House prices - the truth

The_White_Horse

I don't need evidence, graphs, reports or anything of that kind to say that house prices are too high. Not just too high, but massively overpriced.

I am looking at a house today. it is a small cottage. no room to extend or anything. it is on for 495k. yes, half a million.

If i pushed myself to the extreme, i could just afford it, but i wouldn't.

who can properly afford this small cottage at half a million? Lets say you have 100k as a deposit. you would need a 400k mortgage. So, at current levels you would need a salary of around 100k a year to buy a small semi detached cottage.

what about the people on 25k? on 35k or even 50k? they are well priced out of a tiny semi detached cottage?????

and even if the person on 100k was loaned the 400k - the repayments would be massive.

it is clear and obvious to anyone with even a quarter of a brain that house prices are ridiculously high.

I am not saying there will be a large or sudden crash, but the truth is, houses are completely unaffordable, except a few dumps in some iffy areas.

You know its true.

Graham_Devon

Those with equity are ok though and will buy it. So long as someone else with equity can release them of their house and so on.

The problem will come at the end, the person with no equity trying to get in.

Edit: Walked into that one, hmph!!!

Dan:_4

got a rightmove link for this porperty?

chucky

The_White_Horse wrote: »

I am not saying there will be a large or sudden crash, but the truth is, houses are completely unaffordable, except a few dumps in some iffy areas.

you got it one one White Horse - the iffy areas must be "round my way".

Rinoa

The_White_Horse wrote: »

I don't need evidence, graphs, reports or anything of that kind to say that house prices are too high.

What did you do, lick your finger and stick it in the air?

:rotfl:

phil_b_2

The OP seems like a poor example. I would suspect the cottage in question is in a niche market. Perhaps a retirement type property in a quaint village where houses are bought outright by people with 100% equity? There hasnt been a link shown though of course so who knows.

There are lots of the above about. Asking how someone on 25k, 40k, 60k etc can afford it is completely pointless in that case, they arent really 'supposed' to get a look in on that kind of property, it's not on their radar.

There must surely be lots of alternative areas and types of property to suit your budget if you can afford a £500k house (even at a push). Why are you looking at this type of house? It's like a 20yr old newly qualified driver looking at a classic 1950's car for £50k.

Careful, 'house prices - the truth' sounds pretty tin foil hat'ish

Davesnave

The_White_Horse wrote: »

who can properly afford this small cottage at half a million?

Errr.....older people with a lot more than £500k who are looking to downsize a bit?

I'm not saying it's good value, but so long as someone wants it at that price, that's what it's worth.

Of course, perceptions and sentiments can change.

RenovationMan

This is interesting. Our house was originally priced at £495k and we knocked them down to £450k. We had £150k equity from our house sale and started out with a £300k mortgage (plus fees). We've whittled that down to £270k over a couple of months and our monthly mortgage amount is only £575.50. Incidently, my income is £60k before tax.

You dont have to be a millionaire to own a £500k house, you just have to decide what you want out of life and go for it. We always wanted a lovely character home and decided that in order to get one we would do without fancy cars or foreign holidays. We live a simple life, but in a fabulous house.

RDB

The_White_Horse wrote: »

I don't need evidence, graphs, reports or anything of that kind to say that house prices are too high. Not just too high, but massively overpriced.

I am looking at a house today. it is a small cottage. no room to extend or anything. it is on for 495k. yes, half a million.

If i pushed myself to the extreme, i could just afford it, but i wouldn't.

who can properly afford this small cottage at half a million? Lets say you have 100k as a deposit. you would need a 400k mortgage. So, at current levels you would need a salary of around 100k a year to buy a small semi detached cottage.

what about the people on 25k? on 35k or even 50k? they are well priced out of a tiny semi detached cottage?????

and even if the person on 100k was loaned the 400k - the repayments would be massive.

it is clear and obvious to anyone with even a quarter of a brain that house prices are ridiculously high.

I am not saying there will be a large or sudden crash, but the truth is, houses are completely unaffordable, except a few dumps in some iffy areas.

You know its true.

Yes but Hamish and all will say population is increasing more than new houses being built. This recovery will last, interest rates will stay this low for years and years.
Soon they will offer mortgages 10x income, these mortgages will be past down to the next generation etc etc.

Its a good job not many listen to Hamish.

Yes you are right house prices are over valued. There will come a time in the future when house prices will be undervalued. This is an absolute certanty.
The question is when in the future?

jojo90_2

There are a reasonable number of houses available from those on lower income brackets. Sure some will need to save a heap of cash first however it is possible. A lot of people are in couples when they purchase and some buy with friends or with the help of family members.

We might just end up with people mainly renting and landlords raking it in.... at least that is what I hope as I plan to do this long term .

Linton

RDB wrote: »

Yes but Hamish and all will say population is increasing more than new houses being built.

Yes, or at least that part of the population who want to buy a house. Do you dispute this?

This recovery will last, interest rates will stay this low for years and years.

May, may not, who knows?

Soon they will offer mortgages 10x income, these mortgages will be past down to the next generation etc etc.

Who knows?

Its a good job not many listen to Hamish.

He certainly gets lots of responses.

Yes you are right house prices are over valued. There will come a time in the future when house prices will be undervalued. This is an absolute certanty.

This sounds like an assertion with no evidence and not even a justification.

If houses are over valued now - what is the correct value? Why is it the correct value?

Where are all the houses that lots of people will move into when prices drop to the "correct" value?

The question is when in the future?

You reallyshould have some evidence, or at least a coherent argument.

But of course, you and white horse dont need an argument or evidence - you just "know" the truth.