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Generation Rent should vote BREXIT. Watch

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    (Original post by typonaut)
    People seem to be willing to do so, there's a whole genre of TV programmes dedicated to that issue alone.



    Europa. How about you, planet Brexit?
    Yea most people who move to Europe have retired or gone to Ireland


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    (Original post by Maker)
    House prices are driven by available credit and has little to do with real demand. House prices fall when lending became tighter post 2008 after the credit crunch and its creeping up as more credit become available. It's been the trend since the 1970s, whenever credit becomes easier to get, house prices goes up and when the reverse happens, house prices go down. Its got no relationship to immigration levels.

    Having fewer immigrants would have a very small effect, but nowhere near the big drops needed in London and the south for people on average wages to buy.
    Credit is part of what I said earlier but it hasn't become more available at all now it's capped at 4.5 for a single or 3.5 for a couple


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    (Original post by paul514)
    Credit is part of what I said earlier but it hasn't become more available at all now it's capped at 4.5 for a single or 3.5 for a couple


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    There is no cap for buy to rent buyers and there is no relationship between immigration and house prices. You also forget many foreign buyers can borrow in other countries and parents can borrow against their own properties to help their kids buy as well.
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    (Original post by paul514)
    Yea most people who move to Europe have retired or gone to Ireland
    As previously, there is a whole genre of TV programming that disproves this point.

    One of the points that has come up recently in the debate about UK citizens living in the EU is how that number has declined, particularly in Spain, since 2008. That's because people of working age are finding it more difficult to get work there, due to the ongoing troubles in the Spanish economy.
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    (Original post by ByEeek)

    However, if you take a combined salary, one doesn't have to earn very much in order to afford a good house. For example, two people earning £25k each can easily afford a house of £200k+ which in my neck of the woods buys something half decent.

    Another factor, and one I wholeheartedly understand is that there are lots of houses (and good houses) for less than £80k, but they tend to be in areas people don't want to live in. That, however is for individuals to reconcile with.

    The final mystery to me is that many of the moaners in the SE don't consider moving elsewhere in order to fulfil their dream of home ownership. The cost of living in London and the South East, despite slightly better job and salary prospects just doesn't add up to me. I don't understand why people do it. But that is another discussion.
    I live in the SE. 50 min commute to work in central London for partner and I. Both 24, earn £60k combined. A maisonette is £300k where I am... A house remotely close to a station is £375k+.

    It's ridiculous and the reason I don't move elsewhere is because my family are here and I grew up here. Secondly, child care costs are insane so if we are lucky enough to have children we'd need to be near to family to be able to afford it anyway!
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    (Original post by paul514)
    Credit is part of what I said earlier but it hasn't become more available at all now it's capped at 4.5 for a single or 3.5 for a couple


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    It's not 3.5 for a couple. Banks will lend us ~x4.8 as a couple.
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    DID YOU EVEN READ THE ARTICLE YOU LINKED?

    Leaving the European Union would hit house prices significantly and make mortgages more expensive


    So... yeah, good job
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    If Leave wins, then there will be a downturn this year, the pound could be hit and interest rates may have to rise. But this will only be part of the process of getting back to a normal economy. Interest rates are at their lowest for three hundred years.
    We will be the single biggest new business prospect for every country around the world, especially emerging markets, and being the 5th largest economy will be able to forge new or better business links.
    But the immediate pain will be akin to having a bad operation where the positive results are only felt several years in the future.
    Sadly politics has become more and more short term. Its perfectly acceptable to be totally for Europe, but Vehemently against the EU.
    VOTE BREXIT FOR a FAIRER BRITAIN
    Vote Brexit for lower house prices.
    Vote Brexit for higher wages.
    Vote Brexit for a rise in IR, to help pensioners, and savers.
    Vote Brexit saving our fantastic NHS from TTIP privatisation.
    Its a complete no brainer.
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    (Original post by Anon07079191)
    I live in the SE. 50 min commute to work in central London for partner and I. Both 24, earn £60k combined. A maisonette is £300k where I am... A house remotely close to a station is £375k+.

    It's ridiculous and the reason I don't move elsewhere is because my family are here and I grew up here. Secondly, child care costs are insane so if we are lucky enough to have children we'd need to be near to family to be able to afford it anyway!
    Yeah - I get that. London is a law unto itself. As for childcare though, if you moved elsewhere, you would be able to afford it, as long as you had spare cash for a second mortgage for several years. It is a catch 22.
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    Don't believe Project Fear -
    The UK is better off with Brexit
    Output grows 2%
    Competitiveness rises 5%
    Real disposable wages up 1.5%
    Exchange rate falls 6%
    Inflation and interest rates rise to 2-3% range
    Current account improves to -1.5% of GDP
    Unemployment reduced by 0.2% (75,000 on benefit count)
    Courtesy of http://www.economistsforbrexit.co.uk
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    (Original post by Rover73)
    If Leave wins, then there will be a downturn this year, the pound could be hit and interest rates may have to rise. But this will only be part of the process of getting back to a normal economy. Interest rates are at their lowest for three hundred years.
    We will be the single biggest new business prospect for every country around the world, especially emerging markets, and being the 5th largest economy will be able to forge new or better business links.
    But the immediate pain will be akin to having a bad operation where the positive results are only felt several years in the future.
    Sadly politics has become more and more short term. Its perfectly acceptable to be totally for Europe, but Vehemently against the EU.
    VOTE BREXIT FOR a FAIRER BRITAIN
    Vote Brexit for lower house prices.
    Vote Brexit for higher wages.
    Vote Brexit for a rise in IR, to help pensioners, and savers.
    Vote Brexit saving our fantastic NHS from TTIP privatisation.
    Its a complete no brainer.
    I don't think the UK's business potential will be improved by Brexit. Why would businesses want to move to the UK if it loses access to the biggest and richest market in the world. Businesses want bigger markets, not smaller ones.

    If Brexit was so good for the economy and business, why would businesses like Toyota say they will cut back on investment in Britain if the UK leaves?
    http://www.theguardian.com/politics/...ositive-impacy
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    (Original post by Anon07079191)
    It's not 3.5 for a couple. Banks will lend us ~x4.8 as a couple.
    Pm me details I've looked and only saw 3.5


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    So it's easy, we make all landlords charge really low rents and give complete security to all tenants just like the 1965 Act did. Just watch the housing crisis resolve itself! It will really make loads of new properties be built
    ..or will I??????
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    An average house price of £80,000 means some cost more and some less. (an average)

    Whilst a small flat can be built for under £80,000 it is pretty tricky to build much of a house for £80,000.

    Prime construction needs labour and materials, these have a cost, infrastructure needs built, services connected planning costs money as do the professional team (architects, surveyors, engineers) and then maybe contaminated land costs, site leveling/earth moving

    Selling costs need met, there is the cost of finance etc

    Who is to build all these houses with an average selling price of £80,000, even with a zero land cost there is little scope even for a very small one bed house?

    There is a bottom line for houses, replacement cost, and I am sorry the average house costs more than £80,000 to build.

    Give me a level already serviced greenfield site with economies of scale ,with all infrastructure already in place and maybe something small can be built for say £80,000 but that is near the bottom cost price not the average.
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    (Original post by DJKL)
    An average house price of £80,000 means some cost more and some less. (an average)

    Whilst a small flat can be built for under £80,000 it is pretty tricky to build much of a house for £80,000.

    Prime construction needs labour and materials, these have a cost, infrastructure needs built, services connected planning costs money as do the professional team (architects, surveyors, engineers) and then maybe contaminated land costs, site leveling/earth moving

    Selling costs need met, there is the cost of finance etc

    Who is to build all these houses with an average selling price of £80,000, even with a zero land cost there is little scope even for a very small one bed house?

    There is a bottom line for houses, replacement cost, and I am sorry the average house costs more than £80,000 to build.

    Give me a level already serviced greenfield site with economies of scale ,with all infrastructure already in place and maybe something small can be built for say £80,000 but that is near the bottom cost price not the average.
    What's all the 80k talk about?

    Anyway people would be happy if the average were 50% higher than that or maybe even more just not the grossly inflated figure it is right now.

    I live in Birmingham and the suburb I live in the average for a 2 bed and a box room house is 400k




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    (Original post by paul514)
    What's all the 80k talk about?

    Anyway people would be happy if the average were 50% higher than that or maybe even more just not the grossly inflated figure it is right now.

    I live in Birmingham and the suburb I live in the average for a 2 bed and a box room house is 400k




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    The £80,000 is the figure used by the OP in the first post on this thread, modeled from average earnings and a multiple to arrive at a price.
    The OP ignores actual cost which is a limitation on housing being built, and as houses have a finite life if none were built the number available reduces, supply and demand then suggests price increases. (scarcity)

    The problem re pricing is a threefold issue:

    1. Low wages growth; this is a Western European issue-the world economy and its axis is changing, in the long term wage increases can only come from productivity gains.

    2. Supply side issues, we build few houses and frankly we do not have a big enough homegrown construction workforce to get anywhere near the numbers needed-if Brexit we will need quotas of construction workers until we have trained sufficient homegrown construction workers.

    3.Money chasing a home- with bond yields low, corporate earnings flat, property in a stable economy is becoming very attractive to overseas investors (and homegrown investors)

    As someone who works in the property industry I can say that 2 is the one needing targeted, 1 will not improve any time soon and whilst 3 has been dulled a little of late it is really not the main issue, if all rented houses became owned houses there would still not be enough.

    A house price crash will kill 2 dead, it is currently very hard to get bank funding to build houses (hence the low build numbers) a crashed market will make the build numbers even lower.

    p.s. I do not agree with Osbourne that Brexit will lead to a 19% drop, temporary blip maybe but as the banks have money to lend if the tap is not switched off any drop will be short (ish) term- 2-5 years max.
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    http://www.dailymail.co.uk/news/arti...DIY-house.html

    IKea house for $80,000 or around £50,000 no including land costs. I doubt you could get a mortgage on it
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    (Original post by Maker)
    http://www.dailymail.co.uk/news/arti...DIY-house.html

    IKea house for $80,000 or around £50,000 no including land costs. I doubt you could get a mortgage on it
    I think you need to add to that groundworks like site,leveling, pad (presume concrete raft) electric, cable/telephone/fibre, gas, water, sewerage connections, pavements, roads, street lighting, parking spaces, gardens plus planning and professional costs.

    On the plus side at this pricing probably no affordable housing contribution will be needed.

    Any idea if they fit UK thermal efficiency/enviromental requirements?
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    For anyone serious on issue of property prices they should check out the organisation called property matters they lobby for zero inflation housing to sort out the affordability of housing in the long term.



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    (Original post by DJKL)
    I think you need to add to that groundworks like site,leveling, pad (presume concrete raft) electric, cable/telephone/fibre, gas, water, sewerage connections, pavements, roads, street lighting, parking spaces, gardens plus planning and professional costs.

    On the plus side at this pricing probably no affordable housing contribution will be needed.

    Any idea if they fit UK thermal efficiency/enviromental requirements?
    The trouble is British and foreign people and British banks want their houses to be appreciating assets and a source of speculation rather than just a place to live.

    Houses are therefore priced out of reach of a lot of people and even increased building would make little difference if most of the new builds are snapped up by foreign investors who are happy to leave them empty because they are a safe place to park their money or they are bought by buy to let landlords to rent out at high rates.
 
 
 
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