Musings of an elder board member

carolt

Very, very true, and an excellent example of why now is a particularly bad time to buy.

Graham_Devon

treliac wrote: »

That probably says much more about the growth in dysfunction in our society than anything else.

I agree.

And dysfunction comes when you are taken out of the workings of society. In this case, it would be sheltering hundreds of thousands from the reality of money in this country and keeping them on benefits, where money just magically appears in their bank accounts and a house just magically gets given.

I'd go fruit loop if I didn't have something to fix me to the ground. That something is a job and the ned to work to live.

The numbers who do not have this are simply rising.

carolt

Yes, the one hope I have for a Tory govt - and I'm not terribly optimistic, let's face it - is that they will actually do something about the benefits-as-lifestyle-choice crowd.

Pobby

Graham_Devon wrote: »

I agree.

And dysfunction comes when you are taken out of the workings of society. In this case, it would be sheltering hundreds of thousands from the reality of money in this country and keeping them on benefits, where money just magically appears in their bank accounts and a house just magically gets given.

I'd go fruit loop if I didn't have something to fix me to the ground. That something is a job and the ned to work to live.

The numbers who do not have this are simply rising.

So agree Graham and boy can things change. 5 years ago I was planning that Spanish retirement. At the time long, lazy days appealed. Hit 60 this year. How much my thoughts on long, lazy days have changed. Would go crackers. Hence training for a new part time business to run from home.

Pobby

ukcarper wrote: »

My first house was 5.3 x average wage same house is now 7.2x average wage so not quite as bad as some people make out. In fact I bought it in April 1972 and if I had waited until December it would have been 6.6x. So when you buy in the cycle makes a big difference.

I bought a few years later. Hey but wow those wage inflation pay increases helped our lot out. Something that the newbie buying has little hope for.

ukcarper

When were the seed of this sown in the last 10 years or before? If you leave school with no qualifications now it’s is very difficult to make your way. But the children of the working parents I know generally work even if it’s only for the minimum wage or just above. So if it’s down to the fact that their parents live on the benefits culture surely that started longer than 10years ago.

chucky

Pobby wrote: »

I bought a few years later. Hey but wow those wage inflation pay increases helped our lot out. Something that the newbie buying has little hope for.

but wouldn't wage inflation have driven other inflation - reducing your disposable income?

there is another moving factor that a FTB could of take advantage of - which you couldn't in your time Pobby - interest rates... in the last 12 months there have been some attractive rates for FTB's with a decent deposit.

as ukcarper says - the timing of buying in the cycle combined with interest rates is key

SingleSue

Graham_Devon wrote: »

I agree.


I'd go fruit loop if I didn't have something to fix me to the ground. That something is a job and the ned to work to live.

The numbers who do not have this are simply rising.

And now you know exactly why I feel like I do.....I'm basically the same as you in the things I need to feel grounded and although I do have an important role with the children and their disabilities, I just feel a waste of economic space without a paying job.

It's my middle class upbringing :rotfl:

ukcarper

Pobby wrote: »

I bought a few years later. Hey but wow those wage inflation pay increases helped our lot out. Something that the newbie buying has little hope for.

Yes wage inflation did make your payment easier but we mustn’t forget the high interest rates although to be fair I must mention mortgage tax relief. But then a 20in TV did cost you 2 months wages instead of the 2 days it would cost you now.

Graham_Devon

chucky wrote: »

but wouldn't wage inflation have driven other inflation - reducing your dispoable income?

there is another moving factor that a FTB could of take advantage of - which you couldn't in your time Pobby - interest rates... in the last 12 months there have been some attractive rates for FTB's with a decent deposit.

as ukcarper says - the timing of buying in the cycle combined with interest rates is key

This is very simple. Let's be realistic here.

Most FTB's do not have a 25% deposit (lets think about it in real terms here, around £40,000) just lying around in bank accounts, ready to jump in with an extremely face paced market in terms of changes. (the 25% deposit being what you need to get the good interest rates you were referring to).

Let's also be realistic in that mortgage interest rates are not that astounding compared to 2 years ago for people entering the market.

But the main point is, it is a moving market, but normal people cannot keep up with the money required to just jump in when something changes.

Mortgage rates could be 1%. Thats great. But only great for those who have a couple of years wages just sloshing around doing nothing, and considering the average savings of everyone in the country comes to a grand total of 800 quid, I don't think this suggestion of jumping in when the market changes is going to catch on anytime soon.

We need a stable market. One where someone can say right X is how much I need to save, Y is the time it will take, I will aim to buy a house in Z.