This, I do not believe!
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It does, but there is an ever increasing population, so there is always a demand for housing. I work in the sector, and we, in the UK, are not building nearly enough houses, so there is always going to be a scarcity, and therefore always a high price.
------------------------------------ I will never again mention that I was the poster of the One Millionth Lounge Post, nor that it was complete drivel. Dalek Dave CCC Link[^] Trolls[^]
And you are in an island, so in the near future there will be not enough space for so many englishmen. I think the japanese had the same theory before their bubble burst. And if there are not enough houses in england, you can come to Spain. The banks need to dump hundreds of thousands of houses from foreclosures to the market.
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There's a reason it's only on new builds. Nobody who could afford to buy a house in the first place would actually buy one of these (unless it's buy to let). We currently rent a 2 bed detached new build, it's tiny, the walls a paper thin, parking in the entire area (apparently the biggest private development in Europe) is insane - partially due to inconsiderate neighbours, and partially due to moronic planning. We have a garage attached to the house which doesn't even belong to it! Ours is part of some communal plot of garages currently used for flytipping. On top of that, because it's so "affordable", the area is quickly becoming a dive, my car has been vandalised twice, grafitti everywhere, and 3 burnt out cars so far this year.
He who makes a beast out of himself gets rid of the pain of being a man.
The UK? My big concern about the inaffordability of house prices I saw in the UK with families increasingly forced to live in small, badly insulated (for sound) flats, with children having no garden to play in, and neighbours impingeing on each other purely because of the lack of space (ie stingyness of the developer) is the social issues and tension it causes. It is unjust and unfair in every way, and governments must make it a basic right for a family to have accomodation of a decent size with propper facilities and it should enforce that through legislation.
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The housing bubble has not burst. From 1997 to 2007 house prices doubled (at least, in some areas it tripled). Since 2007 they have fallen back, at an average of about 10%. Reduction or softening in price, yes, but the bubble is still there. see here[^]
------------------------------------ I will never again mention that I was the poster of the One Millionth Lounge Post, nor that it was complete drivel. Dalek Dave CCC Link[^] Trolls[^]
Dalek Dave wrote:
an average of about 10%.
Yes, some areas there is almost no change, London for example, but other have seen up to 30%. True though, this isnt a sufficient correction, but, as much as we arent out of the recesion caused by the debt crisis, we havent seen the full correction yet.
============================== Nothing to say.
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There's a reason it's only on new builds. Nobody who could afford to buy a house in the first place would actually buy one of these (unless it's buy to let). We currently rent a 2 bed detached new build, it's tiny, the walls a paper thin, parking in the entire area (apparently the biggest private development in Europe) is insane - partially due to inconsiderate neighbours, and partially due to moronic planning. We have a garage attached to the house which doesn't even belong to it! Ours is part of some communal plot of garages currently used for flytipping. On top of that, because it's so "affordable", the area is quickly becoming a dive, my car has been vandalised twice, grafitti everywhere, and 3 burnt out cars so far this year.
He who makes a beast out of himself gets rid of the pain of being a man.
You forgot that the garden is so small that if you have a barbecue you have to turn the food through the kitchen window.
Ideological Purity is no substitute for being able to stick your thumb down a pipe to stop the water
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Average price for a 3 bed semi is now £250,000 Average Salary is about £35,000 So husband and wife both on average salaries earn £70,000 per annum. For an affordable mortgage it should be no more than three times income. Thus £210,000, but assume there is a deposit of at least £40,000 then the average house is affordable to the average couple. No problem.
------------------------------------ I will never again mention that I was the poster of the One Millionth Lounge Post, nor that it was complete drivel. Dalek Dave CCC Link[^] Trolls[^]
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Dalek Dave wrote:
an average of about 10%.
Yes, some areas there is almost no change, London for example, but other have seen up to 30%. True though, this isnt a sufficient correction, but, as much as we arent out of the recesion caused by the debt crisis, we havent seen the full correction yet.
============================== Nothing to say.
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Erudite_Eric wrote:
drops of up to 30%
Only in the northern wastelands. London has still risen annually, and the south east in general has maintained a fairly even keel.
------------------------------------ I will never again mention that I was the poster of the One Millionth Lounge Post, nor that it was complete drivel. Dalek Dave CCC Link[^] Trolls[^]
Dalek Dave wrote:
Only in the northern wastelands.
And Wales.... ;)
Dalek Dave wrote:
London has still risen annually
As always, those regions that saw the big increases just before the bust, see the biggest falls after. Down here in Provence prices only came off about 5% at the worst and are back up to old levels so our place is still worth about 750.
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Of course not! The house prices never fall, they always go up and up and up. Basic economics and laws of offer and demand doesn't apply to the housing market.
mav@octaval wrote:
house prices never fall
Actually, falling prices is happening all over the USA. Even where I live, a popular beach area, the prices have dropped $100,000 for a $400,000-$500,000 home. Basically, the selling price of homes for the middle-class is dropping. The really expensive homes, bought by rich people, are unaffected as they still have all the money (I believe it was given them as a poor-judgement-bonus for bringing their employer to the edge of bankruptcy a few year ago).
"The difference between genius and stupidity is that genius has its limits." - Albert Einstein
"As far as we know, our computer has never had an undetected error." - Weisert
"If you are searching for perfection in others, then you seek disappointment. If you are seek perfection in yourself, then you will find failure." - Balboos HaGadol Mar 2010
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You forgot that the garden is so small that if you have a barbecue you have to turn the food through the kitchen window.
Ideological Purity is no substitute for being able to stick your thumb down a pipe to stop the water
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The UK? My big concern about the inaffordability of house prices I saw in the UK with families increasingly forced to live in small, badly insulated (for sound) flats, with children having no garden to play in, and neighbours impingeing on each other purely because of the lack of space (ie stingyness of the developer) is the social issues and tension it causes. It is unjust and unfair in every way, and governments must make it a basic right for a family to have accomodation of a decent size with propper facilities and it should enforce that through legislation.
============================== Nothing to say.
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You forgot that the garden is so small that if you have a barbecue you have to turn the food through the kitchen window.
Ideological Purity is no substitute for being able to stick your thumb down a pipe to stop the water
:) and the smoke fumes the neighbours washing! :) But anyway, at least it is something of a garden to muck around in. I hate what happened to Britain in respectof housing in the last 20 years. OK, we aparantly did well out of it, our place there is paid off and worth 130 streling, 15 down form the peak, but I feel very sorry for the social injustice the whole thing caused, and the financial mess it is responsible for us being in now.
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You forgot that the garden is so small that if you have a barbecue you have to turn the food through the kitchen window.
Ideological Purity is no substitute for being able to stick your thumb down a pipe to stop the water
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Go and live in DR Congo, pleny of space for houses there.
Software Kinetics Wear a hard hat it's under construction
Metro RSS -
The UK? My big concern about the inaffordability of house prices I saw in the UK with families increasingly forced to live in small, badly insulated (for sound) flats, with children having no garden to play in, and neighbours impingeing on each other purely because of the lack of space (ie stingyness of the developer) is the social issues and tension it causes. It is unjust and unfair in every way, and governments must make it a basic right for a family to have accomodation of a decent size with propper facilities and it should enforce that through legislation.
============================== Nothing to say.
Yep, specifically Peterborough. It's frustrating for me and my missus, we're both young (25), in well paying stable jobs, very comfortably covering our rent. Our problem is the deposit. From what I can gather, we need something in the region of 40k for anything other than a new build. We're saving hard, but it's going to take a while, and in the mean time we throw our money away paying someone else's mortgage.
He who makes a beast out of himself gets rid of the pain of being a man.
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Yep, specifically Peterborough. It's frustrating for me and my missus, we're both young (25), in well paying stable jobs, very comfortably covering our rent. Our problem is the deposit. From what I can gather, we need something in the region of 40k for anything other than a new build. We're saving hard, but it's going to take a while, and in the mean time we throw our money away paying someone else's mortgage.
He who makes a beast out of himself gets rid of the pain of being a man.
What percentage is theat 40k, cant be 15% surely? (I mean, thats a super expensive house based on the assumption that lenders are looking for a 15% deposit these days). Still, at least you have work. On the continent renting is far more popular, thetre isnt the desire to own like in the UK. Other interesting factors are legal debt levels. In France you cant be more than 33% of youyr net in debt. So if you take home 3k a month your total outgoings on loans cant be more than 1k. You also need a good deposit, 15% is the norm. Plus mortgage terms are usualy 20 years. ALl this keeps prices low, since the cash isnt there to push them up. But it also means the owner has 66% cash each month to soend on what ever else he likes. So this actually benefits the economy since it is spent in restaurants, holidays, etc. In the UK, where housing often takes up 50% of net, there is less cash to spend elsewhere. You can see why I think the UK has gone badly wrong.
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What percentage is theat 40k, cant be 15% surely? (I mean, thats a super expensive house based on the assumption that lenders are looking for a 15% deposit these days). Still, at least you have work. On the continent renting is far more popular, thetre isnt the desire to own like in the UK. Other interesting factors are legal debt levels. In France you cant be more than 33% of youyr net in debt. So if you take home 3k a month your total outgoings on loans cant be more than 1k. You also need a good deposit, 15% is the norm. Plus mortgage terms are usualy 20 years. ALl this keeps prices low, since the cash isnt there to push them up. But it also means the owner has 66% cash each month to soend on what ever else he likes. So this actually benefits the economy since it is spent in restaurants, holidays, etc. In the UK, where housing often takes up 50% of net, there is less cash to spend elsewhere. You can see why I think the UK has gone badly wrong.
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UK is rotten to the core, over population, high number of immigrants, too many people living off the goverment - it's a complete mess. I hope to join the migrants club and get the hell off this island in the next 15 years.
Software Kinetics Wear a hard hat it's under construction
Metro RSS -
UK is rotten to the core, over population, high number of immigrants, too many people living off the goverment - it's a complete mess. I hope to join the migrants club and get the hell off this island in the next 15 years.
Software Kinetics Wear a hard hat it's under construction
Metro RSS -
Norm .net wrote:
high number of immigrants
Norm .net wrote:
I hope to join the migrants club
:)
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Average price for a 3 bed semi is now £250,000 Average Salary is about £35,000 So husband and wife both on average salaries earn £70,000 per annum. For an affordable mortgage it should be no more than three times income. Thus £210,000, but assume there is a deposit of at least £40,000 then the average house is affordable to the average couple. No problem.
------------------------------------ I will never again mention that I was the poster of the One Millionth Lounge Post, nor that it was complete drivel. Dalek Dave CCC Link[^] Trolls[^]
Couldn't disagree more, you evidently haven't tried getting a mortgage recently, without an existing home to get you started its near impossible getting a first-time mortgage. That said, while potentially in the target group for this initiative, it does remind me of the Bush governments attempts to encourage lenders to provide mortgages to all-comers and that led to the current economic crisis. Not quite as ill-thought out, but not too far off. Further, with the average salary at £25000, you can bet that the mean is somewhere under £20K - any fule no that averages are distorted by particularly high and low figures, remember if, out of 100 numbers, one is 1000000 and the remainder are 1, the average comes out at 10000.99. I suspect this distorts the average salary upwards, as there are a fair few earners in the "ridiculously high" bracket. Personally, I believe it's beyond time for a housing bubble to burst - its been overdue a number of years now. It's the only way I can anticipate getting on the housing ladder (in an area I'd actually consider living in).
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UK is rotten to the core, over population, high number of immigrants, too many people living off the goverment - it's a complete mess. I hope to join the migrants club and get the hell off this island in the next 15 years.
Software Kinetics Wear a hard hat it's under construction
Metro RSSI hope as an immigrant in another country, you are doomed to the same reception as you'd give them here. (I doubt it though, the rest of world has more civilised attitudes to such migration in my experience).
