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Why is it so hard to buy a house?


btd1981
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10 hours ago, Social Justice League said:

The average salary today should be around £75k per year to afford an 'average property'.

Currently it's sitting at £26k.  Totally laughable.

Just south of £90k according to this (in 2013).  http://www.thisismoney.co.uk/money/mortgageshome/article-2462753/How-items-cost-risen-line-house-prices.html

"According to our figures, if wages had risen at the same rate as house price inflation, the average wage would be £87,720"
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14 hours ago, Arpeggio said:

Just south of £90k according to this (in 2013).  http://www.thisismoney.co.uk/money/mortgageshome/article-2462753/How-items-cost-risen-line-house-prices.html

"According to our figures, if wages had risen at the same rate as house price inflation, the average wage would be £87,720"

only train drivers wages have kept up. 

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The reason its so hard to buy a house is because since 1982 we have been in a dis-inflation period of history.The CBs priced interest rates along the way against inflation.Falling rates push up asset prices.In the UK thats mostly houses,in the US stocks and shares take a large chunk.That period is ending.Rates will be heading higher in the next cycle,much much higher.Asset prices will fall,some areas (houses,consumer facing shares) by huge amounts.Other areas that did poor in the dis-inflation will rise to the top.The winners will be much less broad based though.PMs miners might be to the next cycle what the .com's were to this one.Silver will outperform Amazon  by 1300% i expect.What was old,becomes new.High leverage and debts will be hated by people,and dirty words to mention in public soon.I have no doubt this cycle is over,the seeds are sown and the damage is starting to show itself,soon it will really get going.

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On 10/11/2017 at 9:29 PM, Arpeggio said:

Just south of £90k according to this (in 2013).  http://www.thisismoney.co.uk/money/mortgageshome/article-2462753/How-items-cost-risen-line-house-prices.html

"According to our figures, if wages had risen at the same rate as house price inflation, the average wage would be £87,720"

Another random stat I heard the other day is the average wage should now be £50 per hour in order to have the same spending power as average wages in the 1970's.

Edited by nome
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22 minutes ago, nome said:

Another random stat I heard the other day is the average wage should now be £50 per hour in order to have the same spending power as average wages in the 1970's.

Plus other factors like lack of job security and China devaluing their currency / subsidising their industries. A friend’s next job would be based in China, he is high up enough to be involved still. Go back 10 years at his skill level @£50+ ph and he’d have no job.

I might be wrong but I think it’s good if the developing world kicks our butts, it might force the UK to need to compete rather than buying and selling houses from each other like a car running off its own exhaust.

1 hour ago, durhamborn said:

The reason its so hard to buy a house is because since 1982 we have been in a dis-inflation period of history.The CBs priced interest rates along the way against inflation.Falling rates push up asset prices.In the UK thats mostly houses,in the US stocks and shares take a large chunk.That period is ending.Rates will be heading higher in the next cycle,much much higher.Asset prices will fall,some areas (houses,consumer facing shares) by huge amounts.Other areas that did poor in the dis-inflation will rise to the top.The winners will be much less broad based though.PMs miners might be to the next cycle what the .com's were to this one.Silver will outperform Amazon  by 1300% i expect.What was old,becomes new.High leverage and debts will be hated by people,and dirty words to mention in public soon.I have no doubt this cycle is over,the seeds are sown and the damage is starting to show itself,soon it will really get going.

hope so I’ve got some Precious Metals. Not going anywhere in particular over the last year but waiting out the “megatrends” as pranesh(?) calls it.

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10 hours ago, maverick73 said:

Affordability will drive those who cannot afford out, into areas which the can afford and invite those who can in. The capitalist system. :ph34r:

Capitalist system wasn't real, I mean they wouldn't have done LTRO, a dead bank is a dead bank.  Personally I still feel all these effects on cost are intentional and totally inline with agenda 21.  The people shall own nothing while renting everything and being paid nothing.

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26 minutes ago, giggler000 said:

Capitalist system wasn't real, I mean they wouldn't have done LTRO, a dead bank is a dead bank.  Personally I still feel all these effects on cost are intentional and totally inline with agenda 21.  The people shall own nothing while renting everything and being paid nothing.

What's agenda 21 and do I need to turn on the filters on my tinfoil hat.

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On 11/10/2017 at 9:29 PM, Arpeggio said:

Just south of £90k according to this (in 2013).  http://www.thisismoney.co.uk/money/mortgageshome/article-2462753/How-items-cost-risen-line-house-prices.html

"According to our figures, if wages had risen at the same rate as house price inflation, the average wage would be £87,720"

This also says chicken would cost £50 if it had gone up at the same rate as HPI of course if chicken cost £50 production of chicken would rise causing prices to fall or we would eat lamb instead - sadly neither is possible with housing.

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9 hours ago, iamnumerate said:

This also says chicken would cost £50 if it had gone up at the same rate as HPI of course if chicken cost £50 production of chicken would rise causing prices to fall or we would eat lamb instead - sadly neither is possible with housing.

Very true, and if the production increased there would be a point at which too much production becomes pointless so a middle ground is reached between price and production.

If land / planning laws were loosened the amount of affordable land needed would be less than if not, due to competition bringing all prices down including already developed land. Therefore contrary to fears, loosening planning would contribute to less need for land to be developed.

Just watching the news about schools having f*** all money and asking for handouts from parents.

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On 11/12/2017 at 3:16 AM, durhamborn said:

Rates will be heading higher in the next cycle,much much higher.

Sorry, but no. The global economy is going down, and it's never coming back. By the time the next boom cycle should start, vast numbers of jobs will have been eliminated by automation and AI, with nothing to replace them.

On the plus side, houses will be cheap for a while because hardly anyone will have money to buy them. But then the riots will start, and most of the cities will burn to the ground.

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3 hours ago, MarkG said:

Sorry, but no. The global economy is going down, and it's never coming back. By the time the next boom cycle should start, vast numbers of jobs will have been eliminated by automation and AI, with nothing to replace them.

On the plus side, houses will be cheap for a while because hardly anyone will have money to buy them. But then the riots will start, and most of the cities will burn to the ground.

Nice.......I mean not nice.:ph34r:

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On 11/16/2017 at 9:26 PM, giggler000 said:

There's the web and it's already on because on your on this forum :ph34r:

True. 

This forum is the best for making sure the big dials on it are adjusted correctly.

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On 11/16/2017 at 9:26 PM, giggler000 said:

There's the web and it's already on because on your on this forum :ph34r:

Ps filters activated on the tinfoil hat now.

...and I might set about making some eco-friendly bamboo goggles to help see through the guff out there.

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