Sorry - very naive question...

dean_ham

HC wrote: »

Well put.

The average house price in my area is £200k. How on earth will my teenage children eventually manage to buy?

So much has changed since 1984, when my boyfriend (now husband) and I bought our first house. Then, it was easy if you had a decent job.

What the hell has gone wrong?

What has gone wrong....

The availability of credit.

If borrowing money from the banks had set rules and regulated like it was for you 1984. I belive 3x main person 1x 2nd person. Also you needed AT LEAST 10% deposit or you wouldnt even enter the door. If these sort of rues were kept then this massive price increase in the last 5-7 years would never have happened.

But things changed, at one point a year or 2 ago you could borrow 5x main 3x 2nd person. 125% mortgages and at a nice rate. So 2 people who earn say £15k each could borrow £150k if they really wanted to to buy them a nice 3 bed semi WITH NO DEPOSIT!!!!.
Where their sensible heads should have said we should only borrow 4x our salaries at 90% LTV which would only give them £54k (also needing £6k for a deposit)

In my opinion this is genuine reason why prices have risen stupidly... oh and the saying "get on the property ladder, prices never drop only rise rise rise in bricks and motar"

lauraaurora

Ok, can we all move on now? My brother (the financial brainy one, I'm the creative one!) is always on here and he'll take the chronic mick for my asking a stupid question.
Looking back, I realise why it was a stupid question. It's like buying a top in Marks and Spencer's for £20 and then complaining when it's reduced by 50% a week later. You were the person that was prepared to pay £20 for it, so it's your tough luck if no-one else does and so it gets put in the bargain section. Alternatively, you had the benefit of wearing it for two weeks, whereas if you wait for it to be reduced it might be, but it might not be in stock.
So, hopefully you can all see I've learned the lesson and I can hope the thread moves down the line before my bro sees it.
Thanks to all,
Laura (Clive's watching TV, he has no idea what I'm up to!!)

HC_2

Hey, no one thought you were stupid, or implied that. You asked a serious question, you got serious answers. No shame there.

And good luck.

southernscouser

neas wrote: »

Moneys not everything, it doesn't mean happiness but lack of money certainly has a high risk of leading to sadness... anyone been on the debt wannabee forums lately?

What about the DFW forum? Not everyone is ready to slash their wrists. :rolleyes:

lauraaurora

HC wrote: »

Hey, no one thought you were stupid, or implied that. You asked a serious question, you got serious answers. No shame there.

Sorry, I hate the fact that you can't imply tone in posts... I meant it to sound light-hearted, but I've re-read it and maybe it didn't come across like that
I keep on forgetting about the smiley things.:j
Anyway, what I meant to say was, "Thank you everyone for chatting it through with me. You've all helped me work it out.":T
Just, can we make the thread go away!:p

owitemisermusa

HC wrote: »

Well put.

The average house price in my area is £200k. How on earth will my teenage children eventually manage to buy?

So much has changed since 1984, when my boyfriend (now husband) and I bought our first house. Then, it was easy if you had a decent job.

What the hell has gone wrong?

Your kids will be saying the same thing in a few years!

HC_2

owitemisermusa wrote: »

Your kids will be saying the same thing in a few years!

Well, that's my point...

owitemisermusa

LillyJ wrote: »

neas I just thanked you before reading the bit about "bring on the pain". I thought you had got over wishing homelessness on people?

For a minute there LillyJ, I was in shock. Couldn't believe that you shared the same sentiment of 'bringing on the pain'.

ζήστε και αφήστε ζωντανό

HC_2

lauraandclive wrote: »

Sorry, I hate the fact that you can't imply tone in posts... I meant it to sound light-hearted, but I've re-read it and maybe it didn't come across like that
I keep on forgetting about the smiley things.:j
Anyway, what I meant to say was, "Thank you everyone for chatting it through with me. You've all helped me work it out.":T
Just, can we make the thread go away!:p

Not sure what you have to be worried about!

And you've raised some interesting points that have provoked further discussion, as these things always do.

You can go back and delete your posts if you feel uncomfortable.

But I will post no more on this thread if you'd prefer it to die. I'm sure others will do the same.

owitemisermusa

HC wrote: »

Well, that's my point...

What I mean is, things keep repeating themselves over and over again. Like groundhog day.
I am convinced our kids will say 'it was easier in my day' even though we are worrying about them now.