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Debate House Prices
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Mainstream media article says it's not lending, its prices.
Comments
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See we have been working hard to get a deposit while young, so won't of been in the house too long before we have children, to which we couldn't afford to drop down to 1 income.
By all means I don't expect it handed to me on a plate, but it would be nice if it was at least as easy as the generation before. Yes I know its not and I am just getting on with it, but as I say it would be nice.
How many times do I have to explain that when the generation before you bought it wasn't easy, house prices doubled between 1987 and 1990 as did interest rates 7.5% to 15%.'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
How many times do I have to explain that when the generation before you bought it wasn't easy, house prices doubled between 1987 and 1990 as did interest rates 7.5% to 15%.
Not only that but house prices fell between 1989 -1999 according to D'arcy from MF.One oft-quoted rule of thumb is that 'property prices double every seven years'. While this may be the case during house-price booms, it's simply not true over the long-term. That said, house prices rarely go down over the course of a decade — the last time this happened was between 1989 and 1999.
http://uk.finance.yahoo.com/news/Six-secrets-wealthy-people-yahoofinanceuk-2176675218.html'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
How many times do I have to explain that when the generation before you bought it wasn't easy, house prices doubled between 1987 and 1990 as did interest rates 7.5% to 15%.
Honest answer.
Starting again today, how you started out yourself.
Could you afford to buy now? Based on the same house you bought then?0 -
Graham_Devon wrote: »Honest answer.
Starting again today, how you started out yourself.
Could you afford to buy now? Based on the same house you bought then?
I’ll answer I’ve have already posted this information I bought a new build 3 bed terrace in march 1972 for £8k, if I bought now I would have to settle for a 2 bed. But the houses were £11k at the end of the year so if I delayed a couple of months I wouldn’t have been able to buy then.0 -
IveSeenTheLight wrote: »I saved for about 3 years for my deposit.
I was 27, my wife 22
We had our first kid when I was 35 / wife 30, so 8 years of massively paying down the mortgage before our first kid came along.
How about the generation before that, and the generation before that.
The last generation may have had it historically easier than in anytime, but the facts are, it's not going to get any easier any time soon.
You've got a wife and kids Lite.
You haven't mentioned that before?
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1) Average prices are not derived from average wages. They are derived from the wages of those participating in the market, which is by definition skewed upwards - and includes dual incomes whether or not you like it - until you reach a point where supply balances demand. As prices rise, some people are excluded at the bottom end, but as demand for housing is increasing there is no mechanism for pushing prices down. Unfortunately it just pushes rents up and makes BTL a one way bet. The only thing constraining demand at present is mortgage rationing, and the great irony is that many safe bets for lending are now paying rent when they could be 10% of the way into paying off a mortgage and paying less to do so.
2) You are not entitled to the same outcomes as previous generations as of birthright. And in a globalised world where you're in competition for resources with 6 billion other people demanding a better standard of living and prepared to fight for it the standard of living in the West is going to fall. Sorry, but it's a fact. A new car every two years and 4 bedroom detached house is a nice outcome, but you're going to have to work increasingly hard for it and it was only really possible in the past because of a structural imbalance where resources were essentially stripped from one part of the world for the benefit of another. That has now reversed. And yes, it's "progress" that people working hard somewhere else in the world get a bigger slice of the cake than previously, and that the rather flabby West has to work much much harder. Unfortunate for those who aren't prepared to do so, but it's a tough old world these days.
3) The Guardian has no special status. In many respects it's just the flipside of the Daily Mail and is just as likely as any other paper to include witless and uninformed journalism pandering to the prejudices of its readers.0 -
1) Average prices are not derived from average wages. They are derived from the wages of those participating in the market, which is by definition skewed upwards - and includes dual incomes whether or not you like it - until you reach a point where supply balances demand.
As prices rise, some people are excluded at the bottom end, but as demand for housing is increasing there is no mechanism for pushing prices down. Unfortunately it just pushes rents up and makes BTL a one way bet.
The only thing constraining demand at present is mortgage rationing, and the great irony is that many safe bets for lending are now paying rent when they could be 10% of the way into paying off a mortgage and paying less to do so.
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I wonder if our resident bear population understood a word of that?
And if so, whether they can come up with a concise rebuttal, or will just choose to ignore it completely....“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: »I wonder if our resident bear population understood a word of that?
And if so, whether they can come up with a concise rebuttal, or will just choose to ignore it completely....
yup - it was meaningless claptrap, H.
i'm not even sure what proposition it was trying to support or rebut.
nothing very precise i don't suppose.FACT.0 -
You can lead a horse to water, etc etc0
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Average prices are not derived from average wages. They are derived from the wages of those participating in the market, which is by definition skewed upwards - and includes dual incomes whether or not you like it - until you reach a point where supply balances demand.
As prices rise, some people are excluded at the bottom end, but as demand for housing is increasing there is no mechanism for pushing prices down. Unfortunately it just pushes rents up and makes BTL a one way bet.
The only thing constraining demand at present is mortgage rationing, and the great irony is that many safe bets for lending are now paying rent when they could be 10% of the way into paying off a mortgage and paying less to do so.
.HAMISH_MCTAVISH wrote: »I wonder if our resident bear population understood a word of that?
.the_flying_pig wrote: »yup - it was meaningless claptrap, H.
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I'll take that as a No then.....:rotfl:“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
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