Ajay Ahuja Blog Post on Affordable Housing and Salaries

It is now getting reported that housing is becoming affordable to first time buyers.  The number of areas where the property prices are less than 4 times average salary for that area have increased from 4% to 14%.

Now stories like these do not make the first time buyer come back in their herds but it starts to drop hints to the first time buyer that some point in the near future it will be time to buy.

If you think about a prospective first time buyer living at his or her parents or paying rent to a landlord you can understand their frustration.  They want a place of their own!

First time buyers will come back.   HSBC offer a 1.69% above base rate tracker if you have a 40% deposit.  Now the bank of Mum & Dad can provide this as they want their child out of the house so they can enjoy their retirement in peace!

So do not be fooled that it will take a long time for the market to recover.  As soon as there is official data that prices have hit bottom which could be very soon we will see the first time buyer back with a vengeance.

The first time buyer deals will come flooding back and we will see 95% LTV first time buyer mortgages at sub 5% borrowing rates.  With deals like these we will go back to the situation in 2006 where first time buyers bought pretty much everything.

So my message to you is if you can buy at these prices then BUY.  Who knows how long it will last.  One thing for sure is NO ONE KNOWS.

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