Amazingly Niave Theory

kriss_boy

What do you guys think of my amazingly niave theory...

My girlfriend and I are one of only a few people we know our age who actually 'own' a property. Most of our friends, particularly the single ones havent even started saving a deposit and they are well on their way to the big three zero!!!

Based on our demograph how can house prices rise in the long run when theres a generation of care free 20 somethings who spend all their money on I-phones, needlessly financed cars and foreign holidays!!!

misskool

I didn't own until after 30 I enjoyed renting as it gave me the freedom to move and not be restricted by where I wanted to do things. I also lived with a variety of "interesting" people and thus had a great life experience.

It's about what you want from your life. People make their choices and they live with it.

edit: and total pedant mode, it's naive, not niave

wymondham

kriss_boy wrote: »

What do you guys think of my amazingly niave theory...

My girlfriend and I are one of only a few people we know our age who actually 'own' a property.

I presume you have a mortgage and don't actually 'own' ? You're in danger of coming across smug .. be careful!

julieq

They can rise because everyone has to live somewhere, and the imbalance between household creation and housebuilding increases demand against restricted supply. The choice is not whether you want to live somewhere, but essentially how you want to structure financially the way you live there, whether via rental, leasehold (in my view the next big thing will be an expansion in leasehold tenure), or freehold.

You'll also see acceleration in prices in desirable places against slower increases in less desirable places, because nice houses will be cherry picked by the better off. This is currently very visible if you look at the gentrification over the past 30 years of rural locations. And probably an increased density in urban living, which is also becoming visible.

The only way to increase owner occupation long term are to increase supply relative to demand (build more, or create less households). What we seem to be doing now is throttling demand by rationing mortgages to reduce owner occupation rates. That may stabilise prices but the cost is a lower owner occupation rate, and since repossessions are low and inherited houses will be used in most cases to pass on owner occupation one way or another, the only thing that can possibly happen is that first time buyers will be excluded from the market. And since they do have to live somewhere, they provide a ready income stream for property owners via rental or lease.

MonkeySaving?

What would you like? A medal?

beecher2

I didn't get a mortgage until I was nearly 30 - that was the norm when I first bought in the 90s and I don't regret being carefree in my 20s at all. And, as has already been said, you won't own your property til you've paid it off

22225

OP Well done on getting on the property ladder and I don't think you sounded that smug. Merry Christmas and have a happy new year. :-)

MonkeySaving?

kriss_boy wrote: »

Based on our demograph how can house prices rise in the long run when theres a generation of care free 20 somethings who spend all their money on I-phones, needlessly financed cars and foreign holidays!!!

A bit like you then?

"Its been the most expensive last year of our lives- bought two cars and spent a month in Australia. I suppose this year its save, save, save!!! "

ILW

22225 wrote: »

OP Well done on getting on the property ladder and I don't think you sounded that smug. Merry Christmas and have a happy new year. :-)

Please don't say "property ladder" it is very annoying.

princeofpounds

Don't feed the troll.

LilacPixie

I find it amusing the OP has written off a whole generation based on a few friends of his. I always thought the average age of a FTB was in the early 30's anyway.