Cheapest Houses since 1999

robmatic

hallmark wrote: »

The only thing cheap about housing at the moment is the cost of servicing the debt & that's a highly false economy, since the capital is not being repaid. In an era of low/no wage inflation, that's a huge consideration that will be biting homebuyers in the bum for years to come. Living it large on a 0.nothingmuch% interest-only mortgage might be fun for them now but when IRs go up, even if that didn't happen for 10 years, those people will be screwed.

Why do you say capital isn't being repaid? The issue of new IO mortgages was effectively kiboshed 4 years ago.

Thrugelmir

robmatic wrote: »

Why do you say capital isn't being repaid? The issue of new IO mortgages was effectively kiboshed 4 years ago.

And the interest only mortgages that were allowed?

Is the capital being repaid. Or are these some of the 800, 000 people now stuck in negative equity with no option but to pray that interest rates don't rise.

hallmark

robmatic wrote: »

Well, that's a really robust set of statistics.

According to the Land Registry, prices have just about doubled over the last 11 years. Meanwhile, if prices had increased in line with RPI they would have increased by a factor of about 1.5, so it's only an increase of about 30% in real terms.

Do you actually seriously think house prices have only increased 30% lol? Apart from the fact that they've actually trebled as I already said & as everyone sensible knows without being told, your logic is horrible. What has "if prices had increased in line with RPI they would have increased by a factor of about 1.5" got to do with anything?

It's really really simple. In the last 12 or so years house prices have trebled whilst wages have barely moved. That's why no first time buyer can afford a house without a huge chunk of money from their parents. It's also why interest rates are being kept at almost zero, because of the tidal wave of reposessions that would follow if they were allowed to rise.

Anyone who can't appreciate the simple truth of the above is deluded.


Regarding IO mortgages, I know plenty of people (many of them letting a property or two) who have interest only mortgages & have paid almost nothing each month since IRs went to 0.5% (& nothing at all off the capital). There are many people in this position. The sensible ones will be saving like crazy so they're in the best position to weather the storm when IRs rise. If they can afford to save anything that is, even on miniscule IRs there are lots of people only just scraping by.

robmatic

Thrugelmir wrote: »

And the interest only mortgages that were allowed?

Is the capital being repaid. Or are these some of the 800, 000 people now stuck in negative equity with no option but to pray that interest rates don't rise.

Clearly, some of the outstanding IO mortgages will not be currently being repaid, some will be actively being repaid and some IO mortgage holders will be amassing capital in other forms. To be honest I don't know what the split will be, but saying that all IO mortgages are held by consumption-a-holics won't be correct. Neither will all IO mortgage holders who could afford pre-Crunch rates struggle when they go back up to that level or higher.

ukcarper

Just to put record straight Land Registry average house price July 1999 £73,250, July 2011 £163,049, 2.25x.

House near me sold 1999 £140k sold again in 2007 £275k.

JonnyBravo

hallmark wrote: »

Haha, you stupid dunce, why do you assume I have an agenda, is it because you can't conceive of anything else. How sad you are.

Please don't presume to think you understand me, your feeble ickle brain ain't up to it mate.

Are you vewwy vewwy cwwoss?
Are you going to squeam and squeam and squeam until you're sick?

Do the nasty men want to charge you too much for a howse?
Diddums.

ukcarper

I’m not sure about not possible to buy lets take two university graduates who want to live together they are in the number who can’t get a good job and have to work for minimum wage.

So with a joint income of £25k they can get £75k with a 3x joint mortgage. That plus a 10% deposit will get you a flat in quite a few places.


They would have a joint income of £1800 a month and at 6% their mortgage repayments would be £490 a month.

hallmark

JonnyBravo wrote: »

Are you vewwy vewwy cwwoss?
Are you going to squeam and squeam and squeam until you're sick?

Do the nasty men want to charge you too much for a howse?
Diddums.

Lol cretin, if you were able to keep up you'd see that I bought my house before the boom, for a third of what it would be today. But I know it's beyond your capabilities to think someone might be able to post objectively.

BTW I paid my mortgage off 10+ years ago too but enjoy paying yours :rotfl::rotfl::rotfl::rotfl:

JonnyBravo

hallmark wrote: »

Lol cretin, if you were able to keep up you'd see that I bought my house before the boom, for a third of what it would be today. But I know it's beyond your capabilities to think someone might be able to post objectively.

BTW I paid my mortgage off 10+ years ago too but enjoy paying yours :rotfl::rotfl::rotfl::rotfl:

Ah bless.
You must be nearly retired then? You're practising for the grumpy old pensioner role very well. Soon be dribbling with fury eh? Little flecks of white spittle flying from the corner of your mouth as the impudent youth of today can't understand just quite why your wisdom is so valuable? :cool:


Thanks for your concern about my mortgage. Yeah finished mine too. Now busy paying off the BTL one, an interest only one. You know, the sort that no capital ever gets paid off.

hallmark

Sorry m8, wrong again lol. If you post enough you may get something right in the end altho I won't bank on it. I'd paid my mortgage off before I was 30, you just need to choose the right career & work hard at it. Highly amusing your a BTL landlord, that explains plenty. Squeaky bum in case the old IRs go up m8?