House Prices Simply Too Expensive For The Young

davilown

Why do people always believe that all FTBs should only be buying 1 or 2 bed flats?

As the average age of a FTB is now somewhere in the region of 37, most of these will have a family and will have saved their deposits in order to buy that 3/4 bed detatched with garage pool and veranda!

One years saving = 20k, by 2013 60k (75% ltv on 240k) Nice house, nice area and nowhere near that hole known as the capital city!

FTBFun

Out,_Vile_Jelly wrote: »

I think those SE15 flats are overpriced because although East Dulwich is trendy and nearby, the overland train service is pretty rubbish. I think you can get better value for that sort of price in London.

Probably. I certainly didn't pay anywhere near that - I was just giving a suggestion!

Train service isn't that bad btw. Well it is if you're used to the tube but I can't stand the tube nowadays.

FTBFun

davilown wrote: »

Why do people always believe that all FTBs should only be buying 1 or 2 bed flats?

As the average age of a FTB is now somewhere in the region of 37, most of these will have a family and will have saved their deposits in order to buy that 3/4 bed detatched with garage pool and veranda!

One years saving = 20k, by 2013 60k (75% ltv on 240k) Nice house, nice area and nowhere near that hole known as the capital city!

Indeed. Unfortunately it appears to be a position of some that they should be getting a 3/4 bed detached house a long while before they are 37.

Pete111

Cyril wrote: »

Hmmm hope you're not an english teacher

Touche'

(For the record no, I'm not!)

Hank_Rearden

GHOULS_OWN_NOTHING wrote: »

it's the overtly restrictive banks lending practises.

I'm assuming this is supposed to be a homage to the English teacher reference. "overtly" - nothing overt about them; I think there might be an errant t... "banks" - without an apostophe, I think the banks are lending dental surgeries... "practises" - nope, I can't make this work, I think this should just be "practices". But I can't help take the opportunity to "like" Ghoul, in all his/her wondrous incarnations.

Graham_Devon

GHOULS_OWN_NOTHING wrote: »

For the last time

Well thank f*** for that.

Graham_Devon

davilown wrote: »

Why do people always believe that all FTBs should only be buying 1 or 2 bed flats?

That doesn't compute.

Another one to ask is howcome its ok for people to state FTB should buy entry point houses, yet work out the affordability of this on average wage, not entry point wages.

abaxas

Maybe we should ask the question.

Why is the cost of housing so great when the cost of producing the housing is not. In areas of little of no land, this is understandable. But in areas where they can easily build, it is not.

Ie there is protectionism in the industry via the planning laws.

HAMISH_MCTAVISH

Out,_Vile_Jelly wrote: »

I'm not a teacher; I work at a university. 3.5 times my salary plus 35k deposit gets me pretty much nothing in London- that was sort of my point. My job is secure and has benefits other than pure salary so it is not simply a case of "get something better then".

People borrowed 3.5 times their salary when they had a reasonable expectation that interest rates would be between 10% and 15%. Whereas today, it's a reasonable expectation that rates will never reach 10% to 15% in your lifetime.

As a single person, buying in London, in fairness you'd be looking at more like 5 times your salary for an entry level place.

Which banks will still do, but you'd need a decent deposit (perhaps 20% to 25%) and a squeaky clean credit history.

Londonsu

ILW wrote: »

The ones that do, tended to have bought in very bad areas that over two or three decades or so become nice. Go back 40 years and Clapham and Battersea were considered very downmarket, unsafe areas. ie. the sort of place that B Blank thinks is below him.

yep when I bought my Clapham flat in the 80s it was a sh$t hole at the time as I said in my last post, a rape/murder and armed police raid and a race riot all within the first six months.

yet when I put it on the market in 2009 the area turned into a trendy, 'buzzy' area with FTB queing up to buy there, I sold my flat within 4 days to a FTB the EA didnt even have time to put up a for sale sign, in fact 4 flats including mine in the same street went for the same price (just under 250k) within 6 months of each other, all to FTBs all sold within a week of going on the market.

yet at the same time my FTB nephew ignored the trendy areas of London and bought a rather decent one bed Victorian flat for 120k