What is an 'Average' Property?

dougk_2

lynzpower wrote:

dear god, no.

I think its a useful discussion to have about what average is. Personally I think high expectations are part of the reason why we have such ridiclous house prices here.

I think its perfectly acceptable to live in a studio or bedsit as a single person, although Id never buy one, only rent one.

I agree its expectations. I understand things have "moved" on, but it is our culture that dicates what we want. There are many other cultures that are happy to have smaller houses with multiple people sharing them, indeed this is what some migrant workers do and hence how they cope with the low wages - they share space.

Realistically and practically a couple can comfortably live in a one bedroom apartment - after all the idea of being a couple is so you share is it not?

However an average property to me is a two large / small three bedroom semi-house or a 3 bed flat.

I have to say though , Mr and Mrs Average do not really exist do they????

dougk_2

sm9ai wrote:

Well said, when properties go down in Price you don't expect a pay cut.

Well that where I think you may be wrong!

Usually when house prices go down (more than a small %) its normally becuase of some sort of economic crisis or similar. At this point there is high unemployment and rather than a pay cut, a large number of people find they have NO pay. So yes when prices drop significantly expect a high chance of a pay cut as well!!!

Guy_Montag

dougk wrote:

...indeed this is what some migrant workers do and hence how they cope with the low wages - they share space.

Quite so, if I was able to live abroad for a few years, earning bucketloads of cash, I wouldn't be too fussy where I lived. When it's temporary or perceived as temporary one is inclined to put up with lower standards. When it's permenant one's standards are rather higher.

earner

It annoys me when they compare the cost of the average property to the wage of young people and say that's unaffordable.

The average property is more likely to be a 2nd or 3rd purchase up the ladder. A 3-bed semi.

It would be more meaningful to compare a salary with the average price of the cheapest five 1-bed properties within 10 miles. Excluding all properties that are mobile homes, elderly only, holiday homes (10 months occupancy) and unmortgageables. So cheapest five actual proper properties.

When I compare the price of my area to the price of other areas, I always look at "what is the average price of the cheapest 3 properties" to decide which area is most affordable on property price alone.

Guy_Montag

earner wrote:

It annoys me when they compare the cost of the average property to the wage of young people and say that's unaffordable.

Generally people compare the average property price with the average salary, not with the salary of a young person.

(average salary c. £25k, average house price c. £190k)

Slinky

mobile-advice wrote:

Thanks for the replies. I was thinking along property for that particular circumstance; let's say for clarity:

- The Family: Mr and Mrs X both on average income, with average amount of children.
With average deposit, and average mortgage, can they afford an average home in the area for that salary? (I would consider average to be a 3-bed, not ex-local authority home to be middle of the road here).

- The Single: Mr X is on average income. With average deposit, and average mortgage, can he afford an average home in the area for that salary? (I would consider a two-bed flat middle of the road here).

The question is this: If an average person on an average salary with an average mortgage can afford an average property for their circumstances, is that market overpriced? Is it a case of the property being a bargain 5 years ago, and correct prices being realised now?

What about Miss X on her own who is likely to be earning less than Mr X...........

[Deleted User]

Well, i'm on slightly more than uk national average pay (27K at moment, and still grumbling) and I just bought an average cost house (200k for 2 bed terrace in london zone 6, reasonable area on train link) with my gf.

However, i have also saved for 3 1/2 years and paid off all my debts in order to have enough money to do so. I do wonder how many of the people complaing about houses being too expensive have done the same or even attempted to put some money aside.

roswell

earner wrote:

The average property is more likely to be a 2nd or 3rd purchase up the ladder. A 3-bed semi.

This would be ideal but its not whats happening, FTB`s are aiming for 3bed properties if possible because they are taking out larger mortgages over longer periods so they are planning ahead. There are many 1 bed flats that are new build and empty because if the BTL`s havent got them no one wants them. Most young adults have plans if they plan to leave the area in the short term they are more likely to rent than buy, if they hope to meet Mr or Miss Right they expect they will need more than one bedroom, we also live more materialistic lives so space is an issue, On the BTL`s of the flats theres compition to get tenants and you can tell by the £100 or so differance in the rental prices that some of the land lords are very new and dont realise what they are in for.

Mr FTB is now aiming for a 2 or 3 bed house to save future stamp duty / moving costs / legal fees assuming they are secure in there job and location.

after all in 1 night and 9 months a 1 bed flat can soon become to small.

Alan_M_2

Also consider the average age of the FTB is now mid 30's particualrly in London, this probably changes their requirements over the traditional FTBuyer

olly300

roswell wrote:

This would be ideal but its not whats happening, FTB`s are aiming for 3bed properties if possible because they are taking out larger mortgages over longer periods so they are planning ahead. There are many 1 bed flats that are new build and empty because if the BTL`s havent got them no one wants them. Most young adults have plans if they plan to leave the area in the short term they are more likely to rent than buy, if they hope to meet Mr or Miss Right they expect they will need more than one bedroom, we also live more materialistic lives so space is an issue, On the BTL`s of the flats theres compition to get tenants and you can tell by the £100 or so differance in the rental prices that some of the land lords are very new and dont realise what they are in for.

Mr FTB is now aiming for a 2 or 3 bed house to save future stamp duty / moving costs / legal fees assuming they are secure in there job and location.

after all in 1 night and 9 months a 1 bed flat can soon become to small.

You are actually right.

None of my friends (all FTB) are buying 1 bedroom flats if they are in couples. They are buying/have brought 3 bedroom houses which they intent to live in as long as possible and bring their children up in.

There seems to be a split between my male and female single friends FTB. The women tend to buy 2 bedroom properties while the men buy 1 beds. This may be due to age difference as the men are normally 3-5 years younger than the women who buy.