And So It Begins.....

IveSeenTheLight

Graham_Devon wrote: »

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.

Simple question.
Don't get your knickers in a twist.

Of course, when you add in deposit requirements, the available property value increases.

crash123

Dan: wrote: »

It can be done. My Mrs is a housewife and don't work but I recently bought our family home on my salary.

Maybe get yourself a bird to help out if you earn poor?

Dear Dan
Why does it say that I am a man.
Also why does it say that I need to buy a house.

Graham_Devon

IveSeenTheLight wrote: »

Simple question.
Don't get your knickers in a twist.

Of course, when you add in deposit requirements, the available property value increases.

Yes. It does.

But still doesn't do anything to alter the fact what Hamish stated was completely wrong.

crash123

HAMISH_MCTAVISH wrote: »

I could buy my house today on 4 times my salary. Which is exactly the long term average.

If I earned half what I do, or somewhere around the national median average wage, I could still buy a 3 bed house near where I live for 4 times salary, which is exactly the long term average.

In fact, the reality is that other than perhaps London, a person earning average wage can buy a house for 4 times average salary within an hour of almost all the major employment hubs in the UK.

Average wage where I live £24,000
average house £249,000
This is in Yorkshire.

Dan:_4

crash123 wrote: »

Dear Dan
Why does it say that I am a man.
Also why does it say that I need to buy a house.

Dear crash123
If your a women, then I fully understand your wish to buy a house on a single salary - women seem to be paid less then men even in this day and age.

And no-one NEEDS to buy a house.

crash123

Dan: wrote: »

Dear crash123
If your a women, then I fully understand your wish to buy a house on a single salary - women seem to be paid less then men even in this day and age.

And no-one NEEDS to buy a house.

Who said I was single?
Who said I don`t earn a good living?
You don`t work in man management!

Dan:_4

crash123 wrote: »

Who said I was single?
Who said I don`t earn a good living?
You don`t work in man management!

I said.:beer:

Herbie_Hancock_I_wish

Graham_Devon wrote: »

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.

Spot on Graham. It is likely that Torbay and Plymouth , are the cheapest places to buy in Devon. Torbay clearly has a lot of seasonal work and Plymouth, of course, is very dependent on the dockyard.

IveSeenTheLight

Graham_Devon wrote: »

Yes. It does.

But still doesn't do anything to alter the fact what Hamish stated was completely wrong.

There there Graham,
Will it help if a state that both you and Hamish failed to omit current standard deposit requirements thus the available property price is higher or your income multiple debate produces a lower amount?

IveSeenTheLight

crash123 wrote: »

Average wage where I live £24,000
average house £249,000
This is in Yorkshire.

I don't know your specific location and Yorkshire is quite a large area, however....

According the the Land Registry Report
Looking at Yorks & Humber, the average price is £121,200 (Down 4.6% YOY).
Looking at the city of Leeds, the average is £129,617 (Down 3.5% YOY).

Some more breakdowns: -
East Riding of Yorkshire £133,421
North Yorkshire £173,033
South Yorkshire £104,948
West Yorkshire £114,819

So it seems there are a number of areas in Yorkshire where the average is much lower, some even half the price of your £249,000 claim.

Looking at the ONS ASHE results for 2009 (Table 8.7a), the mean male (data historically used in house price comparison) is as follows: -
Yorks & Humber £29,286
Leeds £30,130
East Riding of Yorkshire £31,059
North Yorkshire £32,770
South Yorkshire £28,974
West Yorkshire £30,130

So without considering a 10% deposit, the average multiplier for yourkshire (looking at the North, South, East and West figures)appears to be 4.29

With a 10% deposit of the average house price, the average income multiplier for mortgages in Yorkshire (looking at the North, South, East and West figures)) is 3.86

I've linked the ASHE wage figures and LR report should you want to verify the data.