Wages vs house prices

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The_one_coat_wizard

Active Member
Speaking to a old timer today and was telling me what he bought a house for in 1970.

Bought a new build back then for £4999 and he was on £32 a week.

Average house now is £220,000 with most lads picking up £475 a week.

House prices are 44x what they were
Wages are only 14x what they were

Can explain what happened here?
 
Speaking to a old timer today and was telling me what he bought a house for in 1970.

Bought a new build back then for £4999 and he was on £32 a week.

Average house now is £220,000 with most lads picking up £475 a week.

House prices are 44x what they were
Wages are only 14x what they were

Can explain what happened here?
Parents house was 900 . Got to be 50 years back . Got to be a big crash to come in house prices as its just mental
 
We found a old newspaper in walls once. Bungalows round corner were bout 20 grand mid 80.s . Up for 220.000 now
 
You could easily argue there is something more cynical going on

I.e purposefully turning into a renting only market for 80 percent of future generations by steadily pricing them out of the market all together

Or

whoever built these houses getting it done on the cheap then raising the value as soon as its completed
 
My folks could have bought their house in 1963 for £2700. In 1971 he could have bought it again for £2900 and again in 1975 for the same money because although a housing shortage there was no value in houses because the norm was to get a council house because rents were low and kept low.

Towards the end of the 70's there was a slight increase but it was hard to get mortgages from banks. This was partly because they had a strict criteria on who they borrowed money to and how much.

End of 70's economy tanked due to Liebor and nobody wanted a house anywhere.

Maggie relaxed all lending rules to reduce money given to councils from government and to boost financial sector...................so everyman and his dog could borrow as much money as they wanted and then some more.

Result major boom and bust......................still same today.

Wages cannot keep up as goods then become uncompetitive in price so recession follows.

Result unholy mess with sad ending for those who borrow money.

Thats the short version.
 
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But if what your saying is true Satan

Aren't we just setting ourselves up for another financial crisis further down the line by letting this bubble inflate again knowing it's going to burst at some point in the future
 
But if what your saying is true Satan

Aren't we just setting ourselves up for another financial crisis further down the line by letting this bubble inflate again knowing it's going to burst at some point in the future
Why would you think its not true? Strange.

Look nobody gives a fuk because what you regard as a problem.....for you and your kids. Other people see it as an opportunity to make megabucks.

There are people out there just hoping and even scheming for another big crash so they can make loads of cash. Read up on a man called Soros. He is reported as nearly bankrupting the UK in early 1990's?
 
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house prices aren’t dropping around here, and 220 grand wouldn’t get you a coal shed.
It’s Supply and demand aswell-
rapidly increasing population, more divorces, people living longer, cheap mortgages, low interest rates etc
 
house prices aren’t dropping around here, and 220 grand wouldn’t get you a coal shed.
It’s Supply and demand aswell-
rapidly increasing population, more divorces, people living longer, cheap mortgages, low interest rates etc
Thats actually not true.

Population increases do not add up to price increases. An example is.........Millions of returning soldiers coming home after WW2 to bombed out cities and towns = no homes plus all us baby boomers and slum clearance meant millions of new homes and full employment from 1945 until 1975..............but hardly any increase in property prices.

The property price boom is a scam which will only ever have a bad ending.

Even when property crashes you will still find areas where it is going up.....usually London and the South east coastal areas.
 
The original post is right though it’s ridiculous how this has been engineered to leave us riddled with debt for most of our lives. House prices have outstripped inflation over and over again.
 
Prices need to go up across the board within the industry........think about it....

that new office you've just built for 1 million is going to be worth 4 million in 10 years time

all costs have been recouped plus a load more through nothing but the inflation on property
 
Thats actually not true.

Population increases do not add up to price increases. An example is.........Millions of returning soldiers coming home after WW2 to bombed out cities and towns = no homes plus all us baby boomers and slum clearance meant millions of new homes and full employment from 1945 until 1975..............but hardly any increase in property prices.

The property price boom is a scam which will only ever have a bad ending.

Even when property crashes you will still find areas where it is going up.....usually London and the South east coastal areas.[/QUOTE
But there was millions of social housing built, where as today there’s very little to population percentages, most people have mortgages and buy there houses thus driving demand up.
 
Thats actually not true.

Population increases do not add up to price increases. An example is.........Millions of returning soldiers coming home after WW2 to bombed out cities and towns = no homes plus all us baby boomers and slum clearance meant millions of new homes and full employment from 1945 until 1975..............but hardly any increase in property prices.

The property price boom is a scam which will only ever have a bad ending.

Even when property crashes you will still find areas where it is going up.....usually London and the South east coastal areas.
It’s a bad example you’ve given, The population in 1940s was 40 million it’s now 60 odd million,most in them days lived in social housing where as now most buy there houses thus driving demand up as aspirations change so do trends.
 
[QUOTE="owls, post: 1219231]
But there was millions of social housing built, where as today there’s very little to population percentages, most people have mortgages and buy there houses thus driving demand up.
[/QUOTE]

You have just swapped social housing for private housing that hasnt really driven up demand.

The demand comes from people seeing property as an investment not a home. But its only an investment if you get in at right time and more importantly get out at right time. Otherwise you become a weary money making pawn for the banks.................for the next 25 to 30 years:D
 
It’s a bad example you’ve given, The population in 1940s was 40 million it’s now 60 odd million,most in them days lived in social housing where as now most buy there houses thus driving demand up as aspirations change so do trends.
No I havent. There was nowhere to live in those days. The cities were almost flattened. There had been little house building for 20 or more years before that due to the great depression of the 1930's. So what you were left with were victorian or before that 2 up 2 down no bathroom outside bog slums.

All needed replacing and fast.
 
Historicly property long term has always been the best investment beating precious metals,stock markets and pretty much anything else, nothing will ever change that.
 
It’s a bad example you’ve given, The population in 1940s was 40 million it’s now 60 odd million,most in them days lived in social housing where as now most buy there houses thus driving demand up as aspirations change so do trends.
Trends do matter but when you could never ever be able to afford to repay your mortgage. Eventually reality will set in and you will realise that the house which you have struggled to buy for 25+ years becomes a millstone around your life. And the only time you will benefit from any increase in property is the day you sell it..............but then where will you live?..................If you need to move to a home in old age the government will seize your home..................if you die in it you will find they will get it by taxation.
 
Historicly property long term has always been the best investment beating precious metals,stock markets and pretty much anything else, nothing will ever change that.
Historically ???? Only since say the mid 1970's or some would say the early 1980's.
 
Speaking to a old timer today and was telling me what he bought a house for in 1970.

Bought a new build back then for £4999 and he was on £32 a week.

Average house now is £220,000 with most lads picking up £475 a week.

House prices are 44x what they were
Wages are only 14x what they were

Can explain what happened here?
Answer is very simple! Ask him how many m2 he did per day against your 170m2
 
Tbf she gave everyone the right to buy there council houses back then , without that a lot of the country wouldn’t of ever owned there home at all ,
Your old guy lived through a different time too now as well tbf
Are council houses in the UK owned by the taxpayer like here?.I could never figure out why the councils here sold them to people living in them at discounted rates and ended up with a huge shortage.
 
Are council houses in the UK owned by the taxpayer like here?.I could never figure out why the councils here sold them to people living in them at discounted rates and ended up with a huge shortage.
Because in large councils couldnt manage their budgets so the government had to give them money.

Selling them off was away of reducing government assistance and a way of raising cash for councils who then didnt have to maintain them as well.
 
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