On 01/12/2019 21:57, Vir Campestris wrote:
On 30/11/2019 16:42, John Rumm wrote:
On 29/11/2019 20:52, Vir Campestris wrote:
On 29/11/2019 11:39, whisky-dave wrote:
No it is not if you are looking for an 'affordable' property.
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https://www.bbc.co.uk/news/business-38067626

In 2004, then Deputy Prime Minister John Prescott announced plans to
build homes for just £60,000.

Eight of the 10 planned developments were completed, but the houses
were sold for far more than promised - an average of £231,000 in one
development.

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why do you thgink a significant number of properties are now offered
at 50% ownership or less and soem as little as 25%, because peole
just can;t afford £300,000+ for a one bed studio flat.

I did the maths for other reasons last week.

When I was a new grad the average salary was about 4k, and you could
buy a house in Reading for 20k.

Nowadays a grad gets about 12k (3 times more) and the house in
Reading is more like 200k (10 times more).

Not arguing the fundamental point, but that seems very low for a
realistic new graduate starting salary these days. Its less than
minimum wage. Even a modern apprentice will get 12K alongside training
etc.

(In fact £8-10K was a not untypical starting rate when I was a new
grad looking for my first job in 1988!)


You're right, that was a brain fart. It's 23k now for grads on average.

And it also occurred to me the repayments aren't just interest.

20k at 10% over 25 years (it of course went up and down over that
period) requires a payment of £2200. 55% of the 4k salary.

200k at 2% over 25 years requires 10,200. 45% of the corrected 23k salary.

Houses are actually cheaper...

Andy

MIRAS helped a lot, when it was available.