wages, house prices, etc

Graham_Devon

wotsthat wrote: »

That link doesn't mention second homes...

Does it have to?

It's obvious with one in 20 homes in cornwall being a second home, that locals will struggle.

Thrugelmir

shortchanged wrote: »

That's still some way behind the 100 - 200% rise in many house prices that occured in the previous decade.

% is falling backwards now. Last decade is 76%.

As the 1999-2003 boom drops out the figures.

Pete111

Agree - Many entry level London jobs have apparently stagnated during the naughties. When I started down here in 2000, I was paid 20k as an HR assistant. HR Assistant roles are still at or around that level.

Living and housing costs are far, far higher though - I don't envy the youth of today one little bit.

92203

House prices increased by circa 150% between 1997 and 2007, while on average, wages only increased by 37%. This is the root of the affordability issue.

ukcarper

92203 wrote: »

House prices increased by circa 150% between 1997 and 2007, while on average, wages only increased by 37%. This is the root of the affordability issue.

In 1997 property prices were unusually low in relation to wages, so prices were unlikely to stay that low.

Thrugelmir

ukcarper wrote: »

In 1997 property prices were unusually low in relation to wages, so prices were unlikely to stay that low.

At a 9% interest rate, mortgages weren't so cheap to service.

Percy1983

Thrugelmir wrote: »

At a 9% interest rate, mortgages weren't so cheap to service.

This is true, but I would rather have a cheap house with high interest than an expensive house with low interest (which I will end up with).

When I buy interest rates can only go up, 9% in 1997 could only go down (ok maybe increase slightly not looked back).

ukcarper

Percy1983 wrote: »

This is true, but I would rather have a cheap house with high interest than an expensive house with low interest (which I will end up with).

When I buy interest rates can only go up, 9% in 1997 could only go down (ok maybe increase slightly not looked back).

Will you though from what I can see you are quite a way off buying and if prices stagnate or fall slightly by the time you buy house prices could well be at their long-term average and interest rates could still be below theirs.

Percy1983

ukcarper wrote: »

Will you though from what I can see you are quite a way off buying and if prices stagnate or fall slightly by the time you buy house prices could well be at their long-term average and interest rates could still be below theirs.

I am not too far off buying (less than a year) but do agree things could change or likewise things could stay like this for the next 15 years. With that prices are still dropping here so you may well be right about the price a end up paying.

Eitherway I just want a home if I can afford the mortgage I won't worry too much about how it figures out and try to overpay as much as I can.

Jimmy_31

HAMISH_MCTAVISH wrote: »

Wages are up 37% in the last 10 years.

Wages continue to rise.

An estimated 2 million people currently renting could easily afford to pay a mortgage, but can't get one due to mortgage rationing.

Mortgages are available to people who have the required deposit and meet the lenders criteria.

If house prices double then the deposit should double.