Why Should Houses Be Affordable?

[Jesusaves]

But what you had back then , was a lovely , free, fairy godmother called inflation . Yes it has always been hard to set up and buy one's first house . But if you struggled it was only for a few years , as inflation kicked in your salary went up in leaps and bounds , intrest rates , may have gone up and down but the mortgage amount did not.

So very quickly big mortgages got small.

If you had stayed in your first house , you must have had less than 20k mortgage unless you did get 100% loan , vary rare back then . Your salary would have gone up and up from the £4300 P.A. that you state . Just to give an example how salary's went up , I left school in 1979 in 1980 I and everyone at my firm got 25% pay rise.

My Dad started out before you , he and my mum paid £3,750 for a nice 3 bed semi with garage outskirts of London , They borrowed £2,750, they had saved £1000 through 4 years . My Dad was nothing special for a job insurance clerk , they had two kids I followed 1 year later and a fourth followed four years after me. My mum never went back to work untill my younger brother was at school and then only part time. My Dad when he bought took home £80 per month. The mortgage was £20 just 25% of his take home pay.

I remember my mum stating while I was growing up that the mortgage had shrunk so much in real terms and that renting of the council would be more expensive. They finished their mortgage years back and having never moved Dad still lives in that house . Peak Price was £350,000 now about £300,000.

People buying today taking huge mortgages will have huge mortgages for years as their is very little wage inflation .3% if lucky not 20-25% of those far flung days.

The fairy god mother inflation that helped you has Fu---d off now that the next generation need her.

Good point.

[tricksters]

Why should everything be so stitched up that there is this never-ending, grotesque scramble just to get a decent home? It's Hellish and it stinks. Young people left behind by the avarice of older smug "homeowners" have rights too.

[Jesusaves]

well, you see he is getting into BTL...present tense..indicates he is just about to do it.

Then you say he pisses you off cos people think hes rich...with £1m in loans. indicates hes been in a while with 6-8 properties.

Go and screw yourself.

You stick these killer statements in, as a put down; an intellectual elevation. A diversion.

Actually, you are full of drivel too. But, I just read your post and accept them for what they are, without comment.

Basically, you come across as a control freak. Someone who considers longevity of membership a right to some form of stewardship; words of wisdom.

And - yes, you wanted a reaction and I feel bloody angry.

[Bloo Loo]

Go and screw yourself.

You stick these killer statements in, as a put down; an intellectual elevation. A diversion.

Actually, you are full of drivel too. But, I just read your post and accept them for what they are, without comment.

Basically, you come across as a control freak. Someone who considers longevity of membership a right to some form of stewardship; words of wisdom.

And - yes, you wanted a reaction and I feel bloody angry.

sorry, if you wish to make a point, make it clear. your post made no sense. I asked for clarity. you insult and abuse.

[pie-eater]

Go and screw yourself.

You stick these killer statements in, as a put down; an intellectual elevation. A diversion.

Actually, you are full of drivel too. But, I just read your post and accept them for what they are, without comment.

Basically, you come across as a control freak. Someone who considers longevity of membership a right to some form of stewardship; words of wisdom.

And - yes, you wanted a reaction and I feel bloody angry.

http://starsinfashion.com/Prada-handbag-photo.jpg

[Jesusaves]

sorry, if you wish to make a point, make it clear. your post made no sense. I asked for clarity. you insult and abuse.

Sigh

- now you put on the air of someone grossly offended.

Christians are good at this behaviour. All very controlling.

[DeepLurker]

Why should houses be ‘affordable’? Land is a finite resource. As earnings increase so the cost of land needs to go up, because you can’t make new land. It's value reflects the wealth of the nation.

If you dismantle a property and sell the components, you will get about 20% of the properties value. But, labour is expensive. 60% of the purchase price is the cost of building. 20% becomes your profit margin.

So why should these houses be easily affordable? To own a piece of land with a dwelling needs to stretch you to breaking point.

That’s the laws of economics.

We can all wait for ever but it just ain’t gonna happen.

So get out there and buy.

Yup, land is a finite resource, and we're desperately short of it in the UK...

[Chesnor]

To be perfectly frank, the only way to accumulate wealth in this country is through property.

So, go on, be an entrepreneur and create some wealth for yourself.

It's easy being a socialist when you don't own anything.

There is nothing remotely entrepreneurial about the UK housing market, nor has there been for years. Most BTL so-called entrepreneurs are simply destructive rent-seeking over leveraged uber-debtors, leeching an increasing amount of the wages of the productive.

It's easy being socialist (or more accurately accused of being socialist) when you can't actually afford to own anything.

[Jesusaves]

http://starsinfashion.com/Prada-handbag-photo.jpg

[Si1]

what a strange and absurd OP

bit of a pointless argument when low rents don't reflect high purchase prices

but heh when you have vile language and inuendo to back up your non-argument then we can all tell you're an EA...

[Fool's Gold]

But, my first house cost 20K. My salary was 4300 pa. Interest rates were at 12% (I think-something like that). I crapped myself as had just got married and had a kiddly on the way. But I got by (just).

Sold the house 4 years later for 22K, banked £2000 and felt really rich. Bought my next house for 32K and sold it for 45K. And so on. I was always close to the edge and worried about paying the mortgage, but managed it. Times were always hard and budgeting difficult. That's why I don't see myself as selfish. And, lets face it, when you die a big chunk goes back to the state anyway.

I didn't grow up in a golden age. BUT - eventually you reach a turning point; somewhere along the line, where your repayments seem to diminish and your assets appreciate.

To be perfectly frank, the only way to accumulate wealth in this country is through property.

So, go on, be an entrepreneur and create some wealth for yourself.

It's easy being a socialist when you don't own anything.

In Capitalism, aren't those that fail are meant to fail ? the power of economics ? It's just that now the situation is being tinkered with so that those that should have failed are going to be bailed out by EVERYONE else, including those that wanted no part of the inflated madness (that includes me).

Capitalism is great, but it's even better if you've got someone altering the rules in your favour.

[dances with sheeple]

Why should houses be 'affordable'? Land is a finite resource. As earnings increase so the cost of land needs to go up, because you can't make new land. It's value reflects the wealth of the nation.

If you dismantle a property and sell the components, you will get about 20% of the properties value. But, labour is expensive. 60% of the purchase price is the cost of building. 20% becomes your profit margin.

So why should these houses be easily affordable? To own a piece of land with a dwelling needs to stretch you to breaking point.

That's the laws of economics.

We can all wait for ever but it just ain't gonna happen.

So get out there and buy.

Not really, I remember buying an ex-council house for 11k in the early 90`s, and here in Edinburgh you could get a city centre flat for 50k as recently as `98. It was only a credit bubble, housing was the chosen casino chip this time around, it was a one off, there will be other bubbles, but housing will never be the chip again. Housing will never change hands for the multiples of salary we have seen recently again in our lifetimes. 2007 was cash out time, anyone not doing so loses, it`s that simple. QE is doing nothing more than making balance sheets look better and pumping stock markets. If the Uk does not make moves soon to get back on track the bond markets, or other countries raising rates, are going to call us out IMO.

[Authoritarian]

Not really, I remember buying an ex-council house for 11k in the early 90`s, and here in Edinburgh you could get a city centre flat for 50k as recently as `98. It was only a credit bubble, housing was the chosen casino chip this time around, it was a one off, there will be other bubbles, but housing will never be the chip again. Housing will never change hands for the multiples of salary we have seen recently again in our lifetimes. 2007 was cash out time, anyone not doing so loses, it`s that simple. QE is doing nothing more than making balance sheets look better and pumping stock markets. If the Uk does not make moves soon to get back on track the bond markets, or other countries raising rates, are going to call us out IMO.

They said that after the housing bubble burst in the early 90's too. As sure as night follows day there will be another property bubble, there are good solid economic reasons as to why this will be the case.

[Jesusaves]

what a strange and absurd OP

bit of a pointless argument when low rents don't reflect high purchase prices

but heh when you have vile language and inuendo to back up your non-argument then we can all tell you're an EA...

Vile language? Innuendo?

Kettle pot black and all that!

(Why does an alternate point of view account for someone being an AE?)

[dances with sheeple]

They said that after the housing bubble burst in the early 90's too. As sure as night follows day there will be another property bubble, there are good solid economic reasons as to why this will be the case.

What are they?

[Patfig]

Vile language? Innuendo?

Kettle pot black and all that!

(Why does an alternate point of view account for someone being an AE?)

If you are jealous of your brother ( if indeed you have one) then fine, we will all understand. Life isn't fair you know, and no one owes you anyhting, so get over it and progress little lambkin.

[Jesusaves]

Nothing has really changed in society, apart from the expectations of the younger generation. Everything is still ‘up-for-grabs’. However, you just won’t get handed property on a plate. You’ll get everything else - but not property.

It’s all very Darwinian, but that’s how humans like it. We feel most comfortable living under this type of system.

It is flawed but works.

If you really want something - you can get it. If you REALLY want it, that is.

[Si1]

What are they?

that'll be the baby boom generation of the 10-20 year olds about to enter the housing market with promising careers, low taxes, and no prior debt - er maybe not

[Bloo Loo]

Nothing has really changed in society, apart from the expectations of the younger generation. Everything is still 'up-for-grabs'. However, you just won't get handed property on a plate. You'll get everything else - but not property.

It's all very Darwinian, but that's how humans like it. We feel most comfortable living under this type of system.

It is flawed but works.

If you really want something - you can get it. If you REALLY want it, that is.

Cant get a 10 times income loan.

oh, and foul language was yours.

Im sorry if asking a question was diversionary, but we need to be clear what our trolls mean.

[miko]

They said that after the housing bubble burst in the early 90's too. As sure as night follows day there will be another property bubble, there are good solid economic reasons as to why this will be the case.

Yes , people move on change and forget , the next generations will not understand or listen to the tales of 2007 + .

My niece only this week 22 got good job want's to buy her first place , considering how much prices of small flats here have dropped and she could easily afford it , it is not a bad idea . She stated that the money she get's she either saves so has got a good deposit or buy's more clothes than she needs.

While talking to her I mentioned that she has good bonus coming in March, Yes she said but I don't want to wait that long as they might go up again by then. so the sentiment is still there.

The only difference to this buble and the 90's one is the size , each bubble seems to get bigger.

[Jesusaves]

If you are jealous of your brother ( if indeed you have one) then fine, we will all understand. Life isn't fair you know, and no one owes you anyhting, so get over it and progress little lambkin.

Why should I be jealous of anyone? And what do you mean - 'If indeed you have one'? Most odd!

I've made my own pile.

[Bloo Loo]

Why should I be jealous of anyone? And what do you mean - 'If indeed you have one'? Most odd!

I've made my own pile.

how much have you made?

[Patfig]

Yes , people move on change and forget , the next generations will not understand or listen to the tales of 2007 + .

My niece only this week 22 got good job want's to buy her first place , considering how much prices of small flats here have dropped and she could easily afford it , it is not a bad idea . She stated that the money she get's she either saves so has got a good deposit or buy's more clothes than she needs.

While talking to her I mentioned that she has good bonus coming in March, Yes she said but I don't want to wait that long as they might go up again by then. so the sentiment is still there.

The only difference to this buble and the 90's one is the size , each bubble seems to get bigger.

Michael Buble?

[assetrichcashpoor]

I've skipped to the end so sorry if someone has posted a something with a similar sentiment.

Although land is a finite resource, in the UK on about 10% is built up. What is lacking is planning permission.

I'm not sure that the crazy house prices in the UK are simply due to supply and demand. I'm of the opinion that 12 years of lax government policy has led to a housing bubble, which has been fed by the myth of lack of supply.

[Patfig]

how much have you made?

He has made a pile, this is a kind of ill defined measure, but it might also be referred to as a heap, not to be confused with a not so road worthy car.