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Really depressed by the news about Help to Buy...
Comments
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HAMISH_MCTAVISH wrote: »The percentage of income required to buy a house has rarely been lower.
Therefore, houses are cheap by historical standards.
Stop spinning rubbish.
You are comparing affordability of mortgages with actual house prices, they are different.
Cutting base rates to 0.5%, combined with billions of pounds in Quantitative Easing and billions with funding is making mortgage rates lower. However house prices now are far higher in comparison with multiples of wages.
Now if you add this years house price rises you can see we are well in bubble territory. The hole pack of cards comes down as mortgage rates go up.
The key is to be able to buy at a price you can afford if mortgage rates go 6-7%.:exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
Save our Savers
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Stop spinning rubbish.
That's actually quite funny coming from you Brit.
Do we really need to talk about your famous "50% off by Xmas 2009" prediction?
Or how about last years signature, that didn't get updated for 9 months once prices started rising?
:rotfl:You are comparing affordability of mortgages with actual house prices, they are different.
Nonsense.
There are two parts of the cost to buying a house.
The sticker price of the house itself, and the amount you'll pay in interest to buy it.
The combined total can be expressed as the percentage of income you'll need to pay in order to buy a house.
And that has almost never been lower.
“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 , what planet are you living on,
wages are rising , where ,when what did I miss ,
unemployment is dropping , do not think so, well yes ok the actual numbers of people claiming unemployment have gone down but isn't that because they shuffle the numbers around,
Mark Carney will intervene give it a year to 18months, and I fear we will go down the New Zealand route
carry on dreaming Hamish I find it rather entertaining :rotfl::rotfl::rotfl:0 -
HAMISH_MCTAVISH wrote: »
Hamish you keep running away from house price multiple rising dramatically to buy a house. From the usal 3 times to now 5 times salary and rising.
You can't base house prices being cheap just on temporary interest rates cut to 0.5%, funding for lending and QE. It is lunacy.
We have a bubble in house prices where everything possible is being done to keep the bubble inflated. You can't say these mortgage rates are the norm and will last. To encourage people to buy based on this being the norm is dangerous. Help to Buy is just yet another measure to keep the bubble inflated.
Salaries are static at best and falling in terms of inflation.
All these measure such as Help to Buy and the other stimulus is keeping prices too high for my generation to buy.:exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
Save our Savers
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I see you Finally removed your signature Brit.....
I also notice you are clinging to one last hope that interest rate rises will mean house prices will come crashing down....lol
You must have a decent deposit by now....use it and buy a house NOW if I were you.0 -
You must have a decent deposit by now.....
Given that he was trying to ramp Silver in his signature just before it crashed..... :rotfl:..... I suspect the deposit is a lot smaller than it used to 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 -
Hamish you keep running away from house price multiple rising dramatically to buy a house. From the usal 3 times to now 5 times salary and rising.
First of all, the long term average according to Halifax is 4 x male, mean, full time salary.
The average today is around 4.5 times male, mean, full time salary.
So prices are barely over the long term average, let alone in bubble territory.You can't base house prices being cheap just on temporary interest rates cut to 0.5%, funding for lending and QE. It is lunacy.
That's not what I'm basing it on.
The fundamentals of supply and demand indicate that house prices should be far higher than they are today.
There is a massive and rapidly worsening housing shortage in this country, and building is at 100 year lows.
Prices have been artificially repressed for years thanks to mortgage rationing, recession, the global financial crisis, increased unemployment, etc.
Yet rents have soared to new record highs instead.We have a bubble in house prices
No, we don't.
We have house prices that are higher than they used to be, because of the fundamentals of supply and demand.
That is, by definition, not a bubble.
Take a look at this chart......
..... and tell me what happened to house prices from around 1999 onwards?All these measure such as Help to Buy and the other stimulus is keeping prices too high for my generation to buy.
Nonsense Brit.
Rent is already higher than mortgage payments in around 95% of the UK, even if the average mortgage rate increased to 5%, and even now that the govt reforms to housing benefit have been pushed through.
As most people can afford to rent, then most people can afford to buy.
What is stopping them is mortgage rationing.
And that's what these schemes are aiming to repair, the broken mortgage market that has forced over a million people to rent instead of buy.“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 -
Ha! What a load of rubbish!!HAMISH_MCTAVISH wrote: »The average today is around 4.5 times male, mean, full time salary.0 -
Ha! What a load of rubbish!!
4.58 against a long term average of 4.09, to be precise.
Source: Halifax Affordability Series
http://www.lloydsbankinggroup.com/media1/economic_insight/halifax_house_price_index_page.asp“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 -
Does that mean the average male salary in London is close on £100,000?HAMISH_MCTAVISH wrote: »4.58 against a long term average of 4.09, to be precise.
Source: Halifax Affordability Series
http://www.lloydsbankinggroup.com/media1/economic_insight/halifax_house_price_index_page.asp0
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