How far will house prices fall [volume 4]
Discussion
Justayellowbadge said:
oyster said:
So even though you're in the top 29%, you can only afford a top 50% house.
Yes, but house ownership is not a right. You could equally argue the same income limits your Bugatti or Sunseeker purchase options.
Is it somehow unfair that an average salary can't buy an average Learjet?
Was it ever supposed to be affordable on your own?
superkartracer said:
The point was you stated it was easy to afford and nothing to worry about , 200k is a massive amount of money regardless and it seems people have lost touch with that.
At that level it really isn't hard though is it? Even if it doubled to £2k, most people could still probably survive on £2k a month left over?My mortgage is more than that, and its just me paying it, of course ALL SORTS of things 'could' happen, but you deal with it. Or you don't and you die, whatever - there is risk attached to just about everything...
p1stonhead said:
Justayellowbadge said:
oyster said:
So even though you're in the top 29%, you can only afford a top 50% house.
Yes, but house ownership is not a right. You could equally argue the same income limits your Bugatti or Sunseeker purchase options.
Is it somehow unfair that an average salary can't buy an average Learjet?
Was it ever supposed to be affordable on your own?
Justayellowbadge said:
oyster said:
So even though you're in the top 29%, you can only afford a top 50% house.
Yes, but house ownership is not a right. You could equally argue the same income limits your Bugatti or Sunseeker purchase options.
Is it somehow unfair that an average salary can't buy an average Learjet?
There's also another caveat to my figures which is that the very poorest have probably never bought houses (even when the median wage could afford the median house price, so the figures for income percentile are arguable by a few percentage points.
I wasn't talking about fairness at all. I was throwing the figures out there for balance - maybe even sustainability of prices.
Justayellowbadge said:
superkartracer said:
Justayellowbadge said:
oyster said:
So even though you're in the top 29%, you can only afford a top 50% house.
Yes, but house ownership is not a right. But the cost of buying a house has a huge impact on the rent charged to tenants to live in it. If that cost to buy forces the rent so high that tenants can't afford it, then that would act as form of affordability limit to buying.
Justayellowbadge said:
superkartracer said:
Justayellowbadge said:
oyster said:
So even though you're in the top 29%, you can only afford a top 50% house.
Yes, but house ownership is not a right. oyster said:
Ownership isn't a basic need.
But the cost of buying a house has a huge impact on the rent charged to tenants to live in it. If that cost to buy forces the rent so high that tenants can't afford it, then that would act as form of affordability limit to buying.
Except it genuinely doesn't. But the cost of buying a house has a huge impact on the rent charged to tenants to live in it. If that cost to buy forces the rent so high that tenants can't afford it, then that would act as form of affordability limit to buying.
Rents in London have barely moved for years, despite the house price increases.
Yields are low single figures.
Justayellowbadge said:
oyster said:
Ownership isn't a basic need.
But the cost of buying a house has a huge impact on the rent charged to tenants to live in it. If that cost to buy forces the rent so high that tenants can't afford it, then that would act as form of affordability limit to buying.
Except it genuinely doesn't. But the cost of buying a house has a huge impact on the rent charged to tenants to live in it. If that cost to buy forces the rent so high that tenants can't afford it, then that would act as form of affordability limit to buying.
Rents in London have barely moved for years, despite the house price increases.
Yields are low single figures.
okgo said:
superkartracer said:
The point was you stated it was easy to afford and nothing to worry about , 200k is a massive amount of money regardless and it seems people have lost touch with that.
At that level it really isn't hard though is it? Even if it doubled to £2k, most people could still probably survive on £2k a month left over?My mortgage is more than that, and its just me paying it, of course ALL SORTS of things 'could' happen, but you deal with it. Or you don't and you die, whatever - there is risk attached to just about everything...
t situation from where i'm sat ( in my mansion in the sticks ha ha ) .p1stonhead said:
Justayellowbadge said:
oyster said:
So even though you're in the top 29%, you can only afford a top 50% house.
Yes, but house ownership is not a right. You could equally argue the same income limits your Bugatti or Sunseeker purchase options.
Is it somehow unfair that an average salary can't buy an average Learjet?
Was it ever supposed to be affordable on your own?
Justayellowbadge said:
oyster said:
Ownership isn't a basic need.
But the cost of buying a house has a huge impact on the rent charged to tenants to live in it. If that cost to buy forces the rent so high that tenants can't afford it, then that would act as form of affordability limit to buying.
Except it genuinely doesn't. But the cost of buying a house has a huge impact on the rent charged to tenants to live in it. If that cost to buy forces the rent so high that tenants can't afford it, then that would act as form of affordability limit to buying.
Rents in London have barely moved for years, despite the house price increases.
Yields are low single figures.
Justayellowbadge said:
oyster said:
Ownership isn't a basic need.
But the cost of buying a house has a huge impact on the rent charged to tenants to live in it. If that cost to buy forces the rent so high that tenants can't afford it, then that would act as form of affordability limit to buying.
Except it genuinely doesn't. But the cost of buying a house has a huge impact on the rent charged to tenants to live in it. If that cost to buy forces the rent so high that tenants can't afford it, then that would act as form of affordability limit to buying.
Rents in London have barely moved for years, despite the house price increases.
Yields are low single figures.
This is why landlords can't pass on additional costs (even though they claim they will)
Also why big rises in NMW would likely be swallowed up by landlords...
Friends rented out their old house to friends. In the 6months that their friends were there they trashed it. Fast forward and circumstances changed so friends put house up for sale and it sold within a week for 50k more than 6months ago.
The market around us is going crazy as cash buyers etc are getting properties first. First time buyers are left with nearly made it, maybe next time and increasingly downgrading their dream home plans.
The market around us is going crazy as cash buyers etc are getting properties first. First time buyers are left with nearly made it, maybe next time and increasingly downgrading their dream home plans.
okgo said:
Nothing shifting where I am. Just reductions.
London? All parts of the market? I remember when I looked in on my old road in West Hampstead a 'deluxe studio flat' was on the market for £410,000. It wasn't a deluxe flag it was a bedsit with a toilet/shower in a cupboard and nice fittings.p1stonhead said:
Was it ever supposed to be affordable on your own?
As recently as the late 90s, mortgages were generally limited to 3.5x a single income or only 2.75 joint. Prior to that, it was even more biased towards mortgages based on a single salary.I'd be interested to see actual stats, but in the traditional housing market of the 70s/80s, I'd be surprised if it was more than a small proportion of houses that were secured on a joint income.
We will never go back to that, not that I think that we should. This thread neatly demonstrates one of the reasons why - a large number of people now in the market don't even know how it worked for the last generation. Why should they, what we have now has become the new normal and people have learned to live with it.
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