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UK refugee's avatar

Jaw-dropping. Get the time machine out, sending my dad back.

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P.Riddy's avatar

The average home is purchased by two people. The average joint salary on figures in this article is £64,120. Therefore the average UK house price is 4.27 times earnings that will cause house prices to grow as a multiple of wage growth, so 1% wage growth should cause 4.27% house price growth.

Poor maths like in this article is causing people to not invest in a home, wrecking peoples chances of a prosperous retirement. If you want something to blame for these multiples it is feminism. The only way to get prices down is to only allow husbands to take out a mortgage. But then you have an equalities issue with same sex unions, lesbians would be unable to own property whilst all male couples would live in mansions, LOL.

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Bill's avatar

The math is way off. A house at 150000 and gold at 400 =375 ounces of gold to buy.

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Dominic Frisby's avatar

$400 would have been closer to £200 at the time hence 720 oz being the high

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Bill's avatar

Correct. For future math, use all dollar amounts or all euro amounts. It will be much easier to follow. Very interesting read.

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UK refugee's avatar

ahem

Average house is 274,000

Gold is 1520/ounce (today's spot price)

So 180 ounces per avg house...

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Dominic Frisby's avatar

Yes

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