Thursday, July 10, 2008

Nice headline for people who don’t understand percentages

House prices fall by £20,000 in a year

Not much to add, good stuff nonetheless.

Posted by mark wadsworth @ 02:45 PM (1466 views)
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15 thoughts on “Nice headline for people who don’t understand percentages

  • You’ve got to laugh, the words “bad news day” were coined for days like these. Even the daily maul is now entering the realms of, maybe, just possibly, admitting that were, well in, omigod, a House Price Crash….

    What say you Kurtsie and Phril

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  • Global Insight maybe but UK insight?

    Anyway this more or LESS says it all “A couple earning around £27,500 would now have to save more than a year’s worth of their take-home pay to buy a house, according to a new survey from the Royal Instition of Chartered Surveyors.”.

    Now what does that actually mean? and how is it going to work out that in two years time they will have saved enough to buy that house? Buy a house? What own it? Put a deposit on it big enough to secure a mortgage? And what house? A studio flat a 2 bedder what?

    I am tempted to take the implication of the average couples average wage for the average age of when a FTB would be a FTB on average in the past, and by buying a house they mean securing a Current average deposit on a average priced house.

    Anyone wanna help am i being a bit dim? Or is it just lazzzzzzy journalism?

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  • techieman…
    I reckon he might be saying to buy the average house the couple need to have a deposit of nearly 30k to even stand a chance of getting a mortgage, er maybe. Perhaps it’s lazy journalism, this is the daily maul after all!

    not getting much work done today, I’m just having toooo much fun!

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  • I know the feeling nooneo, costing me a fortune this House Price Crash and I haven’t even got one.

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  • Ablsolutely brilliant str 2007….

    “costing me a fortune this House Price Crash and I haven’t even got one.” – I’m self employed, costing me too. What a day, all I need now is a property pornstar to either go bust, or to pop up on CH4 news saying “sound fundementals, blah, low interest rates, blah, low unemployment, blah, blah, blah” to make my day complete (though I doubt if my torso will take any more giggling if Kurtsie and Phril make an appearance, reckon i might actually cack myself then).

    What a larf, init!

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  • Actually just looked down the page at the (posted) Times version of this http://business.timesonline.co.uk/tol/business/money/property_and_mortgages/article4305394.ece

    “Couples who have a combined take-home pay of £27,500 or less would have to save more than a year’s salaries to pay for a deposit, stamp duty and solicitors’ fees on the average first-time home – a total bill of £27,738 – figures from the Royal Institute of Chartered Surveyors (RICS) show. Couples both earning the average wage would have to set aside two thirds of their take-home pay of £44,000 to cover the bill.

    Right so thats BOUND to happen – if they dont eat drive a car go out etc etc. and if they did that they would split up!!

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  • george monsoon says:

    An average couple saving a years worth of wages… yea right.. Thas not going to happen EVER. We live in a world where people think “buy now, pay later”. Nobody saves anymore and not because they don’t care to, but society has designed a lifestyle that does not allow you to save.

    I have no personal debt and I cannot afford to save more than a few quid a month.. probably about 2 grand a year if I don’t have any domestic disasters, so the idea that a couple must save their entire wage for 1 whole year just to have enough to secure a mortgage is impossible.

    Just hang around for another 2 years, when houseprices are through the floor and you can put forward 3 or 4 grand to secure a mortgage of 3 x salary to buy your home. If it doesn’t happen, then I will personally take a large gun and shoot as many politicians and bank managers that I can, until I get caught.

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  • george monsoon says:

    addendum to that last comment.. “Who’s with me?”

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  • george monsoon says:

    No, sorry I have to vent some of my anger here.. 27,000 + just to get yourself in major dept? come on !

    If anyone out there has 27 k to spare, then they aren’t a first time buyer. Anyone getting on the ladder with this kind of cash must be in Daddy’s pocket. I can only dream of having 27k in the bank and if I did, I sure as hell won’t be sinking it into property right now “sinking being the operative word here”. I would probably use it to move abroad and setup somewhere with a manufacturing / farming industry..!

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  • Average of 20K — So what’s that worth before taxed earnings or Gross salary (not to mention getting to work etc.) ?

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  • mark wadsworth says:

    What’s better, saving up £27k for a deposit (which you can always spend on something else if you change your mind) or losing £20k a year on the value of your home?

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  • george m – you are speaking on behalf of 100’s of 1,000’s in the same boat – no wonder it’s sinking

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  • it_is_going_with_a_bang says:

    “By 2010, the consultancy Capital Economics said it expects house prices to have fallen 35 per cent from their peak last year.”

    Alot of hat eating will be going on up and down the country no doubt.

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  • bring_it_on says:

    “First-time buyers, who have not been able to afford to buy, cannot even celebrate the current market meltdown. Tough new rules about mortgages, with lenders demanding huge deposits, means many cannot get the loan needed to buy”

    Aaah, poor first time buyers, watching the housing market collapse before their eyes. They must be gutted that they can’t get a mortgage to buy a house which is going to be worth less in 2 years than it is now……….NOT!!!

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  • mark wadsworth says:

    For some reason they have now changed the headline and the article – but it’s EVEN BETTER!!

    “House prices falling at fastest rate for 50 years”

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