What will average house prices need to fall to for the next generation to buy own home?

RelievedSheff

Crashy_Time wrote: »

But future buyers will have to fix at a higher rate, how does that help someone hoping to cling on to bubble price gains now? There is no "graft" in buying just before a credit bubble takes off to the moon and expecting the returns to always be there.

People still bought houses when there were double digit interest rates.

Everyone needs somewhere to live. You can't just not have a house because it might cost you a few quid more each month in a few years time. Housing is a necessity not a luxury.

lisyloo

Crashy_Time wrote: »

But future buyers will have to fix at a higher rate

You have absolutely no evidence of this.
People have been telling me about armageddon since 2001.
Luckily I didn't listen and have paid for a dream home since then.
Sensible decisions backed up by evidence - yes.
Making negaitve things up to scare people - no.

how does that help someone hoping to cling on to bubble price gains now?

Where are you talking about.
Plenty of the UK isn't in bubble territory.
But it will be ancient history in 25-30 years when they own an asset.

There is no "graft" in buying just before a credit bubble takes off to the moon and expecting the returns to always be there.

So are you saying that 3 months before brexit prices are taking off?
Thats a new position.


No grafting for 2 or 3 decades is what gets you there.
Not speculating on short term movements and doing nothing but paying rent instead.
That just make you sad and single.

Thrugelmir

RelievedSheff wrote: »

People still bought houses when there were double digit interest rates.

Lenders only advanced mortgages at a maximum of 2.75 times joint earnings though. As the economy was growing at the time. Majority of people enjoyed a real increase in wages as well. Thereby inflating away the debt.

westernpromise

A big part of Crashy's neurosis is that if he admits that to buy (and get on with paying down the mortgage) was smart in the past, it follows that selling in 1996 was stupid. He can't face doing that, so he has to kid himself that the buyers of yesteryear and the mortgage-free of today were the stupid ones who got lucky, took no risk and are the beneficiaries of some sort of fix.

A few years ago he claimed that renting had been cheap for him because he'd only paid out £100k in rent. It doesn't seem to have occurred to him that if he'd bought instead he'd have paid less than nothing at all.

Malthusian

When will the average 17 year old new driver be able to afford the average £33,000 Audi?

Thrugelmir

Malthusian wrote: »

When will the average 17 year old new driver be able to afford the average £33,000 Audi?

Some used to buy a £50 banger that had a few months left on the MOT before scrapping it for the parts.

lisyloo

Thrugelmir wrote: »

Some used to buy a £50 banger that had a few months left on the MOT before scrapping it for the parts.

I bought a £250 banger 7 years ago and it’s still running fine.
I choose to put the money into my pension and not have a fancy car.
I’m actually quite thankful that I don’t feel entitled.

triathlon

Crashy_Time wrote: »

Sterling crisis anyone? Will they be forced to raise rates? That should put the cat amongst the mortgage pigeons.

Sterling crisis anyone?
Foreigners will be able to pick up cheap property, actually there is evidence they are already doing so

triathlon

AG47 wrote: »

What will average house prices need to fall to for the next generation with normal jobs to be able to buy their own house with about a 5% deposit and a mortgage about 3.5 x income?

Without help to bubble or any other crazy schemes


Either wages need to skyrocket to meet the elevated property bubble, or the long awaited property correction comes.

And yet another "when will life be fair" post so you can buy a property. How many decades longer are you going to wait to find it is highly unlikely this scenario will not play out for you, nor anyone.

phillw

Crashy_Time wrote: »

But future buyers will have to fix at a higher rate, how does that help someone hoping to cling on to bubble price gains now?

It's fine, builders will stop and people with money will jump in to buy properties when the price drops a little to make a killing on the bounce.

So don't worry, your gains are more or less protected.