You can not afford to buy a house if...

FATBALLZ

Apparently my generation cannot afford to buy houses because we own iPods. That's what all the over 50s keep telling me.

ukcarper

Gwhiz wrote: »

Can't be bothered tbh. I agree with the OP.

Not surprised, I'm not saying I disagree with all the points but in trying to make a point the original poster has weakened their argument considerably.

SingleSue

Plenty of properties available here...just that no-one wants to pay the prices for them.

Hence, prices reducing in this area.

hels234

poppysarah wrote: »

• You have to have a gifted deposit.
• You whinge about not being able to afford stamp duty
• You extend the mortgage term over 25 years.
• You can afford it on the fixed rate but not if it went up.
• you can't save a deposit yourself
• you are looking at interest only mortgages
• you can only afford to be a % of a property

I think this is a little simplistic, when I had my first mortgage I had it over 33 years as I was a FTB and wanted to be absolutely sure I could afford it. After 2 years I reduced it to 23 years and will look to do the same or increase overpayments in the future. I bought a HOME, I'm not looking to make money out of it (though it would be nice!) I just want to live a comfortable life in it! I had a 100% mortgage and have already got a bit of equity put in due to my payments. I have no regrets and love my house :T.
I would have no problem if rates went up as I have allowed for this in my budgeting. I think budgeting and self discipline are the key factors with a healthy dose of realism about your situation and prospects.

daisymay2008

andthethreebears wrote: »

So the only way to afford a property is to be old?!

I disagree about the mortgage term point (amongst others)
We bought our property at 15yrs younger than the 'average' ftb.
So even on a 30yr as opposed to a 25yr mortgage - we're still a minimum of 10yrs ahead!! Makes sense to me...

agreed, complete drivvle, alot of people retire 60-65 so whats wrong with 30-35 yr terms, and most will reduce terms anyway when remortgaging etc

also i borrowed money off folks for first home and paid them back in 2 years, also lived my normal life so again complete drivvle

shortchanged_2

What happened to all the glut of flats that were being built during the boom years that are now lying empty?

joerugby

tyllwyd wrote: »

We would have failed on at least a couple of those points when we bought our first house in 1997.

But 1997 is not 2011

HAMISH_MCTAVISH

shortchanged wrote: »

What happened to all the glut of flats that were being built during the boom years that are now lying empty?

The glut was primarily a few northern inner cities, and they're now mostly occupied.

Both house prices and rents for those flats in those areas have risen dramatically since early 2009.

Hardly surprising when we've been adding 150,000 more households a year than we build houses.... For many years now.

What little vacant stock there was is shrinking rapidly. Another couple of years and it'll all be gone.

rumdiddlyum

poppysarah wrote: »

• You have to have a gifted deposit.
• You whinge about not being able to afford stamp duty
• You extend the mortgage term over 25 years.
• You can afford it on the fixed rate but not if it went up.
• you can't save a deposit yourself
• you are looking at interest only mortgages
• you can only afford to be a % of a property

i dont think buying a house is about what you can and cant do in 2011 its about giving it a go and if people get repossesed it must be so hard but good for them for having a go people are so negative about other people. everyone is different and they do things differently like getting gifted deposits why not, shared ownership why not, interest only why not if it is easier, better, and your family are happier why not i think some people forget that this is there life dont worry about it live it:T

HAMISH_MCTAVISH

harrup wrote: »

Hamish, this is incorrect. Both in terms in building AND a new baby boom generation. Perhaps this is accurate for Scotland, or even parts thereof, but not for the UK at large.

There is NO shortage of houses, least of all for FTB

You are absolutely, 100% wrong.

The existing shortage:

“The central assumption from the Department of Communities and Local Government is that long term net migration will be 171,500 per year, resulting in an annual increase in the number of households in England of 252,000 once other factors are taken into account. Even if one were to assume zero net migration, however, the number of households is still projected to expand by an average of 153,000 units per year through to 2031.

Whatever the true number is, it is almost certain that current levels of housing construction have fallen far below future levels of household formation (chart 3). Based on recent levels of housing starts, it looks likely that only around 100,000 homes will be built during 2009, which would represent by far the lowest level on record
(chart 4).

As it is likely to take time for the economy and housing construction to recover to pre-crisis levels, the potential exists for a considerable housing shortfall to develop over the next few years. This would be on top of the shortfall that already started to develop in 2004, when even boom-time levels of construction failed to keep pace with household growth.

http://www.nationwide.co.uk/hpi/historical/Jul_2009.pdf

The near term future shortage:

http://www.ft.com/cms/s/0/abe1314e-6399-11e0-bd7f-00144feab49a.html#ixzz1LDe1ecII

Published: April 10 2011

The gap between the number of households and the number of available homes is set to widen during the next five years, pushing up property prices and heaping pressure on those living in rented accommodation, new research shows.

During the five years to 2016, 1.3m new households will be formed as families grow and children leave home, according to forecasts by the Department for Communities and Local Government and the Welsh and Scottish governments.

However, research published on Monday by the Construction Products Association found the number of new homes being built during the same period was expected to reach only 714,000, leaving a shortfall of 622,000.

And of course, the problem will continue to get worse....

The housing market in England is enduring one of its least active periods since records began. And in spite of promises by the previous government to ease the shortage, the 102,570 homes built last year marked the lowest number of annual completions since 1923.

The lowest number since 1923...... But that was last year.

Housing starts are down a staggering 41% since then.

As for population....

In 2010 there were just 733,000 33 year olds (FTB age) in the UK....

That is the absolute trough of the demographic cycle....

However this age group will now rise inexorably for every year until the early 2020's, when there will be almost one million people reaching FTB age annually.

http://www.statistics.gov.uk/populationestimates/flash_pyramid/UK-pyramid/pyramid6_30.html

So just as the biggest generation in history reaches FTB age, it will crash into the lowest level of house building in over a century, which is only compounding an existing severe housing shortage crisis.

There is only one possible result..... The next boom is locked in already.