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Debate House Prices


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And So It Begins.....

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Comments

  • Dan:_4
    Dan:_4 Posts: 3,795 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Graham_Devon wrote: »
    And yesterday you were renting.

    Please make your mind up.

    I sold it as i've moved to a different town for a new job - currently renting while we choose a new home.
  • HAMISH_MCTAVISH
    HAMISH_MCTAVISH Posts: 28,592 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    crash123 wrote: »
    I would like to return to sensible multiples where you do not need 2 wages to buy a house.

    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.
    “The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.

    Belief in myths allows the comfort of opinion without the discomfort of thought.”
    -- President John F. Kennedy”
  • Herbie_Hancock_I_wish
    Herbie_Hancock_I_wish Posts: 316 Forumite
    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?

    Pretty nasty comment, also disrespectful.
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    HAMISH_MCTAVISH wrote: »
    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.

    Oh my dear lord.

    The average wage is the UK average wage.

    Local average wages are very different. As are house prices.
  • the_flying_pig
    the_flying_pig Posts: 2,349 Forumite
    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...

    prob'ly showing my ignorance again, but don't they usually include more than one person in those average house price to wage calculations?
    FACT.
  • HAMISH_MCTAVISH
    HAMISH_MCTAVISH Posts: 28,592 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    the_flying_pig wrote: »
    prob'ly showing my ignorance again, but don't they usually include more than one person in those average house price to wage calculations?

    No.

    The long term average of 4 times income is from the Halifax, to be specific it's 4 times male mean full time salary as per ONS.
    “The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.

    Belief in myths allows the comfort of opinion without the discomfort of thought.”
    -- President John F. Kennedy”
  • HAMISH_MCTAVISH
    HAMISH_MCTAVISH Posts: 28,592 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Graham_Devon wrote: »
    Local average wages are very different. As are house prices.

    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.;)
    “The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.

    Belief in myths allows the comfort of opinion without the discomfort of thought.”
    -- President John F. Kennedy”
  • Dan:_4
    Dan:_4 Posts: 3,795 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Herbie_Hancock_I_wish wrote: »
    Pretty nasty comment, also disrespectful.

    Just trying to be helpful, didn't mean to cause offense :(
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    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.;)

    Yes, so what exactly is the point in suggesting you can buy a house at average UK wage over most of the country?

    Say for example Devon / Cornwall. When local people don't earn near national average wage, whats the point in telling them they can buy their houses at 4x national wage?
  • MacMickster
    MacMickster Posts: 3,646 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    HAMISH_MCTAVISH wrote: »
    No.

    The long term average of 4 times income is from the Halifax, to be specific it's 4 times male mean full time salary as per ONS.
    The problem with averages is that there are so many of them.

    If you look at the latest published median UK salary (which will be lower in the regions outside of London and the SE) for 22-29 year olds you will see that it is a little under £22K.
    http://www.ons.gov.uk/ons/rel/ashe/annual-survey-of-hours-and-earnings/2010-results/stb-ashe-2010.pdf

    After tax and NI they would take home around £1440 per month.

    If they could find a house within an hour's drive of their work for £88K, a 95% mortgage over 25 years would need repayments of around £540 per month assuming an interest rate of 6% (I would not like to see anyone failing to budget for at least this rate). They would then need to buy, insure, maintain and run a reliable car to get to and from work -say £300 per month minimum. Then budget for council tax, utilities etc and you will find that the average person under 30 is going to seriously struggle to buy property even if the 95% mortgage returns - which it is unlikely to do for the average young person any time soon.
    "When the people fear the government there is tyranny, when the government fears the people there is liberty." - Thomas Jefferson
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