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Mr. Piddle

Could You Afford Your House If You Had To Buy It Again Today?

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On a couple of occassions now when I have been talking to my elder generation (40+) and they have mentioned the value of their homes, I have asked them whether if they had to buy their homes again at todays value with their wages today, would they still be able to afford it?

The general answer I get is 'well of course not!' I think they just assume that other people buying these days must be able to though........

So, for anyone who already has a home and has done for some time, would you be able to afford your home if you had to buy it again in todays value from scratch?

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Nope. House bought for 3.5 x salary in mid 90s. My salary is now 50% higher but house would be 9 x my salary today!! No, I'm not happy about it, as I'd like my kids to be able to buy somewhere too and it's complete bonkers..

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On a couple of occassions now when I have been talking to my elder generation (40+) and they have mentioned the value of their homes, I have asked them whether if they had to buy their homes again at todays value with their wages today, would they still be able to afford it?

The general answer I get is 'well of course not!' I think they just assume that other people buying these days must be able to though........

So, for anyone who already has a home and has done for some time, would you be able to afford your home if you had to buy it again in todays value from scratch?

Your parents are not bankers, FTSE CEOs and don't work in the public sector, am I right?

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On a couple of occassions now when I have been talking to my elder generation (40+) and they have mentioned the value of their homes, I have asked them whether if they had to buy their homes again at todays value with their wages today, would they still be able to afford it?

The general answer I get is 'well of course not!' I think they just assume that other people buying these days must be able to though........

So, for anyone who already has a home and has done for some time, would you be able to afford your home if you had to buy it again in todays value from scratch?

Difficult to answer because when I bought nearly everyone bought with a 5% or max 10% deposit; saving say 20% would take me around 5 years for a 1-bed flat. Secondly, very few people just bought their 'final house' or similar; most people bought a flat or a small terraced as a first purchase. So expectations have changed somewhat if people expect to buy the 'ave 3-bed semi' as a FTB. As things stand I'd need to borrow 5.5 x my income to buy my house, so the answer is probably no.

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I could easily afford the interest only......but I would not afford the income multiples.....so yes I could afford to service it but not to repay it.....that is if they would lend it to me in the first place, which would be very doubtful. ;)

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Hell no!

I bought in 1996 and I would need 10 times my current salary to pay for it if it went up for sale now.

And I thought my house was overpriced in 1996 too.

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I can afford to buy the house I am currently renting.

However, I can rent if for less than half what it would conventionally cost to buy with a 5% mortgage ( house value at least 300K ) , i.e. £1800 pcm mortgage compared with £850 pcm rent.

Therefore I choose not to want to buy the house that the landlord probably can't afford to buy.

Edited by TheCountOfNowhere

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I can afford to buy the house I am currently renting.

However, I can rent if for less than half what it would conventionally cost to buy with a 5% mortgage ( house value at least 300K ) , i.e. £1800 pcm mortgage compared with £850 pcm rent.

Therefore I choose not to want to buy the house that the landlord probably can't afford to buy.

Me too, for £50K less than if I'd bought it five years ago.

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[ Interesting question . Yes is my answer,only because we were very modest when we got our home in 97 . Even so it would not be a yes if we restricted ourselves to 3 or 3.5 time . Lose money lending has a lot to answer for! Its a terrible mess ,greedy people have gaind tremendously by speculation and the price will be paid by the next generations and society will have to cope with the ersuing resultant disfunction. Stupid people are in denial ,but its a terrible mess for the next lot (and in the end,all but a minority of us).

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On a couple of occassions now when I have been talking to my elder generation (40+) and they have mentioned the value of their homes, I have asked them whether if they had to buy their homes again at todays value with their wages today, would they still be able to afford it?

The general answer I get is 'well of course not!' I think they just assume that other people buying these days must be able to though........

So, for anyone who already has a home and has done for some time, would you be able to afford your home if you had to buy it again in todays value from scratch?

No way now.Bought 98 for £50k when i was on £21K,now £125k im on £24k.Sooner its back down the better,iv got 3 children ,im 40.

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Yes, would have been about as easy now as 5 years ago. The past 5 years of saving might have got me a cheaper deal as I would have had a much bigger deposit.

Edited by AteMoose

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If I was 20 years younger and working full time it would mean borrowing 3.5 times my salary and once my wifes salary. and a 10% deposit.

When I bought it 23 years ago it cost 3 times my then salary, however I had a 60% deposit.

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No way now.Bought 98 for £50k when i was on £21K,now £125k im on £24k.Sooner its back down the better,iv got 3 children ,im 40.

Mine won't be buying for a long while yet.....and I don't blame them, I would not want to wish it on them.....there are good times to buy and bad times to buy. ;)

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When I was growing up in the nineties quarter of a million quid was a serious amount of money, these days it can't buy diddly squat where I am. I don't know why people say it's thatcher's fault the rising property prices when we could afford properties in the nineties. It was labour that allowed property to get so out of kilter with incomes.

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Your parents are not bankers, FTSE CEOs and don't work in the public sector, am I right?

So teachers, nurses and government administrators are on a par with bankers and FTSE CEOs now? Funny, I must have dreamt that indefinite pay rise and those impending job calls. Where do I sign up?

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This is a very interesting topic, we took a mortgage 2004/2005 I would say we could not afford the place we live in now.

2004/2005, home income around £80k

£145k Flat, £130.5k loan

However the borrow limit was, wait for it ... £211k!

Current monlthy mortgage is around £400 due to overpaying like mad.

2011, home income around £35k

£165k Flat £148.5k loan

Same mortgage company is offering £200 short as the max value. So technically we could squeeze enough cash together to buy however If we took this mortgage up there would be no fun money, and no chance of overpaying. When you think we have no car, no TV, broadband on a monthly contract, no contract mobiles. were fairly close to the edge. We would never have taken the risk now.

The job situation has been far more destructive than the lending market.

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So teachers, nurses and government administrators are on a par with bankers and FTSE CEOs now? Funny, I must have dreamt that indefinite pay rise and those impending job calls. Where do I sign up?

Sorry, freudian slip - pay freeze, or pay cut to be more accurate given inflation.

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When I was growing up in the nineties quarter of a million quid was a serious amount of money, these days it can't buy diddly squat where I am. I don't know why people say it's thatcher's fault the rising property prices when we could afford properties in the nineties. It was labour that allowed property to get so out of kilter with incomes.

I totally agree, but £250k is a serious amount of money still, only people don't realise it when they are offered to borrow it.

I would sooner have Thatcher back than ever have Tony/Gordon again.

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When I was growing up in the nineties quarter of a million quid was a serious amount of money, these days it can't buy diddly squat where I am. I don't know why people say it's thatcher's fault the rising property prices when we could afford properties in the nineties. It was labour that allowed property to get so out of kilter with incomes.

Oh, come on get with the mantra - EVERYTHING is the fault of Thatcher and those nasty Tories.....

(or so the mass media would have you believe)

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Oh, come on get with the mantra - EVERYTHING is the fault of Thatcher and those nasty Tories.....

(or so the mass media would have you believe)

Of course it is, nice friendly cuddly Labour give you everything for nothing....... then does one when they realise they created a sinking ship (Tony)

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Bought in 2003 for £135k (£120k mortgage)

Now would be around £220k to buy the same house.

In 2003 our household income was £40k so it was a 3x joint income mortgage

Taking our 2003 incomes and 2011 prices we'd need to borrow another £85k so would be a 5 x joint mortgage

Which would be another £150k of our lifetime post-tax earnings (about £220k pre lower rate tax+NI, plus the opportunity cost of not having that money to invest) to pay off the mortgage.

In summary through no special knowledge or judgement of our own we are about a quarter of a million of income better off for having bought then rather than now*

* I still hope for HPC

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Yep.

Could buy a flat equivalent to the one I rent. Mortgage no longer required, though paying cash would be a bit of a hit.

Looking to buy somewhere nicer (with mortgage), but not in any great hurry.

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  • 277 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% +
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      • up 5%



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