Low interest rates will support house prices until 2014

IveSeenTheLight

Graham_Devon wrote: »

Originally Posted by IveSeenTheLight
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.

I don't know anyone at 20 that bought property.
Not me, not my friends, not my parents or in-laws.
Not even my grandparents, so it's not a generation thing or 2when you were born"

chucky

kabayiri wrote: »

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

and probably delighted 40 year old women too!!

HAMISH_MCTAVISH

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.

OK....

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.

No.

But the reality is, I couldn't have afforded a house 20 years ago either. I know, because 20 years ago we bought a house, and were not able to buy it without help.

Strangely enough, 25 years before that, my parents bought a house, and also could not afford it without help.

In both circumstances, me and my parents could have afforded a flat without help.

And today someone in my circumstances and comparable income leaving Uni also could buy a flat, in most of the country. Certainly where I did they could.

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

Honestly, the lifestyle available to the young of today is far better value for money than it was for people of my age, in terms of things like nights out, socialising, home entertainment, cars, etc etc etc.....

Houses prices have gone up, but mortgage payments as a % of disposable income have gone down, and so many other things are comparitively cheaper as a % of income as well.

I certainly don't yearn for the old days..... Lifestyles were nowhere near as good then as they are today.

Really2

Graham_Devon wrote: »

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

Depends, if he spent most days and weekends on here.

the_ash_and_the_oak

kabayiri wrote: »

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

Don't see why this doesn't apply to girls - I'm bi

chucky

Emy1501 wrote: »

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

ask them them same question in 2025 not straight after a property price drop... they will be very happy with the capital gain plus the yield that will probably be inflation proof... :rolleyes:

StevieJ

HAMISH_MCTAVISH wrote: »

OK....



No.

But the reality is, I couldn't have afforded a house 20 years ago either. I know, because 20 years ago we bought a house, and were not able to buy it without help.

Strangely enough, 25 years before that, my parents bought a house, and also could not afford it without help.

There is certainly a great deal of delusion around, it was at least as tough to buy a house in the past (with notable exceptions e.g. mid 90's).

the_ash_and_the_oak

StevieJ wrote: »

There is certainly a great deal of delusion around, it was at least as tough to buy a house in the past (with notable exceptions e.g. mid 90's).

It was tougher in past than in 2006

Prob before credit crunch wasn't that it was too tough to buy - it was too easy imo

IveSeenTheLight

Emy1501 wrote: »

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

Capital Gain is a bonus and is only achieved when selling the asset.

I'm not saying that all BTL property has been bought wisely. It may be that your parents property was not the best investment.
I've yet to see any evidence other than anecdotal that BTL is such a poor investment.
I'm sure if details were investigated into actual BTL costs outlayed and returns received, you would see a vastly different picture to the one you may be experiencing.

I have previously given an example of how a BTL investment provides a better return than a savings account, without HPI over a 25 year mortgage period

I have two BTL's, one bought in Jan 2007, which has a decent Rental Yield and has also shown capital appreciation since that time. I wont get any capital appreciation till I sell (possibly in about 20 - 30 years time) from which I am pretty certain that the price will be vastly higher than it is today.

Graham_Devon

IveSeenTheLight wrote: »

I don't know anyone at 20 that bought property.
Not me, not my friends, not my parents or in-laws.
Not even my grandparents, so it's not a generation thing or 2when you were born"

I didnt say they would buy at 20 either. I said "start out". That means start out on the path towards getting a home. I did say "at that point" so I guess that's been picked up on instead of what was said later and the sentiment of the post.

Sentiment is gone now anyway, so will leave this. Lots of bluff, no real answers.