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Realistbear

Hold Everything! We Are All Wrong....

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http://www.westpress.co.uk/displayNode.jsp...&folderPk=75885

HOMES ARE AFFORDABLE

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10:51 - 09 February 2006
The effect of rising wages combined with static house prices means people are now paying a smaller proportion of their incomes on mortgages each month, figures showed yesterday. The average homeowner in England and Wales saw the cost of their
home loan fall by 0.2 per cent
in January to 18.4 per cent of their take-home pay, according to the Woolwich. The bank said it
could be evidence for the beginnings of a house price recovery.
The effect of rising wages combined with static house prices means people are now paying a smaller proportion of their incomes on mortgages each month, figures showed yesterday. The average homeowner in England and Wales saw the cost of their home loan fall by 0.2 per cent in January to 18.4 per cent of their take-home pay, according to the Woolwich. The bank said it could be evidence for the beginnings of a house price recovery.

Anyone care to accept this learned newspaper's invitation to comment?

I am thinking of a word beginning withhhhhhhhhhhhhh............, I know...."B!!"

Can anyone picture the Two Ronnies in their West Country yokel skit discussing this newspaper!

Edited by Realistbear

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http://www.westpress.co.uk/displayNode.jsp...&folderPk=75885

HOMES ARE AFFORDABLE

Next Story | Previous Story | Back to list

Be the first reader to comment on this story

10:51 - 09 February 2006
The effect of rising wages combined with static house prices means people are now paying a smaller proportion of their incomes on mortgages each month, figures showed yesterday. The average homeowner in England and Wales saw the cost of their
home loan fall by 0.2 per cent
in January to 18.4 per cent of their take-home pay, according to the Woolwich. The bank said it
could be evidence for the beginnings of a house price recovery.
The effect of rising wages combined with static house prices means people are now paying a smaller proportion of their incomes on mortgages each month, figures showed yesterday. The average homeowner in England and Wales saw the cost of their home loan fall by 0.2 per cent in January to 18.4 per cent of their take-home pay, according to the Woolwich. The bank said it could be evidence for the beginnings of a house price recovery.

Anyone care to accept this learned newspaper's invitation to comment?

I am thinking of a word beginning withhhhhhhhhhhhhh............, I know...."B!!"

Can anyone picture the Two Ronnies in their West Country yokel skit discussing this newspaper!

Any Increase in wages is simply dwarfed by the soaring cost of gas, electric, Oil, petrol, Food, Council tax, Child care. In fact many will find that their wage increase does'nt even cover these increases , let alone having more disposable income for mortgages. NUMPTIES.

Edited by crash 2005

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Any Increase in wages is simply dwarfed by the soaring cost of gas, electric, Oil, petrol, Food, Council tax, Child care. In fact many will find that their wage increase does'nt even cover these increases , let alone having more disposable income for mortgages. NUMPTIES.

Agreed 100%

My wage went up by 3% in January. Inflation was supposed to be about 2.0% (in December), so theoretically, with my take home pay up 3% and my living costs, which are less than my take home pay, up 2.0%, I should have more surplus. But I actually have less. Someone's telling porkies about inflation methinks.

As for this crazy publication... :lol:

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There is the small point of that little word "average" again.

Indeed. The average buyer on an average salary buying an average house with the average deposit is probably paying out 50% of take home pay on mortgage costs.

Hence, houses are not affordable. Long term, wage inflation is unlikely to erode the debt.

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Key thing here is what percentage does a person who is either a ftb or someone trading up pay as a percentage of income.

My parents don't have a mortgage therefore the house is very affordable to them. Loads of people (the majority of the housing market) haven't moved in the last 5 years hence their mortgages are affordable.

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Key thing here is what percentage does a person who is either a ftb or someone trading up pay as a percentage of income.

My parents don't have a mortgage therefore the house is very affordable to them. Loads of people (the majority of the housing market) haven't moved in the last 5 years hence their mortgages are affordable.

The affordability aspect affects FTBs who are essential to move the chains (if your parents want to move they have to find a buyer and that buyer may need to find a FTB etc.). It also affects "investors" and speculators who can no longer speculate when a market is either static or in decline. Anyone moving is faced with increased taxes even though they can afford their present house. Thus, OO's without a mortgage are affected indirectly as the economy sinks under the weight of Gordon "miracle economy" Brown's credit bubble.

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Key thing here is what percentage does a person who is either a ftb or someone trading up pay as a percentage of income.

My parents don't have a mortgage therefore the house is very affordable to them. Loads of people (the majority of the housing market) haven't moved in the last 5 years hence their mortgages are affordable.

And there lies the rub.

It calls to mind the bell scale, statistics and the standard deviation for some bizarre reason. I think what is really bizarre when the average is relying, not on a relationship with the rest of the normal population, but on those who fall out the bottom of statistical normality to hold up the bell.

Edited by Elizabeth

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And there lies the rub.

It calls to mind the bell scale, statistics and the standard deviation for some bizarre reason. I think what is really bizarre when the average is relying, not on a relationship with the rest of the normal population, but on those who fall out the bottom of statistical normality to hold up the bell.

Just accept that those with an agenda in all this will use the "average" to disguise the reality.

"Average" means nothing to most potential FTBs, as we know.

It's all a scam to present a picture of "Problem what problem?".

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18.5% of wages has to be all the people with 15 years of a mortgage added in

example

the average wage in my town is prob about 20k, this is average mind ie 3 people on 10k and one on 50k working in a government job.

hence

18.5 % of 20k = 3700

well 3700 pounds a year would give you a mortgage of 50k a year if its 18.5% of your wage your paying, so this story is complete ********.

what it realy means is every mortgage payment left due on every house in the land would make 18.5% of the average wage.

trouble is that aint ftb's is it now

so what the woolwich is saying is we will never ever own a house, great company huh

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well 3700 pounds a year would give you a mortgage of 50k a year if its 18.5% of your wage your paying, so this story is complete ********.

I think this story is simply complete. The average (remaining) mortgage in your area could well be 50k. Remember a lot of baby boomers (and they make up the 'average' wage too) have paid their mortgages off already, so they're all paying 0% of their wage, bringing down the average to 18.5 %

I only know one person who owes more than 150k to a mortgage lender. Yet average prices in my area are 250k. This is how I know it doesn't add up.

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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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