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We are renting a small flat in London. We would barely afford a mortgage on it despite my income being twice of a nation average.My landlord bought it in 2001 f
by cosmodisk 6y ago
We are renting a small flat in London. We would barely afford a mortgage on it despite my income being twice of a nation average.My landlord bought it in 2001 for a price that is less than a half of its today's value,adjusted to inflation. So back then,you could buy it even with a modest income,while now you need to either own a business or be a director to be able to do so.
- mixmastamyk 6y agoDue to lack of supply, a lot of such folks are in on the joke.
- cosmodisk 6y agoIt's not the supply. It's not that London wasn't packed then and everyone not needed somewhere to live. All the craziness started when banks were allowed to jump on a mortgage bandwagon.It used to be only building societies before that. I'm commenting the UK situation,but I think it's similar in other countries too.
- mixmastamyk 6y agoIt is supply—restrictions on development, investors and AirBNB snapping up units, which increase vacancy rates. Yes, low interest rates are also a big factor. Not sure if they have a mortgage tax deduction over there. More folks want to live in the city these days as well, suburbs have lost some of their appeal. All these factors => very expensive housing.
- christiansakai 6y agoBut that’s not their fault to blame?