Madness

[Crumbless]

So when was this golden age when the lower classes all lived in grand houses? Havn't we always lived in crappy terraces or high rise flats?

This golden age ended 15-20 years ago which is when the working classes could afford what are now deemed "grand houses" that only the wealthy can now afford.

Times should have moved on from the Victorian era, seems its the aim to get revert back to this age.

Edited August 10, 2016 by Crumbless

[billybong]

The chart doesn't distinguish between joint and single mortgages. That's why I think it is a useful graph. It charts the average FTB mortgage advance against the average salary borrowed against that mortgage.

This omits lots of data, for example the average wage of a lifelong renter or benefit claimer, but it also excludes the average wage of those who own their house outright, or are already on the property ladder.

So it's not the answer to any big questions, but in imo it is one interesting perspective.

I agree it's a useful chart and an interesting perspective.

Presumably though joint mortgages are included (although not distinguished) in the figures because a joint mortgage would normally be a single mortgage contract (unless shared ownership) which the lender would then just list as one FTBer mortgage even though it's been granted on the basis of 2 wages?

Edited August 10, 2016 by billybong

[mattyboy1973]

Well, it's impossible using just one decent-ish salary, and increasingly impossible in most of London using two decent-ish salaries.

Other sources of wealth (which basically means you need a lottery win or an inheritance) or a very good salary are now needed if you want a nice house in London.

By my reckoning, a decent family home in a "nice" area of London is now £1m. For a couple to buy that, with no source of money other than savings and a mortgage based on real earnings you are looking at ~£250k deposit and a gob-smacking £750k mortgage, which I guess could be based on 2x £125k incomes. That's not technically impossible, of course, but getting pretty close.

I do often wonder where the money is coming from to keep this going in London, and the only conclusion I can draw is that the majority of it must just be getting recycled from the property ponzi. I also wonder who is going to be able to buy these houses at these prices once the incumbents - largely older people who bought cheap - finally pass on.

[mubes]

I do often wonder where the money is coming from to keep this going in London, and the only conclusion I can draw is that the majority of it must just be getting recycled from the property ponzi. I also wonder who is going to be able to buy these houses at these prices once the incumbents - largely older people who bought cheap - finally pass on.

I would guess inheritance + capital gains from earlier properties. Either their own properties, or families downsizing.

[TheCountOfNowhere]

By my reckoning, a decent family home in a "nice" area of London is now £1m. For a couple to buy that, with no source of money other than savings and a mortgage based on real earnings you are looking at ~£250k deposit and a gob-smacking £750k mortgage, which I guess could be based on 2x £125k incomes. That's not technically impossible, of course, but getting pretty close.

I do often wonder where the money is coming from to keep this going in London, and the only conclusion I can draw is that the majority of it must just be getting recycled from the property ponzi. I also wonder who is going to be able to buy these houses at these prices once the incumbents - largely older people who bought cheap - finally pass on.

You can buy a £1M house if you have £800K equity.

You can buy a £800M house if you have £600K equity.

You can buy a £600M house if you have £400K equity.

You can buy a £400M house if you have £200K equity.

You can buy a £200M house if you have use the tax payers 40% HTB scheme.

Can anyone see why this should be illegal ?

[heffsta]

You want madness, look here: http://www.rightmove.co.uk/s6p/55550368

I viewed these in 2014 as new builds. The top floor rooms all awkward shape with no storage so thought it was too expensive. It sold for £325000 it has just come on market for f#£king £640000. What world do they think it is worth that. Jesus wept. I give up

[Crumbless]

You want madness, look here: http://www.rightmove.co.uk/s6p/55550368

I viewed these in 2014 as new builds. The top floor rooms all awkward shape with no storage so thought it was too expensive. It sold for £325000 it has just come on market for f#£king £640000. What world do they think it is worth that. Jesus wept. I give up

Jack in work and get on the council lost and hope for one of those council houses to the back of them.

I was in Reading 10 years ago and couldn't help but think it was a characterless dump.

Gidiots got a lot to answer for, prices were coming down up until HTB.

[ccc]

You want madness, look here: http://www.rightmove.co.uk/s6p/55550368

I viewed these in 2014 as new builds. The top floor rooms all awkward shape with no storage so thought it was too expensive. It sold for £325000 it has just come on market for f#£king £640000. What world do they think it is worth that. Jesus wept. I give up

3 bed - Reading - and they can't even be bothered to cut the grass.

Sums it up really. Property in this country really is just like buying a lottery ticket and hoping you win. The owners of this place deserve to become homeless with brazen greed and laziness in such abundance.

[Crumbless]

3 bed - Reading - and they can't even be bothered to cut the grass.

Sums it up really. Property in this country really is just like buying a lottery ticket and hoping you win. The owners of this place deserve to become homeless with brazen greed and laziness in such abundance.

I saw that, its probably a BTL and they haven't bought the tenant a lawn moor, and the tenant thinks it's down to the landlord to sort it.

[Nabby81]

You want madness, look here: http://www.rightmove.co.uk/s6p/55550368

I viewed these in 2014 as new builds. The top floor rooms all awkward shape with no storage so thought it was too expensive. It sold for £325000 it has just come on market for f#£king £640000. What world do they think it is worth that. Jesus wept. I give up

Reading + Crossrail = Madness

[Patient London FTB]

By my reckoning, a decent family home in a "nice" area of London is now £1m. For a couple to buy that, with no source of money other than savings and a mortgage based on real earnings you are looking at ~£250k deposit and a gob-smacking £750k mortgage, which I guess could be based on 2x £125k incomes. That's not technically impossible, of course, but getting pretty close.

I do often wonder where the money is coming from to keep this going in London, and the only conclusion I can draw is that the majority of it must just be getting recycled from the property ponzi. I also wonder who is going to be able to buy these houses at these prices once the incumbents - largely older people who bought cheap - finally pass on.

You can only afford that home if you're already on the ladder. It's been easy to sell first-rung properties as either a BTLer or FTB will snap them up, and there's the 'just rent it out innit' option too. So when the first-rung properties collapse in value that will hit the rest of the market.