Generation Rent.... The future of those who missed the boat..

Yakubu22

"Missed the boat" :rotfl:

Is this you Hamish?

chucky

HammerSmashedFace wrote: »

Although I agree, I believe the cheap rate should not be factored in when buying a house, unless the deal takes you to the end of the mortgage, factoring in say 8% rate with a single wage is, in my estimation, the right thing to do.

The problem is in the last decade we have shifted away from single multiples or low joint multiples to a couple stretching themselves, leaving no room if they are faced with separation, divorce, illness, unemployment or even death. Yet at least one of these factors is highly likely to face a FTB'r couple over a 25 year period.

Of course in the past we have had good bouts of wage inflation to sooth the debt away, this time, that's unlikely to happen, leaving the debt weighing heavy.

you're suggestions of avoiding a mortgage means that it will take 20 years to save the amount which in the mean time it has been eroded by inflation and missed out on any HPI that may have happened.

you also have to provide for your pension in this time.

neas

i'd say any investment strategy would involve savings (cash), Pensions (couple), Property (own hoem fully paid off at least maybe 2nd property if lucky) and Stocks and maybe even land.

wide diverse profile with some assets held in a coupokle major currencies (euros and dollars)

would give you a reasonable chance of living a comfortable life..

abaxas

neas wrote: »

i'd say any investment strategy would involve savings (cash), Pensions (couple), Property (own hoem fully paid off at least maybe 2nd property if lucky) and Stocks and maybe even land.

wide diverse profile with some assets held in a coupokle major currencies (euros and dollars)

would give you a reasonable chance of living a comfortable life..

Just to add to that.

If you live in a Council house, it's probably in your best interests (if you plan to stay for a long period) to keep it rented. Much higher security there than even buying.

DaddyBear

HAMISH_MCTAVISH wrote: »

http://www.independent.co.uk/life-style/house-and-home/property/more-householders-will-have-to-rent-says-mortgage-body-1914631.html

As expected really.

Housebuilding at lowest level since 1948. On top of a decades worth of underbuilding by 100K houses a year or more.

New household formation accelerating.

Shortage worsening.

Mortgage lending to stay tight, and those with existing equity having a huge advantage over those without.

Ironic really, that the very people who wished for a crash, will now have to live with the consequence of that crash being many of them locked out of the market permanently.

Bit strange Hamish, haven't you been saying fir months that houses are more affordable than ever before? So which is it, affordable or unaffordable?

twadge_face

"Missed the boat" is a term of cliched manipulative emotive twaddle.

Not mention plain wrong in this instance. All markets are cyclic. The "interesting times" have hardly begun.

HammerSmashedFace

chucky wrote: »

you're suggestions of avoiding a mortgage means that it will take 20 years to save the amount which in the mean time it has been eroded by inflation and missed out on any HPI that may have happened.

you also have to provide for your pension in this time.

That's the cut of it right there in you're statement chucky, I'm not suggesting people avoid mortgages, but it says a lot about today's market that 'normal' borrowing of 3.5x 1 income + 1 income or 2.5x joint is perceived as been so far wide of the mark that people have to save for 20 years first.

House prices are too high, in reality they benefit very few people. An example would be my father, a humble self-employed truck driver from 1960 to 1990, in that time he bought a semi-detached house in the country, his wife stayed at home and looked after 4 children, with not a single benefit (apart from family allowance) or tax credit in sight.

This would be utterly impossible in these times, that to me is not progress, of any kind.

savvysaver1

people buy to rent i.e. rooms out as bedsitters it will bring in more than double the mortgage. they wouldn't be able to live there and pay the whole mortgage for themselves. hmmm..that's an idea, think I'll do it!!

lostinrates

What a bizarre thread.

I think a fair few people must be drinking over recommended limits of coffee.

ukcarper

HammerSmashedFace wrote: »

That's the cut of it right there in you're statement chucky, I'm not suggesting people avoid mortgages, but it says a lot about today's market that 'normal' borrowing of 3.5x 1 income + 1 income or 2.5x joint is perceived as been so far wide of the mark that people have to save for 20 years first.

House prices are too high, in reality they benefit very few people. An example would be my father, a humble self-employed truck driver from 1960 to 1990, in that time he bought a semi-detached house in the country, his wife stayed at home and looked after 4 children, with not a single benefit (apart from family allowance) or tax credit in sight.

This would be utterly impossible in these times, that to me is not progress, of any kind.

You forgot mortgage tax relief and married mans allowance