Jump to content
House Price Crash Forum
Sign in to follow this  
Realistbear

" Property Prices Outstrip Average Incomes In West By 10-1"

Recommended Posts

http://www.westpress.co.uk/displayNode.jsp...;pNodeId=146265

WE ARE FEELING THE PINCH

08:00 - 18 August 2007
HOUSING experts are warning that the West is the most difficult and unaffordable place in the UK to buy property.The reason for this is that 27,000 households are created in the region each year but only 18,000 properties are built, according to a group of private house builders, housing associations, professionals and employers called the South West Housing Initiative
The lack of houses, especially affordable ones, has seen property prices outstrip average incomes in the West by 10-1, with even the most generous of mortgage lenders only willing to consider a loan on five times earning, just half that ratio.

If the sheeple can "only" borrow 5 times income, and then only if they find a lender still willing to be that irresponsible, and houses cost 10 times income, the inevitable conclusion is that prices either drop 50% or the houses ain't gonna sell.

The brick wall has finally been struck. As Michael Jagger sang all those years ago: "It's all over now.........."

Edited by Realistbear

Share this post


Link to post
Share on other sites
http://www.westpress.co.uk/displayNode.jsp...;pNodeId=146265

WE ARE FEELING THE PINCH

08:00 - 18 August 2007
...according to a group of private house builders, housing associations, professionals and employers called the South West Housing Initiative
Isn't this just a group of people who want to build more houses finding an argument for building more houses?
I think the headline stats are misleading - surely most people who have owned for at least a few years will have a good chunk of equity, the info should therefore be average mortgage versus salary.

Share this post


Link to post
Share on other sites
Isn't this just a group of people who want to build more houses finding an argument for building more houses?

I think the headline stats are misleading - surely most people who have owned for at least a few years will have a good chunk of equity, the info should therefore be average mortgage versus salary.

It is obviously written by "experts" (EAs) but the point is simply how ridiculous prices have become in relation to the fundamentals (wages). IMO, in a miracle economy where debt is illusion and house prices real it makes no difference how many houses they build as there will always be more people than supply to buy them as long as Brown can keep the flow of immigrants and breeding going.

If Brown's vision for Britain is not destroyed soon this country willl not longer be a fit place to live and we are getting perilously close to driving out our only hope for the future --the younger generation.

Share this post


Link to post
Share on other sites
It is obviously written by "experts" (EAs) but the point is simply how ridiculous prices have become in relation to the fundamentals (wages). IMO, in a miracle economy where debt is illusion and house prices real it makes no difference how many houses they build as there will always be more people than supply to buy them as long as Brown can keep the flow of immigrants and breeding going.

If Brown's vision for Britain is not destroyed soon this country willl not longer be a fit place to live and we are getting perilously close to driving out our only hope for the future --the younger generation.

I agree on a lot of what you write above, I just want to offer a viewpoint on what the fundamentals are these days: I am not so sure that the fundamentals are just salaries, you have to look at salary + equity. It is not hard to have 30-50% equity in a house if you have owned for 4 years.

Take the 10 times earnings headline. Say a couple have oned for 5 years and have 50% equity. Well, that makes the mortgage 5 times average salary. If both work then the combined salary may well be twice the average, or lets say 1.5 times...suddenly doesn't look such a desperate situation.

Share this post


Link to post
Share on other sites

I saw this headline in yesterdays regional paper:

http://www.westernmorningnews.co.uk/displa...;pNodeId=201778

With 1 in 27 homes in the region being a second home, is it any wonder that we have a housing crisis in the West Country.

Nearly 28000 ( in increasing) second homes in Devon and Cornwall versus 7500 affordable homes to be built in the next 3 to 4 years.

There would be no shortage of housing if people just stuck to having one!

Share this post


Link to post
Share on other sites
I agree on a lot of what you write above, I just want to offer a viewpoint on what the fundamentals are these days: I am not so sure that the fundamentals are just salaries, you have to look at salary + equity. It is not hard to have 30-50% equity in a house if you have owned for 4 years.

Take the 10 times earnings headline. Say a couple have oned for 5 years and have 50% equity. Well, that makes the mortgage 5 times average salary. If both work then the combined salary may well be twice the average, or lets say 1.5 times...suddenly doesn't look such a desperate situation.

People already in are okay. The problem is that HPINFLATION requires a constant supply of bottom feeders to keep the big fish on top alive. If you remove FTBs completely chains lock up and market gridlocks and crashes. IMO, we are very close to that point.

Share this post


Link to post
Share on other sites
I saw this headline in yesterdays regional paper:

http://www.westernmorningnews.co.uk/displa...;pNodeId=201778

With 1 in 27 homes in the region being a second home, is it any wonder that we have a housing crisis in the West Country.

Nearly 28000 ( in increasing) second homes in Devon and Cornwall versus 7500 affordable homes to be built in the next 3 to 4 years.

There would be no shortage of housing if people just stuck to having one!

That is why I just updated my signature with some wisdom from old. The proliferation of 2nd home buying is all part and parcel of Brown's miracle that has really created misery for so many people.

Share this post


Link to post
Share on other sites
I agree on a lot of what you write above, I just want to offer a viewpoint on what the fundamentals are these days: I am not so sure that the fundamentals are just salaries, you have to look at salary + equity. It is not hard to have 30-50% equity in a house if you have owned for 4 years.

Take the 10 times earnings headline. Say a couple have oned for 5 years and have 50% equity. Well, that makes the mortgage 5 times average salary. If both work then the combined salary may well be twice the average, or lets say 1.5 times...suddenly doesn't look such a desperate situation.

Not sure if I understand/agree with your statement.

WRT affordability, if I take out a loan now that is 5 times my salary, please explain to me in simple terms (I'm not the brightest spark) how I will only be paying 1.5 times my salary in 4 years time?

Share this post


Link to post
Share on other sites
The reason for this is that 27,000 households are created in the region each year

Uh?!! 27,000 households a year? I'd like to see what they mean by households and created. Do they mean breeding or retirees forcing the locals out? I'd go for the latter

Share this post


Link to post
Share on other sites
People already in are okay. The problem is that HPINFLATION requires a constant supply of bottom feeders to keep the big fish on top alive. If you remove FTBs completely chains lock up and market gridlocks and crashes. IMO, we are very close to that point.

This is what i used to believe in. Any genuine FTB in the traditional sense, i mean mid to late 20's are a thing of the past. Genuine FTB'ers are just getting older, they have to stay renting or live with parents until they can buy. I think i read somewhere the average FTB'er is now 35. So we do have a reducution in numbers of genuine FTB'ers, but the slack is being taken up by investors. The people with real money, not 40k or 50k, but 150k + per annum. Any credit crunch will not hit these ppl, the managers, traders or sales/marketing lot with the big six figs. It will only hit ppl like me, on the lower end of the wage scale. Things would have to get really bad - big job losses to upset that party, but then that would hit all of us. IR hikes and credit crunch will not hit the big guys will it?

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 355 The Prime Minister stated that there were three Brexit options available to the UK:

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.