Rightmove: FTB-s identify raising a deposit as biggest problem with buying

Graham_Devon

HAMISH_MCTAVISH wrote: »

No, no, no.

Graham, how many times do we have to pull you up on the same thing?

It's for new buyers, FTB-s specifically, and it shows affordability is at near record cheap levels for FTB-s taking on a new mortgage today.

Show me the figures then, as everyone else appears to agree its cross market.

wotsthat

shortchanged wrote: »

Very dangerous short term view. Why is it that people forget that interest are at record lows and will not remain this low forever.

Not really - it's a statement of fact.

Why do you assume that people have forgotten that interest rates may well rise? Could they not get a fixed rate?

IveSeenTheLight

Graham_Devon wrote: »

Erm, I did.

It seems I responded before your edit

Graham_Devon

I didnt edit that bit, but hey ho!

I'm still amused some are seriously trying to argue that houses are at the most affordable they have ever been!

Im a few mins, we'll get a new thread suggesting it's all the banks fault that people can't afford homes.

Graham_Devon

At the end of the day....

Arguing that the house is affordable, it's just the price of buying the money to buy the house with thats unaffordable....the end product is the same.

Houses are unaffordable to most new entrants.

You can't lay the blame on one part of the process and suggest the end product is actually affordable. If you need to buy the money to afford the house, but you can't afford to buy the money....it all ends up at the same point.

wotsthat

Graham_Devon wrote: »

I'm still amused some are seriously trying to argue that houses are at the most affordable they have ever been!

Why not share your own affordability figures plotted against time then?

Here's your big chance - put it to bed.

wotsthat

Graham_Devon wrote: »

Houses are unaffordable to most new entrants.

and, again, is this a trend of new entrants finding it less affordable over time whilst the average home owner is finding it more affordable?

IveSeenTheLight

Graham_Devon wrote: »

I didnt edit that bit, but hey ho!

Then why did your statement not show up in your quote from my reply?
Nevermind

Graham_Devon wrote: »

I'm still amused some are seriously trying to argue that houses are at the most affordable they have ever been!

In terms of mortgage interest as a percentage of income then they are.

From here
http://www.lloydsbankinggroup.com/media/excel/2012/HPI_Quarterly/AffordabilityQ12012.xls

Average mortgage payments for a new borrower - including both first time buyers and homemovers - are calculated based on standardised average house prices and mortgage rates applicable to the period of calculation. The national average loan to value over the period from 1983 to 2008 of 70% has been applied to the average standardised house price to calculate the average new mortgage. Mortgage payments include both capital and interest payments.

Incidently. The 29 year average is 36.5%, Currently it's 27%.
The Low is 23.6%, so there was a time between 1994 & 1997 where it was cheaper.
I'm not sure that it's of relevance to FTBers now really, but certainly it's on the lowest threshold of affordability.

Graham_Devon wrote: »

Im a few mins, we'll get a new thread suggesting it's all the banks fault that people can't afford homes.

Ehh, is this a divertionary tactic?

IveSeenTheLight

Graham_Devon wrote: »

You can't lay the blame on one part of the process and suggest the end product is actually affordable. If you need to buy the money to afford the house, but you can't afford to buy the money....it all ends up at the same point.

Deflectionary tactic deployed again I see.

There will always be a section of society that cannot afford property.
Arguably, this percentage is increasing, the point of which this thread is relating to is as a result of being able to fund the deposit.

Once the deposit is achieved, the affordability is at one of the lowest points in the 29+ year history as a result of the mortgage rates achievable.

Graham_Devon

IveSeenTheLight wrote: »

Deflectionary tactic deployed again I see.

There will always be a section of society that cannot afford property.
Arguably, this percentage is increasing, the point of which this thread is relating to is as a result of being able to fund the deposit.

Once the deposit is achieved, the affordability is at one of the lowest points in the 29+ year history as a result of the mortgage rates achievable.

Dunno why you keep writing off any point as a deflection.

It's hardly a deflection, it's completely true, just doesn't suit what you wish to state.