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Do Not Buy Now, Prices Must Come Down...

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Inspired by Marina's link:

http://www.housepricecrash.co.uk/forum/ind...showtopic=17835

I've done some of my own calcs....

Averag salary £25k (say net £17k).

Average house price: £160k.

Deposit (tough to save on £17k net, but there you go) £10k.

Transaction & moving in costs £5k (cant imagine its this little, but lets be tight).

According to BBC's mortgage calculator, at 5% IR, 25 years repayment on the above (£155k loan)...£916.46 a month.

This assumes IR's to average 5% over the 25 years of the loan. (Note this is an average of todays low point).

£17k is £1417 a month. Leaves £500 spending.

Anyone fancy faising a family of four on £125 a week?

This cannot stay the same. Either wages must rise DRAMATICALLY (equals inflation...equals higher IR's....equals house price crash) or house prices must fall fast (equals house price crash).

James.

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Inspired by Marina's link:

http://www.housepricecrash.co.uk/forum/ind...showtopic=17835

I've done some of my own calcs....

Averag salary £25k (say net £17k).

Average house price: £160k.

Deposit (tough to save on £17k net, but there you go) £10k.

Transaction & moving in costs £5k (cant imagine its this little, but lets be tight).

According to BBC's mortgage calculator, at 5% IR, 25 years repayment on the above (£155k loan)...£916.46 a month.

This assumes IR's to average 5% over the 25 years of the loan. (Note this is an average of todays low point).

£17k is £1417 a month. Leaves £500 spending.

Anyone fancy faising a family of four on £125 a week?

This cannot stay the same. Either wages must rise DRAMATICALLY (equals inflation...equals higher IR's....equals house price crash) or house prices must fall fast (equals house price crash).

James.

Average wage in North London isn't far off the wage you quote - but you'd need *double* the amount you quote to buy a house. Most areas around here have wage-to-houseprice ratio's of 10 or more. Try bringing up a family in that sort of environment.

Nomadd

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  • 302 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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