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£1.2tn given to old from young
Comments
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Its been suggested by me before. By developing 2% of greenbelt over 5 years, we could hugely increase the housing numbers in GB. Its NIMBYs that stand in the way.
Just mention that their village will then be of sufficent size to support a post office. The nimbys will be no problem.0 -
At what price? And assuming what rates? So what happens when rates return to normal levels over the next few years then and not the lowest rates in over 3 centuries?
I would argue that mortgage rates are not the lowest in 3 centuries.
BoE base rate does not equate to the mortgage rate as seen with the BoE rate plumeting but the available mortgage rates not lowering by the same levels.Assuming what monthly payment as a % of take-home, and how does that compare with the 50s/60s/70s?
You can see that the % of income is lower than the 30 year average
(Go to http://www.lloydsbankinggroup.com/media1/research/halifax_hpi.asp and then chose the regional affordability link)
Mortgage payments as a percentage of income is currently 30.1% as opposed to the 30 year average of 37.2%What happens when we want to start a family assuming there that you need the second income?
You could do what my wife and I did, bought with two salaries, live within the means of one and massively overpay to reduce the mortgage,
Then when you want to start a family, the monthly payments for the property are reduced enough.
It's a matter of choice and living within your means. Something the generation of the 50's/60's and 70's had to also do.:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
IveSeenTheLight wrote: »
You could do what my wife and I did, bought with two salaries, live within the means of one and massively overpay to reduce the mortgage,
Then when you want to start a family, the monthly payments for the property are reduced enough.
It's a matter of choice and living within your means. Something the generation of the 50's/60's and 70's had to also do.
I agree in principle with what your saying, but don't forget you had a helping hand with inflation. If your mortgage was on a fixed rate then your debt became easier as wages rose.
At the moment inflation is low (although I'd questions the official stats as it doesn't feel that low !) . This does mean that IR are low and that helps with the monthly payments but your not really eating away at the captial in the same way as with inflation.0 -
We are nearing 30. How long are you supposed to put off having a family to pay for the greed of the boomer generation?IveSeenTheLight wrote: »I would argue that mortgage rates are not the lowest in 3 centuries.
BoE base rate does not equate to the mortgage rate as seen with the BoE rate plumeting but the available mortgage rates not lowering by the same levels.
You can see that the % of income is lower than the 30 year average
(Go to http://www.lloydsbankinggroup.com/media1/research/halifax_hpi.asp and then chose the regional affordability link)
Mortgage payments as a percentage of income is currently 30.1% as opposed to the 30 year average of 37.2%
You could do what my wife and I did, bought with two salaries, live within the means of one and massively overpay to reduce the mortgage,
Then when you want to start a family, the monthly payments for the property are reduced enough.
It's a matter of choice and living within your means. Something the generation of the 50's/60's and 70's had to also do.
How long do you expect mortgage income to remain this low as a % of take home, bearing in mind tax rises and IR increases? Plus, you are not talking sense. Most mortages factored into that would have been pre-credit crunch mortgages with a very low differential on base.
Hardly a fair comparison.0 -
IveSeenTheLight wrote: »It would be nice to have lower house prices with sensible credit, but how do you propose for that to be achieved with the restriction of supply and the increase in demand?
How about making sure bank who fail in the future go bust? If we do not have banks who are too big to fail then there would be sensible lending practises which we are starting to see now.0 -
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We want some banks, shirley?
Ah but if banks really understood they could fail and be allowed to fail then they would make sure they were less wreckless. Unless I'm mistaken HSBC, Barclays, Abbey etc did not fail also Lloyds would not have fail if GB had not talked them into buying HBOS.
If the banks had been regulated properly then would not have been allowed to get so big so they could not fail.0 -
At what price? And assuming what rates? So what happens when rates return to normal levels over the next few years then and not the lowest rates in over 3 centuries? Why havent you stated a purchase price?
Assuming what monthly payment as a % of take-home, and how does that compare with the 50s/60s/70s? What happens when we want to start a family assuming there that you need the second income?
I did say 3.5 x 40k + 10% deposit i would have thought you could have worked out the pricce it's £155k.0 -
I'm only in my mid 40's but already I'm in a situation where I'm living very comfortably on savings and only needing to earn a small amount to keep me going until retirement. (Partly due to HPI - inherited from parents).
This isn't uncommon for people of 40 and upward in this day and age.
It does seem to be the case that the older generation are:
1. In the majority
2. Have all the wealth
3. Don't earn enough to pay much tax.
The government will no doubt need to find a way of getting some money out of the oldies.0
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