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[ 13 posts ] |
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Home buyers 'nervous about year ahead'
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Amnesia10
Legend
Joined: Fri Apr 24, 2009 2:02 am
Posts: 29240
Location: Guantanamo Bay (thanks bobbdobbs)
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http://www.bbc.co.uk/news/business-20749231I think that they are still too optimistic. If you consider that wages are growing slowly and costs rising faster than wages they might find saving even harder and then interest rates are so low that will not help them much. So I suspect that the ability to save will shrink the longer the government follow austerity.
_________________Do concentrate, 007... "You are gifted. Mine is bordering on seven seconds." https://www.dropbox.com/referrals/NTg5MzczNTkhttp://astore.amazon.co.uk/wwwx404couk-21
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| Mon Dec 17, 2012 4:13 am |
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JJW009
I haven't seen my friends in so long
Joined: Thu Apr 23, 2009 6:58 pm
Posts: 8767
Location: behind the sofa
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It took me 10 years to save the 30% deposit I needed, and that was 1998 - 2008.
In 1998 I was earning a little over £2 an hour. Now a similar job pays triple that, and my house has less than tripled in value.
Have things really changed so much in the long term?
_________________jonbwfc's law: "In any forum thread someone will, no matter what the subject, mention Firefly." When you're feeling too silly for x404, youRwired.net
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| Mon Dec 17, 2012 9:18 am |
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jonbwfc
What's a life?
Joined: Thu Apr 23, 2009 7:26 pm
Posts: 17040
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Houses is some parts of the country probably have more than tripled in value since 1998. I bought mine in '95, it's currently worth over 2X what I paid (at least, that's what a similar property in the same street went for this year) and I don't live in a very 'up and coming' area. At all. Also, if you count inflation over the 20 year-ish period, how much of the increased rate of pay has actually been eaten by that? What we're really talking about is confidence I suspect. It's not how much better or worse off people empirically are, it's how much better or worse off they subjectively feel.
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| Mon Dec 17, 2012 9:37 am |
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TheFrenchun
Officially Mrs saspro
Joined: Wed Jan 06, 2010 7:55 pm
Posts: 4955
Location: on the naughty step
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I'll just sit here while I work in London. Prices, even the less than appealing zone 3 area we live in, are unbelievable.
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| Mon Dec 17, 2012 11:19 am |
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JJW009
I haven't seen my friends in so long
Joined: Thu Apr 23, 2009 6:58 pm
Posts: 8767
Location: behind the sofa
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They always have been. The only real change over the last 30 years is that the commuter belt has expanded, so some areas have seen disproportionate growth. Milton Keynes for example is now in North London for all practical purposes, being only 30 minutes by train from Euston. It takes longer than that to get to Cockfosters or other end-of-line tube stations. If we go back much more than 30 years, then home ownership was far more rare than it is now. It was primarily a reserve of the rich. There was a brief period when borrowing was easy and young people could get mortgages, but that was an economic glitch that wasn't sustainable... For most of history, young people lived with their parents until they could afford to rent a place of their own. Often times that wasn't until after they were married; having several generations under one roof was pretty normal then as it is now for most of the world. _________________jonbwfc's law: "In any forum thread someone will, no matter what the subject, mention Firefly." When you're feeling too silly for x404, youRwired.net
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| Mon Dec 17, 2012 11:44 am |
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Amnesia10
Legend
Joined: Fri Apr 24, 2009 2:02 am
Posts: 29240
Location: Guantanamo Bay (thanks bobbdobbs)
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For centuries the average house price was around 2.5 to 3 times average salary. Now it is substantially higher than that. So even if you could save the deposits, wages have not kept up with house price inflation. My father was able to save his 10% deposit within a year, I defy anyone to save at that rate now. _________________Do concentrate, 007... "You are gifted. Mine is bordering on seven seconds." https://www.dropbox.com/referrals/NTg5MzczNTkhttp://astore.amazon.co.uk/wwwx404couk-21
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| Mon Dec 17, 2012 4:27 pm |
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JJW009
I haven't seen my friends in so long
Joined: Thu Apr 23, 2009 6:58 pm
Posts: 8767
Location: behind the sofa
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Do you have a source for that? I can't find one going back that far, but the last 30 years:  Suggests the situation is actually better now than it was 5 years ago, with the long-run average being x4 I would have expected that with so many people at or below the poverty line, the multiplier 200 years ago to have been higher. Unfortunately my few seconds on Google didn't find any reliable figures going back before the wars. _________________jonbwfc's law: "In any forum thread someone will, no matter what the subject, mention Firefly." When you're feeling too silly for x404, youRwired.net
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| Mon Dec 17, 2012 4:54 pm |
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Amnesia10
Legend
Joined: Fri Apr 24, 2009 2:02 am
Posts: 29240
Location: Guantanamo Bay (thanks bobbdobbs)
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Home buying really took off with the rise of the middle classes during Victoria's reign. It was given a boost post WW1 during the twenties. Averages now are still too high especially considering the stagnation of wages that started in 2003.
Sent from my iPad using Tapatalk.
_________________Do concentrate, 007... "You are gifted. Mine is bordering on seven seconds." https://www.dropbox.com/referrals/NTg5MzczNTkhttp://astore.amazon.co.uk/wwwx404couk-21
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| Mon Dec 17, 2012 5:51 pm |
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Amnesia10
Legend
Joined: Fri Apr 24, 2009 2:02 am
Posts: 29240
Location: Guantanamo Bay (thanks bobbdobbs)
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Just looking at that graph it does look skewed by being only last 30 years. So the long term average looks higher than it was.
Sent from my iPad using Tapatalk.
_________________Do concentrate, 007... "You are gifted. Mine is bordering on seven seconds." https://www.dropbox.com/referrals/NTg5MzczNTkhttp://astore.amazon.co.uk/wwwx404couk-21
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| Mon Dec 17, 2012 6:01 pm |
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ProfessorF
What's a life?
Joined: Thu Apr 23, 2009 7:56 pm
Posts: 12030
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My parents first place was in Croyden I think, 1966, and they paid about £3k. IIRC.
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| Mon Dec 17, 2012 9:01 pm |
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Amnesia10
Legend
Joined: Fri Apr 24, 2009 2:02 am
Posts: 29240
Location: Guantanamo Bay (thanks bobbdobbs)
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My parents first place was £4000 in 1972, and the deposit was £400.
_________________Do concentrate, 007... "You are gifted. Mine is bordering on seven seconds." https://www.dropbox.com/referrals/NTg5MzczNTkhttp://astore.amazon.co.uk/wwwx404couk-21
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| Tue Dec 18, 2012 12:15 am |
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hifidelity2
I haven't seen my friends in so long
Joined: Fri Apr 24, 2009 1:03 pm
Posts: 5041
Location: London
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But what was their salary? My parents house was about the same in the early 60's but they say that it took all of their spare income and they were really stretched
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| Tue Dec 18, 2012 11:06 am |
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Amnesia10
Legend
Joined: Fri Apr 24, 2009 2:02 am
Posts: 29240
Location: Guantanamo Bay (thanks bobbdobbs)
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My dads salary was around £2800 so not even an income multiple of 2, and the deposit was saved within a year. _________________Do concentrate, 007... "You are gifted. Mine is bordering on seven seconds." https://www.dropbox.com/referrals/NTg5MzczNTkhttp://astore.amazon.co.uk/wwwx404couk-21
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| Tue Dec 18, 2012 1:37 pm |
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