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BullsEye

'average Prices' Nonsense

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So average house prices are seven times average wages. But has it not occured to you that someone buying an 'average house' is likely to have equity from their starter home or flat, which is only four times average income? I've yet to see evidence that house prices are unsustainable at this level. Interest rates are low, you see.

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Guest Guy_Montag

So average house prices are seven times average wages. But has it not occured to you that someone buying an 'average house' is likely to have equity from their starter home or flat, which is only four times average income? I've yet to see evidence that house prices are unsustainable at this level. Interest rates are low, you see.

Ok, let's take average income vs. average house prices & plot the graph. What happens? Looks just like the one on the front page.

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does it also occur to you that the average starter home buyer is below average income?

I think the notion of salary and age being linked is increasingly not the case. Means there is no reason why there ought to be a housing "ladder".

Edited by FollowTheBear

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Ok, let's take average income vs. average house prices & plot the graph. What happens? Looks just like the one on the front page.

But with low interest rates for the forseeable future the graph line can move upwards quite a bit.

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Guest Guy_Montag

But with low interest rates for the forseeable future the graph line can move upwards quite a bit.

How forseeable is the future?

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So average house prices are seven times average wages. But has it not occured to you that someone buying an 'average house' is likely to have equity from their starter home or flat, which is only four times average income? I've yet to see evidence that house prices are unsustainable at this level. Interest rates are low, you see.

gosh...that is so kind of you to point out the low interest rates. perhaps we will all go out now and buy a house because we can afford the interest repayments.

on the other hand, some of us might just wait and see what happens if interest rates rise.

ellen

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How forseeable is the future?

It isn't. That's why you've been so wrong for so long in predicting a house price crash.

If oil prices can treble and inflation barely moves then the economy is better insulated from shocks than you think, so low interest rates for the forseeable future is a good guess.

gosh...that is so kind of you to point out the low interest rates. perhaps we will all go out now and buy a house because we can afford the interest repayments.

on the other hand, some of us might just wait and see what happens if interest rates rise.

ellen

You seem to think there was a golden age where every tom, dick, harry, shiela, shirley and ellen could all afford a house. Houses and mortgages have always been expensive things.

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Guest absolutezero

It isn't. That's why you've been so wrong for so long in predicting a house price crash.

If oil prices can treble and inflation barely moves then the economy is better insulated from shocks than you think, so low interest rates for the forseeable future is a good guess.

You seem to think there was a golden age where every tom, dick, harry, shiela, shirley and ellen could all afford a house. Houses and mortgages have always been expensive things.

Can I be the first to say it? Never done it before.

AWOOOOGA!

Troll!

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Can I be the first to say it? Never done it before.

AWOOOOGA!

Troll!

I see. I'm new to this and believed it to be a discussion forum. I obviously have some valid points that you do not wish to challenge. Still, I'm not going anywhere, so AWOOGA away!

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Guest absolutezero

I see. I'm new to this and believed it to be a discussion forum. I obviously have some valid points that you do not wish to challenge. Still, I'm not going anywhere, so AWOOGA away!

If you could actually be bothered to read a few of the topics on here before posting you would find that your argument has been discussed many many times before.

The fact you haven't (or maybe you have done but want to wind people up) makes me think you are a troll.

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If you could actually be bothered to read a few of the topics on here before posting you would find that your argument has been discussed many many times before.

The fact you haven't (or maybe you have done but want to wind people up) makes me think you are a troll.

Show me, then, where these arguments have been discussed before and been properly answered. I've noticed some threads but the points of the 'bulls' just get ignored and slagged off in an immature way. I think many are getting the gut feeling they've been wrong and are pissed off.

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Show me, then, where these arguments have been discussed before and been properly answered. I've noticed some threads but the points of the 'bulls' just get ignored and slagged off in an immature way. I think many are getting the gut feeling they've been wrong and are pissed off.

Bullseye

Please don't assume that any reasoned argument will change the views of those who firmly believe in and desire hpc.

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Show me, then, where these arguments have been discussed before and been properly answered. I've noticed some threads but the points of the 'bulls' just get ignored and slagged off in an immature way. I think many are getting the gut feeling they've been wrong and are pissed off.

Bear or not, i don't think anyone will dispute the arguement that house prices are stupid right now relative to wages - starter homes in York are around 130-140k very few FTBs can realistically get onto the market without substantial support from parents. I am the only one of my friends even able to consider a making a purchase anytime soon (but only by virture of earning well above the average wage and can place a deposit of £40k).

That said I've noticed that the property market here is strong (lots of properties selling quickly) but this is largely funded by parents, not everyone comes from a well off background so this cannot last forever.

The question is wether this will correct itself via a HPC or stagnation (where wage inflation catches up over a number of years).

I don't personally see any obvious triggers for a HPC in the near future namely a 1-2% hike in interest rates (there's been talk of a 0.25% hike but i don't believe that is enough to start a HPC). So stagnation looks like the most likely route for the time being but the dangers of a HPC still remain.

If a HPC does occur it will most likely be one of these unexpected outside economic shocks, which we can only speculate on.

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does it also occur to you that the average starter home buyer is below average income?

Its the way people calculate it..

the average salary is half way through your working life..

hell, the average house? what is that.. ? is it a what a 3 bed semi costs (average house)

or is it the property that sells most units....?

Its funny how people how now will fail financially if prices droped get angry with me when I simply say that I cannot afford it..

q: why don't you buy a house apom?

a: I can't afford a house?

q: You can

a: no, even four times my salary struggles to buy a rubbish studio flat in a druggy house...

q: You can borrow more then that as a multiple...

a: only by lying, and then how do I pay of the loan??

Dumb arses.. w

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So average house prices are seven times average wages. But has it not occured to you that someone buying an 'average house' is likely to have equity from their starter home or flat, which is only four times average income? I've yet to see evidence that house prices are unsustainable at this level. Interest rates are low, you see.

The average wage is £23,000. What can you buy for £92,000?

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Guest grumpy-old-man

what I have personally noticed (no stats or graphs I'm afraid), is that the needs of buyers have changed dramatically. When we bought our 1st & 2nd house we were just glad to own one.

we had couples who were in the mid 20's looking at 4 bedroomed property with no children, some of them had no property & were looking at huge mortgages.They were complaining that the guest bedrooms were not all doubles :blink:

I asked some of them what they did for a living & I can assure you that they could not of been on good money, but instead taking advantage of cheap credit.

Obviously their are some people who may have been left money, there will always be the odd ones out that don't fit the average or norm.

as each new generation comes along in the UK they need more. Who do you know with a car older than 3 years ? not many I bet.

how many of these also have 2 holidays a year, have gym memberships, all the gadgets, conservatories, extensions, interior decor updated every couple of years. they have not paid cash or saved up for any of this.

somethings changed dramatically in the UK in the last 10 years & IMO we WILL pay the price soon (next 2 years I reckon)

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Guest grumpy-old-man

my car is a 96 volvo. free from my dad when he upgraded :lol:

I'm driving a 1998 renault laguna diesel :o

I find it amusing how people treat differently you when you are renting & with an old car (I am 39 as well)......I reckon you actually meet/make better friends when people think you have nothing.

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From the Annual Survey of Hours and Earnings (ASHE) 2005

Full-time employee jobs:

All : median £22,900, mean £28,210.

male: median £25,087, mean £31,485.

female: median £19,447, mean £22,964.

so add around 3—4% for the 2006 figures.

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Guest Charlie The Tramp

You seem to think there was a golden age where every tom, dick, harry, shiela, shirley and ellen could all afford a house. Houses and mortgages have always been expensive things.

No, there was the 60s, 70s, early 80s, and mid to late 90s when even Uncle Tom Cobbly could afford to buy one. ;)

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my car is a 96 volvo. free from my dad when he upgraded :lol:

SNAP! but 94

Getting back to bullseye's original post.

But has it not occured to you that someone buying an 'average house' is likely to have equity from their starter home or flat, which is only four times average income?

So who is going to buy this flat to release all this equity? There has to be someone at the bottom, right?

Come on. Own up! How much did you borrow? Did you lie to buy? Did you fix your rates? Have you managed to sell? Are you priced out and looking for some arguments to help convince you?

You'll get a lot more positive response if you set out your position rather than the approach which seems more akin to a hit and run troll.

btp

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So average house prices are seven times average wages. But has it not occured to you that someone buying an 'average house' is likely to have equity from their starter home or flat, which is only four times average income? I've yet to see evidence that house prices are unsustainable at this level. Interest rates are low, you see.

Join forum at 10.46. Start thread at 10.55 assuming the 5026 forum members before you are stupid.

Great start. What's next? How to make millions out of BTL? Can't wait.

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No, there was the 60s, 70s, early 80s, and mid to late 90s when even Uncle Tom Cobbly could afford to buy one. ;)

Weren't a helluva lot (if not most) people living in council housing in the 60s, 70s, early 80s?

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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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