of years.

chucky

Graham_Devon wrote: »

And the questions? Do you care to answer them or not?

not sure why i'm bothering but i'll try...

Someone on 26k receiving a 2.5% wage increase would get another £650 a year.

off the top of my head and taking £60 a month from your example - it allows someone to borrow an extra 10k on a 5% mortgage. do you think that may or may not push on HPI?

i'll go back to my original point which you didn't get because you think that wage inflation has to happen across 100% of the population.

house prices can fall in real terms and have notional increases. the reason for this is that a minority of the population have wage increases - not everyone.

your questions have been answered... care to reply with anything constructive?

Thrugelmir

Malcolm. wrote: »

Financially, in the case given perhaps. There is something lost by living in a smaller accomodation in the meantime.

What's the something?

Graham_Devon

chucky wrote: »

your questions have been answered... care to reply with anything constructive?

My question was:

Graham_Devon wrote: »

I'm really unsure how, in this climate, enough wage inflation could be found to actually help increase house prices. Would take quite a bit of inflation.

We'd need wage inflation to beat general living cost inflation, such as council tax rises for wage inflation to have any effect....or do you have something else in mind?

chucky

Graham_Devon wrote: »

My question was:

it's not very hard to answer... and there's probably more

BT workers who are members of the Communication Workers Union will get a 3 per cent pay rise during each of the next three years.

http://www.ft.com/cms/s/0/2f89270a-8b36-11df-a4b4-00144feab49a.html?ftcamp=rss

i see that you didn't bother to reply to the rest of it

lemonjelly

By the title of the thread, I assumed the poster was going to have a pic of a FTB, & was asking whether I would or not.

I'm disappointed to have read all these posts & still no pictures...How am I supposed to formulate an answer?

Graham_Devon

chucky wrote: »

it's not very hard to answer... and there's probably more

http://www.ft.com/cms/s/0/2f89270a-8b36-11df-a4b4-00144feab49a.html?ftcamp=rss

i see that you didn't bother to reply to the rest of it

Ok, I'm trying to have a decent conversation here, but I think we will have to leave it here. All I'm asking is, where you think wage inflation will come from, and you have given me BT.

Wage Growth is very low at the moment, is was part of Mervyn Kings talk just the other day, stating "there is no immediate signs of wage growth accelerating". David Miles stated "above target inflation will likely rub off significantly on wage growth".

What I was aking was...and I asked you the same on another thread where you used wage inflation as a measure for house prices rising....DO YOU see wage inflation rising significantly enough. If so, and it seems you do as you are using it in response to people....HOW do you think this will happen in the current economy, and how will it be enough to beat all the other increased costs we are looking forward to paying, such as VAT for instance.

If you wish to answer it thats fine, as it could make some interesting discussion, if not, then shall we just leave it and move on? I'm interested as up until now, no one on this forum that I have seen, has stated house prices could rise on the back of wage growth.

chucky

Graham_Devon wrote: »

Ok, I'm trying to have a decent conversation here, but I think we will have to leave it here. All I'm asking is, where you think wage inflation will come from, and you have given me BT.

Wage Growth is very low at the moment, is was part of Mervyn Kings talk just the other day, stating "there is no immediate signs of wage growth accelerating". David Miles stated "above target inflation will likely rub off significantly on wage growth".

What I was aking was...and I asked you the same on another thread where you used wage inflation as a measure for house prices rising....DO YOU see wage inflation rising significantly enough. If so, and it seems you do as you are using it in response to people....HOW do you think this will happen in the current economy, and how will it be enough to beat all the other increased costs we are looking forward to paying, such as VAT for instance.

If you wish to answer it thats fine, as it could make some interesting discussion, if not, then shall we just leave it and move on? I'm interested as up until now, no one on this forum that I have seen, has stated house prices could rise on the back of wage growth.

what are you on?? do you not realise that a wage increase is wage inflation?

you asked where wage increases or wage growth was going to come from and i gave you an example of a wage increases that happened very recently and will be there for the next 3 years

your questions have been answered - feel free to avoid admitting you were wrong or even going on a totally different tangent.

Exocet

If you averaged out the BT increase with the workers they have been making redundant the overall picture is probably rather different. 35,000 redundancies.

chucky

Exocet wrote: »

If you averaged out the BT increase with the workers they have been making redundant the overall picture is probably rather different. 35,000 redundancies.

so there is wage inflation happening - still below the inflation rate but there is wage inflation.

but at least it's a most welcome distraction you've created for Devon not understanding that a 3% pay rise over 3 years means that there is wage inflation occuring.

but let's do the math

Someone on 26k receiving a 2.5% wage increase would get another £650 a year.

it allows someone to borrow an extra 10k on a 5% mortgage. do you think that may or may not push on HPI?

if these pay rises are allowing people to afford higher monthly payments, what happens to house prices?