Hpc In 1980

[nodumsunreader]

If there had been such a thing as the Internet, there could have existed a site like this one 25 years ago. Where I live, a FTB house would have cost about £20000. FTB wages were about £5k, interest rates were 12.5% meaning that repayments would have cost you about £200 per month or over half take home pay. I guess back then, people had more guts than they do now as the FTB equation in terms of income vs expenditure was little different than it is today. I suppose it could also be due to the fact that back then, most under 30's decided that investing in bricks and mortar was better than investing in pi55ing ones salary up against the wall every weekend. Looks like the housbuyers of 1980 got a decent deal from their investments - from the calibre of most contributors to this site, I suspect that many of the class of 2005 will be regretting their lack of guts (if they have any left that is).

[doogie]

Awooga!

[nodumsunreader]

Awooga!

<{POST_SNAPBACK}>

You make the point excellently.

[FernandoMorientes]

Drop the nosunreader and there y,go........awooooga

[munimula]

If there had been such a thing as the Internet, there could have existed a site like this one 25 years ago. Where I live, a FTB house would have cost about £20000. FTB wages were about £5k, interest rates were 12.5% meaning that repayments would have cost you about £200 per month or over half take home pay. I guess back then, people had more guts than they do now as the FTB equation in terms of income vs expenditure was little different than it is today. I suppose it could also be due to the fact that back then, most under 30's decided that investing in bricks and mortar was better than investing in pi55ing ones salary up against the wall every weekend. Looks like the housbuyers of 1980 got a decent deal from their investments - from the calibre of most contributors to this site, I suspect that many of the class of 2005 will be regretting their lack of guts (if they have any left that is).

<{POST_SNAPBACK}>

Economics - 1/10

Sense - 0/10

[nodumsunreader]

Economics - 1/10

Sense - 0/10

<{POST_SNAPBACK}>

Stash £500k

[CrashIsUnderWay]

and ur weiner is 2", nodimsumeater

[munimula]

Stash £500k

<{POST_SNAPBACK}>

Stash £1M

[AgeingBabyBoomer]

I can hear the whinge now as retirement approaches -

'I had the guts to buy in to the homeowning meritocracy, but now nobody wants to buy me out,

what's wrong with this f****g country?'

ABB

[nodumsunreader]

and ur weiner is 2", nodimsumeater

<{POST_SNAPBACK}>

Thanks all for the intelligent debate - I'll be back in a few months (or sooner if prices go up again as expected in August) for more larfs at the renting is best crowd. Have fun and dont forget to pay your landlord on time.

[nodumsunreader]

I can hear the whinge now as retirement approaches -

'I had the guts to buy  in to the homeowning meritocracy, but now  nobody wants to buy me out,

what's wrong with this f****g country?'

ABB

<{POST_SNAPBACK}>

Who needs buying out? No mortgage, not stupid enough to rent = loadsamoney.

[boom_and_bust]

If there had been such a thing as the Internet, there could have existed a site like this one 25 years ago. Where I live, a FTB house would have cost about £20000. FTB wages were about £5k, interest rates were 12.5% meaning that repayments would have cost you about £200 per month or over half take home pay. I guess back then, people had more guts than they do now as the FTB equation in terms of income vs expenditure was little different than it is today. I suppose it could also be due to the fact that back then, most under 30's decided that investing in bricks and mortar was better than investing in pi55ing ones salary up against the wall every weekend. Looks like the housbuyers of 1980 got a decent deal from their investments - from the calibre of most contributors to this site, I suspect that many of the class of 2005 will be regretting their lack of guts (if they have any left that is).

<{POST_SNAPBACK}>

Hi,

That sounds very reasonable, I would jump in given those cirumstances, 4 times income at a time when you had to beg the bank manager for a loan and prove you were a good citizen - if you could even get it, you had to go for it! It was before the days of easy mortgage money and credit cards. I remember back then getting refused a credit card even though I owned a house and had a good job and good credit history?! However, the current conditions are hovering around 7 times income at definitely the wrong period of the cycle. Do have the guts and buy, just do a year or three from now. Then in 25 years time, you'll probably be even more wealthier and congratulate yourself on having the guts to hang on there and get the place you really wanted.

Yes, you make some good points.

[sign_of_the_times]

Thanks all for the intelligent debate - I'll be back in a few months (or sooner if prices go up again as expected in August) for more larfs at the renting is best crowd.  Have fun and dont forget to pay your landlord on time.

<{POST_SNAPBACK}>

I'm surprised they let you out every couple of months......bet those electronic tags are really uncomfortable

[nodumsunreader]

I'm surprised they let you out every couple of months......bet those electronic tags are really uncomfortable

<{POST_SNAPBACK}>

See you in September then with more good news on the housing market (unless your'e a rent boy)

[North London Rent Girl]

If there had been such a thing as the Internet, there could have existed a site like this one 25 years ago. Where I live, a FTB house would have cost about £20000. FTB wages were about £5k, interest rates were 12.5% meaning that repayments would have cost you about £200 per month or over half take home pay. I guess back then, people had more guts than they do now as the FTB equation in terms of income vs expenditure was little different than it is today. I suppose it could also be due to the fact that back then, most under 30's decided that investing in bricks and mortar was better than investing in pi55ing ones salary up against the wall every weekend. Looks like the housbuyers of 1980 got a decent deal from their investments - from the calibre of most contributors to this site, I suspect that many of the class of 2005 will be regretting their lack of guts (if they have any left that is).

<{POST_SNAPBACK}>

Oh, no, you again DSR - just fled one thread that you were blahing away on. Look, you seem to be under the impression that the reason FTBs aren't getting into the market is that they think it's a bad idea. That's true of only a small percentage. There is an underlying financial reality to all this, you know. You can't PERSUADE people to buy something that they absolutely cannot afford even by selling themselves into life-long debt slavery. People can't afford houses - that's really what all this HPC business is about. If people could afford houses, they'd buy houses. Houses cost too much and prices will have to come down so that people can buy them again. Do you see?

[munimula]

Thanks all for the intelligent debate - I'll be back in a few months (or sooner if prices go up again as expected in August) for more larfs at the renting is best crowd.  Have fun and dont forget to pay your landlord on time.

<{POST_SNAPBACK}>

yeah bye dumsunreader, will really miss you.

Jeez - this guy really sums up everything wrong with society today, absolutely clueless but claiming to have a stash of £500K.

Welcome to Chav Britain

[sign_of_the_times]

See you in September then with more good news on the housing market (unless your'e a rent boy)

<{POST_SNAPBACK}>

You're confusing me with your mate TTRTR........... his kids are called the Rents boys

[HPCheese]

Stash £500k

<{POST_SNAPBACK}>

Sorry sportreader , BTL mortgages don't count as a 'stash'.

Edited August 9, 2005 by HPCheese

[nodumsunreader]

Hi,

That sounds very reasonable, I would jump in given those cirumstances, 4 times income at a time when you had to beg the bank manager for a loan and  prove you were a good citizen - if you could even get it, you had to go for it! It was before the days of easy mortgage money and credit cards. I remember back then getting refused a credit card even though I owned a house and had a good job and good credit history?! However, the current conditions are hovering around 7 times income at definitely the wrong period of the cycle. Do have the guts and buy, just do a year or three from now. Then in 25 years time, you'll probably be even more wealthier and congratulate yourself on having the guts to hang on there and get the place you really wanted.

Yes, you make some good points.

<{POST_SNAPBACK}>

Ah! at last somebody with something to say. 2 points:

1. The illustration was based upon a £17k repayment loan (3 times income + 1 x spouses income) - spouse stopped work to have kids shortly after.

2.The £20k house would now be about £150k. Repayment would be about £600 per month on a £130k loan probably less than half take home pay. Comparisons of multiples of income to loan value become somewhat irrelevant when long term interest rates are in low single figures compared to well over 10% during the 80's.

[FernandoMorientes]

Thanks all for the intelligent debate - I'll be back in a few months (or sooner if prices go up again as expected in August) for more larfs at the renting is best crowd.  Have fun and dont forget to pay your landlord on time.

<{POST_SNAPBACK}>

Well done but school starts in September?

Oh by the way I own a property (outright) up north which I rent and have STR,d my London one as there is no doubt in my mind that the housing market has truly peaked (wish I had timed it 100% right last August but there y,go crystal balls and all that)!

If you have any more incorrect assumptions for the day please feel free to post alas I shall not be around to correct you as I am off for a round of golf.

[JST]

Jeez - this guy really sums up everything wrong with society today, absolutely clueless but claiming to have a stash of £500K.

Welcome to Chav Britain

<{POST_SNAPBACK}>

couldn't agree more

[boom_and_bust]

Oh, no, you again DSR - just fled one thread that you were blahing away on. Look, you seem to be under the impression that the reason FTBs aren't getting into the market is that they think it's a bad idea. That's true of only a small percentage. There is an underlying financial reality to all this, you know. You can't PERSUADE people to buy something that they absolutely cannot afford even by selling themselves into life-long debt slavery. People can't afford houses - that's really what all this HPC business is about. If people could afford houses, they'd buy houses. Houses cost too much and prices will have to come down so that people can buy them again. Do you see?

<{POST_SNAPBACK}>

Hi Muffin,

Yes, that is quite correct, houses cost too much. That is what I say. Inbetween chasing off some EA's. But no worries, you won't have to suffer me after this week, we're relocating the business between Canada and Germany. So my interest is a little diminished now.

All the best, for a few more days, anyway.

[AteMoose]

If there had been such a thing as the Internet, there could have existed a site like this one 25 years ago. Where I live, a FTB house would have cost about £20000. FTB wages were about £5k, interest rates were 12.5% meaning that repayments would have cost you about £200 per month or over half take home pay. I guess back then, people had more guts than they do now as the FTB equation in terms of income vs expenditure was little different than it is today. I suppose it could also be due to the fact that back then, most under 30's decided that investing in bricks and mortar was better than investing in pi55ing ones salary up against the wall every weekend. Looks like the housbuyers of 1980 got a decent deal from their investments - from the calibre of most contributors to this site, I suspect that many of the class of 2005 will be regretting their lack of guts (if they have any left that is).

<{POST_SNAPBACK}>

1) in the 80s i believe pissing your money up the wall was the height of fasion....

2) with rampant inflation, you get a big initial hit, but it quickly eases off, so a 4x multiple isnt such a bad thing even if it is half your salary (if you could have got it, i thought 2.5/3 was the limit). Today taking 7 or 8x Salary morgage with low inflation means you are tied into paying almost the same amount year after year. The property 'ladder' only works when inflation is higher, and debt is eroded away

People arent buying property because they cant afford to be FTBers, and also because they cant afford to move up the ladder because there isnt higher inflation

Edited August 9, 2005 by moosetea

[zzg113]

No mortgage, not stupid enough to rent

So if you're not prepared to rent, how are you ever going to realise that £500K (I presume that this is the "value" of your house)?

[HPCheese]

"I suspect that many of the class of 2005 will be regretting their lack of guts (if they have any left that is). "

Hey your reverse psychology has made me rethink my plans. Your superior intelligence and analytical prowess allows you to see things I hadn't previously considered. Interest rates are low & mortgages are cheap - pretty convincing stuff. I'm off to take an 8x salary 40 year mortgage. I've also heard the government will buy half my house, and my parents can use MEW to partially fund my debt. New-build flats are a particularily good investment I've heard, especially in town centers. Interest rates are only going to get lower over the next 40 years as they are much too high at present. Oh yeah, and house prices never fall, Gordon Brown said so.