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Corruption

Property Has Ever Been More Affordable (Since 2008)

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Its the comments that got me

http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/11157356/Owning-a-home-cheaper-than-in-2008.html

I hope these boomers get abused in a nursing home, as surely with their lack of intelligence they cant be far off being in one.

  • highc 35 minutes ago

    Daughter & boyfriend just buying first house. Not rich but can easily afford though mortgage raising is a painfully slow process
    Simple rules - save hard and build the deposit, , get mortgage offer "in principle" to show you have the ability to buy, don't buy new, be prepared to add value by "building the nest", select properties carefully in good locations and be prepared to walk away - if you are FTB be hard faced and negotiate from 25% below asking price until you find an acceptable property seller who wants you cash, expect to agree 15 - 20 % below asking.
    Asking prices are irrelevant, cash and the ability to complete without a chain is a deal maker.

  • noavatar92.png
    alastairsnare 2 hours ago

    This is good news for all of those younger people who felt they had missed the boat. I have a number of younger colleagues in their late 20s and early 30s who all earn very good money but constantly complain they can't buy a home. It seems they can if they are prepared to cut back on the numerous £1,000-plus weekends they spend in places like Ibiza every year.

    No matter what happens with the rise of UKIP and the shift from a pro-unlimited immigration to a controlled-immigration political agenda, I expect there will be a few years yet of large numbers of young workers migrating from the EU to London, so property prices will continue to climb in the near term... With the availability of cheap mortgages now's a good time to buy!

Edited by Corruption

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Owning a home 'cheaper than in 2008' Study finds that despite rising house prices and food inflation, the cost of home ownership has fallen due to record low mortgage repayments

This guy is Consumer Affairs Editor of a national newspaper yet seemingly thinks that paying a mortgage means you own the house. I wonder why he thinks people give money to the bank each month, for the fun of it?

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Availability of mortgages after MMR, and low-mid-high prime area at way above 2007 peak? Tell it to Ben Bernanke about availability of mortgages in low-mid-high prime areas. Coming to UK, if those tighter lending criteria not fully here already.

First comment was reasonable, despite her daugher bought and can afford with lower rates. Telling sign cheap mortgages also came with slow process checking of they are good for repaying it. Tells you to go in hard for discount. Reasonable.

Yet mostly the boomers worrying who is going to buy their houses, or wanting them to pay high prices at lower end, in the view this will keep their prime level houses high? It won't. Some will need to sell, and they are running out of proceedable buyers. Too many younger buyers stretched to low end £250K houses, and many a bomad helped them, and many a bomad with low-mid-high prime £350K+ house competed against them in same market for BTL as their pension. Some of us will have to enter a few rungs higher than we imagined, as mid-prime crashes.

Meanwhile in the US, where there are some areas that have reasonable house prices, and it seems it could be a good decision to buy - not for prime Bubble 2.0 areas in my opinion. This tucked away in what is mostly a complacent artcle. They'll get their housing recovery after low-mid-high prime HPC, followed by volume lending and new building from those who've had their VI positions broken up..

October 7, 2014

"While housing still looks affordable usng conventional assumptions, we see first-time buyer housing costs approaching prior peak levels," wrote Credit Suisse analysts in a note to investors. "The combination of higher mortgage insurance costs, higher interest rates, and higher home prices have already brought affordability back to the long-term averages for first-time home buyers."

With affordability no longer a compelling motivator, and consumer confidence in housing weakening, at least according to these analyses, home prices don't have quite the trajectory some had predicted. Whether they fall into the negative, even briefly and even due to seasonal factors, the impact on the nation's home builders as well as on potential sellers could be damaging. As for the wider economy, it is unlikely to be able to rely on housing any time soon as a significant driver of growth.

https://homes.yahoo.com/news/home-prices-headed-triple-dip-124200714.html

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Availability of mortgages after MMR, and low-mid-high prime area at way above 2007 peak? Tell it to Ben Bernanke about availability of mortgages in low-mid-high prime areas. Coming to UK, if those tighter lending criteria not fully here already.

First comment was reasonable, despite her daugher bought and can afford with lower rates. Telling sign cheap mortgages also came with slow process checking of they are good for repaying it. Tells you to go in hard for discount. Reasonable.

Lets presume theyre average earning 20/30 somethings, if in 5 years time they have a kid or 2 thus her wage disappears and their 5 year fix comes to an end theyll have the unenviable task of paying a mortgage on a property bought at the peak of bubble no.2

And wages arent looking like rising to inflate the mortgage away as they did in the boomer era.

And its quite obvious to get a discount but finding someone who will take 25% off current sking prices its virtually impossible, as a cash buyer i wasnt even entertained at buying a repossession recently for 20% off. His comment is just utter crap.

Edited by Corruption

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Oh I agree with you Corruption - but that is what they have chosen to do.

Wages, higher taxes coming, other squeezes.

Probably over-maxed out. At least they've got a home, they're happy with (for now) and parents proud. Will they ever be able to trade up? Some sellers will begin accepting and transacting at lower prices. Low-mid-high prime is coming under seige from MMR, unwillingness of well positioned buyers to pay these prices, and just whole load of younger people who've already maxed out to buy a 2 bed small box.

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Fionnuala Earley of Hamptons International used to be I think chief economist at Nationwide back in 2008. Article quotes 2year fix rates of 1.5%. I have not checked the article to see what rate is being used for affordability and whether assesment over 25yr standard mortgage.

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The relentless push to get everyone on to that imaginely property ladder! All aboard the HPI train! :P Got to love the short term horizons of these journalists. Most affordable since 2008, wow, weren't houses cheap back then, lets buy two! I really should stop reading this rubbish!

Not all the comments are so bad now..

Dave Dann an hour ago

Over stretching at the limit of low interest rates is super risky, if a small interest rate rise pushes you over the edge then good luck.

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It's strange, I've often stated (with others) here that if we'd joined the Euro we would have had the hpc already.

But a Tory-UKIP government next year will do the job as various foreign businessmen and property investors take fright....having said that, the same effect may be had by fear of another Labour government.

HPC a cert by May 2015 I think.

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It's strange, I've often stated (with others) here that if we'd joined the Euro we would have had the hpc already.

But a Tory-UKIP government next year will do the job as various foreign businessmen and property investors take fright....having said that, the same effect may be had by fear of another Labour government.

HPC a cert by May 2015 I think.

Id bet if the EU had the British in theyd have printed long ago, theyd have had to to save the Euro in 2007/8.

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It's strange, I've often stated (with others) here that if we'd joined the Euro we would have had the hpc already.

But a Tory-UKIP government next year will do the job as various foreign businessmen and property investors take fright....having said that, the same effect may be had by fear of another Labour government.

HPC a cert by May 2015 I think.

Both possible but I won't be getting my hopes up until it happens. Of course the economic fall out could mean I won't have a job but I'll deal with that when/if it happens

I also agree that if we had been part of the euro in 2007/2008 the minor HPC back then would have been a lot deeper.

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Oh I agree with you Corruption - but that is what they have chosen to do.

Wages, higher taxes coming, other squeezes.

Probably over-maxed out. At least they've got a home, they're happy with (for now) and parents proud. Will they ever be able to trade up? Some sellers will begin accepting and transacting at lower prices. Low-mid-high prime is coming under seige from MMR, unwillingness of well positioned buyers to pay these prices, and just whole load of younger people who've already maxed out to buy a 2 bed small box.

Not sure why anyone cites MMR for the bear case, we all know it is govt policies which have (so far) frustrated hpc, so wouldn't they just bin MMR if necessary?

Surely hpc arises now from forces outwith the government's control? Such as higher taxes (if circumstances dictate) as you mention

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Not sure why anyone cites MMR for the bear case, we all know it is govt policies which have (so far) frustrated hpc, so wouldn't they just bin MMR if necessary?

Surely hpc arises now from forces outwith the government's control? Such as higher taxes (if circumstances dictate) as you mention

Lenders now have their cover for restricting lending into a crash, perhaps? Would you lend on assets falling in value?

Who would bin it... the banks? The Gov/FCA etc? Maybe if they don't want hpc, but my own view is they want what is best for the banks, which is hpc on low-mid-high prime, followed by fresh lending.

So why did they bring it in? (MMR)

Any bank would use equivilent of MMR anyway, as they have always done, when weighing up lending into falling markets. You want good credit quality applications if they chose to borrow. They've all woken up from complacency for quite some time to come.

It is also remarkable how the masses have begun to comply with MMR. Read some MSE mortgage forum threads.. how to prepared for MMR, how long it takes.. worrying about passing... compliance compliance compliance to it. It is here now. Gov seeking to increase revenue in taxes, just another variable into MMR calculating borrowing going forwards.

Perhaps enough of the bank exposure has been spread out now, into reflation around the world, and Gov has large positions in some banks and good reason to see them do well - together with profit, taxable revenue to turn over in years to come on fresh lending. Recruiting again too.

2013: Fewer than two in five UK households have property debt (in 2008 - 2010 according to ONS figures) and Broadbent focusing on how new mortgage lending is low, and increasing that volume of mortgages is what matters most to BoE.

Alternatively you could be correct and Gov/authorities anti-crash frustrating my position forever more (I just think they needed to buy themselves time to spread out positions), and banks not to return to doing serious mortgage work to book big big profits.

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Numerous £1,000-plus weekends they spend in places like Ibiza every year? Its that expensive?

Even if it is, they might as well take the holiday anyway. Better to spend £2k on enjoyable experiences and not be able to afford a house than take no pleasure in life and still not be able to afford a house.

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Numerous £1,000-plus weekends they spend in places like Ibiza every year? Its that expensive?

£1,000-plus sounds like an exaggerated figure plucked out of thin air- a classic boomer habit.

I doubt anyone going on "weekends away" are spending anywhere near that amount.

Edited by btl_hater

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Fionnuala Earley of Hamptons International used to be I think chief economist at Nationwide back in 2008. Article quotes 2year fix rates of 1.5%. I have not checked the article to see what rate is being used for affordability and whether assesment over 25yr standard mortgage.

Fixed two years...fee ~£2000..that is not 1.5%......teaser rate, then what?

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£1,000-plus sounds like an exaggerated figure plucked out of thin air- a classic boomer habit.

I doubt anyone going on "weekends away" are spending anywhere near that amount.

Very exaggerated. Plus £1000 wouldn't even paid the arrangement fee on a lot of FTB mortgages! :P

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