Radio5 - houses to rise 40% in 4 years.

barnaby-bear

RHemmings wrote: »

And how will these much more expensive houses be afforded?

3 bed house with 3 Polish builders (all cousins / brothers / gay to avoid HMO regs.) per room at £100 a week each.... that's 900 a week , that 3825 a month, 46k a year. If that's a 7% yield - I make all 3 bed houses - 660k.

Gorgeous_George

If every family had 2 kids, each kid could expect to inherit 50% of a house. So, with a £300K house, only £150K would need to be borrowed. Maybe this additional income could help fuel HPI or, at least, defer the inevitable correction.

Those kids whose parents rent or sell to pay for care or tofund their pension years, will be forced to find better work if they are to own their own homes.

I think OFG does not stand for Oxford Forecasting Group. Any ideas what it could stand for?



GG

m00m00

'Only Fools Guess'

CYBERCIDERSAVER

Ways will be found to make houses "affordable". It has already been suggested to take out mortgages that your kids pay off.

How about 35 year mortgage with 0.00000001% cashback for each internal organ you donate to a wealthy BTL investor?

If every family had 2 kids then by the time they "inherit" anything, due to life expectency, they would be aprrox 50+ just in time to downsize. Except of course they won't need to because for the last 20 years they've been raising their two kids in a shoebox.

So it all goes back to the old addage the rich getting richer (ie parents with money set their kids up) and the poor make the rich richer (thanks to buy to let's turning social need (ie housing) into a profit making business.

Guy_Montag

We help companies' corporate affairs and strategy teams make the case for changes to economic policy or for investment proposals. For example, widespread media coverage of our analysis of impacts on the UK housing market was followed by a government decision that Home Condition Reports should not be made compulsory.

http://www.oef.com/

Spotted by Tom of PropertySnake fame (posted on GHPC)

These people are purely a lobbying group or maybe Government-Media relations :rolleyes: (for more information on government-media relations click me I'm a link )

andipandi_2

hmmm as there is such a shortage of affordable housing then would it be correct to assume that in recent years people are buying unaffordable housing and if this is the case then why have we not had legislation to prevent this.

rents go up in line with property price rises so therefore most rents are unaffordable also.

forget terms like low cost,affordable,social housing and the like,it has been shown that it doesn`t exist.

presscotts houses built for £60.000 were put on the market at £250.000 because of land prices.

Developers are interested in profit,nothing else,we need good old fashioned council housing for the masses,

Generali

Gorgeous_George wrote: »

If every family had 2 kids, each kid could expect to inherit 50% of a house. So, with a £300K house, only £150K would need to be borrowed. Maybe this additional income could help fuel HPI or, at least, defer the inevitable correction.

Those kids whose parents rent or sell to pay for care or tofund their pension years, will be forced to find better work if they are to own their own homes.

I think OFG does not stand for Oxford Forecasting Group. Any ideas what it could stand for?



GG

The report came from Oxford Economic Forecasting. They seem to use econometric and other models to pluck numbers out of the air. Lots of authoritative stuff like 'Avian Flu pandemic would cost $400 billion in lost GDP'. They seem to pitch themselves as providing risk modeling and (more importantly in this example IMO) as providing economic reports to help Corporations influence ovt policy. Ask yourself why would the National Housing Federation (that want more 'affordable' housing built) want a report to find that house prices will move even further out of reach of the ordinary Joe?

OFG stands for 'Opportunity for Growth' in my line. It's usually used sarcastically.

Guy_Montag

Rents aren't going up in line with house prices - at least near me.

dannyboycey

spurs_nut wrote: »

Only slightly more credible than those fools who think house prices will crash by 30%.

It's ok numpties, You just hang in there....... It will come, eventually.

Lol

Anoraks.

I'd rather be an anorak than thick as s***. The report is not in the least bit credible. It is what's know by intelligent people as 'propaganda'.

RHemmings

andipandi wrote: »

rents go up in line with property price rises so therefore most rents are unaffordable also.

If rents went up in line with property price rises, then rental yields would not have fallen. Rental yields have fallen, and therefore you are wrong.