Big J on radio 4..

[Mick Dempsey]

Cross the channel, £550k will get you a a dream home, buildings and woodland aplenty to get you going.

[LeeGray]

1 minute ago, Big J said:

The low rates are all well and good if you've already got the money to put a hefty deposit into a house, but getting started is the tricky think. We're now a bit older than the average first time buyer, but that is because we choose to invest in our business rather than a house (though that's not entirely relevant to this discussion). 

 

Anyway, if we want to get a reasonable sized family house with a bit of outdoor space and some ag buildings, we're easily north of £500k. As aforementioned, the house on the other side of the hill is £650k (I can post the link to the listing) and it's nothing special. On that house, we'd need to find a £65k deposit as a minimum and then a mortgage of £585k is going to require a combined pretax income of almost £120k to qualify. It's just not feasible. 

The ultimate frustration is that the construction cost of a house and barns like that (but far better built) is less than half of the asking price, and 3 acres of not entirely flat pasture is only about £20k around here. 

 

My point is that the massive inflation in the property market over the past 25 years has been on the basis of lower and lower interest rates, which have artificially inflated the price of property without there being an actual increase in the material value of the houses in question. Our parent's generation are sitting happily on mortgages bought and paid for and houses worth many times more (adjusted for inflation) than what they paid for them, and us first time buyers have a hard time getting on the ladder. 

 

I'm not moaning, just trying to engage in meaningful discussion.

As above, I agree it’s mad. Something like avg house price 11 times avg wage. Yet people still pay it, I honestly don’t know where the cash comes from. Lots of 500k plus new build in the village yet most folk are on very avg wages. Starter homes for 200k!

[Big J]

5 minutes ago, Mick Dempsey said:

Cross the channel, £550k will get you a a dream home, buildings and woodland aplenty to get you going.

Quite possibly, but no income to support it and miles from family and friends. 

 

5 minutes ago, LeeGray said:

As above, I agree it’s mad. Something like avg house price 11 times avg wage. Yet people still pay it, I honestly don’t know where the cash comes from. Lots of 500k plus new build in the village yet most folk are on very avg wages. Starter homes for 200k!

It's committing yourself to a lifetime to servitude, having that stress of having to work continuously (and some might argue, needlessly) to fund a bank loan for something that isn't materially worth the asking price. 

 

God only knows what it'll be like for my children!

[Stubby]

1 minute ago, Big J said:

 

• Quote

God only knows what it'll be like for my children!

You have children Jonathan ? 

[Big J]

1 minute ago, Stubby said:

You have children Jonathan ? 

Two girls, 2 and 5 years old. Alice and Hanna

[rapalaman]

Supply and demand - it’s only worth what someone is willing to pay for it. If that someone is willing to pay, then that is it’s value ( for the time being at least)

[Stubby]

Just now, Big J said:

Two girls, 2 and 5 years old. Alice and Hanna

Are they gonna reach for the stars like yourself do you think ? 

[Big J]

Just now, rapalaman said:

Supply and demand - it’s only worth what someone is willing to pay for it. If that someone is willing to pay, then that is it’s value ( for the time being at least)

But a willingness to pay can only be supported my a means to pay. A means to pay an ever increasing amount is a direct result of the Bank's willingness to lend ever increasing quantities of money that doesn't actually exist......

 

1 minute ago, Stubby said:

Are they gonna reach for the stars like yourself do you think ? 

The height that they are now, they're already half way there!

[Stubby]

Just now, Big J said:

But a willingness to pay can only be supported my a means to pay. A means to pay an ever increasing amount is a direct result of the Bank's willingness to lend ever increasing quantities of money that doesn't actually exist......

 

The height that they are now, they're already half way there!

?

[Stubby]

1 minute ago, Big J said:

But a willingness to pay can only be supported my a means to pay. A means to pay an ever increasing amount is a direct result of the Bank's willingness to lend ever increasing quantities of money that doesn't actually exist......

 

The height that they are now, they're already half way there!

?