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House Prices 'up To 11 Times' Salary

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Must be all those East Anglian men kicking out their wives to work.

About the best excuse the BOE's political appointees have got for what has been a politically expedient financial bubble based on loose credit and loose monetary policy- probably the biggest this country has ever had - £600Bn + of it and growing. No wonder they are trying to make up excuses for it.

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MAYBE THAT'S WHY EAST ANGLIA IS THE FIRST COUNTY TO GO NEGATIVE YEAR ON YEAR (RIGHTMOVE).

COS THE LONDON SECOND HOME BUYERS ARE PULLING OUT AND THE LOCALS CAN'T PROP UP THE OVERVALUED HOUSES AT 11 TIMES SALARY

ITS GOING TO GET VERY MESSY

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MAYBE THAT'S WHY EAST ANGLIA IS THE FIRST COUNTY TO GO NEGATIVE YEAR ON YEAR (RIGHTMOVE).

East anglia was not the first to go negative – you have to look at the month before that

But I bet Basildon will not be looking good (news job losses in basildon) – not many jobs to go but I bet the feeling will be bad

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11 times?

Whats wrong with that?

A mortgage is for 25 years, so surely you should be able to borrow multiples of 25?

Then when you get to the end the house will be worth more anyway.

I say buy houses, lots of em, anyone that questions this doesn't understand simple economics.

*Gavin writes with sarcasm*

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Also with the Banks and Building Societies having to toughen up on the multiples they can offer due to bad debts, 11 times salary cannot be supported by the local economy.

therefore it will carry on becoming a county with increased negative equity as house prices continue falling.

Anyone disagree?

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I'm not denying house prices are too high, but I'd like to point out first time buyers do not buy the average property. They buy the cheapest property and take it from there. Hasn't that always been the case?

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11 times?

Whats wrong with that?

A mortgage is for 25 years, so surely you should be able to borrow multiples of 25?

Then when you get to the end the house will be worth more anyway.

I say buy houses, lots of em, anyone that questions this doesn't understand simple economics.

*Gavin writes with sarcasm*

Your being sarcastic but I have a mate whose got himself £450k into mortgage debt and believes that so long as he can service the interest on the debt that he can't loose as....wait for it....... properties always rise in value, therefore he doesn't need to figure out a way to repay the loan, as he explained to me, the asset will always be worth more than the debt so he can always just 'close out the deal' and sell up / take his 'profit'.

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Your being sarcastic but I have a mate whose got himself £450k into mortgage debt and believes that so long as he can service the interest on the debt that he can't loose as....wait for it....... properties always rise in value, therefore he doesn't need to figure out a way to repay the loan, as he explained to me, the asset will always be worth more than the debt so he can always just 'close out the deal' and sell up / take his 'profit'.

Although sarcastic from my own point of view, I can see this being an argument in some peoples mind.

If you think about paying a mortgage and you hear 11 times your salary it will mean nothing to you if you haven't studied the past like we have. If you consider it over a 25 year period then you could argue that 11 times is not so high. You could delude yourself that with wage inflation it would be "conservative" to buy anything up to 20 times multiple. As long as its interest only, then wheres the argument?

Its just this type of simplistic view that we have encountered in the past Timmy!

The fact that you should have capital repayments to make if ever really intend to own, tax to pay, bills and errr petrol, may pass some people by. It certainly happened in the dot com boom, when price to earnings ratios reached ridiculous levels.

We only have to look through our lofts for copies of "The Birdie Song" or old keep fit equipment to show that we aren't always smart with our purchase decisions.

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a politically expedient financial bubble based on loose credit and loose monetary policy- probably the biggest this country has ever had - £600Bn + of it and growing. No wonder they are trying to make up excuses for it.

remember this at vote time. i will.

this country is sad.

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You could delude yourself that with wage inflation it would be "conservative" to buy anything up to 20 times multiple. As long as its interest only, then wheres the argument?

Surely, even the most deluded person would notice that she cannot affort repayments that exceed her net income? At 20 times salary the interest would be more that the gross income unless the interest rate is no more than 5%. Depending on the tax situation, it would likely exceed 150% of net income.

My guess is that 6x is pushing what the vast majority of the population could possibly sustain, and it is very unlikely that anyone could manage over 10x unless those sw.anky negative amortization mortgages come over here from the US.

Thanks,

MoD

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If you ever came to east anglia it is shored up by BT BTL's, tax dodgers, immigrants and people on the dole. Obviously of course then there are the bankrupt people who blew all their cash building up empires for others.

EDIT: DRAT i forgot a lot of people had Right To Buy and sold their ex council house for a ridiculous price before getting rehomed somehow else where in the nicer parts where the council makes new home builders turn over 20% of all new builds to social houses. Always fair for the middle class!

ipswich house stock looks like a mining town in the 1500's and most houses are ex council.

(I wish i could find some plutonium!!)

Im not being depressive but this town sucks.

BT is probably moving out in the next 1-5 years through its inventive ICT outsourcing program and no doubt the insurance companies are also being outsourced so i cant see any major drive in economy for Ipswich to be fair once these places go.

Edited by delboypass

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Im lucky/unlucky enough to live in East Anglia, Sunny clacton on sea in fact. My road is being invaded by bloody Londoners, which, like other people have mentioned is pushing up the prices and making the place unaffordable to local people. The only jobs round here is care work which could pay anything upto....................ooohhh £6 an hour. Then to top it all off half the population must be out of work or teenage mothers with numerous kids with numerous fathers.

Just along the coast is a place called Jaywick the houses here used to be about 5k but they are now over 100k and they are wooden blinkin' shacks!!!!!!!

Im going to have a cup of sweet tea now and have a lie down:)

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  • 301 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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