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homeless

Looking At The Cheapest Houses

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We keep talking on here of average house price, truth is as many of us are first time buyers i think it would be more appropiate to look at the cheapest houses, the place where most of us start on the ladder.Average house is realy a second purchase i would have thought.So i looked at some figures for my area, and put all costs involved in and to work out what a reasonable wage would be required to purchase this ftb bottom of the rung property.

here is my analysis

The cheapest property i could find in my area for a ftb is 90,000 pounds, there are over 5,000 properties for sale in this area at the moment and disgarding a couple of houses needing a lot of work that would give the same figure when done, a move in house here the very cheapest is 90k.

incidently outta that 5000 houses there are only about 100 houses that actually fit into this below 100k bracket, so this is truly the first rung, you cant get cheaper.I have used a repayment mortgage and also no special deal fixed term after all the mortgage is for 25 years not 2 years.and intrest only just means the bank owns it.

the costs work out as follows

for the mortgage ive used http://www.fsa.gov.uk/tables to find suitable mortgage lenders are a good price, ive come up with the britannia building society as a fair average from all all the results, giving a mortgage rate of 6.40% variable.

85k repayment mortgage = 568.63 per month

building insurance = 40 per month

council tax = 80 per month

now this guy has to live cheaply so i will make him live cheaply

electric 40 per month

gas 20 per month

telephone 20 per month

food 80 per month

repairs.furniture ect 30 per month

clothes/

now our guy needs a car to get to work (doesnt everyone near have a car now, so i thought i would add a car)

7 year old renault clio average monthly cost+ depreciation 150 month

so here we have a guy living like a monk, he dont smoke nor drink, has no debt to his name other than his mortgage, he dont have a mobile phone, dont take holidays,dont do nothing but got to work and come home, hes quite a sad git realy.

His monthly out-goings for what are realy essentials basically to keep a roof over his head ( the cheapest roof you will find) and have transport to get to work comes to a grand total of

1023 pounds hence a before tax wage is required of around 15k to enable this guy to pay the bare neccesities of life.

Now no-one in this country lives like this guy, even if it means you just buy a newspaper every day, and our guy has no computer or internet costs, no nothing before anything else he needs that 15k wage.

i reckon there are millions in this country probably about 1/3 of the workers in this country not earning more than 15k, hence none of these will ever afford to buy the very cheapest house and live the very cheapest way.

And as basically no-one can live this cheap people need a bit of enjoyment and the odd holiday you could realy say no-one under 20k a year could possibly afford to buy the cheapest house and pay the bills incurred in this country. and that is probably 50% or more people in this country that earn less than 20k.

so ive come to a conclusion and any bulls can tell me any of there arguments to these conclusions they like.

1. houses can only be bought with 2 wages most single people cannot buy there own house even the cheapest shit heap.

2.even with 2 wages coming in unless at least one of they is 20k a couple could not afford there own house

3.housing costs which include council tax are totaly out of wack with wages, and a large amount of new mortgages are infact fraud.

4.btl is much bigger than official figures probably becuase of partners putting the houses in each of there names for very good tax reasons thus making mortgages look like owner occupier, saving on capital gains tax.

5.the increases have been soley becuase of see above.

Now that was good therapy

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i reckon there are millions in this country probably about 1/3 of the workers in this country not earning more than 15k, hence none of these will ever afford to buy the very cheapest house and live the very cheapest way.

Has anyone got any figures on actual wages in the UK? Would be interested to know how many people earn < 15k, between 15 - 20k etc

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Has anyone got any figures on actual wages in the UK? Would be interested to know how many people earn < 15k, between 15 - 20k etc

Annual Survey of Hours and Earnings. 20% of full-time workers earn under £15,013. Another 20% earn between that and £20,042. Mean earnings are £28,258; median is £22,941 (but don't compare median earnings with mean house prices).

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it also depends where you live, hence why i picked a house price for my area and not london.

the wages here the averages for here dont take account of the bigger money in the south, for here 1/3 will indeed be on 15 or less.if i picked the average wage in the country then the ftb example house i used would be higher also.

Edited by homeless

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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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