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how many REALLY think there'll be a crash rather than a stabilisation ?
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It is important to note that the CML's figures for median salaries, is for those salaries of the FTB's who have bought, it does not include the salaries of those who have not bought. It is the average house buying salary of a UK FTB.
A FTB could be someone who sold and then got back onto the property market after a 12 month period, therefore this homeowner would of had a higher salary (due to age/salary relationship) making the stats go higher.
More importantly, what these stats are showing is that the average FTB is not the average person on an average wage. It shows, that the average FTB has to be alot more affluent than the average person.
Meaning, there is a large gap, showing that housing is not at an affordable rate for the average person.
Possible. However I had a look at those CML figures and found it interesting to note that the average age over their records is 28/29 it rose up to 31 in 2004 or so (bad memory) then it has dropped back down to about 28 this year. Which would point away from what you say about age/salary.... I thought the age was still rising for FTB.0 -
I know you say that in jest, but this is not actually true.
The UK economy has never ever been as stable as it has been in the past few years. This economy is awash with money and wealth. It's never been like this before as well. high houseprices are a side effect of Britains booming wealth and things would be alot worse is property prices didn't go up.
:rotfl::rotfl::rotfl::rotfl:
You seem to have confused cause and effect.
The "wealth" that you speak of is due entirely to HPI + MEW
As phlash has pointed out- beware of debt masquerading as wealth0 -
Possible. However I had a look at those CML figures and found it interesting to note that the average age over their records is 28/29 it rose up to 31 in 2004 or so (bad memory) then it has dropped back down to about 28 this year. Which would point away from what you say about age/salary.... I thought the age was still rising for FTB.
The age/salary thing was just to illustrate that stats are susceptable to being influenced by other factors.
Like how London and NI house price increases mask falls in other areas.
The main thrust of that post is the difference between average FTB's wage and the average person's wage. It's not that the CML's figures are lies, its just they are showing different populations, which in turn paints a very damning picture.I can take no responsibility for the use of any free comments given, any actions taken are the sole decision of the individual in question after consideration of my free comments.
That also means I cannot share in any profits from any decisions made!;)0 -
DT is Bruno - you should have known that by now!
I've had two offensive PM's from him today. There's no use in reporting him to abuse as they seem unable to block his ISP address. Anyway I suppose everybody should have a hobby :rolleyes: Better than sticking an umbrella handle up your rectum :eek: isn't it Bruno :rotfl: 0 -
I knew someone would come out with this, it's wheeled off by finaincial journalists to predict doom amongst people.:eek: Sorry but that is a large misconception.
You are mistaking the word wealth for DEBT!
You seem to think that because people have borrowed more they are more wealthy?! Bizarre concept, they are in fact more indebted.
There's a very strange link between the rate of money creation (debt) and the rate of house price increases in the past few years. They have matched one another at >10%. So people haven't got more money, they are simply borrowing more.
There's always been lending by the banks, some of it's been for useful things like mortgages, other times it's been for people who can handle the credit and other times it's been to hob nobs who think they're clever and get themselves into a debt mountain.
But the cheapening of the money supply into the economy has been great for big business and that is what's more important over the economy than a few desperados trying to keep up with the joneses. It's big business that generates the wealth not Mr Small Penis who borrows more than he can service to look good.
It's a misconception to think that average Joes borrowing is what actually generates wealth, it's not! A few amateurs get caught out by the debt trap but big business has been loving it, trickling the money down to me and you.
On top of this, there's always going to be a boom and then we're going to have to come down from riding the wealth wave. It's how that's managed which is the key.
Edited to say : Good analogy is 'Don't say you can't see the wood for the trees'. yes, there's always problems even when your riding a wealth wave, but don't concentrate on the problems so cynically that you can't see the countless positives.God made man, man made money, money made man mad0 -
wecanhelpu wrote: »:rotfl::rotfl::rotfl::rotfl:
You seem to have confused cause and effect.
The "wealth" that you speak of is due entirely to HPI + MEW
As phlash has pointed out- beare of debt masquerading as wealth
*sighs* another person who thinks what the consumer is doing is the be all and end all.God made man, man made money, money made man mad0 -
The UK's GDP growth can be found here (2.8% annually):
http://www.statistics.gov.uk/cci/nugget.asp?id=192
The 47 low in number of people saving here:
http://business.guardian.co.uk/story/0,,2114790,00.html
Money supply growth at >10%, and so has house price inflation.
Please answer me, if people are getting more wealthy and not more indebted, how come the figures don't show this?
You do realise the level of personal debt has gone past the £1 Trillion barrier?
It's not wheeled off by financial journalists to predict doom, it simply is the case!I can take no responsibility for the use of any free comments given, any actions taken are the sole decision of the individual in question after consideration of my free comments.
That also means I cannot share in any profits from any decisions made!;)0 -
*sighs* another person who thinks what the consumer is doing is the be all and end all.
**Sigh** Throw me some evidence and maybe we might understand oh mighty one, but as it stands your words are meaningless. :rolleyes:I can take no responsibility for the use of any free comments given, any actions taken are the sole decision of the individual in question after consideration of my free comments.
That also means I cannot share in any profits from any decisions made!;)0 -
More importantly, what these stats are showing is that the average FTB is not the average person on an average wage. It shows, that the average FTB has to be alot more affluent than the average person.
Yep, that's the key point - in 1997 the average salary of a FTB was only 8% higher than the national average salary; in 2006, it was 46% higher. Unsustainable.poppy100 -
Yep, that's the key point - in 1997 the average salary of a FTB was only 8% higher than the national average salary; in 2006, it was 46% higher. Unsustainable.
I was just about to work that out, thanks."Mrs. Pench, you've won the car contest, would you like a triumph spitfire or 3000 in cash?" He smiled.
Mrs. Pench took the money. "What will you do with it all? Not that it's any of my business," he giggled.
"I think I'll become an alcoholic," said Betty.0
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