On 02/12/2019 13:22, whisky-dave wrote:
On Sunday, 1 December 2019 21:57:51 UTC, 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.
what about the 20% or so deposit ?
What about the maintaintance of communial gardens can be £50 to over £100 PCM.
You can't get out of these.
and of course they can;t con yuo with PPI now so they have other ways I've seen completion fees of ver £1500, sure it's just a one off payment.
In most cases graduates will still have their studetn loan to pay off.
A friend who is studing in huddersfield has debts of over £40k that's nore than the price of some of the houses there, and at 6% interest.
He will probably not pay it off and it gets written off anyway.
In the 70's only the top 5% went to Uni (free tuition + maint. grant).
You cannot send every 18 year old to Uni on the same deal, there just
aren't enough money trees available. Forget 'taxing the top 5%',
in the 70's the basic rate was 33%, the top rate was 83% and another
15% on top if you had any dividend or savings income.
Houses are actually cheaper...
How do you work that one out ?
Ultra low interest rates, massively subsidized by savers who are
getting almost bugger all interest.
Andy