First Time Buyers can't afford to buy at today's prices, how can the cost of a house go up 40% in next 5 yrs?

Answer 1

In 1969 the first suburban semi to reach £10,000 made front page news in London`s papers. Since then the price of a semi has risen 50 fold so your expectation of 40% in the next 5 years is an under estimation, it will be more like 60% if the same annual rate of increase at 10% maintained.If the same rate of increase is maintained over the next 38 years as the previous 38, then the price of a house will start at £20,000,000. Unbelievable? That`s what everyone thought back then about today`s values,supping their beer at 8.5p a pint.

Answer 2

first home buyers are a dying breed , but you have to go where you can afford the houses , the home buyers grant is said to be doubled which will push the home buyers inland , to the cheaper market , while home buyers on the east coast , and west coast have felt the effects of the housing boom , the inland houses are dropping to a reasonable amount , where the first home buyers are flooding the market , the houses around Western Australia , and the inland comunitities , around the districts which offer reasonalble returns on investors , are being held together quite well , such as communities around , Mount Barker , Kendenup , Cranbrook , Tambellup , and the Winner Katanning , usually places which have the best infrastructure are said to be the new gold mine for investors , and because the rental market is going strong in these area's the buyers are to follow. the downside to these markets particularly around Katanning and Districts is that the houses are historic , and are not to good for the modern homebuyer , but the first home buyer is able to still establish a foot in the door for there first home. before they get left in the cold by the inflation of the housing market. The housing boom which forced the price up , will plateau over the coming months , and you will most likely see prices go down somewhat , when the interest rate rises . you can never tell what the changes will be , thats why it is a market , becuase gaurantees are found elsewhere

Answer 3

It can't be sustained as it is at the moment. I think we are ready for some form of correction. Over the years I have noticed that the housing market goes in a cycle of about 10 years. I estimate that it is nearing the top of the graph and not a good time to bye property. Interest rates dictate everything, that's why G Brown put the BOE in charge.

I have been buying property over the years and it does seem to follow a pattern.
This is a personal observation based on my own experiences.

Answer 4

It is not sustainable, if first time buyers can not afford anything then nothing will sell and the prices would have to come down again.

Acemiller~ the questioner is talking about house prices in the UK, where the average property is now around £200,000 which is around $400,000, which is 11 times the average annual wage.

Answer 5

land available is limited, what land god had to make has been made & there will be no more supply of land, so basically the land prices keep going up as there is no new supply, however developers, town planners offset this supply shortage by increasing FSI & making buildings taller, apart & in spite of this there is increase in building costs every year due to inflation, thus in the long run you will always have a minimum increase of 3 to 5% per annum in house prices,

so the b est way to go is start by buying a house at an affordable location of an affordable size through a home loan & thereafter keep upgrading as & how your income rises, that way in spite of paying interest, at the end of it all your house will definitely fetch you the price you have paid with interest.

Answer 6

There are plenty of opportunities for first time home buyers to purchase houses. I am a real estate broker, and continue to sell houses to younger first time buyers without problems.

Certainly there are given markets in the nation where houses are very expensive and more difficult to obtain for a first time home buyer, but those markets represent about 5% of the entire nation.

Do remember that home ownership is the American DREAM, and not the American PROMISE. You will need to save your money so that you have sufficient downpayment on a house, which will keep your mortgage payment at a level which you can comfortably afford.

Answer 7

There are programs available to you as a first time home buyer. Don't give up but do some research to see how you can get started. Here are some research links from our research department that might help you get started

FHA Federal Housing Administration loan programs: http://www.fha.com/
FHA Rural Housing loan programs: http://www.rurdev.usda.gov/rhs/common/indiv_intro.htm
US Government Housing assistance grants all areas:
http://12.46.245.173/pls/portal30/catalo...
US Government Grants page: http://www.grants.gov/
US Federal Domestic Assistance catalog for all Federal Programs available to State & Local Governments & the Public
http://12.46.245.173/cfda/cfda.html
All government Benefit Programs http://www.govbenefits.gov/govbenefits_en.portal
Department of Veteran Affairs – Home buying programs for Veterans:
http://www.homeloans.va.gov/veteran.htm
Low Income Home Purchase Assistance (Private): http://www.nehemiahcorp.org/
AFFORDABLE HOUSING CONTACT LIST FROM REALTOR.COM US GOVERNMENT AND ALL STATES: http://www.homefair.com/homefair/servlet/ActionServlet?pid=187&art=contlist&cid=homefair
Low income housing assistance (private) Habitat for Humanity: http://www.habitat.org/
USDA Rural Housing programs & eligibility requirements: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

That should give you enough research material to get started on finding a program that will help you get your first home.
Best of luck on your research

Answer 8

Because the rich get richer so they can afford to push peole out of areas. Its not a good place to live anymore.

Answer 9

It cant, and the only people who are predicting the increase are are the people in the business.

Answer 10

It may and it may not. I'm not sure where you heard that, but with today's market I would doubt it.

If I can answer any other questions, email me.