What's confusing me is that there's a large portion of society that can't understand the problem and just keep expecting property to rise in value just because it has in the past
Very few can seem to accept that unless average wages rise comparatively eventually the music will stop
a guy was trying to tell me last week that it's written in stone "property doubles in value every 10 years"
I tried to explain that with the average two bed starter home in the UK now being valued at around £200K ( yea you read that right ) if you apply that logic your saying you think it will be 400K by 2032 !?!
Now here's the caveat..... the people buying said starter homes usually earn something in the region of £20-30K a year and they have been earning that same amount for the last 15-20 years because wages have risen so slowly
SO where as 10 years ago a starter home would cost maybe 100K it now costs 200K but average wages haven't increased to 50-60k
You can't borrow more than 4x your salary for a mortgage in the UK
So by that guys forecast nobody earning under a 100k a year will be able to buy a house by 2030
He couldn't / wouldn't understand what i was saying because it didn't support his view that property is a guaranteed get rich quick scheme ....
We are living in very dangerous times.