all right all those predicting a crash, how about today's headline "houses to cost 10x salary"?

[RanToTheHills]

Discuss.
What do you reckon then?

Having followed some of the house price threads on here, was interested to see today's headline. It fits in wiht my view that although house prices are inflated, a a dire shortage of housing will continue to drive up prices in hte medium/long-term.

Could do wiht the reassurance as about to take on a huge mortgage!

oh and one way or another, I realise we'll all suffer indirectly or directly. I'd better start saving now, not only for uni fees (she says hopefully), but also for deposits for future flat for ds!

The thing that drives up price is demand. Until there is a sufficient housing stock prices will rise. As regards interest rises, well we will have to see what happens.

Haven't seen the headline, but obviously salaries vary enormously across the country and across different profressions.

As for reassurance, buying a house is vary rarely a bad idea!

of course, yes, I'm sure they may be short-term adjustments forced by interest rate rises. But I agree, this will not be sustainable in the long-term as there are just not enough houses available, esp for 1st-timers.

They already cost at least 10 times the average local salary where I live.

haven't actually read full article, think it was future prediction for 1st time buyers.
Yes, buying a hosue a good idea, , it's just the possibility of buying at the peak of the market which troubles me. But then, that's been a worry for the past few years, hasn't it?

I don't know... our LOVELY flat in Greenwich (well... almost) has been on the market for 4 weeks and we only have one very low offer

OH, sorry to hear that. We had similar problem wiht our last place sticking on for ages and suddenly went so will happen. Change agent? Adjust price?

we have just changed agents but can't afford to reduce the price - the one we are buying is really expensive. Plus all 3 agents valued it the same.

Maybe a less expensive house to move to, phase?

You know, if you can't afford it and you can't sell off your old one, what gives?

I think taking on a colossal mortgage is a VERY risky game in any circumstance and not something I'd do personally.

I can't say I have much sympathy for folks who do this and then it goes tits up, tbh.

thanks, expat!

depends where you live & work, doesn't it? Some of us don't have much choice. Yes, I know we can downsize etc, but don't want to. We've taken risks ever since getitng on the ladder a few years ago and have made considerable equity gains each time. We will have 40% equity in the house, so although it's a huge mortgage, we'd be very unlucky to sell at a loss. It's finally our house for hte long-term anway.

Hey, if it works out for you great, but to say in one sentence that you don't have 'much of a choice' and then say you don't want to downsize is a bit of a dichotomy, to say the least.

Really, it's a gamble and sometimes it works out and sometimes it doesn't.

That's the nature of speculation.

I'm sure I've heard those 10 x salary quotes before. Calling a peak is nigh on impossible but I remember the last crash and it was sudden, fast and brutal.

I know but come on, a couple of kids, a netwrok of friends/family in the expensive SE, ds secure in a highly paid job..i'ts difficult to break those ties!

What I meant was that we don't have much choice about paying a stupidly high price for a house adequte for 4 people. Yes, we could move to NE Enlgnad or where ever, but we know no-one and would probably not find it as easy to get employment.

dh in a secure job rather. We haven't yet succumbed to sending our 5 yr old out to work!

I don't know how people afford there mortgages to be honest.

Our mortgage is just under double our income whihc is not meant to be bragging as we have a very ordinary house but even at that level the mortagage is a big bill that we would love to reduce.

But RTH, why expect sympathy for that?

So what?

Lots of folks are in dire situations not from speculating.

For real.

I mean, go for it! If it works out, fab! Good for you.

But if it goes awry you can't possibly play the innocent victim and expect people to buy that.

i'm not after sympathy! Christ all mighty!
This is in "In the News", I think it's interesting to debate and gave my circs as an example. I do not feel sorry for myself nor expect anyone else to!

if you're not careful, I will downsize and join you up there in Scotland

also depends on your definition of adequate accommodation for 4 people, we have 6 in a small 3 bed terrace, with v small rear garden, not adequate by most peoples standards but it's only a house and we just have to be minimalist with what we keep.

BAck to the debate, I think the market will drop at some point but as long as the market is kept artificially high by the government providing "help" to first time buyers it could be a long way off.

I was reading an aritcle about housing in 1850s England on 5 families sharing one room. Asked how they coped, they said it was okay until one of them took in a lodger!

Buy to let took on some of the purchases normally left for first time buyers. And that looks as if it's grinding to a hal.

I suppose it's generally ok to take on a large mortgage if you're in a job where you can reasonably expect salaries to rise.

When dh and I bought our first house (a 2 bed semi in the SE) we paid £56,500 and had to take a mortgage for £49,500 at an interest rate of 11.75%. Our joint salary at the time was about £25,000.

Within a couple of years our salaries had moved on and the repayments were comfortable.

What worries me is that even in a supposedly secure job like mine - teaching - there is no job security.