Friday, Jan 16, 2009
Could this cause the whole 'food chain' to collapse further ?
MSN: First Time Buyers 'Close To Extinction'
Another article from the MSN home page (which most Interenet Explorer users will get to see).
On a similar subject I kept wondering what a typical Graduate starting salary is, only
for the question to be answered by a Government "Go to University Advert". This says
it is £18000. On that basis anything more than £108000 for a first time buyer property
(3 x joint salary) sounds overpriced.
:- Duncan
Posted by tenyearstogetmymoneyback @ 08:33 AM (1106 views) Add Comment
17 Comments
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1. will said...
What hope for the other 50% of school leavers who do NOT go to University?
2. will said...
According to Halifax in this report, ' for a first time buyer on average income should now be finding property affordable'.
The problem is that the FTB is NOT on an average income. There is a lost generation of first time buyers, and unless prices drop by around 50 % they will not come to the property market. Renting is so much easier and cheaper, allowing the tennent to move without the hassel of a sale.
3. it_is_going_with_a_bang said...
"First-time buyers are in danger of becoming extinct," said Melanie Bien, director of Savills Private Finance. "House prices are more realistic, .....
Prices are NOWHERE NEAR realistic. That is right in there with "most affordable" from the Halifax.
They are NOT affordable at all to the average person. No even close.
4. Gtrjazz said...
For normal life to resume, IE. one parent on a average wage going to work while the other raises the children. The price of a three bed semi needs to be £75000
Other wise it will be the same story of couples splitting up and children running wild that we have had for decades now.
Who knows our teenagers may even see the point to going to work then and not hanging out in gangs.
5. mark wadsworth said...
As Will says, FTBs by definition are on below average incomes, but by the same token, FTBs are the top 60% or 70% of earners in that age group.
Furthermore, the price-to-income ratio for FTBs is lower than the one for movers or downsizers. The Nationwide tracks these separately - in the 1990s the overall ratio dipped to 3.5, the one for FTBs dipped to 2.5 (from memory).
So to rejig the calculation, FTB earnings £18k, 1.5 earners per household = £27k, x 3 = £81k.
6. jackas said...
I am a first time buyer with a multiple of the average salary and several multiples of that in the bank.
I still wouldn't touch property with any sort of pole, including barge.
For me, it's about quality of life. Refusing to overstretch myself or compromise on the quality of property leaves me looking for another 30% fall from here.
Bring it on please.
7. mark wadsworth said...
@ Jackas, given your self-description, my first thought was you smug ***, then I remembered that I am in exactly the same lucky position as you
:-)
8. drewster said...
Will @ 2,
Tennent = lager
Tennant = Dr Who
Tenant = person who rents property
I don't mean to pick on you but that really grates!
9. wdbeast said...
drewster@8
So- Happiness is smoking a cigar whilst drinking a can of lager in your rented property?
10. inbreda said...
talk of affordability for FTBs is a bit disingenuous. Property is affordable for all FTBs. On account of the fact that if they buy then they could obviously 'afford'. If they do not buy, then they are not buyers (first time, second time or any other time). If anything, the only thing they can do is say "how many FTBs are there?" the answer is F all, so property prices are clearly not affordable*
*unless no more babies are being produced, and therefore the supply of people who have not yet bought their first property is drying up.
11. need-a-crash said...
FTB's have been priced out of the market since at least 2002, it's just that nobody noticed because we were replaced by BTL. Now BTL is no longer viable the media suddenly wake up to it.
12. george monsoon said...
Message to the SMUGGIES who posted earlier..
Well its good to see that the smug *&!!!$* are even avoiding the property ladder. Thats a relief since is was these gits that helped push the prices up in the first place.
I am currently on just under 26k. I have a job in IT that elsewhere in the industry would probably command double, but I like my job. I am valued and respected and my employment is relatively secure compared to all the other smug @ss()les who leech for a living with no idea what the hell they are doing.. (Yea I know who you are. I have to deal with you each and every day.. usually following you round with a bucket and shovel.. Mr smug "buzz word" latest gizmo, BMW driving ****** **** ! ! !
You carry on being smug. I will carry on clearing up the sh*t after you and one day when you are inevitably made redundant, I will continue because I am value for money and actually have a clue about how to do the job.
13. george monsoon said...
By the way, I am priced out on my wage, although If I took my brain out and replaced it with concentrated EGO.. I would still not buy a house at the moment.
14. jackas said...
George - can I respectfully ask you to not be so smug about being value for money. thanks.
Oh - and I've been renting for nearly 20 years. Not sure I understand how its my fault prices were forced up?
15. Tenyearstogetmymoneyback said...
Didn't relaise I would start such a debate.
A few real figures here.
Back in 1985 I finished my apprenticeship and started as an Electronics Engineer
on £7K a year. About a year later I bought a two bedroom house just like this
http://www.oceanhome.co.uk/Default.aspx?TabId=104&CompanyID=OCENBRAD&AgencyID=OCENBRAD&ID=BSP01147
for £24K.
What is interesting is that assuming a three times salary mortgage I am not really in a better position to buy the same
house now as I was then.
Something that has stuck in my mind was the solicitor commenting that the house had gone up almost £2k in the two
years since it was built and adding "thats good isn't it." Little did we know the wild gyrations that would follow.
:- Duncan
Out of the property market since I finally got my money back on house number two (after a ten year wait).
16. fjcruiser said...
prices affordable ???? the real interest rates are at their highest for decades!!!! no wonder why there no first time buyers nor buyers in fact!!!!
17. Crunchy said...
What have I said about food paul?
In time.