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DoubleBubbleTrouble

House Price Calculator With A Twist

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Be interested in hearing your thought's/bug reports on this cunning house price calculator we've just released;

Take the Priced Out Home Owner test

22nd March 2006

Home owners, open your eyes to how bad things have got using our new Would You Be Priced Out calculator. Using this tool you can see if you would be priced out of the first home you bought if you were unlucky enough to be buying today.

For the rest of us, send those irritating friends and colleague's here, you know the one's who keep telling you it can't be that bad, to see just how hard it is to get onto the ladder these days.

It's part of our program to open peoples eye to how bad things have got.

You can also pump any old figures into it to see just how scary HPI has been from given dates. It's eye watering trust me!

Edited by DoubleBubbleTrouble

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Some comments:

1) Is the pay supposed to be monthly or annual?

2) My property not increased in value by anything like the amount shown in the model: I'd check your inputs if I were you.

AB

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Some comments:

1) Is the pay supposed to be monthly or annual?

2) My property not increased in value by anything like the amount shown in the model: I'd check your inputs if I were you.

AB

Annual.

It's based on the Nationwide average house price figures.

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Annual.

It's based on the Nationwide average house price figures.

Sounds like South West London is due for a correction... upwards!

Or the rest of the country needs to cool off.

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Be interested in hearing your thought's/bug reports on this cunning house price calculator we've just released;

It's part of our program to open peoples eye to how bad things have got.

You can also pump any old figures into it to see just how scary HPI has been from given dates. It's eye watering trust me!

You aren't necessarily priced out if you have the deposit to cover the gap between the house price and the obtainable mortgage.

Therefore it might be worth saying 'the price today is xxx, the mortgage you could get is xxx and therefore you need xxx deposit or you could not afford your home today'.

In my example I was £40K short but if I had that I wouldn't be priced out. You are assuming that everyone gets a 100% mortgage which of course is definitely not the case.

It also produces some shocking figures i.e. some very large deposits needed to plug the gap which would get people thinking.

Edited by munimula

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You aren't necessarily priced out if you have the deposit to cover the gap between the house price and the obtainable mortgage.

Therefore it might be worth saying 'the price today is xxx, the mortgage you could get is xxx and therefore you need xxx deposit or you could not afford your home today'.

In my example I was £40K short but if I had that I wouldn't be priced out. You are assuming that everyone gets a 100% mortgage which of course is definitely not the case.

It also produces some shocking figures i.e. some very large deposits needed to plug the gap which would get people thinking.

Yeah we thought about putting in a deposit section but were worried it was getting too complicated and would discourage people from using it. What's everyone's opinion on that, should we add it or not?

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You aren't necessarily priced out if you have the deposit to cover the gap between the house price and the obtainable mortgage.

Therefore it might be worth saying 'the price today is xxx, the mortgage you could get is xxx and therefore you need xxx deposit or you could not afford your home today'.

In my example I was £40K short but if I had that I wouldn't be priced out. You are assuming that everyone gets a 100% mortgage which of course is definitely not the case.

It also produces some shocking figures i.e. some very large deposits needed to plug the gap which would get people thinking.

Same here. It assumes a 100% mortgage and so priced me out. Perhaps there should be a calculator for how much mortgage is needed. I only need about a 30% mortgage.

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The other problem with adding a deposit is how do we convert that to today's term's... use the % increase inline with the average salary?

Same here. It assumes a 100% mortgage and so priced me out. Perhaps there should be a calculator for how much mortgage is needed. I only need about a 30% mortgage.

It's not really for if you can afford now... it's to show if you were buying the first home you ever bought today instead of when you actually bought it, whether you'd be able to afford it.

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This is fantastic - I have mailed the URL to my folks and a couple of boomer couples

:)

As for adding deposits as a factor, could you have two side by side, one with, one without?

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This is fantastic - I have mailed the URL to my folks and a couple of boomer couples

:)

As for adding deposits as a factor, could you have two side by side, one with, one without?

Good idea, I'll do a simple calculator and an advanced one. Leave it with me. Anyone got any ideas for other eye opening house price related calculators I could do (preferably one's which haven't been done before).

Very funny, it tells me that I would be earning about 25% more than I actually would for the same job in the same company today.

Yeah I'm rather suspicious of the Nationwide et al's data... hands up who has had 25% increases since 2000?

Edited by DoubleBubbleTrouble

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Good idea, I'll do a simple calculator and an advanced one. Leave it with me. Anyone got any ideas for other eye opening house price related calculators I could do (preferably one's which haven't been done before).

Yeah I'm rather suspicious of the Nationwide et al's data... hands up who has had 25% increases since 2000?

Does anyone have the link to nationwides data please. need to bbokmark it. cheers

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Good idea. I like your thinking and direction of the www.pricedout.org.uk website. B) Certainly better than that rubbish Converted Lurker is trying to peddle over on 'that' other place. :lol:;)

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Be interested in hearing your thought's/bug reports on this cunning house price calculator we've just released;

It's part of our program to open peoples eye to how bad things have got.

You can also pump any old figures into it to see just how scary HPI has been from given dates. It's eye watering trust me!

I see there is no mention of interest rates...

Lets look at real life situations:

1989 Interest rates 15%

Average salary £12K

Average house £62K (nationwide)

Monthly (fixed) repayments £790pm

Monthly net income around £750pm

Monthly income after mortgage -£50 (loss)

2006 Interest rates 4.5%

Average Salary £25k

Average house £155k (nationwide)

Monthly (fixed) repayments £880pm

Monthly net income around £1500pm

Monthly income after mortgage £620

I CHALLENGE YOU TO PROVE TO ME IT WAS EASIER TO BUY A FIRST HOUSE IN 1989 COMPARED TO TODAY.

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Guest Winners and Losers

I see there is no mention of interest rates...

Lets look at real life situations:

1989 Interest rates 15%

Average salary £12K

Average house £62K (nationwide)

Monthly (fixed) repayments £790pm

Monthly net income around £750pm

Monthly income after mortgage -£50 (loss)

2006 Interest rates 4.5%

Average Salary £25k

Average house £155k (nationwide)

Monthly (fixed) repayments £880pm

Monthly net income around £1500pm

Monthly income after mortgage £620

I CHALLENGE YOU TO PROVE TO ME IT WAS EASIER TO BUY A FIRST HOUSE IN 1989 COMPARED TO TODAY.

It was easier for me. Why aren't you using Rightmove's average price of 200k? Oh, to pick and choose the spin.

Hang on, wasn't 89 the peak? Fast forward 1996 - price paid for flat in LONDON = 65k. Wage 18k. Well, by jingo - what happened to house prices between 89 and 96?

Edited by Winners and Losers

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It was easier for me. Why aren't you using Rightmove's average price of 200k? Oh, to pick and choose the spin.

Did Rightmove exist in 1989?

I used the data from the same source for both years i.e. Nationwide.

These are from the same source as the figures used in the graph on the front page of this website.

You could argue there was some MIRAS relief in 1989 (but MIRAS was reduced in 1988)

Even so, the data shows it was much tougher in 1989 than today.

what happened to house prices between 89 and 96?

Well, according to Nationwide they fell from £62k to around £51k in the lowest bit of the dip (in 1995) (UK average)

Equivalent to -18%.

Edited by Without_a_Paddle

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Guest Winners and Losers

Did Rightmove exist in 1989?

I used the data from the same source for both years i.e. Nationwide.

These are from the same source as the figures used in the graph on the front page of this website.

You could argue there was some MIRAS relief in 1989 (but MIRAS was reduced in 1988)

Even so, the data shows it was much tougher in 1989 than today.

But I thought the average price was 200k. What are you saying? You don't believe Rightmoves figures? Why can't I afford to buy the same property again in 2006 then?

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But I thought the average price was 200k. What are you saying? You don't believe Rightmoves figures? Why can't I afford to buy the same property again in 2006 then?

Just ran my bungalow I purchased in Reading for £14,000 in 1978.It says it would be worth £95,000 now.Thats what I think it is worth not the crazy £200,000 + an EA would tell me I should sell it for-----HPI,load of fecking madness if you ask me!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

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But I thought the average price was 200k. What are you saying? You don't believe Rightmoves figures?

Rightmove quote the initial asking price so can only be compared with other Rightmove price data. Find me some Rightmove data for 1989...

Why can't I afford to buy the same property again in 2006 then?

I presume you must have some bad debts or you have made some poor career choices if you cannot afford to buy in 2006 (assuming you say you could afford to buy in 1989)

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Guest Bart of Darkness

Yeah we thought about putting in a deposit section but were worried it was getting too complicated and would discourage people from using it. What's everyone's opinion on that, should we add it or not?

I vote yes.

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Guest Winners and Losers

Rightmove quote the initial asking price so can only be compared with other Rightmove price data. Find me some Rightmove data for 1989...

I presume you must have some bad debts or you have made some poor career choices if you cannot afford to buy in 2006 (assuming you say you could afford to buy in 1989)

Thought you would say that. Wrong, wrong and wrong again. I am VERY cautious (born in the year of the dog you see). No debts, not a one - never. I have never borrowed money to buy a car or MEW'd. I have been divorced though. That cost me 8k! Now earning 30k up North. Before I got my current job, I was interviewed for a job (Executive Officer for the Healthcare Commission) paying around 50k in London. Considering I started out as a Receptionist and worked my way up to Management, not bad going really. The last 4 jobs I have held (2 in London, 1 in Sydney and 1 now) have specified 'degree essential'. I have no degree, but got the jobs. I could AFFORD to buy now, but to buy the same property would be more than 3.5 times my income and the mortgage would be higher than it was in 97. A quick look back at my bank statements showed that I was paying around 6% interest in 97. I needed 3k deposit in 97. Now I would need 4 times that. But I don't earn 4 times more. Even if I earnt 50k in London (hard to find), It would not be 4 x what I was earning in 97. I would need closer to 80k. In a nutshell, I am saying that it was EASIER for me to buy then than it would be now. I was only 26 and found it quite easy on my salary and to find a property I could afford that was very nice. I pity FTB's today and so shoud you. Many are probably not earning much more than I was back in 97, so how on earth are they going to buy the same property that I could?

Btw, I work in a company employing 60 people. The other managers (all older than me by 10 years plus) are on same salary as me. The only others on higher salaries are CEO and Depty CEO. Everyone else (around 50) are on less. Most 30 year olds where I work are earning 20-25k. But the majority are on less than 20k. I know, I'm the HR Manager. I just had 20 applicants (95% of them with degree's, although not required for the job) for a position paying 11k.

Edited by Winners and Losers

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Thought you would say that. Wrong, wrong and wrong again. I am VERY cautious (born in the year of the dog you see). No debts, not a one - never. I have never borrowed money to buy a car or MEW'd. I have been divorced though. That cost me 8k! Now earning 30k up North. Before I got my current job, I was interviewed for a job (Executive Officer for the Healthcare Commission) paying around 50k in London. Considering I started out as a Receptionist and worked my way up to Management, not bad going really. The last 4 jobs I have held (2 in London, 1 in Sydney and 1 now) have specified 'degree essential'. I have no degree, but got the jobs. I could AFFORD to buy now, but to buy the same property would be more than 3.5 times my income and the mortgage would be higher than it was in 97. A quick look back at my bank statements showed that I was paying around 6% interest in 97. I needed 3k deposit in 97. Now I would need 4 times that. But I don't earn 4 times more. Even if I earnt 50k in London (hard to find), It would not be 4 x what I was earning in 97. I would need closer to 80k. In a nutshell, I am saying that it was EASIER for me to buy then than it would be now. I was only 26 and found it quite easy on my salary and to find a property I could afford that was very nice. I pity FTB's today and so shoud you. Many are probably not earning much more than I was back in 97, so how on earth are they going to buy the same property that I could?

Btw, I work in a company employing 60 people. The other managers (all older than me by 10 years plus) are on same salary as me. The only others on higher salaries are CEO and Depty CEO. Everyone else (around 50) are on less. Most 30 year olds where I work are earning 20-25k. But the majority are on less than 20k. I know, I'm the HR Manager. I just had 20 applicants (95% of them with degree's, although not required for the job) for a position paying 11k.

All of a sudden we are comparing 2006 with the cheap prices of 1997 (instead of the last boom in 1989)

:rolleyes:

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I see there is no mention of interest rates...

Lets look at real life situations:

1989 Interest rates 15%

Average salary £12K

Average house £62K (nationwide)

Monthly (fixed) repayments £790pm

Monthly net income around £750pm

Monthly income after mortgage -£50 (loss)

2006 Interest rates 4.5%

Average Salary £25k

Average house £155k (nationwide)

Monthly (fixed) repayments £880pm

Monthly net income around £1500pm

Monthly income after mortgage £620

I CHALLENGE YOU TO PROVE TO ME IT WAS EASIER TO BUY A FIRST HOUSE IN 1989 COMPARED TO TODAY.

Oh come on you are smarter than that... interest rates are low now.

Is the government guaranteeing they are going to stay low.... NO.

Is the BoE guaranteeing they are going to stay low... NO.

What happens if they go back to the historical norm i.e. 8%... you end up paying way way more.

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  • 302 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% +
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      • Even
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