Average family will have to save for more than 30 years to raise first deposit

suburbanwifey

Thrugelmir wrote: »

Property never used to be viewed as an investment. The past boom years created an illusion it was. Over a prolonged period prices will now readjust to the correct market level again.

I am not sure how you are quoting property ownership as poverty? those in rental accommodation usually pay more than it costs to pay a mortgage on rent and that rental cost continues until the day you die. Mortgages ultimately get paid off one day - my mortgage gets paid off next week! and I am several decades away from retirement, you call that poverty? if I was paying out hundreds a month to line someone else's pocket, I'd call that poverty.

Edited to add: I see you have taken out the word poverty from your post, maybe that was a typing error. It did seem an odd thing to say to me, which is why I posted as above.

ash28

Pobby wrote: »

Clearly this is about the madness of HPI. I see Berkshire is mentioned. I come from Reading although have been away for a long time ( I intend to return shortly ). A very decent 3 bed semi would be about £65,000 in the mid 90`s, a terrace a little above £40,000. I would be inclined to multiply those prices by a factor of 4. My young relatives ( bar one ) cannot buy there. So pay silly rent, not able to save and are unable to buy. The one that did buy had a deposit as his lady came into cash but to get the mortgage he did a bit of a fiddle on his income.

As for £40k a year, I am amazed. I know tons of folks there yet I can`t think of more than one who earns that.

In the mid 90s house prices around Reading reached the bottom of a crash - not many years earlier a little terrace in was around £80k and a nice semi was well over 100k - we we bought in 1987 for £80k and saw the price of our house go up to £138k - we sold it 1993 for £80k. We were lucky we weren't stuck in negative equity for years as a number of our friends were. Quite a number of our friends had bought at the peak and were stuffed for around 10 years.......

Anyone who was able to take the loss on their house in the mid 1990s in the Reading and surrounding areas would have been able to move up to a much better house (we did) - a house pre crash we couldn't possibly have afforded.

But it wasn't always as cheap as it was in the mid 1990s - I have friends who clubbed together to buy a house - 3 or 4 of them got a joint mortgage (at the peak) 'cos the only way is up.....except when it isn't.