and to FSD’s comments about affordability, all true. Any payment to income/rent/historical payment/(whatever) calculation will show today’s unparalled affordability.
Because of today’s unparrelled interest rates.
Rates are so low, that they make our really quite high prices seem low. Seeing as interest rates can only really go up from here, the only way to maintain these ratio’s is for incomes go up by an equilivant amount (hard to do in todays economy) or for prices to fall.
I have no idea what will happen, but I do know that when he (and sdr) purchased his house in 1996, it was high(er) interest rates on low(er) prices vs incomes that constrained housing prices. Today it is high prices and rock bottom level interest rates vs stagnant incomes that are constraining pricing. The payments look the same in raw terms, but potential for future gains and ‘investment’ potential are drastically different.
The lesson I see from that, “only buy a house you really want to stay in, cause it is unlikley there will be much REAL appreciation for a very long time”.
