10 years ago.....

manic_saver

If you want to discuss house prices and so forth go here http://www.housepricecrash.co.uk/ Thing is NO not everyones pay has increased over the past 10 years. Another thing depending where you want to buy every area is different in prices. I live in a town with 2 bedrooms, but could afford to live further away and buy a 3 bedroom house. Reason for me living in the town is that i am close to all the commodities, sometimes you have to lose something to gain something.

carolt

Whilst Zammo may have been far from polite, he has at least provided some hard figures to back up his assertion.

Can you give us precise figures, itsgototstop, for how much the place you bought in 1997/8 cost and what your salary was at the time? Also, how much someone doing an equivalent job would be earning now, and how much the same or equivalent property would be worth now? People can then draw their own conclusions as to whether your original post was in fact equine excrement.

I find your assertions impossible to back up from my own experience. Ten years ago, or so, I was looking and about to buy in N London, but looked at W London too. For example, a basic 2 bed flat in Ealing 12 years ago would have set you back 65K - a bit over 3 times average salary. Same flats now cost c325K. And I don't think you're going to tell me that the average income has skyrocketted to 100K in the meantime to keep pace. Ten years ago precisely, I'd chosen to follow my heart and was working abroad, but when I came back to the UK 9 years ago, I was shocked to discover that similar flats had gone up to around 100K. That said, a mere 7 years ago, a 2 bed flat in Greenford next to Ealing could still be had for 85K - I know, because I've been regretting not buying it for much of the last 7 years. And 10 years ago I'm sure it was cheaper still.

The fact is, incomes in the last ten years have gone up by maybe 30%, if that. House prices have trebled, or more in many parts of London. It is NOT equally hard to buy now as it was then. It is now MUCH MUCH harder.

So either produce some real figures or stop starting ridiculous, misleading, time-wasting threads. There is a danger that some poor innocent might read your thread and go 'sod it, I'll buy now - it's always expensive'... and make the biggest financial mistake of their lives. I'm inclined to suggest that unfounded optimism re house prices should be banned from these boards much as some people have suggested the reverse, as throwing away thousands of pounds on the biggest purchase of one's life is distinctly un-money saving, which is after all, the purpose of this site.....:rolleyes:

beingjdc

itsgototstop wrote: »

At least if you have a repayment mortgage the home you have will be yours or nearly.

And again with my increasingly stock reply. If you have a repayment mortgage, you are paying interest and a certain amount of capital. Eventually you pay off all the capital. You can achieve exactly the same thing by renting and putting a certain amount in savings and investments.

For as long as renting is cheaper than the interest part of a mortgage (and across much of the country it is massively so) you will have a house-worth of money faster by renting than you will have a house by repaying a mortgage.

dolce_vita

danm wrote: »

and in aother ten years time house prices will be higher than they currently are.

This may or may not be the case.

But would you like to explain why if they were, say, double what they are now, this would be a good thing.

itsgototstop

carolt wrote: »

Whilst Zammo may have been far from polite, he has at least provided some hard figures to back up his assertion.

Can you give us precise figures, itsgototstop, for how much the place you bought in 1997/8 cost and what your salary was at the time? Also, how much someone doing an equivalent job would be earning now, and how much the same or equivalent property would be worth now? People can then draw their own conclusions as to whether your original post was in fact equine excrement.

I find your assertions impossible to back up from my own experience. Ten years ago, or so, I was looking and about to buy in N London, but looked at W London too. For example, a basic 2 bed flat in Ealing 12 years ago would have set you back 65K - a bit over 3 times average salary. Same flats now cost c325K. And I don't think you're going to tell me that the average income has skyrocketted to 100K in the meantime to keep pace. Ten years ago precisely, I'd chosen to follow my heart and was working abroad, but when I came back to the UK 9 years ago, I was shocked to discover that similar flats had gone up to around 100K. That said, a mere 7 years ago, a 2 bed flat in Greenford next to Ealing could still be had for 85K - I know, because I've been regretting not buying it for much of the last 7 years. And 10 years ago I'm sure it was cheaper still.

The fact is, incomes in the last ten years have gone up by maybe 30%, if that. House prices have trebled, or more in many parts of London. It is NOT equally hard to buy now as it was then. It is now MUCH MUCH harder.

So either produce some real figures or stop starting ridiculous, misleading, time-wasting threads. There is a danger that some poor innocent might read your thread and go 'sod it, I'll buy now - it's always expensive'... and make the biggest financial mistake of their lives. I'm inclined to suggest that unfounded optimism re house prices should be banned from these boards much as some people have suggested the reverse, as throwing away thousands of pounds on the biggest purchase of one's life is distinctly un-money saving, which is after all, the purpose of this site.....:rolleyes:

Renting huh? Thought so

dolce_vita

itsgototstop wrote: »

Renting huh? Thought so

What is that supposed to mean?

danm

dolce_vita wrote: »

This may or may not be the case.

But would you like to explain why if they were, say, double what they are now, this would be a good thing.

I never said double, and i never said another about it being good or bad.

this is purely my opinion based on the 10yr returns on house prices over the last 50 years or so.

I've got a quick question for HPC'ers, or more specifically, those who feel the MPC cutting rates is folly in light pf persistent inflation concerns.

If affordabilty improves, i.e. less money is spent on mortgage liabilities, what happens to inflation. What will people do with the extra money they have. Isn't this in itself a concern. Whats worse, high house prices/low affordability, or high inflation.

Turnbull2000

itsgototstop wrote: »

Renting huh? Thought so

A troll that smells of horse p*ss. Curious

itsgototstop

Turnbull2000 wrote: »

A troll that smells of horse p*ss. Curious

That post smacks of HPC , reported to abuse and you are on ignore.

carolt

itsgototstop wrote: »

Renting huh? Thought so

Do you have ANY facts or figures to back up your case?

No?

Thought not.