Crash Crash Crash !!!!!!!!!!!!!!!!!!!!!!!!!!!

blisk

Crash, Crash, Crash !!!!!!!!!!!!!!!!!!!!!!

Panic selling of stocks around the World.

Johnny_Doe

haha we're all doomed! Let the great depression begin!

artfuld0dger

Dan: wrote: »

How can you be born too late to afford a home? Save some money, get on a decent salary....job done!

Unfortunately I can assure you that this is not enough. I have some savings (paying £150 a month in student loan doesn't help), a well paid job in IT and I have no chance of buying a home. Could you say the same 20 years ago?

Dithering_Dad

artfuld0dger wrote: »

Unfortunately I can assure you that this is not enough. I have some savings (paying £150 a month in student loan doesn't help), a well paid job in IT and I have no chance of buying a home. Could you say the same 20 years ago?

How much do you get paid? How much do you save up each month?

I'm sorry but I do find it difficult to believe that you won't be able to afford to buy a homein your lifetime, especially given that we're in one of the largest housing crashes ever.

Chin up young dodger, that housebuying dream might come true sooner than you think.

IveSeenTheLight

artfuld0dger wrote: »

Unfortunately I can assure you that this is not enough. I have some savings (paying £150 a month in student loan doesn't help), a well paid job in IT and I have no chance of buying a home. Could you say the same 20 years ago?

You probably could and it would be even worse if you say 30, 40, 50 years ago.

It's only in recent years (last 20 or so) that credit for mortgages have become easier to obtain, before that I know families who had saved for years with the same building society, with a large deposit and still had to beg the manager to get a mortgage.

MrDT

Dithering_Dad wrote: »

How much do you get paid? How much do you save up each month?

I'm sorry but I do find it difficult to believe that you won't be able to afford to buy a homein your lifetime, especially given that we're in one of the largest housing crashes ever.

Chin up young dodger, that housebuying dream might come true sooner than you think.

Provided it's a regular Student Loans Company 'pay 9% of anything you earn over 15k a year' loan, I calculate he earns 35k gross, a takehome of ~£2005 per month.

Without knowing his personal circumstances I'd expect this to be enough of a salary to be saving up a deposit. Say he buys a house for 140k with a 25% deposit, he'll need to save up £35k and take out a 3x salary mortgage. No problem there.

I know 140k is below the 'average' house price. But a ftb doesn't necessarily need an 'average' house. Oh, and the average price is constantly dropping anyway.

artfuld0dger, just keep saving, nothing to worry about (unless you're in central london or are one of those people that absolutely must have a pristine newbuild showhome as your first house...)

sabretoothtigger

'In 1933 the US banking crisis grew much worse during the five months between the election of a new president and his taking office.'

'

dopester

IveSeenTheLight wrote: »

You probably could and it would be even worse if you say 30, 40, 50 years ago.

It's only in recent years (last 20 or so) that credit for mortgages have become easier to obtain, before that I know families who had saved for years with the same building society, with a large deposit and still had to beg the manager to get a mortgage.

Well all those who feasted on easy credit and fuelled HPI over the past 20 years are going to hand those imaginary gains back as we enter deflation and a very long L shaped depression.

And banking/mortgages looks like going back to the the old-world, where you need a good deposit, you've got a good credit history or the lender knows you as a customer, and you have a steady and secure income with good prospects.

Dithering_Dad

MrDT wrote: »

Provided it's a regular Student Loans Company 'pay 9% of anything you earn over 15k a year' loan, I calculate he earns 35k gross, a takehome of ~£2005 per month.

Without knowing his personal circumstances I'd expect this to be enough of a salary to be saving up a deposit. Say he buys a house for 140k with a 25% deposit, he'll need to save up £35k and take out a 3x salary mortgage. No problem there.

I know 140k is below the 'average' house price. But a ftb doesn't necessarily need an 'average' house. Oh, and the average price is constantly dropping anyway.

artfuld0dger, just keep saving, nothing to worry about (unless you're in central london or are one of those people that absolutely must have a pristine newbuild showhome as your first house...)

Blimmin heck, just out of Uni and he's on £35k. When I bought my first house in '95 for 40k, my salary was £17k. With a £35k income and just 3.5xsalary multiple (which is what we used in my day), dodger could get a mortgage for £122,500. He'd have to save up a 10% deposit for safety, so £12k.

It's hardly a life-times work to save 12k, especially if he has a partner.

Where I live you can get a nice stone cottage for £120k. Tsk, kids these days, they expect a 5 bed mansion as a starter home :rolleyes:

artfuld0dger

IveSeenTheLight wrote: »

It's only in recent years (last 20 or so) that credit for mortgages have become easier to obtain

True! And I don't claim that I won't be able to buy in my lifetime, I'm sure I will, but I don't believe that it's simply a case of 'earning a good wage and saving a bit - what's the problem?', as Dan suggested. I've been doing this for 8 years, have a good degree, consider myself sensible with cash, and domestic bliss is still no more a reality. Maybe I have rich friends :undecided. More likely:

- High house prices = increased mortgage repayments = less money to save for deposit
- Cheap deals have slipped away from the market
- Buyers require £27k+ as a deposit for anything affordable

My point really I guess, is that £27k would buy you a house when I was a nipper (not so long ago!), which is more a shake of the fist and grumble at the world at large, especially when people looked shocked when I tell them I rent!