House prices need to drop 40% to be affordable discussion

IveSeenTheLight

There are some that believe there needs to be a 40% reduction in house prices in order for the single average person would then be able to afford property.

I would appreciate anyone who has an on topic point to add to this discussion.

I'm also interested in their viewpoint on the following queries.

IveSeenTheLight wrote: »

Why do you think property should be affordable at 4 times an average single income (not mean male which is what the indexes are usually based against)?
It has been discussed before that part time, low income earners are generally not house buyers

What do you think needs to happen to ensure that house prices do drop 40%? and do you think that is likely?

If prices were to drop 40%, how do you think that would impact current home owners (on average)?

What is the likely outcome for a government that oversee a 40% reduction in property prices?

Finally and yes I am talking historically and hypothetically, how much x income has house prices on average been throughout the time that peole have paid for home ownership i.e. not self built from own sourced materials

Conrad

The whole premise pre-supposes the world is like some machine with levers that can be pulled to enable a series of outcomes.

We might argue all sorts of things 'should' look differently, but infantalising the debate down to notions of what 'x SHOULD be' is a total misnomer.
The world is not ideal and simple levers to pull and fix stuff do not exist.


In any event as I've demonstrated before, there is loads of affordable property up and down the land including many many places in the South East but for reasons of assuaging cognitive dissonance, the bears tend to filter out this FACT.


Nobody has a right to live anywhere. No one is expecting people to migrate as they had to in 1910, but is it really too much to ask people save say 15% deposit on a place in say Ipswich or Canterbury costing £90,000? My first place cost £77000 in 1991, and I earned about £20k. Saving for the deposit was a struggle and the rate I got was about 7%.

The real issue is mortgage availability thanks to the crunch and over regulation, affordability is not an issue, unless you deliberately ignore the facts.

undetterred

Try telling someone that to someone who bought in the last 5 yrs,many would probably return their keys.

IveSeenTheLight

undetterred wrote: »

Try telling someone that to someone who bought in the last 5 yrs,many would probably return their keys.

Why would that be?

Do you have any links that could substantiate your thoughts than many who bought since 2006 would return their keys?

From a personal point of view, I bought a property in Jan 2007 and I have had an offer accepted on another at present. I would not wish to return the keys for either property.

HAMISH_MCTAVISH

Excellent questions ISTL.

I too would like to see some of the bears try to answer.

-Why do you think property should be affordable at 4 times an average single income (not mean male which is what the indexes are usually based against)? It has been discussed before that part time, low income earners are generally not house buyers

-What do you think needs to happen to ensure that house prices do drop 40%? and do you think that is likely?

-If prices were to drop 40%, how do you think that would impact current home owners (on average)?

-What is the likely outcome for a government that oversee a 40% reduction in property prices?

-Finally and yes I am talking historically and hypothetically, how much x income has house prices on average been throughout the time that peole have paid for home ownership i.e. not self built from own sourced materials

[Deleted User]

undetterred wrote: »

Try telling someone that to someone who bought in the last 5 yrs,many would probably return their keys.

It depends where you live, I bought in Dec 2005 and would not return the keys either. Best thing I have ever done.

Going4TheDream

undetterred wrote: »

Try telling someone that to someone who bought in the last 5 yrs,many would probably return their keys.

Many are probably only keeping their head above water at the moment due to to favourably low interest rates?

undetterred

IveSeenTheLight wrote: »

Why would that be?

Do you have any links that could substantiate your thoughts than many who bought since 2006 would return their keys?

From a personal point of view, I bought a property in Jan 2007 and I have had an offer accepted on another at present. I would not wish to return the keys for either property.

A lot of its mind games,i'm sure many would baulk at owing a fortune on asset worth not alot.

e.g asset worth 100k,mortgage owing 160k

HAMISH_MCTAVISH

undetterred wrote: »

A lot of its mind games,i'm sure many would baulk at owing a fortune on asset worth not alot.

e.g asset worth 100k,mortgage owing 160k

Not a lot of that in the mainland UK though. Negative equity currently only affects 800K people, and for most of them it's a relatively small amount.

Always exceptions to every rule, of course, but those exceptions are few and far between.

undetterred

HAMISH_MCTAVISH wrote: »

Not a lot of that in the mainland UK though. Negative equity currently only affects 800K people, and for most of them it's a relatively small amount.

Always exceptions to every rule, of course, but those exceptions are few and far between.

A gradual decline is easier to stomach for most,than a large hit over a small period.

Idiophreak

IveSeenTheLight wrote: »

Do you have any links that could substantiate your thoughts than many who bought since 2006 would return their keys?

Since when do people have to substantiate their thoughts?

You seem to be mistaking fact and opinion.