Friday, Jul 03, 2009
For Old Times' Sake
Times: The future of house prices: 10 times pay
Just a reminder of the nonsense being spouted a couple of years ago.
Posted by buytoletch @ 12:16 AM (557 views) Add Comment
6 Comments
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1. Tennouji said...
Yes, and don't forget the nonsense about the average house costing 1,000,000 pounds by 2015.
I remember at the time thinking that such "journalists" who passed on vested interest fear mongering should be prosected.
It's looking more like 100,000 now isn't it!
2. letthemfall said...
This whole idea turns on the question of whether there is a housing shortage, and, if there really is, whether it will become more acute in future. Even assuming this will happen, prices can only increase in line with the ability for buyers to pay. And what future govt can preside over a country where there is a genuine shortage? - that is not enough homes to house everyone rather than not enough to provide 2nd homes. The most recent boom was clearly driven by easy credit and the bubble mentality of BTLers. So the assertion that prices will rise to 10x salary seems naive.
3. Jayk said...
Talking of complete and utter nonsense spouted by self-appointed experts who actually just make stuff up to try and sound clever and prescient and influence others, wasn't the consensus last summer amongst all too many people who post on this very blog that the price of oil would end 2008 above $200pb? I believe it ended 2008 at less than $40pb.
Let's not point too many fingers or let out too many snorts of sanctimonious derision while wearing our 20/20 hindsight goggles, eh? Those in glass houses and all that.
4. Andy H said...
It would have never worked. If your typical mortgage payment is up to 10% of the loaned amount then you have to repay more than you earn after tax. Stupid, stupid journalists.
5. mander said...
Oh but 10 X salary for young families is OK cause the elder will create more wealth. Let's hear it from Mr. Osborne interest on debt not to be deductible anymore. Eh?
6. peeping tom said...
Sadly the next bubble, even if it is not for another thirty-odd years, may well see the average house price rise to 10 x salary.