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Debate House Prices


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Clear majority of people support Help To Buy

135678

Comments

  • grizzly1911
    grizzly1911 Posts: 9,965 Forumite
    HAMISH_MCTAVISH wrote: »
    Absolute Nonsense.

    The percentage of after tax income being used to service mortgage payments is currently 28%, at near record lows, versus the long term average of 37% and peak of 68% in 1990.


    What income is that being assessed against? Average? Your favoured 70%?

    The peaks were against stupid mortgage provision. Perhaps somewhere closer to 28% is sensible and the new "normal".

    Don't the Americans work on 28% of Gross being the sensible affordability level to include all housing cost including things like Council Tax? Don't they also apply a 36% against price upper threshold to include all recurring debt commitments car loans, credit card commitments, child care etc?
    "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 Muruganantham
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Joeskeppi wrote: »
    How do they work out who's entitled?

    I might borrow 20k out of it and just whack it in my savings when I move.

    You'll have to take a "special" mortgage to get this.

    Obviously, it's not 20k in cash.
  • System
    System Posts: 178,371 Community Admin
    10,000 Posts Photogenic Name Dropper
    Bah, rubbish.
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    I refer to the help to buy that only applies to new builds.

    Overpriced means a differential between 'new build' and already existing.

    I accept the arguments about buying earlier so saving on rent but the problem arises when one wants to sell.

    Depending upon the 'new build' premium, the eventual the sale may be in negative equity.
  • shortchanged_2
    shortchanged_2 Posts: 5,546 Forumite
    Graham_Devon wrote: »
    You'll have to take a "special" mortgage to get this.

    Obviously, it's not 20k in cash.

    I wouldn't be so sure with this incompetent bunch in charge Graham.
    Why are we here?......................because we are not all there.
  • ILW
    ILW Posts: 18,333 Forumite
    CLAPTON wrote: »
    I refer to the help to buy that only applies to new builds.

    Overpriced means a differential between 'new build' and already existing.

    I accept the arguments about buying earlier so saving on rent but the problem arises when one wants to sell.

    Depending upon the 'new build' premium, the eventual the sale may be in negative equity.

    Err, would the same apply to cars?
  • spacey2012
    spacey2012 Posts: 5,836 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    A scheme to help the money lending rather than those paying it.
    If prices crash, they get less as people borrow less, so they need to keep the market manipulated and keep prices sky high.
    More they cost, more they lend, more they get.
    Last thing they care about is the people.
    Be happy...;)
  • ILW
    ILW Posts: 18,333 Forumite
    spacey2012 wrote: »
    A scheme to help the money lending rather than those paying it.
    If prices crash, they get less as people borrow less, so they need to keep the market manipulated and keep prices sky high.
    More they cost, more they lend, more they get.
    Last thing they care about is the people.
    Who are "the people"?
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    ILW wrote: »
    Err, would the same apply to cars?


    The issue is that if the only way people can buy a property is to buy an new house, they will be tempted to do so without looking at the longer term consequences.

    So if subsequently they need to move they will
    a. have to repay the 20% government loan and
    b. may well suffer a loss on the price

    so it's quite possible that they will be unable to repay the government debt without getting a loan.

    It's a high risk purchase which may well suit a few people but it isn't something the government should be advocating.
  • HAMISH_MCTAVISH
    HAMISH_MCTAVISH Posts: 28,592 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    grizzly1911 wrote: »
    The peaks were against stupid mortgage provision.

    The peak was in 1990.

    You think that was "stupid mortgage provision"?
    “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”
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