Tuesday, Feb 12, 2008
SImply not sustainable
Daily Mail: First time buyers spend 35% of take home pay on mortgage
First-time buyers are spending more than a third of their take-home pay on their mortgage, official figures revealed yesterday.
In a deeply worrying sign, it is the highest level since the last property crash in 1991.
Financial advisers warned that massive mortgages are "a disaster waiting to happen".
The situation may be even more serious than it was in 1991 because so many other costs are soaring.
Posted by little professor @ 11:34 PM (249 views) Add Comment
2 Comments
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1. Montesquieu said...
Talk about stating the obvious .. it's hardly news ... is this something the Mail really didn't know when it was bleating on and on about 'great news, house prices up again' ...
Of course tomorrow it'll be talking about the great disaster of house prices falling (well I guess it is a disaster, if you're a wrinkly, mortgage-paid-off coffin dodger like the average Mail reader, rather than a 'stuggling first time buyer' ... though I suppose the silver lining for these people is the government gets less in inheritance tax once the house price hits rock bottom).
2. Landofconfusion said...
It's interesting to see how many FTB's are stretching themselves too much. Where I work most of the people simply cannot afford to buy and even the ones with savings are unable to get out of the parents' home. Does this mean that the FTB's who are able to buy are in good / well paid jobs? If so then that would seem to mean that in the event of a crash, a lot of people who have an otherwise good income will be left with a major problem, unable to buy a bigger house because their so in debt from their first and paying astronomically high interest for the privilege.
Interesting thought.