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Hpc Addition To Average Salary ? Why

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There's few things that infuriate me more on this blessed forum than some posters obsession with some form of reference to 'average salary'.

It has absolutely no relevance as it doesn't exist in reality.

I have never had to apply for an overdraft, loan or mortgage and on it been assessed in any shape or form against 'average salary' in a singular or multiple form

Even in smaller georgaphical locations its usefulness in any shape or form is utterly meaningless

So why do we get day in day out HPC members spouting nonsense about HPC needing to fall or rise to a level equivalent to x times average salary

it really does my head in....

It reminds me of the oft used argument by teams outside the premiership who consider themselves 'a Big club' in someway deserving a seat at the top table simply because their size of fanbase / attendances or stadiums is big hence they are big.

Both are completely irrelevant... absolutely completely irrelevant

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"I have never had to apply for an overdraft, loan or mortgage and on it been assessed in any shape or form against 'average salary' in a singular or multiple form"

Because you're only one person buying one house, so only one wage matters - yours

When you're talking about all the houses bought or sold in a particular period, then average wage matters

Now can we move on to the battle of what average? Median? mean? geometric?

Edited by noodle doodle

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There's few things that infuriate me more on this blessed forum than some posters obsession with some form of reference to 'average salary'.

It has absolutely no relevance as it doesn't exist in reality.

I have never had to apply for an overdraft, loan or mortgage and on it been assessed in any shape or form against 'average salary' in a singular or multiple form

Even in smaller georgaphical locations its usefulness in any shape or form is utterly meaningless

So why do we get day in day out HPC members spouting nonsense about HPC needing to fall or rise to a level equivalent to x times average salary

it really does my head in....

It reminds me of the oft used argument by teams outside the premiership who consider themselves 'a Big club' in someway deserving a seat at the top table simply because their size of fanbase / attendances or stadiums is big hence they are big.

Both are completely irrelevant... absolutely completely irrelevant

well done for totally and utterly missing the point about statistics

a failed thread of transcendent proportions

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When you're talking about all the houses bought or sold in a particular period, then average wage matters

Now can we move on to the battle of what average? Median? mean? geometric?

Mean rather than median is probably more important IMO, purely because the average house price will be calculated as the mean rather than the median.

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There's few things that infuriate me more on this blessed forum than some posters obsession with some form of reference to 'average salary'.

It has absolutely no relevance as it doesn't exist in reality.

These and many other graphs would beg to differer. Income to house price ratios are an essential guide to the health of the market. History shows it is very powerful guide as to when house prices have become over extended.

Income to house price ratio

areaundergraph.jpg

mwk_propertychart2.gif

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There's few things that infuriate me more on this blessed forum than some posters obsession with some form of reference to 'average salary'.

It has absolutely no relevance as it doesn't exist in reality.

I have never had to apply for an overdraft, loan or mortgage and on it been assessed in any shape or form against 'average salary' in a singular or multiple form

Even in smaller georgaphical locations its usefulness in any shape or form is utterly meaningless

So why do we get day in day out HPC members spouting nonsense about HPC needing to fall or rise to a level equivalent to x times average salary

it really does my head in....

It reminds me of the oft used argument by teams outside the premiership who consider themselves 'a Big club' in someway deserving a seat at the top table simply because their size of fanbase / attendances or stadiums is big hence they are big.

Both are completely irrelevant... absolutely completely irrelevant

Nah..... you had your chance but you blew it.

You could have said now women have been dumb enough to allow themselves to be enslaved by joint income mortgages.... then blah blah blah.... x times average salary....

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There's few things that infuriate me more on this blessed forum than some posters obsession with some form of reference to 'average salary'.

It has absolutely no relevance as it doesn't exist in reality.

I have never had to apply for an overdraft, loan or mortgage and on it been assessed in any shape or form against 'average salary' in a singular or multiple form

Even in smaller georgaphical locations its usefulness in any shape or form is utterly meaningless

So why do we get day in day out HPC members spouting nonsense about HPC needing to fall or rise to a level equivalent to x times average salary

it really does my head in....

It reminds me of the oft used argument by teams outside the premiership who consider themselves 'a Big club' in someway deserving a seat at the top table simply because their size of fanbase / attendances or stadiums is big hence they are big.

Both are completely irrelevant... absolutely completely irrelevant

A complete failure to understand statistics is hard to forgive when it is displayed so arrogantly.

Oh well, ignorance is bliss, I guess. Liberal educated elites are the downfall of society etc.

Welcome to the Tea Party's world (that I'll probably have to be living in come next Tuesday).

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Because history has told us that house prices as a multiple of salaries is a good indicator of affordability. Excluding reckless lending and liar loans the majority of future home owners will want to be able to afford to heat and eat again and no longer expect rising house prices to bail then out as in 'Jam Tomorrow'.

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Because being able to buy something is often related to whether or not a person can 'afford' it. It can be complicated I know but see if you understand this first : if peter goes to the shop to buy a sweet for 10p and he only has 7p, he cannot 'afford' the sweet. Further lessons can be provided if you are following so far.

Ps, I suspected Gordon brown frequented this forum.

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There's few things that infuriate me more on this blessed forum than some posters obsession with some form of reference to 'average salary'.

It has absolutely no relevance as it doesn't exist in reality.

I have never had to apply for an overdraft, loan or mortgage and on it been assessed in any shape or form against 'average salary' in a singular or multiple form

Even in smaller georgaphical locations its usefulness in any shape or form is utterly meaningless

So why do we get day in day out HPC members spouting nonsense about HPC needing to fall or rise to a level equivalent to x times average salary

it really does my head in....

It reminds me of the oft used argument by teams outside the premiership who consider themselves 'a Big club' in someway deserving a seat at the top table simply because their size of fanbase / attendances or stadiums is big hence they are big.

Both are completely irrelevant... absolutely completely irrelevant

I believe that if we compared your IQ to that of the general populus of the UK it would'nt matter if we compared it to the mean,median or mode for this data as your IQ would always be on the lower side of the best fit function. ie below average.

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There's few things that infuriate me more on this blessed forum than some posters obsession with some form of reference to 'average salary'.

It has absolutely no relevance as it doesn't exist in reality.

I have never had to apply for an overdraft, loan or mortgage and on it been assessed in any shape or form against 'average salary' in a singular or multiple form

Even in smaller georgaphical locations its usefulness in any shape or form is utterly meaningless

So why do we get day in day out HPC members spouting nonsense about HPC needing to fall or rise to a level equivalent to x times average salary

it really does my head in....

It reminds me of the oft used argument by teams outside the premiership who consider themselves 'a Big club' in someway deserving a seat at the top table simply because their size of fanbase / attendances or stadiums is big hence they are big.

Both are completely irrelevant... absolutely completely irrelevant

Stupidest thread of the year.

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I believe that if we compared your IQ to that of the general populus of the UK it would'nt matter if we compared it to the mean,median or mode for this data as your IQ would always be on the lower side of the best fit function. ie below average.

excellent

we need to bounce this thread often

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With 490k new jobless claimants coming to a job centre near you, i think its very unlikely we will see any change in IR for 24 months at least

Good thing too. I'm paying off chunks of my mega mortgage at base +0.25 which is very welcome

ta muchly

here's a quote from the OP's other contributions - oh yeah, a worried overleveraged over-bought fool

very unlikly to see rises in IR? oh dear, you have cause to worry

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here's a quote from the OP's other contributions - oh yeah, a worried overleveraged over-bought fool

very unlikly to see rises in IR? oh dear, you have cause to worry

I'd love IRs to rise. I'd get more income on my savings- however I don't see it happening for a while.

What would the result be?

FTBers would be even more priced out based on affordability and rents would go up.

What's the point of 20% price drops, if you can't afford the mortgage on the new price.

p.s What makes you think the OP is:

  • worried

  • over-leveraged

  • over-bought

  • a fool?

Edited by twatmangle

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Fvck it,

I agree with the OP.

All the major statistics are a bit ropey, CPI, RPI, average wages, GDP (especially GDP). You can't even trust the national debt figures, I've heard official estimates ranging from £800bn - £1trn this month. Nobody knows what the true figure is due to all our off balance sheet obligations.

They're only useful as a benchmark to be thrown during the course of debate, but as stand alone stats they're all wildly innacurate imo. To trust them is to trust what the government is saying about the economy. Ha!

He's right about the wages/house price thing too. The correct price of a house should be the amount it costs to build that house, not some arbitrary measure plucked from thin air that sounds reasonable (like 3.5x times wages).

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I'd love IRs to rise. I'd get more income on my savings- however I don't see it happening for a while.

What would the result be?

FTBers would be even more priced out based on affordability and rents would go up.

What's the point of 20% price drops, if you can't afford the mortgage on the new price.

p.s What makes you think the OP is:

  • worried

  • over-leveraged

  • over-bought

  • a fool?

Did you not read the OP?

I'd rather buy a house at 15% IR than at 0.5% the payments would probably not be far from each other.

At 15% small mortgage [/b]large[/b] repayments. When IRs eventually return to norm you're left with small mortgage.

At 0.5% huge mortgage small repayments eventually you are left huge mortgage at normal IRs.

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He's right about the wages/house price thing too. The correct price of a house should be the amount it costs to build that house, not some arbitrary measure plucked from thin air that sounds reasonable (like 3.5x times wages).

plus the land underneath it, which is driven by demand. Demand = wages+credit availability.

Also what about the houses built hundreds of years ago for tuppence? Still worth tuppence? Or tuppence adjusted for inflation? Or what?

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Did you not read the OP?

I'd rather buy a house at 15% IR than at 0.5% the payments would probably not be far from each other.

At 15% small mortgage [/b]large[/b] repayments. When IRs eventually return to norm you're left with small mortgage.

At 0.5% huge mortgage small repayments eventually you are left huge mortgage at normal IRs.

I agree completely, it's about the capital gains. If you buy when rates are at an all time low they can only rise which means -all things being equal - that house prices drop and you're in NE.

If you buy when rates are high they can only fall, which leaves you in a position to benefit from house price gains and lower mortgage repayments.

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plus the land underneath it, which is driven by demand. Demand = wages+credit availability.

Also what about the houses built hundreds of years ago for tuppence? Still worth tuppence? Or tuppence adjusted for inflation? Or what?

Just the cost of replacement. If it costs £x to replace that house in today's money that is the price the house should be.

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Just the cost of replacement. If it costs £x to replace that house in today's money that is the price the house should be.

No that doesnt work, there are variables that make house values change, area improvement, schooling etc, not to mention areas of speacial interest etc

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No that doesnt work, there are variables that make house values change, area improvement, schooling etc, not to mention areas of speacial interest etc

land values

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No that doesnt work, there are variables that make house values change, area improvement, schooling etc, not to mention areas of speacial interest etc

Of course, but that only changes the price of the land that the house sit upon, it doesn't alter construction costs.

Pent Up's point was about the price disceprency between houses built hundreds of years ago and houses built today. If it only cost ten bob to erect a house in 1694 how can we make sense of that in today's market?

The answer is to phone up some builders and find out how much it would cost to build an identical house. If it costs £100k then that's how much the house is worth.

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  • 150 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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