Thursday, Mar 15, 2007
First Time Buyers Leaving UK
Easier: First-time buyers would leave Britain to save for a house back home
A quarter (25%) of British people attempting to get onto the property ladder in this country would consider moving abroad - even as far as Australia or New Zealand - to live more cheaply so they could save for a deposit to buy their first home in Britain. The findings are revealed in the latest Quarterly Savings Survey from National Savings and Investments (NS& I).
Posted by david20040_0 @ 01:01 PM (160 views) Add Comment
7 Comments
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1. monty said...
That sounds like a very nice idea until you realise that the credit glut is a global phenomenon that most habitable* countries on the planet that have seen some sort of property boom in the last five years.
[* habitable - meaning not suffering a perpetual state of war, civil war, drought, famine, pestilence, tropical diseases, democratic elections or other natural or unnatural disasters or acts of god(s)]
2. C'mon Correction said...
Day after day we have reports saying about peoples opinions on "how to get on the ladder at all costs". So 25% of potential FTB's would consider moving aboard and then back again?!! I've "considered" putting all my savings on Black at the Roulette table in the local casino (!), but won't. Pointless report.
If all FTB's thought "there is no way I'm buying into a market that is currently 40% over-valued" as one and waited for 3 years, the whole chain would collaspe and they could get on the "ladder" at the same expense (income ratio) that previous generations have. Don't chase the bottom rung, let the market come to you.
3. Freewheelin' Franklin said...
Not bleedin' where I am in SE Asia - I left the UK in 2002 to save to buy a home - I bought a flat here - it's fallen in value! Meanwhile prices have climbed back home faster than I could save
ggggrrrrrrrrrr
4. Tipping Point said...
Why would any right minded person who has made the effort to move to NZ or Australia ever come back!!
Maybe if they want to live in a smaller more expensive house and experience c**p public services, but I would hazard a guess most will be waving two fingers to the UK for good.
5. inbreda said...
This is the time to downsize or sell in UK to buy outright in australia.
It's not the time to get a job that pays half as much and is half as likely to keep pace with increases in house prices.
6. monty said...
Hmmm, not if you take these figures seriously.
http://www.demographia.com/dhi-ix2005q3.pdf
Despite the title of the pdf, the report was published this year with figures up to Q3 of 2006.
Here are the relevent affordability rankings from the top 25 unaffordable cities (in USA, Canada, UK, NZ & Oz) with corresponding required earnings multiples.
7 Australia Sydney 8.5
9 United Kingdom London (GLA) 8.3
11 Australia Perth 8.0
20 Australia Hobart 7.0
21 United Kingdom London Exurbs 6.9
23 Australia Melbourne 6.6
So, unless you're planning on buying in Alice Springs, Wollongong or Marilinga (site of the Brit nuke tests) you may find property as cranked up as the UK and vulnerable to the fallout from the global credit contagion.
All things being equal, the move to Oz is a one way ticket. But then things aren't equal, are they? :-) If the doomsayers here are to be believed you could possibly return from down under to a UK still in depression and buy up half of Surrey with suitcases full of luvly Ozzie dollars having worked in a country that benefits from a 20 year commodities bull run.
7. lvmreader said...
@Monty
Thank you so much for a succint, amusing and highly accurate post.
People need to know what Purchasing Power Parity (PPP) is.