And So It Begins.....

kabayiri

I'm a bit puzzled.

Isn't it the large deposit requirement which is the issue for many an FTB at the moment?

If it is then what would people consider a reasonable deposit to be? 10% ?

Dan:_4

kabayiri wrote: »

I'm a bit puzzled.

Isn't it the large deposit requirement which is the issue for many an FTB at the moment?

If it is then what would people consider a reasonable deposit to be? 10% ?

Should be 5%

IveSeenTheLight

Jimmy_31 wrote: »

Or maybe its something to do with me and all my mates knowing how much it costs to build a house as we are in the building trade.

I really cant see any of my mates paying 150k for something that costs 30k to build, best to just wait till the real houses come down in price:)

Why don;t you buy a plot of land and build your own then.
My F-I-L did that 30 years ago.
It is a very economical way to own a home.

geneer

HAMISH_MCTAVISH wrote: »

Wow Graham, thanks for pointing out the fact that an average is, well, exactly that. We can always count on you to be super-helpful in noticing the blindingly obvious.

OF COURSE there will be local variances. That's why they call it an average.;)

You gotta love Spamishes flexible interpretations on averages.

Local variances aren't much of an issue when he's frothing over postitive changes in house price.

HAMISH_MCTAVISH

Graham_Devon wrote: »

Say for example Devon / Cornwall. ?

OK Graham.

According to the ONS the median wage for full time males in the South West is £503 per week.

That's £26,156 per year.

That leaves a budget of £104,000 for a house at 4 times salary.

And according to Rightmove, there are 586 two and three bedroom houses for sale between Plymouth and Torquay, non-shared ownership, and non-retirement community, for under £110,000.

geneer

Hamish. Still waiting for you to confirm whats beginning.

Or were you quoting lord of the rings or something?

HAMISH_MCTAVISH

geneer wrote: »

Still waiting for you to confirm whats beginning.

David "call me Dave" Cameron has finally figured it out.

You can't have a healthy economy without a healthy housing market.

And if lenders won't lend, buyers can't buy, and the housing crisis will worsen.

So he's decided to advance some land to the builders, which they don't have to pay for til the houses sell.

Now all he has to do is get the banks lending again, so buyers can buy. Probably no coincidence the CBI just called for the Govt to offer Mortgage Indemnity Insurance for 95% LTV loans then.

This is all going to take a year or two to pull together, but mark my words a housing market recovery is being engineered in time for the wider economy to recover before the next election.

Graham_Devon

HAMISH_MCTAVISH wrote: »

OK Graham.

According to the ONS the median wage for full time males in the South West is £503 per week.

That's £26,156 per year.

That leaves a budget of £104,000 for a house at 4 times salary.

And according to Rightmove, there are 586 two and three bedroom houses for sale between Plymouth and Torquay, non-shared ownership, and non-retirement community, for under £110,000.

This proves what exactly? You stated the national average wage could buy a 3 bed home at the average 4x income, in all work hub areas.

So now you've used the average wage as I pulled you up on that, but moved away from the average house price (like thats a surprise) and given a total of 586 houses including 2 beds. However, my search indicates you included chalets, which are not houses. My search, listing properties under £110,000 plymouth - torquay, listed just 64 properties.

So, heres the average house price according to the land registry....£190,634

Now, if we take your full time male, mean earnings, at £26,156, and divide £190,634 by the previous number, we end up at 7.28.

7.28 is the average local house price to average local (full time male mean) wage.

So, your theory was indeed wrong. Theres no room for wriggling here. You were simply wrong to make your usual asumptions and real data has got the better of you again.

Edit: For info, the last time your theory would actually have been correct for Devon, is 2001. Just a decade out.

IveSeenTheLight

Graham_Devon wrote: »

So, heres the average house price according to the land registry....£190,634

Now, if we take your full time male, mean earnings, at £26,156, and divide £190,634 by the previous number, we end up at 7.28.

Are 100% mortgages back readily available?

Graham_Devon

IveSeenTheLight wrote: »

Are 100% mortgages back readily available?

Why only pick me up on this?

Why not Hamish too? He's just using multiples without factoring in deposits too y'know

But if you want to bring deposits into the equation, feel free. You'll have to prented the average person has an £80K+ deposit too for Hamish to be correct.