House Prices Simply Too Expensive For The Young

ILW

abaxas wrote: »

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

The question is if they are safe living there.

This is a thing with many of the FTB whingers on here, they seem to be very fussy about where they are prepared to live and think half the country is going to get them murdered in their beds. Millions of people live quite happily in the not so good areas.

doire_2

Coeus wrote: »

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.

What a refreshing post. Good to see a FTB actually knuckle down and saving for a deposit instead of the muppets who want to go back to 100%+ mortgages and liar loans

Mini_Bear

Agreed with the latter posts here, i too am a mid-20s FTB, gone without most luxuries since uni (always asked by friends why i dont have the bling phone and car they arpire to have). quite simply i say i want a house bought in cash from the 60+ hrs i put in a week in the city. i dont want these hours past 30 so im gna go without til then.
i am fortunate in that my partner is a bit older wiv own house etc and an even higher earner, but he understands i want us to have a huge nestegg/pension pot for us both and thats wat motivates me to get up 4 wrk every morning.
i am inspired by others on here with the same attitude, wrk hard now and reap rewards later
my only concern is that there arent enough of us savers to bolster property prices forever. im thinking that prices are going to plummet as mortgage companies are not throwing themselves into offering 90-95% ltv loans. wen this will occur is another matter. i feel that the market is churning to a halt at the mo with the lack of FTBS.

B_Blank

ILW wrote: »

This is a thing with many of the FTB whingers on here, they seem to be very fussy about where they are prepared to live and think half the country is going to get them murdered in their beds. Millions of people live quite happily in the not so good areas.

So you think a graduate froma top university, who then gets a job with a top accountancy firm and earns a very decent wage should have to save a whole years take home salary for a deposit, and then pay 3x more of that salary via a mortgage just to buy a shhhithole in a dodgy area? Interesting....whom is going to fill the nice areas then? O wait, yes, the baby boomers. That high flying young person should be happy to live in the ghetto, after all the baby boomers 3 o levels and lives stacking shelves in tesco were far more deserving of a large house in a charming area.

FAIL

julieq

Never understood this bear idea that you have to have to have a massive deposit before considering buying? It makes no financial sense - there's no practical difference between owning 10% of a house or 70% of a house in terms of security, and personally I'd go for owning 10% with 60% in savings and investments which is just about optimum in terms of being able to ride out shocks.

The best time to buy isn't in 2 or 3 years time when we'll be well into recovery with mortgage rates rising. It was 2 or 3 years ago, and the sweet spot was mid crash somewhere between Sept 07 and Feb 08 where you could have had a +0.5% tracker and negotiated hard on price. But if you were a bear you were renting, building up your deposit and waiting for further falls which never came.

B_Blank

julieq wrote: »

Never understood this bear idea that you have to have to have a massive deposit before considering buying? It makes no financial sense - there's no practical difference between owning 10% of a house or 70% of a house in terms of security, and personally I'd go for owning 10% with 60% in savings and investments which is just about optimum in terms of being able to ride out shocks.

The best time to buy isn't in 2 or 3 years time when we'll be well into recovery with mortgage rates rising. It was 2 or 3 years ago, and the sweet spot was mid crash somewhere between Sept 07 and Feb 08 where you could have had a +0.5% tracker and negotiated hard on price. But if you were a bear you were renting, building up your deposit and waiting for further falls which never came.

Thanks Nostradamus

bendix

I dont like young people. So I don't care if house prices are too expensive for them. Make them work harder.

Or live in tents.

ILW

B_Blank wrote: »

So you think a graduate froma top university, who then gets a job with a top accountancy firm and earns a very decent wage should have to save a whole years take home salary for a deposit, and then pay 3x more of that salary via a mortgage just to buy a shhhithole in a dodgy area? Interesting....whom is going to fill the nice areas then? O wait, yes, the baby boomers. That high flying young person should be happy to live in the ghetto, after all the baby boomers 3 o levels and lives stacking shelves in tesco were far more deserving of a large house in a charming area.

FAIL

Up to you, go on renting then.

ukcarper

B_Blank wrote: »

So you think a graduate froma top university, who then gets a job with a top accountancy firm and earns a very decent wage should have to save a whole years take home salary for a deposit, and then pay 3x more of that salary via a mortgage just to buy a shhhithole in a dodgy area? Interesting....whom is going to fill the nice areas then? O wait, yes, the baby boomers. That high flying young person should be happy to live in the ghetto, after all the baby boomers 3 o levels and lives stacking shelves in tesco were far more deserving of a large house in a charming area.

FAIL

Show me someone who has spent their whole life stacking shelves in Tesco who owns a large houses in charming areas you really take the biscuit.

ILW

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.

Statistically, women are much safer on the streets than young men. Virtually all of London is as safe as any other city.