Monday, Nov 27, 2006

ummmm... I wonder what will happen if HPC occurs

Times both online and in paper: What happens when house prices collapse?

"Old-fashioned bank managers, before the age of call centres, used to regard it as their professional duty to give prudent advice to their clients. One of their rules of thumb was that young buyers should not pay more than four times their income for their first purchase of a house. For most of the past 50 years that advice has worked tolerably well. House prices did average about four times disposable income in the late 1950s, 1960s and mid-1990s"

Posted by randomkevlar @ 05:21 PM (413 views)
Add Comment
Report Article

6 Comments

1. Robert said...

Its all about affordability. The costs of a mortage relative to income is still relatively low. Hard to believe I know but when banks are offering mortgages at below base rate what do you expect. What is more, world wide countries have realised that inflation is more important to control hence low interest rates.

Tuesday, November 28, 2006 09:19AM Report Comment
 

2. Chillilizard said...

hmm

So if prices are on average 4 times disposable income; and they are currently six.
Then for the average to be an average, houses should spend half their time below 4 times disp income.

Which means we should be expecting a crash of about 66%? 6 - > 2 (which would put 4 in the middle.) the difference of 4 is 66% of 6.

Anything wrong with my maths? Maybe something wrong with the statistic.


hmm reminds me of:

"There are 3 kinds of lies: Lies, damned lies and statistics"

Tuesday, November 28, 2006 10:06AM Report Comment
 

3. monty said...

Some solid points by WRM.

Tuesday, November 28, 2006 04:15PM Report Comment
 

4. glorious sunshine said...

Good God!

Old-fashioned bank managers, before the age of call centres, used to regard it as their professional duty to give prudent advice to their clients. One of their rules of thumb was that young buyers should not pay more than four times their income for their first purchase of a house

So when did a FTB buy the average priced home out of the box?

What a load of total crap! Few buy the average priced home as a FTB usually its their second buy unless of course they are privileged.

And, while we are on the subject of Old-fashioned bank managers, dont wind me up! Show me an Old-fashioned bank manager and I will show you a cunt, my parents bank manager is in his box now and good enough for him! At least he isnt playing God with peoples lives anymore the wanker!

Sorry for that rage but they deserve it.

Tuesday, November 28, 2006 09:48PM Report Comment
 

5. Shanghai Tim said...

And breathe!

They weren't all bad. Quite a lot of them actually tried to help their customers. Otherwise NatWest wouldn't be able to run a marketing campaign based around retaining them.

Wednesday, November 29, 2006 02:51AM Report Comment
 

6. Blindleadtheblind said...

gs...keep your unsavoury language to yourself...if you have a point to make its better for everybody. And your point was?? Are you perhaps implying the new style bankers do not play god....wait until perhaps you or someone you know falls behind on the payments, I would love to see your comments then. Fact is both banks and borrowers have a responsibilty when it comes to borrowing large sums of money, something both have been unwilling or unable to do. Therein lie the seeds of one huge problem as I think bankruptsy / repossession rates are showing.

Wednesday, November 29, 2006 08:27AM Report Comment
 

Add comment

  • If you do not have an admin password leave the password field blank.
  • If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines
Username  
Admin Password
Email Address
Comments

Main Blog | Archive | Add Article | Blog Policies