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juvenal

House Prices Back In July 1976

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If anyone's interested in Memory Lane here's a few ads from The Leamington Spa Courier for today in 1976.I'm sorry the picture quality is very poor, but newsprint goes brown and horrible over 35 years. I just hope they are legible.

But you can see that with the average annual income of about £3500 one could buy a starter home (flat or terraced house) for three times one person's annual income, or a detached family home for 4 years wages. These houses were all in areas quite Ok to live in.

This is the kind of p/e ratio that enables someone to have a reasonable life, and we need to get back to it!

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houses_2_in_76.jpg

houses_76.jpg

My picture posting is very poor

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post-12677-1247687824_thumb.jpg

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My picture posting is very poor

The last one was OK. Do that..

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Cheap houses because people didn't understand debt was wealth.

Take on larger debt and become richer. It's the Ponzi way.

I do sometimes wonder whether house prices were only 3.5x average income BECAUSE of the ponzi system... i.e., it's not a normal situation. I know I always spot the 60% falls type thing, but what if, long term, 3.5x average earning is NOt normal???? :unsure::blink:

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If that is your local area it would be really interesting if you could figure out the exact address for a few of those properties and use the wondrous internerd tools available to figure out a value you today and the median wage in that area.

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If that is your local area it would be really interesting if you could figure out the exact address for a few of those properties and use the wondrous internerd tools available to figure out a value you today and the median wage in that area.

Sorry, haven't been a local in L Spa for twenty years. But I would imagine the houses illustrated are now 20-30 times the price in 1976. Far, far outstripping wages.

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We're 10x richer now though shurely? £35K annual wage some people get. We've never had it better. <_<

now adjust it for the interest rates (on mortgage pay rates, not base rates) .... between 11 and 15 %.

you can't just go taking house prices as the barometer, for most it's not what it costs, it's what it costs per month.

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I do sometimes wonder whether house prices were only 3.5x average income BECAUSE of the ponzi system... i.e., it's not a normal situation. I know I always spot the 60% falls type thing, but what if, long term, 3.5x average earning is NOt normal???? :unsure::blink:

You are quite right, 3.5 times salary is not normal. Normally we would be slaves and never have the option to own outright. A return to 10 times salary on interest only will see the previous situation restored in a more modern context.

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If that is your local area it would be really interesting if you could figure out the exact address for a few of those properties and use the wondrous internerd tools available to figure out a value you today and the median wage in that area.

Local Mean income in Leam is 38k I think and the Willes Road House would and go on Right Move for 450- 500k ish. depending on whether its north of the River or South (Flood Plain and Snobbery Price Differetial)

IMO this is a very desirable address.

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I Lived in Leamington Spa for 8 years while working in the car industry, it is a lovely town and will always be a good town to live in by I do think it is going to suffer in this recession.

This is what you get in Leamington Spa if you were quick enough! :lol:

lspa.jpg

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Local Mean income in Leam is 38k I think and the Willes Road House would and go on Right Move for 450- 500k ish. depending on whether its north of the River or South (Flood Plain and Snobbery Price Differetial)

IMO this is a very desirable address.

That would put that house at 32 times what it cost in 1976

FFS

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I do sometimes wonder whether house prices were only 3.5x average income BECAUSE of the ponzi system... i.e., it's not a normal situation. I know I always spot the 60% falls type thing, but what if, long term, 3.5x average earning is NOt normal???? :unsure::blink:

I think the lack of long-term job security these days, a situation that predates the current economic worries, might suggest a lower target multiple than the 3x or 3.5x traditionally punted. After all, if somebody is expected to uproot and relocate to their new master's citadel every five or ten years there's surely a greater level of house-trading (with associated hefty overheads) and a greater risk to the lender (the thing that really matters).

How many thirty-year-olds in the last few years have bought a place in the expectation they'll be living there for twenty / forty years?

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Local Mean income in Leam is 38k I think and the Willes Road House would and go on Right Move for 450- 500k ish. depending on whether its north of the River or South (Flood Plain and Snobbery Price Differetial)

IMO this is a very desirable address.

I looked at a huge Villa on Willes RD that was on for £450k back in 04 it needed complete renovation due to being flooded and never being dried out properly. Got told they had many people showing an interest and full asking price offers, this put me off, I later looked on the Land Registry and found it sold for £250k. Estate agents in LSpa are pretty corrupt.

Back in 2002 just as it all went completely mental I heard that a house was coming up on Newbold Terrace another desirable address, I was told by an agent it was going to go on for £450K which got me interested because in good condition it was easily a £million pound house. It arrived to the market SSTC, I know this is how it works but I just can't bring myself to do the necessary to befriend an estate agent to even get theses sorts of deals. It went for £600K so no snip but was renovated in 3 months and sold for £1millions the first £million house in Leamington Spa.

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We're 10x richer now though shurely? £35K annual wage some people get. We've never had it better. <_<

haha yes, my parents sold a nice 3 bed detached in Northampton for £12500 in 1970. Peak of the boom I recall. They paid around £3k for it new in 1963.

All that extra income now, two earners in fact and it all goes paying the extra mortgage debt.

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haha yes, my parents sold a nice 3 bed detached in Northampton for £12500 in 1970. Peak of the boom I recall. They paid around £3k for it new in 1963.

All that extra income now, two earners in fact and it all goes paying the extra mortgage debt.

Co-opted feminism helped give the government two incomes to tax and made families far worse off (not just financially).

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Co-opted feminism helped give the government two incomes to tax and made families far worse off (not just financially).

Yes the 60/70's will almost be looked back on a golden age. Strange when you think of the industrial strife in the 1970's but most of the families in our street only had on wage earner and they were comfortable. There seemed to be a lot less pressure then. Second cars were starting to creep in, one rented B/W telly per house and it wasn't uncommon to find people without a telephone. When I started looking for a house (end of the 70's) you could pick up a 3 storey terrace for £3.5k, just over a years income. By the time I actually bought in 1980-1 they were nearly £10k. The rot was beginning to set in.

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Yes the 60/70's will almost be looked back on a golden age. Strange when you think of the industrial strife in the 1970's but most of the families in our street only had on wage earner and they were comfortable. There seemed to be a lot less pressure then. Second cars were starting to creep in, one rented B/W telly per house and it wasn't uncommon to find people without a telephone. When I started looking for a house (end of the 70's) you could pick up a 3 storey terrace for £3.5k, just over a years income. By the time I actually bought in 1980-1 they were nearly £10k. The rot was beginning to set in.

Ah, Ealing Broadway in 1969... sorry for the random scifi clip, was the first thing I thought of when you mentioned the "golden age" ;)

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there are a lot more pple now per sq ft and also, due to the effects of globalisation, there are MANY MANY more foreign buyers snapping up property arnd the world, including the UK

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there are a lot more pple now per sq ft and also, due to the effects of globalisation, there are MANY MANY more foreign buyers snapping up property arnd the world, including the UK

ahh, bless. :rolleyes:

Total%20U.S.%20Debt%20to%20GDP.gif

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