Homes in the UK still very cheap/affordable

ukcarper

GreatApe wrote: »

Your questions are easily answered without even having to directly answer them.

Renting is always more expensive than owning as renting adds overheads

With that in mind then if deposits are a problem solve the deposits problem with 100% LTV mortgages

Reasonable amount left over after paying a mortgage? well its going to be more left over than renting assuming the regulation warriors dont stop you getting a mortgage they say you cant afford even though its cheaper than your rent

What do you want high salary multiple mortgages with big deposits or 100% mortgages.

Answer the simple question I put to you about reasonable amount of money after mortgage payments and reasonable amount to save.

ukcarper

GreatApe wrote: »

you cant just go back to your confirmation bias when you have confirmed multiple times on this thread that property is down right cheap in most the country

The housing benefit bill largely pays for people who could not buy if houses cost 1/10th of what they did. Its like saying food is far too expensive and in a bubble when x% of the population relies on state handouts to buy food. Its true that a very large number of people receive benefits to buy food with but that does not mean food is overpriced or unaffordable. You are confusing yourself with this sillyness

In London and the south eSt you can be earning a fair amount and claim housing benefit especially if you have children. When I am the minimum rent or a two bed is £800 hardly affordable on minimum wage. As it is I agree that property is reasonable in many parts of the country but it's not in many others, you don't see it as a problem when it obviously is.

GreatApe

Windofchange wrote: »

And in order to prevent the crash of 2008 going deeper interest rates were cut from 5.25% in 2008 to 0.5% in 2009.

Real interest rates are more important rather than nominal.
Personally my view is that interest rates were held too high before the recession and it was one of the contributory factors for the recession.

I agree there are certainly people who are quite protected against anything but a catastrophic crash due to their equity, but ask yourself what the person owning a million pound house would do if there was a sustained pressure on house prices? We are seeing this already in central London - people want out. You might not have to move, but if your million pound flat was now worth 900k and the forecast looked gloomy, would you not want to cash in your chips and bank the profit?

sell the home and live under a bridge?
sell the home to try and time the market and pay £100k in moving and taxes and fees?
No thanks

People do not default they do not move for speculative reasons. Well almost no one does that apart from one famous financial planner who sold to rent in was it 2004 in London. Needless to say his gamble did not pay off he is probably down more than half a million due to his error is speculatively selling short.

The trouble with your arguments is you are assuming house prices continue to grow at the same rate that they have done, when the reality is they could flat line or come down.

A repayment self cert mortgage with 80% LTV is virtually risk free to the banks. Even if prices flat line the debt is falling each year as it is a REPAYMENT mortgage. Prices could fall about 4% a year and things would still be ok. Can you tell us of a time where prices fell more than 4% a year for 25 years or fell more than 20% in a given year?

talked in another thread about 2 friends of mine at work who have each 'brought' a flat in East London for north of £500,000. They earn around £35,000 each. They are both in their mid to late 20's. This is the level of insanity we have reached where a first time buyer flat is some 14 - 15 times salary. And you think that prices will go up by another how much in the next 5 years or so? You think there is a minimal risk of any sort of crash?

Well with the current mortgage criteria its unlikely they would have got a mortgage of more than £150k so they saved or got gifted the difference which is £350k. You may not like that they have £350k in savings or help to outbid you with but as others have said life is unfair.

GreatApe

ukcarper wrote: »

In London and the south eSt you can be earning a fair amount and claim housing benefit especially if you have children. When I am the minimum rent or a two bed is £800 hardly affordable on minimum wage. As it is I agree that property is reasonable in many parts of the country but it's not in many others, you don't see it as a problem when it obviously is.

Have a look at the entitled to website, put in the wages of a London full time working couple and see if they get any HB and report back. My money is on no they would not get HB

People on very low wages, especilaly single people probably would get some HB help but their problem is working a low wage job not that house prices in Hackney are £1 million rather than £500k either way they wont get one

Windofchange

GreatApe wrote: »

Well with the current mortgage criteria its unlikely they would have got a mortgage of more than £150k so they saved or got gifted the difference which is £350k. You may not like that they have £350k in savings or help to outbid you with but as others have said life is unfair.

You missed the exclamation marks around the word brought in my post. They got it with help to buy and in one case daddy stumped up the 5% entry fee. They don't have £350k in savings. Go back to your pots of gold to see how many people in the country have that sort of money at their disposal!

GreatApe

ukcarper wrote: »

What do you want high salary multiple mortgages with big deposits or 100% mortgages.

80% LTV self cert mortgages

higher salary multiples with certified mortgages and more reasonable affordability criteria.

Answer the simple question I put to you about reasonable amount of money after mortgage payments and reasonable amount to save.

What does it matter the figures are definitely higher if they buy the house than rent it

Windofchange

ukcarper wrote: »

In London and the south eSt you can be earning a fair amount and claim housing benefit especially if you have children. When I am the minimum rent or a two bed is £800 hardly affordable on minimum wage. As it is I agree that property is reasonable in many parts of the country but it's not in many others, you don't see it as a problem when it obviously is.

I don't think you will ever get him to see it as a problem, however many facts and anecdotes you throw his way. I'm alright Jack and if you can't afford to buy you should have got a 150k a year job instead of choosing to work for minimum wages in McDonalds.

We truly have achieved a new paradigm - house price inflation forever!

ukcarper

GreatApe wrote: »

Have a look at the entitled to website, put in the wages of a London full time working couple and see if they get any HB and report back. My money is on no they would not get HB

People on very low wages, especilaly single people probably would get some HB help but their problem is working a low wage job not that house prices in Hackney are £1 million rather than £500k either way they wont get one

I did that for somewhere in Surrey 2 people on low full time earnings with 2 kids. They got £500 a month housing benefit.

ukcarper

GreatApe wrote: »

80% LTV self cert mortgages

higher salary multiples with certified mortgages and more reasonable affordability criteria.



What does it matter the figures are definitely higher if they buy the house than rent it

Because in the real world you have to live on what is left over after you've paid your mortgage.

GreatApe

ukcarper wrote: »

I did that for somewhere in Surrey 2 people on low full time earnings with 2 kids. They got £500 a month housing benefit.

how much was their rent?

ukcarper wrote: »

Because in the real world you have to live on what is left over after you've paid your mortgage.

and that figure will be higher when you buy than while renting