House Prices are crashing!!

dag_2

8x salary? Is that all?

And is that the salary of a real person - such as a nurse who works on a hospital ward - or the salary of a mythical person, who you read about in the 'Personal Finance' pages of the newspaper, and who supposedly works in the city, but who no-one ever actually meets?

Personally, I blame third world poverty. If the third world had it a bit better, then it might not be so hard to compete with them for jobs - and we might be able to afford a few of our houses.

No-one benefits from rising house prices. People sometimes think they benefit - but in my experience, it's usually just smoke and mirrors on the part of the mortgage industry, and the media it sponsors.

slater14

dag,

You've hit the nail squarely on the head there.

....going a teeny weeny bit "off topic" for a mo' - your tag is "keep the NHS dont let the Tories etc etc". Do you think we are going to keep the NHS with PFI?

Personally, I cant see a more stupid, dangerous, blinkered and expensive way of running a non profit Health Service.

meanmachine_2

slater14 wrote:

Good God! 8 times salary..... seriously?

meanmachine, can you pop up the link to that page please?

and theres me thinking the worlds gone mad at 6 times salary!....I'd better not make any Irish jokes (the g/f is a bog trotter and she'd kill me!).

I wonder whether this is mirrored in places like Bulgaria, Spain, France etc. etc. where there has been a massive influx of money from overseas (UK money usually) but the local wages have not risen to match the new "investors" cash pile or borrowing power?

In fact, looking at Dublin, the average salary is around 30K (presumably Euros) and the average house price there is 334K, which is more than x10.

I guess London isn't so different, but it certainly isn't that bad...yet.

Edit: Here's an interesting perspective:
http://planetpotato.blogs.com/planet_potato_an_irish_bl/2005/02/house_prices.html

bridiej

dag wrote:

No-one benefits from rising house prices. People sometimes think they benefit - but in my experience, it's usually just smoke and mirrors on the part of the mortgage industry, and the media it sponsors.

I disagree, we would benefit from rising prices since we're selling up to move to Australia where property is much more affordable. I sincerely hope prices dont drop too much over the next few months...

JimArnold

A bit overhyped but fundamentally house prices are due for a correction - they can't keep going up

There is however a new factor in the equation which we have never had before - student debt

Where are all of the first time buyers going to come from if over half of our 20 year olds have a £15k student debt ?

jockettuk

meanmachine wrote:

I guess London isn't so different, but it certainly isn't that bad...yet.

Edit: Here's an interesting perspective:
]

it is compared to the rest of the uk..and certainly to first time buyers in london who have to move out to afford a home

meanmachine_2

bridiej wrote:

I disagree, we would benefit from rising prices since we're selling up to move to Australia where property is much more affordable. I sincerely hope prices dont drop too much over the next few months...

Oh dear. You do realise Oz is on the cusp of a stupendous housing crash, don't you? Best advice I can give you is sell your UK property NOW, rent for a year then move to Oz where, if you think housing is affordable now, you'll be able to buy two properties in just 12 months' time!

antoniomontana

house prices are not goin to crash, definitely not in the near future and not in the south, the more people there are the more demand there is for space, look at heavily populated cities like tokyo prices there are sky high.

deemy2004

Tokyo ? In the South ?

deemy2004

JimArnold wrote:

A bit overhyped but fundamentally house prices are due for a correction - they can't keep going up

There is however a new factor in the equation which we have never had before - student debt

Where are all of the first time buyers going to come from if over half of our 20 year olds have a £15k student debt ?

Though on the plus side there are all the second income families with say a joint income in the region of £50k thus 50 X 3.5 = 175k = Average house prices....