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Debate House Prices
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Rightmove April +1.7%
Comments
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Dunno, and I don't really want to get in to an endless debate about averages. And I fully conceede that in many areas of the country FTBers are priced out, so I agree with you, probably.
But up here, in the North West (which is what I was talking about), there are plenty of decent FTBer houses for between £80,000 and £100,000. So a young couple could earn £15,000 each, save up ten grand as a deposit and then borrow between 2 and 3 times their salary to buy one of these houses. That sounds alright to me - theoretically you can basically earn just over minimum wage as a couple and still buy a nice house.
I was 22 when we bought our first house (although I turned 23 a couple of days after buying). I was earning £21,000 and my wife (then girlfriend) around £15,000. The house was £130,000 and the year was 2003, not in the North West though. It was a nice house, and a bit bigger than others down that street. Most two bed terraces down that road are still available for between £85,000 and £140,000 depending on size and quality.
Thanks, good post. The only thing I would say is that nowadays it is harder to save a deposit, as inflation is rampant leaving less available for building a deposit. This is because the banks are being bailed out at the expense of the general public, with savers and the young FTBers worst hit.0 -
HAMISH_MCTAVISH wrote: »And 100% mortgages were readily available.
They've turned out to be great for the economy haven't they?0 -
the.ciscokid wrote: »nowadays it is harder to save a deposit, as inflation is rampant leaving less available for building a deposit.
First of all, inflation is not rampant. We had rampant inflation in the 70's and 80's, and this is nothing by comparison. Yet people managed to save then, and still do now.This is because the banks are being bailed out at the expense of the general public, with savers and the young FTBers worst hit.
The general public, savers, and young ftb-ers would be worse off by far had the banks not been bailed out.“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 -
the.ciscokid wrote: »They've turned out to be great for the economy haven't they?
Yes, they have.“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 -
Apologies for sounding like Hamish, but I have to ask a question here. Let's say you have a load of 37 year olds now who can't buy a home for their family. The question I ask is that if you knew you wanted a family home at the age of 37, what were you doing about it when you were 25?
Someone who is 37 now was 25 in 1999. House prices in 1999 were a lot more affordable than they are now. So why wasn't that 37 year old buying a FTBer house in 1999 when they were 25, trading up to a bigger one when they were 30 in 2004 (when their original house had almost doubled in value) and then look to trade up again now?
Look, I'm not really that interested in arguing about all this in any detail. We probably agree on the fundamental point I originally made: if sellers reduced their price it would enable more people to afford to buy houses.
Not sure, !!!!ing it up the wall, or earning very little would be my guess, but it is a guess. What were employment rates like in 1999? When did BTL kick of and start pricing young FTBs out of the market?
A lot of possibles there, but I take you point.0 -
By implication, when the issue of FTBer affordability arises, you state homes are affordable around your way. IMHO this fails to aknowledge the underlying nationwide problem.
And the friendly fire continues.....
“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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in which country did BTL price out FTBs?the.ciscokid wrote: »When did BTL kick of and start pricing young FTBs out of the market?
looking at England, the number of private rented property (BTL) is pretty flat from 1999 to 2005. the number of owner occupiers didn't really change much either...
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There's an ongoing issue for the young of today. High unemployment, high student debt, people working to older ages and not retiring, longevity leading to a lack of houses coming to market.
Increasing home prices do not help people in their ambition to buy a property and start a family.
Increasing home prices being good for the economy is incorrect. It increases banks paper assets, but it does not help the young. The young are the future.0
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