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Debate House Prices
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Grant Shapps, start building homes you ****
Comments
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A male on median wage in that area could buy a reasonable 2 bed house with a 10% deposit and a 3.7x mortgage.
Take home pay £2400 per month
Monthly repayments 5% £850 leaving £1550
7% £1030 leaving £13700 -
Graham_Devon wrote: »Errr.
Small point.
But how is this different to at any point in time in history?
Unless you are now advocating anyone, regardless of means of paying it back, should be given however much money they like, whenever they want it (wouldn't surprise me), I really am struggling to see your point here.
Graham, I think the point Hamish is trying to make is that extra lending won't do his finances any harm, especially because he already has a property to live in and a spare. Increase the height of the bottom rung, and all the rungs get higher (and further apart).
He says that without mortgage credit, people will have to rent. He quotes "For most people in this country it doesn't really matter how cheap houses become, unless they can get a mortgage they're still unaffordable.". I would suggest that if the average semi detached was 60K, many people wouldn't need much of a mortgage anyway. The financially prudent (those who bother to save some money) would be rewared by being able to buy. This is better than any Tom, !!!!!! or Harry being able to walk into a bank with a few grand and be granted a large mortgage - then having to compete with all the other Tom, !!!!!! and Harrys (and potential landlords) who have done the same.
And as far a BTL properties are concerned, if house prices did fall significantly, it would be interesting to see how many landlords suddenly lost interest in there little investment, and got rid when they realised that capital appreciation wasn't going to be quite as they expected.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
A male on median wage in that area could buy a reasonable 2 bed house with a 10% deposit and a 3.7x mortgage.
Take home pay £2400 per month
Monthly repayments 5% £850 leaving £1550
7% £1030 leaving £1370
Doesn't sound like there is any need to relax lending criteria then.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
Doesn't sound like there is any need to relax lending criteria then.
I don’t think prices are quite as bad as people make out I bought my fist house in 1972 it was 5.3 my salary at the time. Someone doing the same job now would earn about £30k so 5.3x that is £160k which would buy that 2 bed house the difference being my house was a 3bed and would be worth about £190k now.0 -
How can more people buy houses when there is a shortage ? Isn't the majority of property in the UK already owned ? Where are these houses coming from that you want more lending for ?
.
Last year FTB lending fell...... And BTL lending rose.
The only people being helped by mortgage restrictions are the BTL brigade.
What limited supply is left is being consolidated in the hands of landlords. You can try to distract from that fact all you like, but the policy you support is enriching landlords at the expense of FTB's.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Aldershot reasonable 2 bed house about £160k
Median full time male salary £39k
10% deposit £16k leaving £144k 3.7x £39k
I suppose it's just a shame that the actual average wage, according to the government in East Hampshire is £17,863 (median).
Just 11x average wage where the actual house is then.
Ho hum.
So actually, what should be said, is someone on more than double the average wage in that area, still has to stretch to buy a starter 2 bed home.0 -
Graham_Devon wrote: »I suppose it's just a shame that the actual average wage, according to the government in East Hampshire is £17,863 (median).
Just 11x average wage where the actual house is then.
Ho hum.
So actually, what should be said, is someone on more than double the average wage in that area, still has to stretch to buy a starter 2 bed home.
The average median male full time wage in rushmoor where aldershot is is £39k.0 -
The average median male full time wage in rushmoor where aldershot is is £39k.
Ohhh God this forum must be full of rich people……
As hard as I try, I can not find anyone of the people I know that is earning more than £35k.
And the ones I do know that earn that £35k I don’t need the digits of both of my hands to count them.
My best friend (and bestman) is a teacher and his is earning thereabout or less.
I know an accountant that he claims that he earns that figure or a bit more.
My manager also earns that…
So that makes three……
I can only assume that the people that earn that amount must be the “middle class” that the legends mentioning.
The rest of the ordinary folk that I know (supermarket clerks, waiters, line managers, civil servants etc) are on less than half of the 39k.Si Deus pro nobis quis contra nos?0 -
nightwatchman wrote: »Ohhh God this forum must be full of rich people……
Not really.
People tend to associate with people in the same income/social brackets as themselves.
It's why most people earning 20K a year can't imagine that many people earn much more than that.
And why most people on a 100K a year can't imagine that many people earn much less than that.
Of the people in my social circle, most are professional, earning from 50K to 75K. A few are younger and on less, a few are older and on more, but most fit in that bracket. But most are also living in dual income households, so household income is well over 100K on average.
The regulars at my local pub range from young lads on minimum wage, to senior oil industry managers on 250K or more a year.
You'd be surprised how many people in the UK earn a lot more than you think they do. Particularly when you consider most households these days are dual income.
A couple of teachers for example would be on somewhere around 70K household income. A pub manager and his PA wife could easily enough be on 60K joint. A lorry driver and a council worker on 50K joint. Etc.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »Last year FTB lending fell...... And BTL lending rose.
The only people being helped by mortgage restrictions are the BTL brigade.
What limited supply is left is being consolidated in the hands of landlords. You can try to distract from that fact all you like, but the policy you support is enriching landlords at the expense of FTB's.
That's true at the moment, but BTL will melt away with the increasing threat of higher interest rates, combined with limited and expensive mortgage products, arrangement fees, and increasing legislation. Without HPI the 'grey hairs' with the mercs will disappear. It simply won't stack up.0
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