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Post by Deleted on May 20, 2014 18:13:04 GMT -1
Another screaming headline by BBC News today. Except it's not actually true. Read a little further: London and SE prices up by 17%, but when excluded, it's more like 4% in the rest of the UK. Read a wee bit more: in Scotland the figure is.......0.8%. People are not daft..but these kind of inaccurate reports need reigned in, sharpish, IMV! Here in Scotland we have an offers-over system of closed bids. This kind of headline WILL stick in the minds of those offering for property in Scotland, don't we think? Ohhh panic panic, we need to offer x% over the asking price so we can make sure of getting the house!! This has to be a factor in mental house-price inflation, is it not? Sure, prices are nothing like as unaffordable in Scotland than they are in the South East. But at the same time, the price to earnings ratio is pretty fecked. Certainly in comparison to when I bought my first one bed tenement in North Kelvinside 25 years ago. For the price of 18 Macbooks nowadays, that's a thought and a half  |
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Post by ozneil on May 20, 2014 20:13:01 GMT -1
all relative, I bought my brand new Wimpey house in Bishopbriggs for about 3 times my Annual salary I bought my first house in Sydney for about the same. Now a reasonable house around here is about 8 or 9 times annual salary. Sydney is F*****g expensive!!!  If I moved into country say at least an hours commute (say 60 miles) to Sydney the price would drop to about 5 times. If I moved further out say 150 miles price would drop to about 3 times |
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Post by Deleted on May 20, 2014 21:28:01 GMT -1
all relative, I bought my brand new Wimpey house in Bishopbriggs for about 3 times my Annual salary I bought my first house in Sydney for about the same. Now a reasonable house around here is about 8 or 9 times annual salary. Sydney is F*****g expensive!!! If I moved into country say at least an hours commute (say 60 miles) to Sydney the price would drop to about 5 times. If I moved further out say 150 miles price would drop to about 3 times Yes, it was the same here until the late 80s. Three times salary was all you could borrow and 3 times the larger wage plus the lower one (if buying with a partner) was the max. I think it was actually a good thing at the time and ensured people could afford their repayments. But then it all went titsup. A friend of mine who's a mortgage adviser told me the other day that people are regularly borrowing 8-10 times salary here in Glasgow. People on average wage (23K), or not much above, are saddling themselves with repayments of £2k a month over 30 years. That HAS to be mental. Same property bubble's going to burst all over again, you can kinda see it coming. Very very bad indeed. What the hell have we done to our young people. |
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Post by notanimby on May 21, 2014 5:35:13 GMT -1
all relative, I bought my brand new Wimpey house in Bishopbriggs for about 3 times my Annual salary I bought my first house in Sydney for about the same. Now a reasonable house around here is about 8 or 9 times annual salary. Sydney is F*****g expensive!!! If I moved into country say at least an hours commute (say 60 miles) to Sydney the price would drop to about 5 times. If I moved further out say 150 miles price would drop to about 3 times Yes, it was the same here until the late 80s. Three times salary was all you could borrow and 3 times the larger wage plus the lower one (if buying with a partner) was the max. I think it was actually a good thing at the time and ensured people could afford their repayments. But then it all went titsup. A friend of mine who's a mortgage adviser told me the other day that people are regularly borrowing 8-10 times salary here in Glasgow. People on average wage (23K), or not much above, are saddling themselves with repayments of £2k a month over 30 years. That HAS to be mental. Same property bubble's going to burst all over again, you can kinda see it coming. Very very bad indeed. What the hell have we done to our young people. Indeed the bubble bursting is deffo coming again - but no one especially the government cares in the slightest The whole UK economy is a house of cards built on foundations of sand. But rapidly rising house prices in the souf-east gives rise to the lie that the UK is booming and builds a feel-good factor - it's the emperors new claes scenario again You cannot build an economy on consumer spending ( especially if that spending is based on credit) with minimal manufacturing output - printing money and calling it something techy like quantitive easing doesn't make it better - it just puts off the implosion. UK is one of the most indebted states on earth both in terms of national debt and personal debt But hey ho what do the likes of Osborne, Cameron, millibland, farage and clegg care - they are multi-millionaires |
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Post by bormes on May 21, 2014 6:26:46 GMT -1
London is the cause of much of the problem, the shortage of housing down there and the lack of building is going to continue unless there is serious house building and not for millionaires too.
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Post by Deleted on May 21, 2014 21:59:36 GMT -1
Indeed the bubble bursting is deffo coming again - but no one especially the government cares in the slightest The whole UK economy is a house of cards built on foundations of sand. But rapidly rising house prices in the souf-east gives rise to the lie that the UK is booming and builds a feel-good factor - it's the emperors new claes scenario again You cannot build an economy on consumer spending ( especially if that spending is based on credit) with minimal manufacturing output - printing money and calling it something techy like quantitive easing doesn't make it better - it just puts off the implosion. UK is one of the most indebted states on earth both in terms of national debt and personal debt
But hey ho what do the likes of Osborne, Cameron, millibland, farage and clegg care - they are multi-millionaires You could see it coming though, this past couple of decades. Easy money, everyone encouraged to have everything NOW, taking multiple debts on as if there was never going to be a reckoning. A professional couple I know are relocating to the South East to be nearer family members. They've sold their large Victorian home in G12 but find that the proceeds will barely buy a cramped two-bed apartment in most areas of Londinium. So they're moving outwards by 50 miles or so to an older property about half the size of the one they're leaving. Ordinary people in large cities, particularly London but also Manc, Bristol, Birmingham and now Edinburgh and Aberdeen (and to an extent Glasgow) are being priced out of living anywhere NEAR the cities they work in. It's a joke, it really is. Except it's not funny. |
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Post by ozneil on May 21, 2014 23:56:59 GMT -1
You could see it coming though, this past couple of decades. Easy money, everyone encouraged to have everything NOW, taking multiple debts on as if there was never going to be a reckoning. A professional couple I know are relocating to the South East to be nearer family members. They've sold their large Victorian home in G12 but find that the proceeds will barely buy a cramped two-bed apartment in most areas of Londinium. So they're moving outwards by 50 miles or so to an older property about half the size of the one they're leaving. Ordinary people in large cities, particularly London but also Manc, Bristol, Birmingham and now Edinburgh and Aberdeen (and to an extent Glasgow) are being priced out of living anywhere NEAR the cities they work in. It's a joke, it really is. Except it's not funny. Same here Sydney & Melbourne Extortionate prices Brisbane and Perth not far behind. Adelaide & Hobart still reasonable. Who would want to live in Canberra. What savvy kids are doing here is buying u n i t s (flats) ASAP and letting them out. The rent pays most of mortgage and they have their foot in Real Estate door for when they need to buy a house while they continue to sponge off parents. |
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Post by peony on May 30, 2014 18:04:42 GMT -1
After the recent bubble breaking on housing here, prices are rebounding nicely. We put up Mr.'s dad's house for sale in Austin. Asked 186,000 for it and a bidding war broke out and it sold for 208 thousand. We would have kept it, but it's in the flood plain. It floods frequently, and we have just now finished completely redoing it.
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Post by bormes on May 30, 2014 19:20:17 GMT -1
Average house prices in UK £180,000
Average house price in London and surrounding area of the 18 Million souls is £456,000
Scotland is slightly lower than the 150,000 level
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Post by Deleted on May 30, 2014 19:31:19 GMT -1
Yes, true, Bormes, homes are more affordable outwith certain hotspots but of course every city in the world has them.
I think it's the inequality of opportunity that bothers me the most. People who want to take up average wage jobs in city centre, schools, hospitals, whatever... are at such a disadvantage while those who relocate from 'hotspots' drive up the property bidding war. This is why so many that work in city centres now have to commute from MILES away. It doesn't seem right to me.
I wonder if we shouldn't be looking more at the European model of affordable rents. House purchase over there isn't nearly as prevalent as it is here in the UKE (don't know about the US, Peony?)
After all, none of us with a mortgage *owns* our home till it's paid off. We're just *renting* from the lender.
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Post by ozneil on May 30, 2014 19:36:18 GMT -1
Here about 70% of people own or are buying their own homes.
There are government incentives ($$) for them to enter the real estate market.
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Post by Deleted on May 30, 2014 20:48:58 GMT -1
After the recent bubble breaking on housing here, prices are rebounding nicely. We put up Mr.'s dad's house for sale in Austin. Asked 186,000 for it and a bidding war broke out and it sold for 208 thousand. We would have kept it, but it's in the flood plain. It floods frequently, and we have just now finished completely redoing it. Same is happening in parts of England, Peony. Land's at such a premium that building on flood plains is common and people are mortgaging themselves to the hilt to be that wee bit closer to their place of work or a *desirable* postcode. In Scotland we have less new-builds on flood plains but plenty on so-called brownfield land close to city centres. Former industrial sites, usually. The inner city developments are usually small sized, overpriced and bad value. Then there's the whole new 'burbs' near the city boundary, bigger, roomier new builds on the environs. Except there's usually only homes: few (if any) shops or community facilities such as health, public transport or schools. |
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