How far will house prices fall [volume 4]
Discussion
okgo said:
Ah ok, then yes, could be in for a rocky ride.
That all said, with only modest deposit, he won't have got a rock bottom rate anyway, so might not be too bad if things go up and at renewal time its only a touch more expensive etc. I think most FTB probably do not end up with a rate anywhere near base owing to average deposit size, so rises to base are maybe not such an issue just yet.
No indeed.That all said, with only modest deposit, he won't have got a rock bottom rate anyway, so might not be too bad if things go up and at renewal time its only a touch more expensive etc. I think most FTB probably do not end up with a rate anywhere near base owing to average deposit size, so rises to base are maybe not such an issue just yet.
However the typical mortgage rate is 2% on top of base (or so I understand), so say a 2% increase would result in a 2% new mortgage increase too which is about £500 extra per month.
Let alone the extra debt incurred to furnish the place to a liveable standard (all done on interest free deals), as all of the deposit was eaten.
So many friends/colleagues do this, a lot also seem to be buying with their relatives to get on the ladder.
These aren't people in low paid jobs either, we are talking consultants, doctors e.t.c.
I say not 'low paid' they will be £80k or less, which I guess in new London terms probably/unfortunately is.
okgo said:
Depends what he earns doesn't it.
£320k of debt is f
k all in the grand scheme of things for two people earning a half decent London wage.
£2000 a month for 25 years for a roof over your head?£320k of debt is f
k all in the grand scheme of things for two people earning a half decent London wage.I suppose things cost what they cost, but when you really look at what a house costs to make then London is just stupendously expensive.
Sustainable? Lets see.
okgo said:
Mr Whippy said:
The problem is when they aren't worth what they cost.
When that is is another question entirely
They are worth what people will pay...When that is is another question entirely
Greed begets greed, and unfortunately there are more wealthy greedy people out there no matter how wealthy you already are.
Seeya middle class
okgo said:
Mr Whippy said:
The problem is when they aren't worth what they cost.
When that is is another question entirely
They are worth what people will pay...When that is is another question entirely
Mr Whippy said:
£2000 a month for 25 years for a roof over your head?
I suppose things cost what they cost, but when you really look at what a house costs to make then London is just stupendously expensive.
Sustainable? Lets see.
£2k a month with a set entrance point in the debt then you own the asset outright versus renting for ever with ever increasing rent for inflation? Buying is cheap compared to the alternatives!I suppose things cost what they cost, but when you really look at what a house costs to make then London is just stupendously expensive.
Sustainable? Lets see.
People seem to forget that living somewhere, anywhere, isnt free. Renting long term is inefficient and leaves you totally exposed to future moves, up, or down.
London is a difficult one. No point in moving there for a wage below 200k, which gives you access to a 2 bedroom flat for purchase, no parking, no garden and dubious quality of life.
For the same wage, which is available in some of the other "Alpha" cities, you would live a lot better.
I'm thinking Hong Kong, NYC, Dubai or Singapore.
Taxed to the hilt and in a quarter of a century of debt for a shoe box. fk that.
On the other hand, the rest of the UK is not so bad. (If you exclude the London commuter belt, that is)
For the same wage, which is available in some of the other "Alpha" cities, you would live a lot better.
I'm thinking Hong Kong, NYC, Dubai or Singapore.
Taxed to the hilt and in a quarter of a century of debt for a shoe box. f
k that. On the other hand, the rest of the UK is not so bad. (If you exclude the London commuter belt, that is)
turbobloke said:
Qiote so, the price paid is market price is the real price. Other wannabe ftb or wish list pricing or pining for historical ratio pricing isn't real. However at this stage care is needed as real world comments cause anxiety nay vexation in some places.
Except current price levels hardly reflect real market pricing. 
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