Homes in the UK still very cheap/affordable

economic

also i prefer to start work in the new tax year as i am just on a 40% tax brack in current tax year. increasing pensions dont make sense now as i need the money now given im likely to inherit significant sums.

economic

it would be great to start my own business but im realising that having spent 10yrs in a niche area in banking that is very tough. it means i have to learn new skills from scratch. the easy option is to go back to what i have been doing before, and even that is hard now.

GreatApe

economic wrote: »

it would be great to start my own business but im realising that having spent 10yrs in a niche area in banking that is very tough. it means i have to learn new skills from scratch. the easy option is to go back to what i have been doing before, and even that is hard now.

Grass looks greener on the other side but often it isn't. Or at least its not all positives there are negatives too. I recall working 363 days in one year it can totally consume your life

If you are earning good money in banking I would stick with it and just try to achieve a good work life balance.

ukcarper

GreatApe wrote: »

Yes it worked well

We had a stronger economy and we had higher ownership. The over reaction and over regulations has caused the country real harm.

Even the crappy mortgages from the worst UK bank turned out to be profitable so they were priced correctly.

Home ownership was falling before latest mortgage regulations.

Windofchange

GreatApe wrote: »

Yes it worked well

We had a stronger economy and we had higher ownership. The over reaction and over regulations has caused the country real harm.

Even the crappy mortgages from the worst UK bank turned out to be profitable so they were priced correctly.

Jeez, you think that the subprime mortgage crisis of 2008 that brought the developed world to its knees worked well!? This is exactly why you need limits on borrowing. Wanna lend me £100,000 of your money? Promise I'll pay you back, maybe.

What crappy mortgages as you put it turned out to be profitable? I'm assuming you are alluding to the high interest ones given to sub prime customers with naff credit ratings that allow them to buy a 2 bed in Bradford and a BMW on PCP? What was profitable for Lloyds bank in losing £200 million to American sub prime investments?

Your solution to this all is to let anyone borrow anything? Let your office cleaner on minimum wage self cert herself to a £300,000 mortgage?

economic

Windofchange wrote: »

Your solution to this all is to let anyone borrow anything? Let your office cleaner on minimum wage self cert herself to a £300,000 mortgage?

or maybe even a nurse?

Windofchange

So a nurse should be able to get a £500,000 mortgage on a salary of £26,000 per year? A repayment of £2,371 per month at 3%.

Or hey, a £300,000 mortgage at £1,422 per month?

No questions asked?

kinger101

GreatApe wrote: »

Interesting point, however having just checked rightmove for leeds + 40 miles for terraces listed in the last two weeks as a guide to the north it shows

48 x 1-bed terraces for sale
1,589 x 2-bed terraces
1,443 x 3-bed terraces
361 x 4-bed terraces
56 x 5 bed terraces
15 x >6 bed

The median terrace is thus a 3 bedroom terrace so your idea while it was interesting has proved to be wrong. The average price is for a 3 bed terrace not a 2

Edit to add. The data shows the north as not just affordable but cheap so the median full time working couple do not need to buy the average terrace they actually have the income to buy the better than average terrace



in which region do you think the banks would say no to the mortgage, hint its only likely in the more expensive half of the London boroughs.

Either way the problem is then not affordability but mortgage regulations

I said terraces are typically 2 bedroom, and your data confirms this. Either way, you can't get away from the fact you've deliberately massaged your data by selecting homes too small for many of the families within your average.

Not sure which average you've used, but even with the mean, by definition half of people earn below that amount. Your calculations for affordability are simply wrong on the basis that the bank will do their calculations based on an interest rate of 6 or 7%, not 2.5. They're not interested in your spreadsheet or averages.

kinger101

ukcarper wrote: »

I don't think it's solely confind to London parts of the south east are also very expensive but I agree large parts of the country are affordable.

Around Oxford and Cambridge too. York, Bristol, and Cardiff are not cheap either.

ukcarper

kinger101 wrote: »

Around Oxford and Cambridge too. York, Bristol, and Cardiff are not cheap either.

I'm sure there are expensive pockets all over the country.