tag:blogger.com,1999:blog-8476654842621908274.post9039448098608951566..comments2022-07-17T04:18:43.085-07:00Comments on ratleskutle: Catherinehttp://www.blogger.com/profile/09735209584616815724noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-8476654842621908274.post-8451183263455301392011-03-27T01:55:23.376-07:002011-03-27T01:55:23.376-07:00Unfortunately there is still a belief in Jersey th...Unfortunately there is still a belief in Jersey that suppressing demand for housing accommodation by use of discriminatory laws and policies is useful.<br />In fact is that the Housing Law and related measures form an artificial queue of people who will never be able to afford to house themselves. This queue is then used to justify 10,000 working adults being denied housing qualies and to be forced to live in lodgings of one sort or other.<br />The financial result is that the house building fund for all residents of Jersey is starved of money that should go to building new and proper accommodation for all and the "rents" of the 10,000 go into landlords or existing proprty owners pockets.<br /><br />The whole silly mess is then wrapped up with a load of nationalist pseudo - green rubbish about preseving the countryside.<br /><br />Whether it's the multiplier or whatever in the accountants book matters very little - the basis of the whole thing is greed, prejudice and institutional discrimination - or capitalism by any other name.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8476654842621908274.post-8060102739968260022011-02-06T16:05:43.601-08:002011-02-06T16:05:43.601-08:00Thank you.
Just a few months ago we were offered...Thank you. <br /><br />Just a few months ago we were offered a mortgage of 5 times joint income. I think that what stops many from having the option to buy is the deposit. Now that property prices are so high, the deposit required is a substantial sum. It's not possible to save that sort of money when you're paying a massive rent and loads of tax. <br /><br />I have experienced negative equity - when living abroad, where property is seen more as a home and less as an investment.<br /><br />Rents, I think are also unrealistically high. I haven't researched this but it's easy enough to see that a very ordinary house will be let for about £18,000 per year, which means that the average family will be paying over 40% of their income on rent. Also, a household earning average income will receive either no help or very little from income support and will be paying tax. <br /><br />I can see there would be an inverse correlation between house prices and food prices as we move further into a post-industrial society (but it seems that food is going to become more expensive)<br /><br />Clearly there are serious social problems associated with unaffordable housing. Obviously homelessness, particularly among people in Jersey under 25 years of age because they are not entitled to any housing supplement from income support. Also, overcrowding and increased debt due to people having to over-commit themselves. Personally, I think unaffordable housing also causes disengagement of the local population, whether qualified or unqualified, apathy and a feeling of resentment.<br /><br />Not an easy subject to tackle - because clearly nobody wants to cause negative equity. However, the present situation is also very damaging. Some policies are hard to understand, for example, I can't see how allowing non residents to buy to let can have any positive outcome for the local population. Also our shared equity scheme, Homebuy,is inadequate. It is only available to people with slightly above average income who can put down a deposit of about £100,000.<br /><br />States Members are very poor on this issue because it is something that affects everybody and it is way out of control.Catherinehttps://www.blogger.com/profile/09735209584616815724noreply@blogger.comtag:blogger.com,1999:blog-8476654842621908274.post-14765884960056438252011-02-06T14:23:23.422-08:002011-02-06T14:23:23.422-08:00Welcome back Ratleskutle!Welcome back Ratleskutle!Nick Palmerhttps://www.blogger.com/profile/05360924308743466075noreply@blogger.comtag:blogger.com,1999:blog-8476654842621908274.post-19912804599920158092011-02-06T09:43:21.143-08:002011-02-06T09:43:21.143-08:00Sorry to hear of your bereavement. Glad to see you...Sorry to hear of your bereavement. Glad to see you back blogging. <br />There is surely no doubt that the affordabiity of housing in Jersey has decreased in recent decades.<br /><br />I would be interest to know if rents are similarly affected as house purchase prices compared to incomes.<br /><br />I have a inchoate notion that in general house prices and food prices are inversely correlated. It used to be people (in the UK at last) spent 40% or so of their income on food, now it is only 10%. I suspect in general the proportions spent on housing have gone the other way.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8476654842621908274.post-33393676133598686922011-02-06T04:23:21.241-08:002011-02-06T04:23:21.241-08:00All too true. once again, it is down to our belove...All too true. once again, it is down to our beloved finance industry. They went through a long spell of offering mortgages at huge multiples as a staff perk. Because finance employees could therefore make inflated offers to secure their purchases, anyone else also had to struggle to match them, and so the prices rose.<br />Now, the mortgage supply has tightened up, and anyone who bought in the last 15 years can't afford to sell at a heavy loss, so the housing market has stagnated. There is a great danger that there will be a complete crash in house prices soon. While this may seem like good news for the thousands wishing they could buy, every cut-price house spells ruin for the seller, so there will be no more net happiness at the end of the day. While the banks will of course collect their money and repatriate it out of our economy.Ugh, It's Him!https://www.blogger.com/profile/06194792008692398706noreply@blogger.comtag:blogger.com,1999:blog-8476654842621908274.post-84762820051219260922011-02-06T02:12:11.713-08:002011-02-06T02:12:11.713-08:00This is most interesting.
The other indicator of ...This is most interesting.<br /><br />The other indicator of house prises rising faster than wages is the bank multiplier (see below)<br /><br />In Jersey, of course, with many more banks involved in the finance industry, low mortgage rates to employees will also have helped drive up prices faster than the UK, where the proportion of businesses in a city involved in finance would be less.<br /><br /><br /><br />http://www.find-home-loan.com/afford_a_home_loan_mortgage.htm<br /><br />Historically the multiplier was always the way that banks determined if we earned enough to be able to afford to repay the home loan we had just applied for. Basically this system would work so that you were allowed to borrow as much as two and a half to three times what you annual salary was. <br /><br /><br />and now....<br /><br />http://www.mwgb.co.uk/mortgages/borrowingcapacity.html<br /><br />Most mortgage providers will be pleased to discuss how much you can borrow on a mortgage. The mortgage amount can vary considerably between providers and is usually calculated by using 'income multipliers'. Phrases such as '4 + 1' and '3.75 x joint' are commonly used. These are examples of income multipliers and simply mean that the provider is prepared to lend, say, four times the higher income plus the amount of the lower income (assuming, of course, that a couple is buying).TonyTheProfhttps://www.blogger.com/profile/10486414706261508994noreply@blogger.com