Why are house prices still so high?

Zero_Sum

In most parts of the north east houses are still cheaper than 2008 in real terms

Zero_Sum

GreatApe wrote: »

Your wage figures are wrong, that is the average including part time workers and kids. If you look at full time workers and adults (25+) then you get a figure closer to £40,000 and for a couple that is £80,000

No its not, and nowhere near (unless you just talking about London)
The average FTE salary is around £27k. The average actual (which includes PT employees) is around £22k. The average for a couple is around £40k

GreatApe

Zero_Sum wrote: »

No its not, and nowhere near (unless you just talking about London)
The average FTE salary is around £27k. The average actual (which includes PT employees) is around £22k. The average for a couple is around £40k

Median full time earnings for those age 30-39 are

£613 Men
£557 Women

Or £60,840 combined

This is for April 2017 so nearly two years old you can therefore add 5% to those numbers for inflation so you get towards £64k for a couple working full time in their 30s

GreatApe

GreatApe wrote: »

Median full time earnings for those age 30-39 are

£613 Men
£557 Women

Or £60,840 combined

This is for April 2017 so nearly two years old you can therefore add 5% to those numbers for inflation so you get towards £64k for a couple working full time in their 30s

And this does not take into account other forms of earnings and income.

For instance if you build a business in your 20s and sell it in your 30s for £1 million then that is under capital not income. You may have only paid yourself £20k a year for a decade so show up as low income but at the end you walk away with £1 million (minus 10% CGT) in your bank account

Likewise it does not take into account dividend payments of private or public companies or rents earned or well a hell of a lot of !!!!

Some £600 billion a year is earned outside of work and the young also get £200 billion a year gifted to them

People wonder why houses are so expensive but it all makes sense when you actually know its not a couple on kids wages buying property.

This is a rich country with lots of wealth looking at those with only earned income and kids wages leads people to the wrong conclusion of affordable bubbles that they proclaim is going to burst year after year after year...

ukcarper

Looking at ons median full time male is £30.7k and for female is £24.8k but median household income is not the sum of those.

Zero_Sum

GreatApe wrote: »

Median full time earnings for those age 30-39 are

£613 Men
£557 Women

Or £60,840 combined

This is for April 2017 so nearly two years old you can therefore add 5% to those numbers for inflation so you get towards £64k for a couple working full time in their 30s

So a selective age range is 75% of your original claim. And you're adding 19/20 pay rises 3 month early. You're having a right mare.
Also once kids come along its not uncommon for one to go part time or face having expensive child care costs.

chucknorris

GreatApe wrote: »

And this does not take into account other forms of earnings and income.

Employment income is only around 5% of our total earnings.

Zero_Sum

GreatApe wrote: »

And this does not take into account other forms of earnings and income.

For instance if you build a business in your 20s and sell it in your 30s for £1 million then that is under capital not income. You may have only paid yourself £20k a year for a decade so show up as low income but at the end you walk away with £1 million (minus 10% CGT) in your bank account

Likewise it does not take into account dividend payments of private or public companies or rents earned or well a hell of a lot of !!!!

Some £600 billion a year is earned outside of work and the young also get £200 billion a year gifted to them

People wonder why houses are so expensive but it all makes sense when you actually know its not a couple on kids wages buying property.

This is a rich country with lots of wealth looking at those with only earned income and kids wages leads people to the wrong conclusion of affordable bubbles that they proclaim is going to burst year after year after year...

What % of the population have these million pound businesses & rental property portfolios? The average bloke in the street dont have this nor do they have wealthy parents gifting them cash. You're living in a londoncentric bubble.

lisyloo

A lot of women with children in part time work e.g. teaching assistant are very poorly paid.

movilogo

House price remains high because of sentiment price will always rise.

If houses depreciate like cars price will fall.