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Homes for FTB's at most affordable in 10 years
Comments
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Graham_Devon wrote: »Nice, just half a mile from the local red light district!
Whats location got to do with affordability? Either houses are affordable or not. Where they are (obviously within a geographical area - not talking the outer hebs here) doesnt really come into this discussion.0 -
A more meaningful statistic would be the proportion of 35-37 year olds who own already. Obviously these people have managed it ...
Id also say, if their 35-37, then they COULD have bought 12-15 years ago when they were 23 ish, which would have been late 90s. were houses unaffordable then? if not then it kind of blows your argument away really.
Why they can buy NOW might be prices (as they have other life commitments now) but doesnt explain how they got to their current age without buying.0 -
paulmapp8306 wrote: »
I have just bought (well completes in a week) a 4 bed Semi, with no help from my parents. Its not in a "prime" location nor a "prime" property and it has taken a few years of carefull spending, and saving BUT I have managed it, its fit for purpose, and will house the family until the kids leave home (probably when their in their 30s !!).
Can you tell me more? Where are you living now? In rented?
If you have kids, and those said wages, how did you get the finance in todays climate?
Where in the country are you? I am assuming a cheap (relative to the country) northern county?0 -
paulmapp8306 wrote: »Actually - that last point may show some issues. Consider someone on a hourly rate of minimum wage. Last year it went up from £6.06 to £6.16, so around 2%. HOWEVER, if that workers hours dropped from 30 to 25 per week - their INCOME has gone down, while their PAY has arguably gone up.
I would not consider that a household on minimum income would be in a position to be able to afford the deposit requirements.
That said, there is a huge difference between looking at hourly wage and income.
I believe the ONS stats show income, therefore your analogy of increased hourly rate combined with decreased hours doesn't hold true if the stats show that average income is increasing.
Indeed, what you are trying to say if I may, is that if this is happening and income averages are increasing, then those getting income increases are vast to outweigh the majority income falling.paulmapp8306 wrote: »Public sector has had pay freezes (except the very bottom pay scales) for 2 years, with the next two years being capped at 0.5%. While public sector isnt ecerything, its a fai chunk.
For those on public sector freezes, in terms of housing, what is that impact on their rent / mortgage.
Properties have decreased on average from preak, therefore despite wage freezes, arguably because of the prices falls, they have a better opportunity to achievepaulmapp8306 wrote: »A reasonable % of self employed (particularly in the building trades) have seen their income drop as work dries up.
Many on commission have seen wages drop.
Many on flexi terms, and part time workers have seen hours cut.
I'm not denying that some household income will have reduced.
Is this the majority?
Again your inferring that with average income levels increasing, those getting increases are huge to offset the majority being in a worse position.
Do you believe the gap is widening? and if so, by how much (can we quantify / proove)?
Sure, but if we run the stats it can clarify the data and strip out regional fluctuations.paulmapp8306 wrote: »Statistics - you can make them say anything.
I'll run it over the weekend and we'll see what the outcome is.:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
I wasnt saying someone on min wage could afford a house - I was using that as an example of how pay could have gone up but actual income gone down.
As to how those on pay freezes have been impacted on re rent/mortgages etc. Thats easy - there struggling more than before, having to cut back on other things - like food in some cases !!.
As for me - Im currently renting and am based in Belfast at present. Rent is just under £400/month plus £115 Council Tax, so yes cheaper than the SE - but were not just talking about the SE. Im buying in Nottingham - so not up North but the Midlands. Again though - not in the same price grouping as the SE.
We decided 5 years ago we wanted our own home when I left the forces not rented if possible, so started saving at that point. Food budget was slashed, extras like Sky and high speed broadband cut. Clothes was limited to £50/month tops. We had no holiday for 5 years, havent been out except for once a year on our aniversary (normally a meal and the flicks). The kids have swim lessons but thats it. Mobiles are PAYG and only get topped up when we have funds at the end of the month. Our "spending money" is £20/week - for all 4 of us and for everthing including that extra loaf of bread or pint of mild because we have run out.
During those 5 years we have managed (though it was tough at times) - and saved £400/month which led to a £20k deposit and £4k for legals and extras. That equates to a 15% deposit on the house we chose.0 -
paulmapp8306 wrote: »I wasnt saying someone on min wage could afford a house - I was using that as an example of how pay could have gone up but actual income gone down.
Sorry, I don;t understand. Hourly rate is not pay, it's just a rate.
I've not seen any stat's on hourly income rate and whether that has increased or not.
The stats I have seen is actual income, which has increased.
As I said, I'll post the data from the ONS at the weekend.
Possibly for rents, but arguably for mortgages, they are seeing (for most) benefits of BOE rates loweringpaulmapp8306 wrote: »As to how those on pay freezes have been impacted on re rent/mortgages etc. Thats easy - there struggling more than before, having to cut back on other things - like food in some cases !!.paulmapp8306 wrote: »We decided 5 years ago we wanted our own home when I left the forces not
Co-incidently, I was sharing a beer with three ex-forces people last night.paulmapp8306 wrote: »We decided 5 years ago we wanted our own home when I left the forces not rented if possible, so started saving at that point. Food budget was slashed, extras like Sky and high speed broadband cut. Clothes was limited to £50/month tops. We had no holiday for 5 years, havent been out except for once a year on our aniversary (normally a meal and the flicks). The kids have swim lessons but thats it. Mobiles are PAYG and only get topped up when we have funds at the end of the month. Our "spending money" is £20/week - for all 4 of us and for everthing including that extra loaf of bread or pint of mild because we have run out.
During those 5 years we have managed (though it was tough at times) - and saved £400/month which led to a £20k deposit and £4k for legals and extras. That equates to a 15% deposit on the house we chose.
Your showing the type of determination, willpower and sacrifice needed to achieve your goals.
Well Done.:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
The problems will come when in the country's current state, todays school leavers and graduates can't get a job, no hope of buying a house, even renting one. The term 'FTB' will be filed in the archives, or maybe a new term, 'MAFTB' - Middle Aged FTB.....0
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The problems will come when in the country's current state, todays school leavers and graduates can't get a job, no hope of buying a house, even renting one. The term 'FTB' will be filed in the archives, or maybe a new term, 'MAFTB' - Middle Aged FTB.....
The market will always find it's level.
If there is reduced demand such as you predict above, properties will likely decrease as supply will have a lower limit it's unlikely to break through (as a result of death, diveroce etc).
Either that or there will be fewer property transactions and more people will share / live at home.
When I think about your proposed outcome, it make me think back to the Victorian era where property was held by the rich and passed down through the famalies.
Would you consider that this would be the outcome of your predicted future?:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
IveSeenTheLight wrote: »Well done.
Anecdotal maybe, but an example of someone who is prepared to focus and has the determination to achieve their desired goal.
Best of luck.
After recently posting anecdotal evidence, I came in for a bit of stick (not particularly from you), and this bit of (reasonable) advice from yourself......
"Seems to me the lesson to learn here for everyone is that if your not willing / able to back up the facts then is there really a point in posting the anecdote"30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0
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