House Prices Simply Too Expensive For The Young

Conrad

B_Blank wrote: »

Use average male then but the average house price should be 4x the average salary

This 'should' notion is troubling. You either make your way in the world as it ius, or you expend a lot of negative energy on nuttin at all.

IF prices are too high for the market to bare, prices will fall. They aren't going to meaningfuly fall, this is about as cheap as it gets.

Why does everything have to be measured in coin, and compared to yesteryear, honestly, grow some.

Be like the Poles I know that come here with nothing and DO buy a property and just get on with life:A, or carry on feeling bitter and sucking the cook of pessimism.

As I say, a billion hunrgy kids would swap with you anytime.

Graham_Devon

Conrad wrote: »

This 'should' notion is troubling. You either make your way in the world as it ius, or you expend a lot of negative energy on nuttin at all.

IF prices are too high for the market to bare, prices will fall. They aren't going to meaningfuly fall, this is about as cheap as it gets.

Why does everything have to be measured in coin, and compared to yesteryear, honestly, grow some.

Be like the Poles I know that come here with nothing and DO buy a property and just get on with life:A, or carry on feeling bitter and sucking the cook of pessimism.

As I say, a billion hunrgy kids would swap with you anytime.

And as I said, leave your MP alone and stop sending him letters complaining it's not fair, you can't get enough credit.

Until you do that, stop laddling the forum with massive doses of hypocrisy every time you hit the "reply" button.

ukcarper

B_Blank wrote: »

Never mind, I cant be bothered

Or can't

If you look at this Graph http://www.housepricecrash.co.uk/graphs-average-house-price-to-earnings-ratio.phpyou you will see that the cheapest house prices have been in relation to average salary since 1953 is around about 1996/7.

The lowest the average house price was in that period according to Nationwide was £51k and average wage (mean) was £16,250 just over 3.1x. Mean full time male was £21,600 2.4x.

So that's the bests it's ever been not long term average.

quantic

I'm split on this point. On one side I can see how it would be difficult to save up for some people to buy, and on the other side I think that its easy. I saved up to buy my property with no help from my partner or parents (I'm not bragging, I don't think its particularly brag worthy, actually.). Granted I did live at home for the majority of the time which made it easier, but that said while I was saving I didn't really have to cut back in any way on other things to allow me to save, but I chose to so I could do it quicker. Having now paid off a bit of credit card debt from buying furniture etc I'm now back to saving £500 pcm for a rainy day while paying the mortgage.

I think the problem is that people didn't grow up with the expectation of having to save up as much as they actually have to now, which means that they get to the age where they want to buy and then realise what they need. I'm pretty amazed at the amount of people I know who look at houses, seriously thinking they can go and buy one tomorrow, then come back from seeing a financial advisor (which they where forced to see) and post something on Facebook about it being impossible to buy a house these days.

I don't think people understand what sacrifice is anymore, it took me 2 years and 3 months to save £18,000 on my own. That works out as £660 pcm, realistically, I could have probably saved £1000 and done it in 18 months if I had given up a few more things. The amount of people I know who own a brand new car that cost between 10-15k (paying 200-350pcm in car finance) is shocking, I think people need to wake up and realise that maybe if they want to buy their own place and become independent they might need to buy a banger if they can't afford to save and have a new car.

So, can a FTB buy a house these days?

If they are wanting to have a brand new car, new clothes every month, an iphone 4, holidays and going out drinking every weekend - probably not.

If they are prepared to give up a few of lifes luxuries - ABSOLUTELY.

Don't get me wrong, house prices in some parts of the country and mental. I think they are absolutely over priced in a lot of cases. But I still think that people can put a house over their heads if they go about it in the right way with the right attitude. Expectations are all that has changed, both for how easy people expect to be able to acquire a property and the level of property they expect.

Brallaqueen

quantic wrote: »

So, can a FTB buy a house these days?

If they are wanting to have a brand new car, new clothes every month, an iphone 4, holidays and going out drinking every weekend - probably not.

If they are prepared to give up a few of lifes luxuries - ABSOLUTELY.

Bingo. Spot on. Hit the nail on the head.

Out,_Vile_Jelly

Can someone find me a FTB purchase in London for a single earner with a £35k deposit- in an area safe for a woman to walk alone late at night. Not interested in shared ownership scams.

Coeus

quantic wrote: »

I'm split on this point. On one side I can see how it would be difficult to save up for some people to buy, and on the other side I think that its easy. I saved up to buy my property with no help from my partner or parents (I'm not bragging, I don't think its particularly brag worthy, actually.). Granted I did live at home for the majority of the time which made it easier, but that said while I was saving I didn't really have to cut back in any way on other things to allow me to save, but I chose to so I could do it quicker. Having now paid off a bit of credit card debt from buying furniture etc I'm now back to saving £500 pcm for a rainy day while paying the mortgage.

I think the problem is that people didn't grow up with the expectation of having to save up as much as they actually have to now, which means that they get to the age where they want to buy and then realise what they need. I'm pretty amazed at the amount of people I know who look at houses, seriously thinking they can go and buy one tomorrow, then come back from seeing a financial advisor (which they where forced to see) and post something on Facebook about it being impossible to buy a house these days.

I don't think people understand what sacrifice is anymore, it took me 2 years and 3 months to save £18,000 on my own. That works out as £660 pcm, realistically, I could have probably saved £1000 and done it in 18 months if I had given up a few more things. The amount of people I know who own a brand new car that cost between 10-15k (paying 200-350pcm in car finance) is shocking, I think people need to wake up and realise that maybe if they want to buy their own place and become independent they might need to buy a banger if they can't afford to save and have a new car.

So, can a FTB buy a house these days?

If they are wanting to have a brand new car, new clothes every month, an iphone 4, holidays and going out drinking every weekend - probably not.

If they are prepared to give up a few of lifes luxuries - ABSOLUTELY.

Don't get me wrong, house prices in some parts of the country and mental. I think they are absolutely over priced in a lot of cases. But I still think that people can put a house over their heads if they go about it in the right way with the right attitude. Expectations are all that has changed, both for how easy people expect to be able to acquire a property and the level of property they expect.

This is the sort of reply I like! Well presented, rational, logical and conclusive

I agree that some members of the young FTB generation do not know the meaning of sacrifice. Others do. Two sides of the same coin - a fair and balanced arguement.

Personally I am quite strict myself:
- FTB living at home with majority of income saved as FTB deposit
- Completely own Ford Fiesta 2002 (£2,000) - no finance or luxury here
- Out maybe twice per month say £40 per night
- Phone on PAYG - £10 every 2-3 months (Facebook is free!)
- Phone itself if 3+ years old - if it's not broke don't fix it
- Hate clothes shopping! Probably why new clothes seem popular B'day/Xmas gifts for me

Should have a hefty (60-70% LTV) deposit for my FTB home (£110,000 reasonable for area) in approx. 3 years by (hopefully) which time the gradual decline in house prices should reach its apex (works for me!). All by the time I'm 27! So yes, house prices are too expensive for some that can be either due to (i) poor financial planning or (ii) unrealistic housing prices.

It's generally acceptable to say a combination of the two seems likely as evidenced by the gradual house price correction (no crash people - just an incremental decline).

So if your a FTB - get saving! 3+ years time prices we may be at the best position for a decade or two. Cannot guarantee this - only rationalise the outcome

Coeus.

abaxas

Brallaqueen wrote: »

Bingo. Spot on. Hit the nail on the head.

It's always going to be easy for FTBs to buy property.

The question is if they are safe living there.

B_Blank

Conrad wrote: »

This 'should' notion is troubling. You either make your way in the world as it ius, or you expend a lot of negative energy on nuttin at all.

IF prices are too high for the market to bare, prices will fall. They aren't going to meaningfuly fall, this is about as cheap as it gets.

Why does everything have to be measured in coin, and compared to yesteryear, honestly, grow some.

Be like the Poles I know that come here with nothing and DO buy a property and just get on with life:A, or carry on feeling bitter and sucking the cook of pessimism.

As I say, a billion hunrgy kids would swap with you anytime.

Who says I am self pitying? Seriously you have no idea, I want and think prices should be lower, and I am sure this will eventually be the case.

Me, and all the other aspiring FTB on this forum, don't go to bed cursing the world every night. Get a grib kid, I am making my way in life regardless of what house prices do. But sometimes I come to the House Price and Economy forum of this website to discuss house prices. Silly me for thinking that was what was meant to happen in this forum. And yet you think we are all sad acts sitting at home crying ourselves to sleep and not trying to make it good in life?

Wow you are so !!!!!! and pathetic

FTBFun

Out,_Vile_Jelly wrote: »

Can someone find me a FTB purchase in London for a single earner with a £35k deposit- in an area safe for a woman to walk alone late at night. Not interested in shared ownership scams.

Sure. You've actually got a bigger deposit than I had.

85% LTV

http://www.rightmove.co.uk/property-for-sale/property-26696584.html

http://www.rightmove.co.uk/property-for-sale/property-27590653.html


I live nearby so can vouch for its safety.