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cashinmattress

E-poll: Do You Think That House Prices In The Uk Represent Good Value?

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Oh dear. I wish they had an edit button on the times site.

Posted:

Is this for real?

Using the Rightmove data that you quote, the average house price is about £227k. A typical fixed rate just now is about 5.5%, which equates to £1,410 per month for that amount. Median salary last year was £24,908, which equates to £1,592 a month take home.

So the average wage would not be enough to pay the mortgage on the average house, let alone paying council tax, bills, pension, food, heating, transport, maintenance on house etc etc. And that is assuming you could get a 100% mortgage, which you can't.

What a load of rubbish.

Spot the error!

:(

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What a stupid question - "good value" is completely subjective. Vs what?

There are plenty of options for new market entrants other than buying somewhere, one of which doesn't involve renting either.

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What a stupid question - "good value" is completely subjective. Vs what?

1. Rentable value

2. Wages

In relation to both prices need to drop another 30-50% to be good value in the common understanding of that word.

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Value in my mind would be the yield vs. oppurtunity cost, and wether its cheaper to rent than get an IO mortgage.

I guess theoretically if you can cram in a lot of students in some cheaper areas in Northern towns some might be good value. Aside from that cash seems to yield more in most cases.

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One of the comments...

Where I live, house prices are just right and set to rise. I have lots and lots of equity and am sitting pretty. The next boom will be HUGE. Those underemployed feckless fools who are sitting around praying for the financial armageddon that further price falls imply should buy now before it's too late - they'll never own a house. A life of debt beats a life of rent!

Posted by: HAMISH_MCTAVISH | 21 Jul 2009 13:15:40

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Well, I did my bit.

Funnily enough on the same page I noticed this:

Latest posts

e-Poll: Do you think that house prices in the UK represent good value?

Win £25: Should I tell my siblings about my discovery?

At first glance I thought it read 'Should I tell sibley about the recovery?'.

How very appropriate.

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One of the comments...

Where I live, house prices are just right and set to rise. I have lots and lots of equity and am sitting pretty. The next boom will be HUGE. Those underemployed feckless fools who are sitting around praying for the financial armageddon that further price falls imply should buy now before it's too late - they'll never own a house. A life of debt beats a life of rent!

Posted by: HAMISH_MCTAVISH | 21 Jul 2009 13:15:40

Gotta be a bear from here taking the p1ss.

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It always makes me laugh to see HAMISH MCTAVISH'S name popping up in the comments section in the online news. I'd love to know how many people post as Mctav.

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