pepeleches
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(excuse me, my english is poor...)
Can you explain us how big is the economic effort to buy an apartment in UK at this moment, the situation of the market and the mentality of the population about the prices?
In Spain for example, a usual case could be:
- Young couple with no savings, their individual wage about 1000€/month (net). A very usual amount, the medium wage is 1200€/month, but there is much more people under this quantity than above (even with University degree...)
- An apartment of 50 m2 (of course very old, without lift, in a far away district) coasts over 220.000€ in a medium city, in Madrid or Barcelona probably more expensive
- They sign a mortgage, 40 years, about 1200€/month. They usually also include in this mortgage all kind of expenses of the transaction (taxes, fees of the notary...), and even the payment of a new car, surely a car they never could can in another way. Or the furnitures, of course high quality (and high price...), even a new pair of tits (for the woman, I suppose, haha). So the amount can rise.
Everytime Mr. Trichet appears now in the TV, they sweat a lot. Also they must resign to live a revolting life, with this amount they have money for nothing.
Last months banks have changed their conditions, and reject a lot of mortgages. Now they usually only render the 80% of the value of the house, meanwhile a year before the render even the 115%
And this is not the worst case; a lot of people have bought with worse wages, expecting the price of the houses will never stop to grow.
But at this moment is imposible to sell if no discount is applied...promoters and constructores are afraid, they sales are disappearing, the market is stopping. Houses are incredibily expensives, banks don't render the money much times and propietaries don't want to make real discounts (only a very little percentaje)
There is a lot of couples paying above 50% of their incomes, and there is a lot of suicides paying above 60%, even 70%. With this percentajes, every appearance of Trichet is traslated into a very good kick.
And mostly the are convinced they are very clever because when they decide to sell they will become rich...
Another curious case happens when a couple bought very cheap (60.000€ for example) and they sell in 200.000€. A wonderful gain in a few years (3-5 years). But most of this people run to buy a single family house that can coast close to...400.000€, of course 30 km away from the city, frecuently in a desert landscape. They did a wonderful businness, and a few hours after they have sign a mortgage of 200.000€. But they are very very happy; this is their dream. The can be conceited of their house, this becomes their only subject of conversation.
A worse case (dramatic in much times); the same couple of the previous operation, but they still must sell the first apartment. But previously, maybe a year before, they signed the mortgage of the single family house bought in plane, and they will start to pay in a few months. And they can't sell the apartment...
They have a bridged mortgage (literal traslation, I don't know if is an 'exportable' word...), it means if they will not sell the first apartment, they will start to pay the second mortgage, at the same time they pay the first until they sell. Of course they coudn't pay (even discouting the price of the apartment of the final mortgage is a very important percetage of their wages), but they maintain the price.
But this price...is not a real price, they have calculated how much they need to earn to pay a good part of the sigle family house, but maybe in the market you can find a similar apartment 30% less. Of course they can't sell, but even in these circumstances they don'th think about make a discount, because 'they need this money'
Of course if the day of the first payment they haven't sold, they have an awful problem. Maybe with a help from their family they can wait a few months, but probably they are adding the two mortgages is two times their wage....
We have read incredible true stories, people have a bandage in their eyes. The future is very dark, may be you could hear the crack from the UK
.
If you and your partner haven't a wonderful job (not a good, a wonderful) is near imposible you can access an apartment, of course 40 years.
Even rents are much times absurd, but clever people waits renting a better moment. But a great percentage of spanish population will never rent, they think renting is to throw the money by the window. And they are obsessed about buying a house (if they don't have), or thinking about the money they earn everytime the price of the houses rises. With the house they are living in...
Old spanish theories say this brilliant ones: 'Prices of the house never lowed, and will never lower'. 'Govern will not allow that...','Construction cannot lower, is too much important','I you can become anything, you must own your house', 'When I bought Euribor was low, I don't mind if it rises'
If you don't buy a house, and you think renting now is the best solution you'll propbably hear you are a vague...meanwhile inconscient mortgaged people think about themshelves they are brave, worker, decided people. They are looking for their future an for their children
Welcome to this forum...
Can you explain us how big is the economic effort to buy an apartment in UK at this moment, the situation of the market and the mentality of the population about the prices?
In Spain for example, a usual case could be:
- Young couple with no savings, their individual wage about 1000€/month (net). A very usual amount, the medium wage is 1200€/month, but there is much more people under this quantity than above (even with University degree...)
- An apartment of 50 m2 (of course very old, without lift, in a far away district) coasts over 220.000€ in a medium city, in Madrid or Barcelona probably more expensive
- They sign a mortgage, 40 years, about 1200€/month. They usually also include in this mortgage all kind of expenses of the transaction (taxes, fees of the notary...), and even the payment of a new car, surely a car they never could can in another way. Or the furnitures, of course high quality (and high price...), even a new pair of tits (for the woman, I suppose, haha). So the amount can rise.
Everytime Mr. Trichet appears now in the TV, they sweat a lot. Also they must resign to live a revolting life, with this amount they have money for nothing.
Last months banks have changed their conditions, and reject a lot of mortgages. Now they usually only render the 80% of the value of the house, meanwhile a year before the render even the 115%
And this is not the worst case; a lot of people have bought with worse wages, expecting the price of the houses will never stop to grow.
But at this moment is imposible to sell if no discount is applied...promoters and constructores are afraid, they sales are disappearing, the market is stopping. Houses are incredibily expensives, banks don't render the money much times and propietaries don't want to make real discounts (only a very little percentaje)
There is a lot of couples paying above 50% of their incomes, and there is a lot of suicides paying above 60%, even 70%. With this percentajes, every appearance of Trichet is traslated into a very good kick.
And mostly the are convinced they are very clever because when they decide to sell they will become rich...
Another curious case happens when a couple bought very cheap (60.000€ for example) and they sell in 200.000€. A wonderful gain in a few years (3-5 years). But most of this people run to buy a single family house that can coast close to...400.000€, of course 30 km away from the city, frecuently in a desert landscape. They did a wonderful businness, and a few hours after they have sign a mortgage of 200.000€. But they are very very happy; this is their dream. The can be conceited of their house, this becomes their only subject of conversation.
A worse case (dramatic in much times); the same couple of the previous operation, but they still must sell the first apartment. But previously, maybe a year before, they signed the mortgage of the single family house bought in plane, and they will start to pay in a few months. And they can't sell the apartment...
They have a bridged mortgage (literal traslation, I don't know if is an 'exportable' word...), it means if they will not sell the first apartment, they will start to pay the second mortgage, at the same time they pay the first until they sell. Of course they coudn't pay (even discouting the price of the apartment of the final mortgage is a very important percetage of their wages), but they maintain the price.
But this price...is not a real price, they have calculated how much they need to earn to pay a good part of the sigle family house, but maybe in the market you can find a similar apartment 30% less. Of course they can't sell, but even in these circumstances they don'th think about make a discount, because 'they need this money'
Of course if the day of the first payment they haven't sold, they have an awful problem. Maybe with a help from their family they can wait a few months, but probably they are adding the two mortgages is two times their wage....
We have read incredible true stories, people have a bandage in their eyes. The future is very dark, may be you could hear the crack from the UK
. If you and your partner haven't a wonderful job (not a good, a wonderful) is near imposible you can access an apartment, of course 40 years.
Even rents are much times absurd, but clever people waits renting a better moment. But a great percentage of spanish population will never rent, they think renting is to throw the money by the window. And they are obsessed about buying a house (if they don't have), or thinking about the money they earn everytime the price of the houses rises. With the house they are living in...
Old spanish theories say this brilliant ones: 'Prices of the house never lowed, and will never lower'. 'Govern will not allow that...','Construction cannot lower, is too much important','I you can become anything, you must own your house', 'When I bought Euribor was low, I don't mind if it rises'
If you don't buy a house, and you think renting now is the best solution you'll propbably hear you are a vague...meanwhile inconscient mortgaged people think about themshelves they are brave, worker, decided people. They are looking for their future an for their children
Welcome to this forum...
