USER1999
Grand Slam Winner
Back when I bought my house, the condition of it made no difference, as people liked to put their own stamp on the house. Often, run down was at a premium, as nothing had been bodged.
House Prices
- Thread starter Crazyface
- Start date
Back when I bought my house, the condition of it made no difference, as people liked to put their own stamp on the house. Often, run down was at a premium, as nothing had been bodged.
Doon frae Troon
Ryder Cup Winner
Percentage rise in SE house prices is not sustainable + higher unemployment in the young.
chrisd
Major Champion
I understand property prices are starting to fall quickly in London and that will inevitably impact in the rest of the south. There have been many renovations in London where flats are bought off plan with a deposit, and then sold and resold many tines over before they are ready and, my information is these the final owners, mainly living abroad, won't pay the final payment therefore leaving the developers with a hefty bill and no buyers!
SwingsitlikeHogan
Major Champion
I used to work in the almost identical office building right beside that one - they've obviously decided to convert at least that block into flats. Nice spot to live though - very handy for Godalming town centre (10mins walk max) and close to the River Wey riverside walks and flood plain.
AMcC
Journeyman Pro
One reason may be a change to tax relief. Not sure of the exact details but I believe that anyone with a portfolio of rental properties will be getting clobbered shortly due to a change in tax. Someone may no more than me lol
PhilTheFragger
Provider of Entertainment for the Golfing Gods 🙄
Previously you could offset 100% of your mortgage interest charges against your rental income
So if the rent was 500pm and the mortgage interest was 200pm then you would have a taxible income of 300PM
they are phasing that out so next year you can claim 80%, 60% the year after so in 5 years it will be nil.
This leads to higher tax bills for landlords and therefore makes buy to let a less attractive proposition.
Also more stamp duty on BTL properties will mean it is harder to start a property portfolio
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Paperboy
Mini Cam
Murph got no objection to that, but I'm a reluctant DIY'er. I'd need to encourage my little brother to help me, like I helped with his first house.
D
Deleted member 15344
Guest
So you're just guessing then?
U
User62651
Guest
Ok it wasn't easy any time BUT at least banks would lend enough on a mortgage to be able to get a house back then, something that they won't do now for anyone without a massive deposit, also the value of property was more sensible then compared to now in terms of salaries. For example my folks bought a house in 1971 for 10.5k, my mum sold up in 2008 for £610k, if you take that 10.5k and apply the actual inflationary rate to it over that 37 years it should be worth about £120k, not £610k. That is the difference - affordability - in real terms property is costing 4 or 5+ times more relative to what people earn. It's not bleating its a serious problem that the older generation and the rich don't care about as 'they're alright Jack'. It is what it is but it's way tougher than it should be. People could work their arses off now but never afford any kind of house if they don't inherit. You make £80k/yr you might be able to get a house at £250k but who makes £80k, not many.
MegaSteve
Tour Winner
But, the market in the SE is currently being driven by the demand from high levels of immigration...
Not, "higher unemployment in the young"...
SocketRocket
Ryder Cup Winner
To get my first mortgage I had to make regular monthly savings with the Building Society for three years before they would even consider talking to me about a mortgage. I needed to put a 10% deposit and interest rates were much higher. Believe me it was no easy ride and our standard of living was much lower than now.
I dont know where your parents live but my first house was around £10K and I would guess it would be worth around £180K now. The increase your folks see seems rather large but maybe it's in the South East.
SocketRocket
Ryder Cup Winner
You made some rather exaggerated and unsupported claims about youth unemployment recently, why are you doing it again?
D
Deleted member 18121
Guest
Just for laughs..... my parents bought their house in Tonbridge (Kent) in 1965 for £750.00...... their house is now worth around £425k
Sweet.
Sweet.
Rooter
Money List Winner
My dad built our family home after my grand parents cut their garden in half, cost about 5 grand all in circa 1975. sold about 2010 for about 350k. house prices are crazy round here, we bought our last place in oct 2006 for 218k, sold it in Jan this year for 318k. so glad i managed to get on the ladder early.
Doon frae Troon
Ryder Cup Winner
Yes, check my earlier post. If I knew for certain I would be mega rich and sipping cocktails on an expensive beach somewhere.
According to many housing experts and some fellow posters on here, I think my 'guess' has a fair bit of value.
Doon frae Troon
Ryder Cup Winner
Just check the recent Job Centre figures, it is quite easy to do, saves me bothering.
5,000 up last quarter.
Bound to go up much quicker for young workers now that the new [not] living wage is in force and companies let their cheap labour go.
D
Deleted member 21258
Guest
Prior to about the mid 80s, one person working generally could service the mortgage debt/life. This generally changed in the 80s.
I bought in 1991 IIRC but I would never never compare to now and how hard it was(as an overall whole).
Wage inflation is what reduces relative debt levels. Globalisation has meant wages inflation is likely to remain low IMHO
IIRC we bought for 65k(3 bed semi in the south, now would be about 260 I think), which was at the height of interest rates and we had saved 10k as a deposit, so borrowed 55k(that was the max we could and we could not offer anymore, so the seller either took it or not). This was based on me/wife both working. At this point the mortgage was one of ours net pay figures(so it was very hard for a shortish period[3 years), interest rates then dropped).
BUT and it is a massive BUT as interest rates dropped(and as I qualified), that debt level became easy to service and you could pay off the debt early(if it took your fancy).
Now, the deposit required is massive (it isn't a couple of ipad or iphones, that always makes me laugh when 'older' people say the youngest buy this or that), so it can takes years to save(from net pay) and interest rates can not drop anymore(all but). In addition it is hard to see massive wages inflation happening, to help 'relative' debt levels reducing.
As a result a 25 year mortgage is going 'feel' a lot worse for the whole period than it did in the 70s, 80 or 90s.
The real problem was that with banking reform and the multiplier effect that they work to, debt became very easy to get hold of and this then feed into increased assets prices(as sadly people will pay what they can borrow), which was then made worse, as the government(cough BOE) reduce interest rates to allow bigger levels of debt, like a Ponzi scheme.
I am so sorry for the younger generation and we the older generation(I am 46 btw) have let them down, with regard to one of the fundamentals requirements in life, putting a roof over their heads.
PS Hopefully I have not upset anyone with my personal opinions.
I bought in 1991 IIRC but I would never never compare to now and how hard it was(as an overall whole).
Wage inflation is what reduces relative debt levels. Globalisation has meant wages inflation is likely to remain low IMHO
IIRC we bought for 65k(3 bed semi in the south, now would be about 260 I think), which was at the height of interest rates and we had saved 10k as a deposit, so borrowed 55k(that was the max we could and we could not offer anymore, so the seller either took it or not). This was based on me/wife both working. At this point the mortgage was one of ours net pay figures(so it was very hard for a shortish period[3 years), interest rates then dropped).
BUT and it is a massive BUT as interest rates dropped(and as I qualified), that debt level became easy to service and you could pay off the debt early(if it took your fancy).
Now, the deposit required is massive (it isn't a couple of ipad or iphones, that always makes me laugh when 'older' people say the youngest buy this or that), so it can takes years to save(from net pay) and interest rates can not drop anymore(all but). In addition it is hard to see massive wages inflation happening, to help 'relative' debt levels reducing.
As a result a 25 year mortgage is going 'feel' a lot worse for the whole period than it did in the 70s, 80 or 90s.
The real problem was that with banking reform and the multiplier effect that they work to, debt became very easy to get hold of and this then feed into increased assets prices(as sadly people will pay what they can borrow), which was then made worse, as the government(cough BOE) reduce interest rates to allow bigger levels of debt, like a Ponzi scheme.
I am so sorry for the younger generation and we the older generation(I am 46 btw) have let them down, with regard to one of the fundamentals requirements in life, putting a roof over their heads.
PS Hopefully I have not upset anyone with my personal opinions.
SocketRocket
Ryder Cup Winner
You really like making half truths don't you. Youth employment is up 113,000 from the previous year, check that out.
SocketRocket
Ryder Cup Winner
Prior to about the mid 80s, one person working generally could service the mortgage debt/life. This generally changed in the 80s.
I bought in 1991 IIRC but I would never never compare to now and how hard it was(as an overall whole).
Wage inflation is what reduces relative debt levels. Globalisation has meant wages inflation is likely to remain low IMHO
IIRC we bought for 65k(3 bed semi in the south, now would be about 260 I think), which was at the height of interest rates and we had saved 10k as a deposit, so borrowed 55k(that was the max we could and we could not offer anymore, so the seller either took it or not). This was based on me/wife both working. At this point the mortgage was one of ours net pay figures(so it was very hard for a shortish period[3 years), interest rates then dropped).
BUT and it is a massive BUT as interest rates dropped(and as I qualified), that debt level became easy to service and you could pay off the debt early(if it took your fancy).
Now, the deposit required is massive (it isn't a couple of ipad or iphones, that always makes me laugh when 'older' people say the youngest buy this or that), so it can takes years to save(from net pay) and interest rates can not drop anymore(all but). In addition it is hard to see massive wages inflation happening, to help 'relative' debt levels reducing.
As a result a 25 year mortgage is going 'feel' a lot worse for the whole period than it did in the 70s, 80 or 90s.
The real problem was that with banking reform and the multiplier effect that they work to, debt became very easy to get hold of and this then feed into increased assets prices(as sadly people will pay what they can borrow), which was then made worse, as the government(cough BOE) reduce interest rates to allow bigger levels of debt, like a Ponzi scheme.
I am so sorry for the younger generation and we the older generation(I am 46 btw) have let them down, with regard to one of the fundamentals requirements in life, putting a roof over their heads.
PS Hopefully I have not upset anyone with my personal opinions.
Well I'm 68 next month and I don't feel like I have let anyone down, all I have done is work my nuts off for my family. If anyone wants to look for a reason for housing shortages and high house prices then look to the politicians that allowed unfettered immigration where supply and demand has created this current crises not only in housing but all basic services.
The only solace I can see for many younger people is that unlike most of my generation many more will inherit the property their parents worked hard for.
