'We've reached a tipping point' Signs of house price weakness

ukcarper

Windofchange wrote: »

So you earned 35k in 1970, which is above the average salary today, but let's ignore that. Might I ask what you paid for that house?

The average price in 1970 was about 5 grand:

http://www.york.ac.uk/res/ukhr/ukhr1011/updates/pdf/11-047ab.pdf

Yes, that is correct, 5 grand. So, for about 2 months salary, you could have outright owned your house.

Even if we say, well you were earning a kings ransom, the average wage in 1970 was about 2 grand per year.

http://www.theguardian.com/worklifeuk/cost-of-living-1971-today

So, your 1970 self could have brought your house on a 2.5 x salary mortgage. Incfact, according to you, your 70's self could probably have afforded buckingham palace!

So, what do you reckon the multiple of income for a small shoe box is today? Average London price around the 400k mark, average London salary I think is around 40k. Is that a 10 x multiple of salary?

That's right ukcarper - us young'uns have never had it so good. Open your eyes!

It's about average for full time male house was £8k I'd like to know where you get average earnings of £2k from they were a lot lower than that. The house was 5.3x what I was earning then and would be about 6.3x now. As I said couldn't afford in London.

House prices have not increased in a linear fashion and at times in the 70s in relation to earnings they were not that far of what they are now.

Windofchange

chucknorris wrote: »

He said the equivalent of £35k in 1970 (not £35k).

Ok. My fault. It makes little difference to the argument. 2.5 x salary in the 70's, about 8 - 10 x salary now. Discuss.

Windofchange

Joeskeppi wrote: »

On one hand you think London is so wonderful that you'd rather move to another country than live in the squalor of any other place in England yet you don't seem to appreciate why London might be one of most expensive places in the world to live.

Maybe it's people like you that make it so expensive.

I'm at a loss to try and construct anything rational to say to you. I would like to be able to afford a place to live (modest) near to where I grew up, where my family is, where my friends are, and where I am familiar with. If I were born in Paris or Rome this would be the same.

How is it that people like me make London expensive? After all, as you have already mocked, I am but some indebted pleb who wants what he can't have. How have I contributed to this mess?

You just don't get it. Yourself and many others will in the coming years when this goes pop. I cannot wait.

Windofchange

ukcarper wrote: »

It's about average for full time male house was £8k I'd like to know where you get average earnings of £2k from they were a lot lower than that. The house was 5.3x what I was earning then and would be about 6.3x now. As I said couldn't afford in London.

House prices have not increased in a linear fashion and at times in the 70s in relation to earnings they were not that far of what they are now.

I've just posted where I got my figures from!!!!

I'll post it again just for you:

http://www.york.ac.uk/res/ukhr/ukhr1011/updates/pdf/11-047ab.pdf

Where are you getting your figures from? Thin air?

Let's assume you are right for one minute. 5.3 x salary you say? 10 x salary now. Yup, living the dream me and my buddies.

Bubble.

Pop.

ukcarper

Windofchange wrote: »

Ok. My fault. It makes little difference to the argument. 2.5 x salary in the 70's, about 8 - 10 x salary now. Discuss.

As I said 5.3x salary one compared to 6.3x now. To be fair house would probably sell for more than £215k now so maybe 7x now.

Time was 1972 figure actual I was there.

Just to give you some idea of earnings in 1972
http://news.bbc.co.uk/onthisday/hi/dates/stories/february/16/newsid_2757000/2757099.stm

ukcarper

Windofchange wrote: »

I've just posted where I got my figures from!!!!

I'll post it again just for you:

http://www.york.ac.uk/res/ukhr/ukhr1011/updates/pdf/11-047ab.pdf

Where are you getting your figures from? Thin air?

Let's assume you are right for one minute. 5.3 x salary you say? 10 x salary now. Yup, living the dream me and my buddies.

Bubble.


Pop.

What don't you understand about couldn't afford to buy in London.

System

If you really want your heart strings tugged you should read this tragic tale about a young hipster who spent all his money "partying" and "living it up".

https://forums.moneysavingexpert.com/discussion/comment/67219357#Comment_67219357

Night all.

Cloudydaze

Windofchange wrote: »

I'm at a loss to try and construct anything rational to say to you. I would like to be able to afford a place to live (modest) near to where I grew up, where my family is, where my friends are, and where I am familiar with. If I were born in Paris or Rome this would be the same.

How is it that people like me make London expensive? After all, as you have already mocked, I am but some indebted pleb who wants what he can't have. How have I contributed to this mess?

You just don't get it. Yourself and many others will in the coming years when this goes pop. I cannot wait.

Everyone has their reasons for wanting to live in London - hence the demand which keeps prices high.

What do think will cause it to go pop?

Windofchange

Joeskeppi wrote: »

If you really want your heart strings tugged you should read this tragic tale about a young hipster who spent all his money "partying" and "living it up".

https://forums.moneysavingexpert.com/discussion/comment/67219357#Comment_67219357

Night all.

I knew that one was coming up. I'm not ashamed at all, or why post it up on here? I've already admitted to being a spend-thrift. It has no relevance to a discussion on property prices. I should probably have just gone bankrupt and run away hey? I'm not asking for sympathy for the past - as I said, my debts will be gone in a year and so will I.

When you have a proper argument come back. Until then, happy dreams of bubbles and a London Utopia full of suits and homeless middle classes.

Windofchange

Cloudydaze wrote: »

Everyone has their reasons for wanting to live in London - hence the demand which keeps prices high.

What do think will cause it to go pop?

Read back a couple of pages. My fingers hurt. Time will tell.