House price rises

wiggly

Gorgeous_George wrote:

So, 182,000 people a year do not need homes.

Do you watch Bid-up on Sky?

If there are 5 gizmos and 6 buyers the price goes up. It's not rocking horse science



GG

cos of course people only come into the country? and people don't die too?

Alan_M_2

mrsS wrote:

Ukbondraider-

If Alan Ms wife cant get a job as a chartered accountant now at those figures I am very worried about the accountancy profession-I qualified in 1990 as a chartered accountant in a small local firm and was on £25000 as soon as I came out of contract-I could have added 50% at least in London.

The Ex Mrs M is now studying economics in West Virginia USA, she was on £15K unqualified and was expecting up to a maximum of £30K once she was newly chartered, so you're not far off.

Still, it's a long way from secretaries on £40K - £60K isn't it.

mrsS_2

but they get born here first- so if they die here does it count?

mrsS_2

sorry- Alan M- that was in 1990!!!!!!!!!!!!!

was she qualifying in the nineties as well then? when are you quoting your figures for?

I could be wrong (no longer in a practice so just work for me now!) but I think you should be doubling the figures you quoted

---

it could be this south east thing again though?

Alan_M_2

mrsS wrote:

according to The times yesterday, more than 750000 migrants came to Britain in 2005 causing net migration to "soar" by 400000, not the 185000 as quoted by the government.

the firm i work for pay our immigrant staff the same relative low rate as our "natives"- so if our British employees can afford to rent or buy somewhere, then so can the immigrants.

they have all managed to find somewhere to live fairly locally- I dont think any are living in caravans in laybys!!

but wether they are affecting house price inflation....who knows?

So where are they living then?

Around me they're living predominantly like gypsies, on farms, in caravans or multiple occupants of single dwellings.

I would assume many native employees of your firm who are on low or minimum wage live in or qualify for council assisted housing, which I assume the immigrants don't qualify for?

I just don't buy the immigrant argument in the slightest.

Alan_M_2

mrsS wrote:

sorry- Alan M- that was in 1990!!!!!!!!!!!!!

was she qualifying in the nineties as well then? when are you quoting your figures for?

I could be wrong (no longer in a practice so just work for me now!) but I think you should be doubling the figures you quoted

---

it could be this south east thing again though?

Earlier this year, she emigrated in July as she got a far better offer in the states.

BobProperty

Gorgeous_George wrote:

So, 182,000 people a year do not need homes.

Do you watch Bid-up on Sky?

If there are 5 gizmos and 6 buyers the price goes up. It's not rocking horse science



GG

Yes the housing market is just the same. There's 5 properties for auction with a starting price of £300,000 and there's 6 Polish farm workers on minimum wage wanting accommodation, so the price goes up

BobProperty

Alan_M wrote:

The existing rise in prices is being driven by high multiple lending and the lack of requirement for any substantial deposit.

You used to be able to get one or the other, but combining the two then opened up property to a whole raft of new buyers. These new buyers flocked to the market place creating a supply and demand issue that many people cite as the reason for the price hikes, so prices continued to rise as it was a sellers market.

As the prices rose, the new buyers that had been enticed by high multiples zero deposit deals started to get priced out, so multiples were extended to joint salaries.....more increases.......then multiples of joint salaries were increased...even more price rises.

Why do you need wage inflation when there's a never ending stream of lenders willing to solve the problem by lending more multiples of your salary?

I have said before and I'll repeat it here, house prices depend on affordability and sentiment.
You only need to look at what is happening in parts of the US to see that happening. Exotic mortgage products were sold a couple of years back, the terms of which meant that people could borrow ridiculous earnings multiples. Now the first discount periods are ending and borrowers are facing huge hikes in mortgage repayments and in some cases they are not able to meet them. Combined with a natural slow down in new builds and sales, builders sell off stock at discounts just to keep turning over and sentiment turns. Prices have fallen in some places which is unheard of in decades.

crashinit

and its happening here slowly, its all about to crumble in the UK, property brokers have been selling.

mr.broderick

how slow? 2,4,5 years? slow is vague..little bit like all your posts....