Tariffs. Ftse100 stock futures plunge apparently. Um oh ah err now what |
HBs are offering more and more incentives to entice homebuyers.
More and more mortgages taken for > 25Years, because there's an affordability problem. |
I expect the BoE will cut interest rates on Thursday.
Affordability crisis... Nah. |
“ average 'income' of a FTB couple was £66k per annum “
If they hang on to their job. I can’t imagine Berks holding down a job for 25 years, and Bugs would’ve been sacked in the first year for swearing and public order offences |
S100,
I stated correctly from TW. report...
"average 'income' of a FTB couple was £66k per annum or £5,500 pcm."
Management role (not senior) in SE is earning before tax over £60k
I know many 'workers' on six figure salaries before tax (earnings).
This is increasing as skilled workers have had pay rises of over 10% compound over the last two years, excluding bonuses.
In TW. 2022 the estimated average loan to value for first time buyers was c.78% without Help to Buy and c.68% for second time buyers and the majority of TW. customers were choosing five-year fixed mortgage products in 2022...
I expect the BoE will cut interest rates on Thursday.
Affordability crisis... Nah. |
Fair argument Beckers but you forgot about income tax. Will take at least £1k off that £3k you say ftb's have in their pockets after mortgage. £2k a month doesn't go so far these days to cover council tax, bills, loans, food, car repairs etc. That's before they've done anything for fun.... |
Jugs,
In the TW.2022 preliminary report, they stated the average income of a FTB couple was £66k per annum or £5,500 pcm.
A £300k mortgage with a 10% deposit is less than £1,600 pcm. Less than renting a decent 3 bed house in the SE.
As TW. command a higher price for a better property, say a mortgage of £2.5k per month still leaves Wimps FTB's with £3k per month.
Affordability crisis...Nah.
Working class have never been able to buy a house, only in Maggie's great giveaway.
Working class have been able to afford to buy a house since.
As I have stated over a year ago, the UK housing market dynamics have changed.
Now, when is the UK house price crash going to happen? Lol, just lol! |
Unfortunately your average first time buyer probably couldn’t pop into the field next door and knock up five houses. So back to square one; affordability |
 My dad always told me if you want something save up for it, why borrow money & line someone else's Pocket!. I always wanted an Aston Martin but by the time I had saved up for one I decided that I liked the look of the money in my bank account better, most people buy a house to live in & not as an investment or to rent out,unfortunately the system of paying in most cases is over a long period of time, if you are buying a property to rent out then its important to make sure you are still covering cost if interest rates rise, always best to overpay each month as well, I can never see the point of interest only mortgages, they are no better than renting a property, TBF if I was buying houses now to rent out I would want to see at least 50% of income as profit after all overhead, I personally wouldn't buy houses to rent out though now,not enough return for me, I can buy a small industrial unit for 100-160k & get 11k in rent each year, at the time when I built my 5 houses we were in a recession & due to its difficult location proved more expensive to build than I had anticipated so I decided to rent them out for the short but still have them all these years later, fortunately all now fully paid for as are all of my assets. |
No problem getting into debt, so long as someone else, such as a tenant, is paying for it,
Problem is the buyers have the full burden of the debt |
Kreapy I think you have a very low opinion as to how uk people manage there finances, you assume that everyone is over stretched which isn't true, for starters over 30% of buyers pay cash, I think that covid has taught a lot of people how to manage money better, the number of people in mortgage difficulty is lower now than 2019. Live within your means, save money & you wont get into debt. |
It's not unusual to get mortgages for 49 (forty!!) years, and that's before the loosening of mortgage criteria.This share has everything ready now, for a pre dividend rise. |
Be interesting to know what percentage of 2024 new build owners are now mortgaged up to the max with next to no disposable income . And what percentage of that lot are unwell with financial worries.
And how do you maintain that financially maxed out state of worry and hold down a job for 25 years? |
Meanwhile TW still continue to build & sell houses that are not unaffordable to everyone! |
Hmmmm. Sorry but I feel it would need to be two homes.
Oh. Look what the HomeOwnersAssociation say :
“ The private estate model is just awful, its a total betrayal by the govt’s of today and yesterday who are happy to take our money in the form of council tax, but are also very happy for us to pay for those same services again in the form of estate rent. Only the very wise see it for what it is BEFORE they purchase. “
Yes I agree, only the very wise. Sorry Bugs |
Question for the village idiot, Sikhthetech...
Was the UK average house price in Octoer 2018 lower or higher than in October 2024?
You went short in October 2018 and lost your shirt! Lol, just lol |
“ Again, when interest rates were rising you claimed that they make no difference as majority of homes are bought with cash. Now you're claiming it's a "key factor"”
Outrageous Jugs |
Jugears
"What I think is that when interest rates fall this will be a key factor in house sales picking up"
Again, when interest rates were rising you claimed that they make no difference as majority of homes are bought with cash. Now you're claiming it's a "key factor". Make up your mind!!!!
This is why majority of posters think you/becky/bara etc are clueless and post BS.
The KEY factor is affordability. Huge tax rises negate smaller changes in interest rates. Interest rate can go down but there's limited amount they can go down from 4.75%. Whereas given the huge debt, there's likely to be a need to raise more taxes, as well as council taxes, water, energy etc...
There's already been 2 cuts over the past 6 months. Remember my short @168p, after the 1st one last August!!!
Huge tax rises announced in the budget have yet to hit. |
“ TBF every down turn that I have been through was always good for my business.”
Normalcy bias |
Well spotted kreaps it was 50 years, must have been thinking of my bank account lol
I'll have you know I planted over 3k trees on my land!!
Sikh Im not sure what you are getting at, Tw are still selling houses end of. |
What I think is that when interest rates fall this will be a key factor in house sales picking up, stamp duty has only gone back to where it was before & only an additional 2.5k for some buyers, which is nothing compared to how much a quarter point cut in interest rates saves you over the length of your mortgage. I have No plans to sell any of my holdings as all are currently increasing (as I expected they would) at the end of the day it doesn't matter who is in power, life goes on, business's carry on, TBF every down turn that I have been through was always good for my business. |
“ The new owners of myy old company that I sold out recently after running it for nearly 50 million”
That’s peanuts tbf jugs. And I hope you paid your capital gains tax. Need that to buy a couple of trees to make up for the carnage you’ve caused to the environment over the last 150 years or however long you said it was…. |
fletcher,
Incentives. Good spot.
I and others have mentioned the increased use of enhanced incentives for ages.
Incentives cost HBs money and therefore reduce HBs profits.
More Black Friday Offers...lol
This from 2022:
sikhthetech - 17 Nov 2022 - 14:38:09 - 11305 of 21287
The energy price cap for typical users is rising by 20%, so still more affordable problems ahead.
Jugears,
I agree if, and I'd expect, HBs to offer incentives such as 5% discount but again that's the initial cost and not ongoing payments. I'd expect most potential homebuyers to wait for mortgage rates fall or house prices crash.
Incentives reduce HBs profits.
Maybe a Black Friday event, offering 10-15% off plus free flooring plus lifetime guarantees plus free home insurance plus £10k cashback would make more sales!! |
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