Why has some things quadrupled in price, yet other things are cheaper to buy?

ukcarper

In 1986 prices had fallen a little to 38p a litre  so  £15 would have bought you 40 litres which would cost you £47 now, wages have increased by a similar amount. 

According to Nationwide BS in 1986 average house price in south west was about £42k compared to £248k now. 

silvertooth

Hannah h said:

Measure actual things with things rather than with fiat currency 

for example how many bushels of wheat are valued the same as a barrel of oil last several decades.

how many kilos of sugar valued the same as an ounce of gold......

how many ounces of silver valued the same as an average house price?

Yes in the 1970s it was 500 oz silver for one house 

today it’s 50k ounces

renegadefm

ukcarper said:

In 1986 prices had fallen a little to 38p a litre  so  £15 would have bought you 40 litres which would cost you £47 now, wages have increased by a similar amount. 

According to Nationwide BS in 1986 average house price in south west was about £42k compared to £248k now. 

Well put it this way. In the early 90's I could have had a mortgage for a house which was 60k. Now the same house is over double at 140k.
But wages havent doubled here otherwise my son would be able to get on the lower end of the property ladder but he simply cant. And hes earning as much as I did in the early 90's in comparison. 
To put it another way on my current wages which are higher than most in this region I wouldnt want to be 20 again,  because I'd never be able to buy the house I am in now.
So you see the devide has got ever wider between being able to buy a property and not even being able to dream about it. I am seeing this much more often these days. Buying a house is one thing,  then you have to run it,  like bills etc. So I cant see it getting better anytime soon. 

ukcarper

I think my figures show that earnings have increased about 3.5x but property in south west has increased 6x. What can be done about it other than build more houses I don't know.

JayRitchie

ukcarper said:

I think my figures show that earnings have increased about 3.5x but property in south west has increased 6x. What can be done about it other than build more houses I don't know.

Well - building more houses seems to be the best way to go. Plus more to discourage Buy to Let - expanding home ownership.

ukcarper

JayRitchie said:

ukcarper said:

I think my figures show that earnings have increased about 3.5x but property in south west has increased 6x. What can be done about it other than build more houses I don't know.

Well - building more houses seems to be the best way to go. Plus more to discourage Buy to Let - expanding home ownership.

Not sure reducing Buy to Let will have a significant effect, the problem is not the same all over the country. 

JayRitchie

ukcarper said:

JayRitchie said:

ukcarper said:

I think my figures show that earnings have increased about 3.5x but property in south west has increased 6x. What can be done about it other than build more houses I don't know.

Well - building more houses seems to be the best way to go. Plus more to discourage Buy to Let - expanding home ownership.

Not sure reducing Buy to Let will have a significant effect, the problem is not the same all over the country. 

Well, rental yields have reduced a lot in the past 15 -20 years so the growth of buy to let seems to be a major factor in the inflation in first time buyer properties all over the country. I'm pretty sure a restriction on mortgage lending or new laws to make it less worthwhile would have a nationwide impact - unaffordability seems to be an issue in most places.

RelievedSheff

renegadefm said:

ukcarper said:

In 1986 prices had fallen a little to 38p a litre  so  £15 would have bought you 40 litres which would cost you £47 now, wages have increased by a similar amount. 

According to Nationwide BS in 1986 average house price in south west was about £42k compared to £248k now. 

Well put it this way. In the early 90's I could have had a mortgage for a house which was 60k. Now the same house is over double at 140k.
But wages havent doubled here otherwise my son would be able to get on the lower end of the property ladder but he simply cant. And hes earning as much as I did in the early 90's in comparison. 
To put it another way on my current wages which are higher than most in this region I wouldnt want to be 20 again,  because I'd never be able to buy the house I am in now.
So you see the devide has got ever wider between being able to buy a property and not even being able to dream about it. I am seeing this much more often these days. Buying a house is one thing,  then you have to run it,  like bills etc. So I cant see it getting better anytime soon. 

Can your son not relocate to an area where house prices are cheaper?

Where we live wages are relatively high compared to house prices and younger generations are able to get onto the property ladder very easily.

renegadefm

RelievedSheff said:

Can your son not relocate to an area where house prices are cheaper?

Where we live wages are relatively high compared to house prices and younger generations are able to get onto the property ladder very easily.

Well obviously he doesnt want to move away from the area he conciders home, and to be honest I wouldn't welcome that aswell. 
The thing is Cornwall hasent always been this way,  but now the cost of living is high and house prices driven up as its seen as a very popular tourist area, especially sensationalized by things like Poldark. So rich folk from further up the country over the years have payed over blown prices for basic property's which has imbalanced the comparison between wages and housing prices. 
Basically not to sound harsh but locals are driven out by having to work away from home. But why should they? 

pickledonionspaceraider

It is hard.  Really hard for the younger ones.

I don't get how some people put THAT much importance on owning a pile of bricks....that they would seriously consider moving to a cheaper area, completely alone, to sit in an empty house, miles away from family and friends.

That is no kind of solution at all