House prices reach new high
July 21, 2007Thanks for visiting! If you like what you're reading, you may want to subscribe to my RSS feed.
The average house in London now costs £313,000. Think about that number - three hundred and thirteen thousand pounds. That’s more than 600,000 US dollars and thus probably even exceeds the phenomenal house prices in Manhattan.
The latest statistics reveal that the average salary in London is around and about £30,000.
Now one can debate what exactly the term “average” really means, as you can presume different people judge different properties as “average”. But looking at the bigger picture it becomes obvious why it’s so difficult for first-time buyers to get on the property ladder and why people start taking out mortgages for longer than 25 years. Technically, the average worker requires 10 times her salary to buy a house in London.
What am I taking away from these statistics? Flat hunting just got a little more important, because I might find myself renting for longer than originally expected. I want a down payment of at least 20% which is currently roughly two times my salary (before tax!). That means I need an in-expensive but nice flat to be able to put as much money aside for a house as possible.
Watch me achieve the impossible! 
