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Debate House Prices
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Why is property unaffordable for even the relatively well-off among the population?
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But not if you are talking about household income Which is more relevant than ever these days. I would venture that for the south at least that range above is pretty low
Take two freinds of mine who have just bought in London. They are in their early 30's. One is in marketing at a mid sort of level and the other is a nurse. I know their income is over 75k.
They bought at just under 340k - so probably about average for London.
Nearly 5x joint salary ?, I wish them all the luck over the next 25 years, if one of them loses their job or IR's rise they're going to need it.
They must be insane.Have owned outright since Sept 2009, however I'm of the firm belief that high prices are a cancer on society, they have sucked money out of the economy, handing it to banks who've squandered it.0 -
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If they just had a 10% deposit it would be just over 4x and they could have had a much bigger deposit.
Exactly. Though it's more fun to call them 'insane' obviously..
Lets be honest, 4 (or even 5) times salary is perfectly acceptable for many people, especially as they fixed for several years at just over 4%.
Historically speaking that's a steal in terms of interest rates.Go round the green binbags. Turn right at the mouldy George Elliot, forward, forward, and turn left....at the dead badger0 -
HAMISH_MCTAVISH wrote: »The number of mortgages being issued at 90% LTV is just 10% of what it was in 2006, and for the very few that can get one, the rates are sky-high.
That's the best news I've heard for ages. Keep up the good work Hamish. If they could whittle down that 10% to say 1% and lend much more to businesses, that would be better still.No reliance should be placed on the above! Absolutely none, do you hear?0 -
If they just had a 10% deposit it would be just over 4x and they could have had a much bigger deposit.
Oh I understand that, just saying the probable multiples involved is way too high, 2.5x joint was the normal.
Unless they've a £170,000 deposit it sounds like another couple that will be shackled to the debt ball & chain, with little thought to accident, illness, separation, divorce etc..
I also guess that if they have children now or in the future, that those child/children get used to 10+ hours of nursery a day and out of school clubs.
Like Generali said, the UK population has a strange fixation of paying as much as is possible for a house.Have owned outright since Sept 2009, however I'm of the firm belief that high prices are a cancer on society, they have sucked money out of the economy, handing it to banks who've squandered it.0 -
We bought with a 100K deposit 6 months ago, 75K joint salary, property cost 320K.
We are on capital repayment, at 2.49% tracking the life of the mortgage. that equates to 1000 a month on the mortgage. We are currently overpaying at 2000-2500 a month (including the capital repayment part), thats accounting for rennovation costs.
The property was valued initially at 450K.
You CAN get significant discounts, you just need to know where to look, be willing to put a motherload of work in, and perhaps compromise. Without the 100K deposit though, it wouldnt have happened, simple as. We saved hard for 4 years and now are enjoying the benefits of doing so. I will be mortgage free by the time I retire at 38.0 -
Oh I understand that, just saying the probable multiples involved is way too high, 2.5x joint was the normal.
Unless they've a £170,000 deposit it sounds like another couple that will be shackled to the debt ball & chain, with little thought to accident, illness, separation, divorce etc..
I also guess that if they have children now or in the future, that those child/children get used to 10+ hours of nursery a day and out of school clubs.
Like Generali said, the UK population has a strange fixation of paying as much as is possible for a house.
If one of them is on £50k and the other £25k they will take home over £4.5k a month. £300k at 6% will be less than £2k leaving them £2.5k a month to get by on not too hard I would have thought.0 -
If one of them is on £50k and the other £25k they will take home over £4.5k a month. £300k at 6% will be less than £2k leaving them £2.5k a month to get by on not too hard I would have thought.
Exactly. Now make that 4%
Oh look, they have 3.5k to live on each month and are paying a good £200 a month less in interest payments than renting the same property.
Who knows, they may even be able to put some money aside for a rainy day....Go round the green binbags. Turn right at the mouldy George Elliot, forward, forward, and turn left....at the dead badger0
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