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Can you afford to live where you live?

Community Veteran
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Registered: 21-03-2011

Can you afford to live where you live?

The BBC online calculator http://www.bbc.co.uk/news/business-23234033
Now Zen, but a +Net residue.
19 REPLIES
nadger
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Registered: 13-04-2007

Re: Can you afford to live where you live?

Answer is yes but only because I paid off mortgage 14 years ago.
Community Veteran
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Registered: 12-08-2007

Re: Can you afford to live where you live?

I think the title is a little misleading. Like Nadger I can afford to live where I live but it would be a different situation if I was considering moving here for the first time.
Community Veteran
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Registered: 02-02-2008

Re: Can you afford to live where you live?

Stupid questions really, what age are they assuming and what equity in your property already?
As an older person with mortgage paid off and relatively low income I can happily afford to live where I am now, expensive though it is.
Starting from scratch there's no way I could, but maybe I should take the value of my house as a deposit?
In which case, I'll try again......
And the answer is (with £10 per month mortgage payment  Crazy ) 98%.  Huh
My own district is third on the "most expensive" list it then shows.
Community Veteran
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Registered: 21-03-2011

Re: Can you afford to live where you live?

It's just a side effect of the Governments keeping the rate of interest low following the banking crisis. The people with large savings have tended to use purchase to rent to invest their money giving an average return of circa 7% meanwhile forcing up the price of housing which will tend to increase rental prices.
Now Zen, but a +Net residue.
Community Veteran
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Registered: 02-02-2008

Re: Can you afford to live where you live?

Not much buy-to-let in my area and it's far from cheap.  Wink
Community Veteran
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Registered: 18-01-2013

Re: Can you afford to live where you live?

I moved to the town where I live when I split up from my last wife as it was the only place I could afford.
Still here 14 years later and actually prefer it to my hometown.
itsme
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Re: Can you afford to live where you live?

Quote from: AlaricAdair
meanwhile forcing up the price of housing which will tend to increase rental prices.

yesterday headline Negative equity afflicts 'half a million households' so property prices are still less than in 2008
Community Veteran
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Registered: 12-08-2007

Re: Can you afford to live where you live?

Quote from: HPsauce
My own district is third on the "most expensive" list it then shows.

Sorry but I can't see this list. Where is it?
Thunderclap
Grafter
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Registered: 08-09-2008

Re: Can you afford to live where you live?

Cool Interesting.
I can just afford to live here, but there is no way I could ever afford to move here since the housing boom/bust/bounce/bust/boom. Which is the case in many nieghbourhoods. Which I believe is socially devisive. When there are incomers to an area who have a lot more money than the indigenous locals, there will be tensions. For example, think of some country village where trendy-yuppies buy million pound barn conversions [on the flood plane] next to cottages occupied by lowly paid landworkers. Okay, so the yuppies children are still at home, but that's down to their vast student debt; which is also a factor on the affordability matrix.
As for our lower than healthy interest rates, some people are enjoying an interest rate holiday: Those who took out huge interest only mortgages are being subsidised by savers and the inflation rate. No wonder the [independent] BoE will not raise interest rates with an election next year. A 1% rise in the Base Rate would burn a lot of avaricious people - especially in those Tory heartlands of London and the South East. And lest we not forget the Shared Equilty Scheme where, the tax payer underwrites mortgage lenders so first time buyers can just manage some overpriced affordable rabbit hutch [on brownfield land]
As for rents, in some parts it is benefits that are raising costs. People in full time pay are locked out of districts that are only affordable to those who have their rent and council tax paid by everyone else. I would go so far as to say there are buy to let landlords who want DSS ONLY - typically in areas with lower average incomes. Pack them in and charge them high.
Community Veteran
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Registered: 02-02-2008

Re: Can you afford to live where you live?

Quote from: artmo
Sorry but I can't see this list.
Obviously not it's "my" list that appears when I put my answers in.  Roll eyes
Put your answers in to get a list relevant to you.  Wink
For example Kensington and Chelsea doesn't seem to be on "my" list.  Lips are sealed
As I said, my own district is third on "my" list, so I "could" afford to move to 2 more expensive areas - according to this.
Oddly, they happen to be quite near though I've (not knowingly) given any geographic information and the others on the list are scattered around.  Undecided
Community Veteran
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Registered: 23-09-2010

Re: Can you afford to live where you live?

Having little income the only reason I can afford to live here, like others, is because I paid off my mortgage years ago.
Other than that I couldn't afford to rent a rabbit hutch around here.
In my position the low interest rates are crippling me.
Moderator
Moderator
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Registered: 11-01-2008

Re: Can you afford to live where you live?

Apparently I can't afford to live where I am, but I can. Which is odd.
It needs to be more granular i.e. postcode level, because where I am is much cheaper than than say 10 miles across town but seems all areas are lumped in together.
Will Moderate For Thanks
nanotm
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Re: Can you afford to live where you live?

Quote from: AlaricAdair
It's just a side effect of the Governments keeping the rate of interest low following the banking crisis. The people with large savings have tended to use purchase to rent to invest their money giving an average return of circa 7% meanwhile forcing up the price of housing which will tend to increase rental prices.
of which the secondary effect of stopping the practice of applying business rates to those properties when empty has also exacerbated
just because your paranoid doesn't mean they aren't out to get you
Community Veteran
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Registered: 02-08-2007

Re: Can you afford to live where you live?

It's a bit silly.
With my current saving used as a deposit and my total retirement income used for repayments I would be lucky to buy even the cheapest one bedroomed flat.
However like many others I was fortunate to purchase, years ago (with a mortgage) a 2 bedroom 2 year old semi for £2, 250, ten years later a similar property sold for £10,000 so had we waited we could not have afforded it. One year our house went up more than I earned that year.
So sure I was fortunate but being in a low paid job we never had a holiday for years, no car before the age of 30 and went without a few things, most of the people I knew were in the same situation.
So with a mortgage paid off years ago I am living in accommodation it would be impossible for me to even consider buying or even renting so it all about a range of other factors such as age, occupation, what you may be prepared to do without etc, etc