Debate House Prices


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Home Ownership to fall to 63%, lowest level since 80's

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Comments

  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Nope.

    Houses in 1999 weren't affordable without mortgages either.

    The fact is that when you take the average house price, the average income and the average mortgage rate into account, houses today are cheaper than at any time since 1999.

    Which is why it's such a shame so many people are being excluded from ownership by mortgage rationing.

    Oh, your at it again :(

    Correction number 47: Servicing the debt on existing mortgages is cheaper than at any time since 1999.

    Considering you are the one who complains of mortgage rationing and penalising FTB's with higher interest rates, I'm surprised you try to suggest new buyers (buying the house today) will enjoy average mortgage rates. Because, put simply, they won't.
  • Le_Chuck
    Le_Chuck Posts: 223 Forumite
    Aye, houses were more affordable a decade ago.
    http://anmblog.typepad.com/.a/6a00d8341c565553ef0133ed0d1a76970b-500wi
    looks like it doesn't it
  • Le_Chuck wrote: »
    Aye, houses were more affordable a decade ago.

    looks like it doesn't it

    But strangely, less affordable than 2004 to 2007 when mortgage rates were significantly higher than now, and they were selling hot cakes!

    Something doesn't compute.....

    Is this because someone forgot that any sensible 'affordability' measure would take into account:

    1. Cost of the house (compared with salaries).
    2. Cost of servicing the loan on a house.
    3. Affordability of the necessary deposit.
    4. Ability to obtain the mortgage in the first place.

    By the same logic - the cost of running a 10 year old BMW 'M' for a 17 year old has never been lower, because they cost less than they used to - innit?
  • Le_Chuck
    Le_Chuck Posts: 223 Forumite
    But strangely, less affordable than 2004 to 2007 when mortgage rates were significantly higher than now, and they were selling hot cakes!

    Something doesn't compute.....

    Is this because someone forgot that any sensible 'affordability' measure would take into account:

    1. Cost of the house (compared with salaries).
    2. Cost of servicing the loan on a house.
    3. Affordability of the necessary deposit.
    4. Ability to obtain the mortgage in the first place.

    By the same logic - the cost of running a 10 year old BMW 'M' for a 17 year old has never been lower, because they cost less than they used to - innit?

    TBF thats sort of my argument.
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