Priced out people: What % drop in house prices do you need?

Turnbull2000

30% would be nice.

Through the misfortune of being born 4 years later than my sister, I can currently only dream of buying a property similar to what she did - and on a lower salary than I'm now earning.

It seems that these 4 years have been quite catastrophic with regards to my financial future. Aside from the fact her mortgage is enviously low (well, compared to what you need today at least), she also has a final salary pension (now rarely on offer) and is not burdened with the same levels of student debt.

I get the impression that anybody under 30 is being royally screwed over :mad:

franklee

Dithering_Dad wrote: »

I will have to look into my deeds to determine whether my house has been deemed "appropriate" for blue collar or white collar workers. Will I have to move if it's the wrong collar colour?

No, just put your white shirts in the wash with your jeans, works for me

pamaris wrote: »

I mean using common sense that the house we should be able to buy should be determined our income and not when we happened to be born and thrust into the boom and bust cycle...

That isn't common sense to me as we are all affected by the luck of the draw of when we are born as the economy has always had cycles. For example it's far easier now than say the 30's and 40's but tougher now than in recent times like the late 80's.

But I remember my school friend's family living in granny's two bed house. Granny had one bedroom and the rest of the family had the other. That's mum and dad with baby in cot next to the bed then a temporary partition at the end of the bed for the bunk beds for boy and girl. So five in one room and that wasn't too unusual. Come to that my mum was brought up in granny's house and my Uncle moved in with his in-laws after he got married.

But that is an argument for prices to fall as it gives the lie to the supply and demand argument. When times get tough families share thus cutting the demand for housing. That and the fact there's loads of housing available to rent.

The boom in prices is down to supposed "affordability" - low interest rates and lax lending. Take those away and prices will fall as people will find they've taken on too much debt that wasn't so affordable after all. The demand will fall too as people with less money and large debts to pay will start sharing again.

IMHO!

pamaris

Turnbull2000 wrote: »

30% would be nice.

Through the misfortune of being born 4 years later than my sister, I can currently only dream of buying a property similar to what she did - and on a lower salary than I'm now earning.

It seems that these 4 years have been quite catastrophic with regards to my financial future. Aside from the fact her mortgage is enviously low (well, compared to what you need today at least), she also has a final salary pension (now rarely on offer) and is not burdened with the same levels of student debt.

I get the impression that anybody under 30 is being royally screwed over :mad:

OT but yes I agree; I think that the student loan thing is just a massive (not so hidden) tax that they get to charge interest on. Clever.

Oh well it won't be like this forever, really! Our day will come.

Horlock

I've been working for 3 years now, but if I wanted to buy the house I now live in I'd need a 50% drop. Possibly at a 40% drop and a stretch I'd be able to get there.
That is in 3 years I've gained over 50% equity in the property, and I'm really stretched to meet the bills as they stand - bearing in mind that the wife is now expecting our first child and will not be entitled to any benefits - I'm a school teacher - living in Cardiff.

Bone_Idle

Prices of a 3-bed semi near us (2 adults and a rapidly-expanding bump, due to make an appearance in October) are around £145-£150k, but some now starting to appear around £135k. I reckon £125k would be manageable for us, so we're hoping for a 15-20% fall.

mewbie_2

I'm not sure about %'s but as long as I don't end up anywhere near Dildo Dad I should be fine...

beingjdc

I'm not priced out as such - I could buy somewhere if I really wanted to, but I'd be paying more than I am happy with for somewhere I wouldn't really want.

Another 25% or so would see me get the kind of place I'd be happy to live for the sort of price I'd be prepared to pay.