Household Income compared House Value, with Age

[Seav]

Bit of a nosy question (I'm not asking for exact figures though) for home owners:

What number do you come up with when you divide the approx. value of your home by your current household income (ignoring how much is equity/mortgage)? What is your age/average age of the homeowners?

Ours comes out as 3.0 (and could be as low as 2.5 if I go with a more conservative house price estimate and upper end of income fluctuation) with an average age of 46.

I was thinking that it was a fairly low figure for our age (3.0) i.e. our house is worth less than you would expect for people of our age and income - just wondered where we fitted in? Obviously, how much actual equity you have/how much has come from family help/inheritance and other factors play a part but...ignoring all of that for now...

17 and I'm 26

Well ours is just over 5? Our house has just sold for 440 but we have no mortgage. Late 40s. No inheritance just focused on it. Dunno what it means

2, in our late 20s, based on the price we paid for it (probably won't increase much given the area, perfectly nice, just not "desirable")

Is that good? House prices are just quite low round here.

It is interesting, that people often assume we're not very well off (also drive an older car, as we only use it for recreation, so an easy place to save at the moment. We also haven't had any big holidays recently, as neither eDH or I fancied doing them with very young children. I know many of my 'mummy' friends were very surprised when I told them which house we were buying - they all seemed to think it'd be way beyond our means

Ha, we had that too! Although we earned very well, we are not interested in fancy cars or expensive clothes and holidayed in the uk for a week each year. When we moved house we doubled the value of the house because we'd been mortgage free for a while. Some people were very surprised and we had a few snarky comments. Weird how it changes peoples view of you.

There's nothing good or bad about the number NonStopDisco - only the person who owns that number knows the full details, and it will be of a mix of circumstances over time and choice. My first house was a 2, then moved up to a 3 - our income has gone up a lot since then but so has the value of our home (house price increase and work done) so we've just stayed at a 2-3 (this does mean we have no mortgage though at our age as we have had no other significant expenses like school fees etc).

Ignoring the very high numbers - which I can only assume result from inheritances/family help/windfalls, very savvy moves, significant difference in earnings over time or simply living in an area with extreme property rises - the number that most stands out is 5 (with a narrow range of 4-6 and fuller range of 2-8) for those around forties anyway (and not a CEO on a 7/8 figure income!). Highly unscientific, of course, although the narrow range does fit in with some of the comments I've had...

Would the number of 5 not come up most often with more recent buyers, due to a common lending decision of 4.5 times annual income and usually a 10% deposit?

5.2 and 47

3.42 with an average age of 39

10, average age 40, 50% equity.

6.0 mid 40s

7.7, age 28.

...we only bought last week and that was with a very very hefty 33% deposit.

1. Early 40's. 56% equity.

2,52 with an average age of 31

9.4

average age 48

We're at about 1.4 with over 50% equity. Age 36.

I always wondered if we're just exceptionally careful with money and not overstretching ourselves. DH feels that 3x income is an obscene amount to spend on a property and apparently feels sick just thinking about it...

Have I done it right? This is current value? House value has quadrupled since we bought it.

based on the house we are currently buying 3.12 average age 31, based on our current house 1.85.

5.07
Aged 41 & 43

11, age 40. No inheritances/help but some lucky timing and some DIY big renovations (not as a developer, just because could only afford a wreck to start with as our home!).

I'm 40. Do I win?

No.

I'm 53

9.5 with an average age of 33. But we have 50% equity - does that make a difference?! Seems high

we are 10, with an average age of 45. BUT our equity is about 85%, so our mortgage to annual income is about 1.3.

There used to be a very general guideline for people purchasing a house... they should look for a house about 3x their income. These days, with low interest rates, it's probably 4x.

However, that calculation is not useful for existing owners who have lots of equity.