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Debate House Prices
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Government repressing house prices.
Comments
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Graham_Devon wrote: »Buying is not only the mortgage. it's stamp duty, legal fees etc, whcih can sometimes add up to a years rent.
A recent BSA survey noted that deposit (more than 60%) was the biggest obstacle to buying, followed by mortgage availability (52%).
The costs of stamp duty, etc, came dead last with only 13%.
No wonder when a typical FTB will only need 3K or so for stamp duty and legal fees, but will need 25K to 30K for a deposit.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »A recent BSA survey noted that deposit (more than 60%) was the biggest obstacle to buying, followed by mortgage availability (52%).
The costs of stamp duty, etc, came dead last with only 13%.
No wonder when a typical FTB will only need 3K or so for stamp duty and legal fees, but will need 25K to 30K for a deposit.
3k which many renters don't have to splurge on one bill. It's 6 months rent Hamish. You either don't get it, or don't allow yourself to get it, and pretend people can just switch from rent to mortgage payments with a click of their fingers. You simply have no idea about the finances of people up and down the country, do you? Alienated from most problems in your own little bubble, pretending life is so easy and 3k is a mere blip. You haven't got kids for a start and this totally undermines many of your affordability arguments as you literally have no clue whatsoever.
Anyway, your argument was asolutely pants. It's just got worse.
Goodnight.0 -
A recent BSA survey noted that deposit (more than 60%) was the biggest obstacle to buying
Perhaps prices are to high?
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Graham_Devon wrote: »You didn't want a high risk mortgage, therefore, got your parents to stump up the deposit to get you a better deal
I did no such thing.
I have noted that our parents gave us a small wedding present of a few grand in cash, which we added to a larger saved deposit.
And even then we still borrowed 90%.
To expect today's generation to have the same low barrier to entry as we did is only right.Why expect everyone else to be shovelled into the market at higher and higher LTVs, paid for via higher and higher amounts of taxpayer risk? Were just in another situation whereby it isn't good enough for you, but you want everyone else shovelled in under you, regardless of whether thay can afford it, so that your wealth increases.
I'm only expecting deposits to return to historically normal, prudent and sensible 5% to 10% levels.
Which would of course allow far more people to buy.
You on the other hand are constantly supporting policies which prevent millions of potential FTB-s from buying.
You want to ruin the financial prospects of a generation in the vain hope you can keep house prices a few grand cheaper than they'll otherwise be.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Thrugelmir wrote: »Perhaps prices are to high?
A 25% deposit on a 100K house price is 25K.
Whereas it should be just 5K or 10K, and could be with more sensible, historically normal, and prudent deposit requirements of 5% or 10%.
Clearly, absurdly high deposit requirements are the biggest obstacle to buying for most.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »A 25% deposit on a 100K house price is 25K.
Whereas it should be just 5K or 10K, and could be with more sensible, historically normal, and prudent deposit requirements of 5% or 10%.
Together with a 5 or 6X multiplier on income no doubt.
5 % isn't prudent, it is the bare minimum."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
HAMISH_MCTAVISH wrote: »A 25% deposit on a 100K house price is 25K.
Whereas it should be just 5K or 10K, and could be with more sensible, historically normal, and prudent deposit requirements of 5% or 10%.
Clearly, absurdly high deposit requirements are the biggest obstacle to buying for most.
You make it sound like 90% mortgages are history.
They are not.
http://www.money.co.uk/mortgages/90-mortgages.htm0 -
If Hamish thinks house prices will rise significantly from this point with normal prudent lending say a 10% deposit, 3-4 times income mortgages and very little IO mortgages he's in dreamland I'm afraid because the sums don't add up.0
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shortchanged wrote: »If Hamish thinks house prices will rise significantly from this point with normal prudent lending say a 10% deposit, 3-4 times income mortgages and very little IO mortgages he's in dreamland I'm afraid because the sums don't add up.
And yet that was the norm in 2007.
The average FTB deposit in 2007 was 11%, and the average multiple never crossed 3.5 even at peak.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »And yet that was the norm in 2007.
The average FTB deposit in 2007 was 11%, and the average multiple never crossed 3.5 even at peak.
A 10% deposit was NOT the norm in 2007 Hamish.
You can get 10% deposits pretty easily now, as I've linked up to for you.
Please stop this complete and utter nonsense & stop pretending 25% deposits are the only option.0
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