House Price Crash 5

talksalot81

CB1979 wrote:

yep that's life

obviously you're looking at 1 bedroom places?

Hold on... only a couple of posts ago you said:

CB1979 wrote:

people who earn a decent wage CAN afford a decent house.

it's as easy peasy as 1-2-3, A-B-C, you-know-me, H-J-P, F-Y-E :money:

So on one hand, decent earners CAN afford decent houses. Then you accept that many clearly cannot...

CB1979 wrote:

but 3.5-4 x multiple is about right, so if you're after a starter home, surely a 1 bedder that you CAN afford is better than getting a 2/3 bedder that you CAN'T afford?

that seems to be the biggest problem is that people who want on the ladder aren't prepared to be on the bottom rung to start with.

obviously just my opinion.

I refer again to a previous post where you stated that decent earners CAN afford decent housing. You have changed your mind... now you are saying that a decent earner but FTB shouldnt expect to get decent housing, rather they should expect to start at the bottom.

Dead_Eye_Jones wrote:

Nah, you're wrong, I bought a nice starter 3 bed family semi in a lovely area on about your wage. London suburb actually. There are places in my road starting at about 150k for 2 bed terrace, depending on size and state of repair they go up to about 230k. Nice big gardens, 20mins from central london, safe, green, you really can have your cake and eat it. Its a myth that there are no affordable homes, Im glad I didnt belive the hype and went out there to find my place. Unfortunately it does take effort - and I think thats the problem most lazy Brits face. Why go out looking for those little pockets of ideality when I could drink through my weekly wage down the local boozer whilst waiting for the government to sort my life out.

A typical example is the 250k 2 bed flats in my town that seem to be selling fast, I guess people see the fancy adverts, get sucked in by the swish marketing and financial deals, what it seems that people dont realise or dont take the time to look up is that if you dig a bit further you can buy a whole house for so much less. I guess people never see past those flat prices "well if a flat costs that much a house will cost..." - shame really.

The other big gap in this affordibility debate is DEPOSIT!! People seem to think that affordability = 3x salary. Wrong. Affordability is actually 3x Salary + DEPOSIT!!

Anecdotal. I can easily provide exception to what you say and the general view does not agree with yours. Furthermore, I fall into your 'deposit' bracket... I have a 20k deposit. Even going to 4x salary (which I consider to be pushing matters) and I can only afford £120k... this at best gets me into the bottom rung in my area.

sm9ai wrote:

3.5 - 4 x multiple is about right, but its nearer 4 - 5x in my area.

If you examine the long term trend, you will find that 3x is the long term average.

lynzpower

Alan
From what I believe Thamesmead has a history of not being that great.

http://en.wikipedia.org/wiki/Thamesmead

but saying you cant afford a 2 bed house as theres nothing under 300k or whatever is just claptrap, as deadeye jhones says.

there would be other properties in that bracket- but I specified 2 bed houses, there would be of course flats elsewhere or 1 bed houses IYSWIM

Alan_M_2

lynzpower wrote:

Alan
From what I believe Thamesmead has a history of not being that great.

http://en.wikipedia.org/wiki/Thamesmead

but saying you cant afford a 2 bed house as theres nothing under 300k or whatever is just claptrap, as deadeye jhones says.

there would be other properties in that bracket- but I specified 2 bed houses, there would be of course flats elsewhere or 1 bed houses IYSWIM

Yup, ISWYM, but out of choice would you live there? Snobbishness aside, would you really want to live there?

On the outskirts of Croydon backing onto the old Croydon Airport is a housing estate called Roundshaw, it's been redeveloped over the last few years as, well how can I put this politely.....Thames TV used to use it as a film location for "The Bill" when they wanted to portray a drug and crime infested South London Housing estate - you get the idea.

The residents burnt down the local pub and shops with such regularity that eventually they were boarded up and closed.

Houses are a snip there, they are within the catchment area of one of the better schools in the Surrey area and close to Valley retail park, and walking distance from some pretty expensive homes.

Would I live there? Not on your nelly:)

meanmachine_2

Oh we're not still banging on about a crash are we?

Don't you know that the Bank of England received worldwide acclaim for engineering a soft landing last year?

You only get a crash after a period of insane and rampant HPI.

Now then, what's this, asking prices in London up 23% in a year?



Must be all those hardworking Poles. Gawd bless 'em. They deserve our homes as they work 7 days a week without complaint.

I wonder if the current homeowners on this thread put in the same graft.

Nah, didn't think so.

Still we shouldn't complain. It's always been incredibly expensive to buy property. Like in 2001 when IRs were last at 5% and property prices were @ 90K.

Excuse me while I buy a crack den in Thamesmead @ x4 my above average wage.

:rotfl:

mr.broderick

I must admit i am beginning to feel sorry for you meanmachine.

I can see you are desperate to buy a house and i feel you will never be able to afford to..god bless you.

abaxas

mr.broderick wrote:

I must admit i am beginning to feel sorry for you meanmachine.

I can see you are desperate to buy a house and i feel you will never be able to afford to..god bless you.

When inflation is about (and this includes house prices) things go up in value.

Lets hope we call can afford to eat soon, we all like inflation so no-one should complain if Bread is £5 a loaf.

Speculate on human need and get what you deserve.

lynzpower

Yup, ISWYM, but out of choice would you live there? Snobbishness aside, would you really want to live there?

Honestly? Probably not. South londons not for me, tried it once- never again!

I might be tempted towards ilford though? that house aint the best, it was a stray one that turned up in a london search, and not essex, but Ilfords alright.

I wouldnt personally choose to buy any of those places, like you Alan, Ive come round to the opinoin that paying interest to the bank monthly simply isnt moneysaving so Im selling to rent. As you know, you can rent a great place in an area you could never afford for less than a mortgage on a 1 bed flat round here

lisyloo

I wonder if the current homeowners on this thread put in the same graft.

I do not work 7 days a week.

But if I couldn't afford something I really wanted (or needed) then I would consider
a) working longer hours
b) getting training to improve my posistion
c) starting my own business
d) cutting back on my expenditure

I would suggest people who feel hard done by look at this.

http://www.globalrichlist.com/

If you have been born in the UK then you are incredibly lucky.

Still we shouldn't complain.

Well you can spend your time doing that if you like.
I do however believe that my 4 suggestions above might help improve your situation more quickly.

Alan_M_2

Out of all those things, Starting your own business is the least likely to put you a position to buy what you want. It will suck up all your money and you won't be able to get a mortgage (well nothing sensible) until you have at least three years trading accounts showing a profit.

The other three are resonable.

lisyloo

Starting your own business is the least likely to put you a position to buy what you want.

Depends on what your plans are.
For some skilled people a business may be better than getting low pay stacking shelves or working in a bar.
My ideas were not "get rich quick" ideas.
I'm just saying that if you WORK and SAVE you can improve your situation and the four options demonstrate that there are differnt ways to do it.
For some people lots of hours stacking shelves may be OK.
For others training or a business idea (possibly in addition to the main job) may be better than lots of low paid work.

It will suck up all your money

So if I buy a bucket and a shammy to wash cars on the weekend then that will suck up all my money will it?

until you have at least three years trading accounts showing a profit

Not necessarily.
If you were (for exmaple) washing cars on a weekend then you would still put down your main job for the mortgage.
The extra would be helpful for a deposit, moving costs, rainy day money or buying things for the house.

The other three are resonable.

I think ALL of them are better than complaining and doing nothing.
That's if you REALLY want to do something about it.
Obviously some people are never happy and want it on a plate.

I am not saying it's easy, just that there are things that people can do to improve their situation if they really want to.