If average houses where 3 x salary would you buy (q to renters)

moneyinmypocket

Would you buy or continue to rent

shortchanged_2

Well it would certainly make buying more attractive and sensible.

kitschkitty

Seriously? Of course!

chewmylegoff

kitschkitty wrote: »

Seriously? Of course!

Of course not seriously. The OP is a notorious* sockpuppet-troll who has presumably become bored of the Olympics. Please do not feed the wildlife.


* = as notorious as it is possible to be on a board with about 20 regular visitors.

Zero_Sum

would the question not be subject to interest rates? as for the average house to drop to £75-£80k rates would have to be pretty high

ruggedtoast

If houses were 3x salary I would buy another one.

Carl31

If that was the case and interest rates were set at sensible levels and sensible deposits were being asked for, ie 10% ish not lower, maybe a bit higher then id consider it

HappyMJ

3 times salary... I wish properties were that cheap. That is never going to happen though. The floor price would then be minimum wage multiplied by full time hours (37.5) mutiplied by 52 then multiplied by 3 at £35,568 for the smallest, cheapest property in the cheapest area.. However, mortgages at 3 times salary would be sensible but that is still cheap especially with interest rates so low. At 4% interest my mortgage (interest only) at 3 times my salary only costs me 12% of my gross salary which is very cheap and gets cheaper in real terms as salaries rise and the mortgage stays the same. I think the only way properties would get cheaper is if interest rates rise to become unaffordable for anyone to take on and vendors having to drop prices.

Zero_Sum

HappyMJ wrote: »

3 times salary... I wish properties were that cheap. That is never going to happen though. The floor price would then be minimum wage multiplied by full time hours (37.5) mutiplied by 52 then multiplied by 3 at £35,568 for the smallest, cheapest property in the cheapest area.. However, mortgages at 3 times salary would be sensible but that is still cheap especially with interest rates so low. At 4% interest my mortgage (interest only) at 3 times my salary only costs me 12% of my gross salary which is very cheap and gets cheaper in real terms as salaries rise and the mortgage stays the same. I think the only way properties would get cheaper is if interest rates rise to become unaffordable for anyone to take on and vendors having to drop prices.

it is actually lower than that

you can pick up 2 bed mid terrace houses for less than £30k in northern pit villages

Thrugelmir

ruggedtoast wrote: »

If houses were 3x salary I would buy another one.

Salaries round here are dropping to a base entry level of £16k. So doesn't buy anything at all.

MacMickster

A first time buyer on average salary should not expect to buy the average house.

At 3 X salary plus a 20% deposit they should, however, expect to be able to buy a starter home.

Until house prices drop to this kind of level the housing market in this country will remain dysfunctional.

We need a massive programme of housebuilding to take place in the UK to bring prices down to realistic levels.