Low interest rates will support house prices until 2014

the_ash_and_the_oak

Graham_Devon wrote: »

I agree.

However, to my mind, this is the thing.

Put yourself in a 20 year olds shoes with no deposit help. You just left education.

20 year old should put more attention into getting into an exciting career and fcuking loads of girls imo instead of worrying about a house

Really2

the_ash_and_the_oak wrote: »

20 year old should put more attention into getting into an exciting career and fcuking loads of girls imo instead of worrying about a house

Quality, :rotfl:

edit, I should add that should be the same for both sexes.:)

I never even thought about purchasing until I was with someone I wanted to share my life with.

IveSeenTheLight

Graham_Devon wrote: »

Do you have any idea how you would pay their deposit? Would it be downsizing your place, or making money out of another place?

Historically, it can be shown that home owners secure the property (debt) and then over the course of the mortgage that debt is reduced, while income generally increases.

this means that each year, more disposable income (in relation to morgage payments / income) is available for saving.

There is no need to downsize or make money out of another place.
Simple savings can be utilised

Graham_Devon wrote: »

However, the underlying trend I am seeing, or maybe a better way to describe it is "feeling" is basically those who tend to favour higher house prices, or see houses as investments rather than homes, rely on those priced out for their investment to go well.

Investors don't rely on others being priced out in order for their investment to go well.
I've shown before that property can be a worthwhile investment even without HPI over a 25 year period. Certainly better than just putting the money in a savings account.

Graham_Devon wrote: »

Therefore, I kind of get the feeling society is relying on other people who cannot afford to buy a home, to bolster up their investment, so that they can provide for their own.

I'm not sure if this is right, it's just the feeling I get from seeing other people discuss how they will look after their kids and buy them a house if prices continue to be out of reach.

Danger of a two tier society? Rely on the poor to service the rich?

It's a sign of the times, people have seen things such as pensions as unreliable and therefore want to make provisions for the future.

You may think it is greed, but in reality it's a simple human basic genetic desire to be able to provide for your family.

In caveman times, the strong were in a better position than the weak.
In modern times strength is measured financially rather than physically.

StevieJ

Graham_Devon wrote: »

I agree.

However, to my mind, this is the thing.

Put yourself in a 20 year olds shoes with no deposit help. You just left education.

Could YOU afford to buy a house at that point? Bear in mind, you will be paying rent to provide yourself with a roof, therefore, your living costs woould not be nothing.


Could you honestly say you could start again and afford the same lifestyle as you have enjoyed starting today rather than whenever you did? Honestly? If the answer is honestly yes, then obviously we will have to leave that there

No I couldn't that is why I didn't do it at that age all my spare cash was spent on enjoying myself :beer:

StevieJ

Really2 wrote: »

How can people not being able to afford increase the price of anything.
Unless you think there is enough demand from people who can afford.

Certainly a piece of twisted logic

IveSeenTheLight

Graham_Devon wrote: »

Put yourself in a 20 year olds shoes with no deposit help. You just left education.

Could YOU afford to buy a house at that point? Bear in mind, you will be paying rent to provide yourself with a roof, therefore, your living costs woould not be nothing. ..........................

Could you honestly say you could start again and afford the same lifestyle as you have enjoyed starting today rather than whenever you did? Honestly? If the answer is honestly yes, then obviously we will have to leave that there

I do believe the answer is yes.
I didn't buy my first property at 20 though, I was 26.
This was because I did have to rent and save.
Why do you believe that a 20 year old, just out of education should be able to buy an average propert?

I believe that everyone has the ability to do whatever they want and they have to adapt and work hard to be able to achieve it.
Nothing is handed out on a plate (unless it seems your on benefits )

If it means you have to cut your cloth differently to the rest of society i.e. not go out so much, don't have the 40" flat screen,dont have the latest consoles, dont buy so much clothes etc etc etc, then that is your choice to do so.
A sense of achievement is gained from attaining a goal that was difficult to complete.

Graham_Devon

StevieJ wrote: »

No I couldn't that is why I didn't do it at that age all my spare cash was spent on enjoying myself :beer:

I was only relating to what ISTL said about education etc

Again, would you be encouraging your son or daughter to go out and get plastered and get laid?

Somehow, I doubt it very much!

It seems we will look out for them, give them money, but when I talk about them standing on their own two feet, they should be getting plastered and laid.

Either way, I can see this convo is over

IveSeenTheLight wrote: »

Why do you believe that a 20 year old, just out of education should be able to buy an average propert?

Never said anything of the sort

Just said could you buy.

kabayiri

the_ash_and_the_oak wrote: »

20 year old should put more attention into getting into an exciting career and fcuking loads of girls imo instead of worrying about a house

I'm sure there are lots of 20 year old girls who will be most delighted with this advice

Emy1501

IveSeenTheLight wrote: »

Historically, it can be shown that home owners secure the property (debt) and then over the course of the mortgage that debt is reduced, while income generally increases.

this means that each year, more disposable income (in relation to morgage payments / income) is available for saving.

There is no need to downsize or make money out of another place.
Simple savings can be utilised



Investors don't rely on others being priced out in order for their investment to go well.
I've shown before that property can be a worthwhile investment even without HPI over a 25 year period. Certainly better than just putting the money in a savings account.




It's a sign of the times, people have seen things such as pensions as unreliable and therefore want to make provisions for the future.

You may think it is greed, but in reality it's a simple human basic genetic desire to be able to provide for your family.

In caveman times, the strong were in a better position than the weak.
In modern times strength is measured financially rather than physically.

Really in the current market? especially when rates do rise again? Mosts people are going to rely on CG's to make money out of a property investment.

My parents are in the BTL game and at 5% rates they would be making little yield out of a property they bought in 2004

StevieJ

Graham_Devon wrote: »

I was only relating to what ISTL said about education etc

Again, would you be encouraging your son or daughter to go out and get plastered and get laid?

Somehow, I doubt it very much!

No, but they will still do it as it should be, sick of control freaks:eek: