An entire generation locked out of property ownership

Percy1983

FTBFun wrote: »

Although of course, when they're adults that would be up to them to decide.

I assume this excludes mortgages and student loans as that would be silly.

At the age of 8 the decision would still be theres, but the actions and consquences would be put in front of them with a mild steering.

I did mention as children, once they are adults/teenagers they can make there own way, hopefully with a better understanding of finance issues.

As I say its about education through experience. I won't teach them debt is bad, just it has consquences to which sometimes the consequences are worth it (eg buying something in sale on a credit card can be cheaper despite interest).

IveSeenTheLight

Graham_Devon wrote: »

Between the age of say 11 and upwards, you can start teaching them the value of money and working for it. i.e. he could have some of his money, so long as he washed my car first. Something to actually "earn" the withdrawing of the money. It is, afterall, his money as soon as I do the transfer. I'd rather him have drip fed access as he wants it (he'd have to go through me until 16), than one lump sum at 16 to go crazy with after doing nothing for it.

I think kids can start learning the value before 11.

My personal plan is for them to "earn" their pocket money too.
My son is two and already doing chores like putting his washing in the washing basket, tidying his room.

A difference with my plan is that they will get their pocket money and have "tax" deducted (which will go into savings). I won't drop feed them their pocket money as they should already have earned it and they learn quicker to budget if they have their funds at their disposal instead of going cap in hand each time they want something.

IveSeenTheLight

wotsthat wrote: »

As an aside I've seen first hand how easy it is to get credit. His first debt was with Vodafone, he never paid the monthly fee got cut off and got passed to a debt collection agency. When he paid this off a £100 debt had more than doubled. A couple of years later though Vodafone gave him another contract and the same thing happened. Earlier this year he was sporting a nice Iphone on a contract - guess who the contract was with; guess whose direct debit isn't being paid.

I think those that give credit prefer debtors as it increases their revenue return, otherwise, once you had a history of bad credit, you'd find it far harder to get further credit.

Graham_Devon

IveSeenTheLight wrote: »

I think kids can start learning the value before 11.

My personal plan is for them to "earn" their pocket money too.
My son is two and already doing chores like putting his washing in the washing basket, tidying his room.

A difference with my plan is that they will get their pocket money and have "tax" deducted (which will go into savings). I won't drop feed them their pocket money as they should already have earned it and they learn quicker to budget if they have their funds at their disposal instead of going cap in hand each time they want something.

Well, to be fair, I wasn't talking about pocket money. I was talking about having a pot ready for later years, for big items, such as a house desposit or uni fees! If they wanted to dip into this pot, (once they can understand it properly), then my aim is to let them, so long as it's a viable purchase.

Andy_L

chewmylegoff wrote: »

For instance, we have been recruiting for forensic accountants with a very specific skill set for months and months and haven't had any suitable applicants. the pay is at least market rate if not above, and the work is interesting. the problem is that people with the specific experience we want simply don't exist. even for less specific roles we are throwing away over 90% of CVs on the grounds that the person is not actually qualified to do the job they are applying for.

i suspect many employers are finding the same thing, whether this is a case of unrealistic expectations on behalf of employers or not, it is the case that the unfilled vacancies, to a significant extent, do not match up with the skill set of job seekers.

In the old days (when I were a lad) firms would have home grown their own forensics accountants etc by training them up from juniors & encouraging them to stay & be promoted.
That's changed as firms cut their training budgets to maximise thier bottom line & instead poached other peoples now experienced trainees as they could pay them more by not having the training overhead. Unfortunatly thats now gone on for so long that theirs now no new generation of trainined, in your case, forensic accounts to recruit from

dianadors

I was the first person in my family to buy their own home. My then boyfriend and I saved 4K deposit(my wages were £350 per month and his were £400 per month and we both paid board to our parents every week - both paid £25 each per week) on our first house which was an old semi and cost £18k. This was in 1981. We had been together for 5 years and saved all that time. We didnt have a car, holidays abroad, designer clothing, meals out etc etc. We had hand me down furniture for the first few years till we saved enough to buy new.
I had to start all again in 1989 when my 1st hubby found love with someone else.
My new hubby and I started with very little. Every penny I had went on the deposit of our new home - my new hubby had been left penniless. Again, we had borrowed or 2nd hand furniture and scrimped and saved every penny - was made redundant twice at this time also. I worked part time after I had our children - working late nights to fit it with hubby's working pattern so we didnt have to pay childminders. We have just paid our mortgage off after 20 years, and used savings for the endowment shortfall. In both cases, we never had any financial help from anyone. It annoys me so much when I have to listen to my colleague moaning about how she and her boyfriend (both working and in decent jobs) will never be able to afford a house - she fully expects her parents to fork out for a deposit for her. They go to Thailand every year for 2 weeks, but also have "little" holidays in Ibiza too. Brand new clothes (all "labels" ) for each holiday. They both drive new cars - wouldn't be seen dead in anything 2nd hand and have never been on a bus. Tickets for a couple of festivals this year, several hen nights out to Barcelona planned for this year - it goes on and on.

I know its tough, but I can vouch for the fact that it has never been easy.

Graham_Devon

dianadors wrote: »

I was the first person in my family to buy their own home. My then boyfriend and I saved 4K deposit(my wages were £350 per month and his were £400 per month and we both paid board to our parents every week - both paid £25 each per week) on our first house which was an old semi and cost £18k. This was in 1981. We had been together for 5 years and saved all that time. We didnt have a car, holidays abroad, designer clothing, meals out etc etc. We had hand me down furniture for the first few years till we saved enough to buy new.
I had to start all again in 1989 when my 1st hubby found love with someone else.
My new hubby and I started with very little. Every penny I had went on the deposit of our new home - my new hubby had been left penniless. Again, we had borrowed or 2nd hand furniture and scrimped and saved every penny - was made redundant twice at this time also. I worked part time after I had our children - working late nights to fit it with hubby's working pattern so we didnt have to pay childminders. We have just paid our mortgage off after 20 years, and used savings for the endowment shortfall. In both cases, we never had any financial help from anyone. It annoys me so much when I have to listen to my colleague moaning about how she and her boyfriend (both working and in decent jobs) will never be able to afford a house - she fully expects her parents to fork out for a deposit for her. They go to Thailand every year for 2 weeks, but also have "little" holidays in Ibiza too. Brand new clothes (all "labels" ) for each holiday. They both drive new cars - wouldn't be seen dead in anything 2nd hand and have never been on a bus. Tickets for a couple of festivals this year, several hen nights out to Barcelona planned for this year - it goes on and on.

I know its tough, but I can vouch for the fact that it has never been easy.

On the same wages as you had then (but relative to today) could you do the same today? I.e. buy the same type and size of house in the same location?

dianadors

Wages were much lower for younger people back in the late 70's /early 80's as you had payrise increments on your birthdays. You could have often been doing the same job as the person sat next to you for a lot less wages. Assuming I was on the same wages as the girl who is the big spender in my office, (I'm not as I am still part time) then I think in the area that I live in (South Yorkshire) yes I could. It would be as tough and as scarey as it ever was. Her parents are paying for her to have a massive wedding (its costing around 18K). I don't begrudge her any of her fancy holidays etc, but she really is miffed that her generation cannot afford to buy a home. I blame Posh Beckham and Katie Price.

IveSeenTheLight

Graham_Devon wrote: »

Well, to be fair, I wasn't talking about pocket money. I was talking about having a pot ready for later years, for big items, such as a house desposit or uni fees! If they wanted to dip into this pot, (once they can understand it properly), then my aim is to let them, so long as it's a viable purchase.

I have a similar thing.

I put away almost £2k each year for each of my kids and the plan is that hey will not know about this ever.

It may be used for things such as Uni, but then again, if I can afford from other funds then I'd like to leave the pot alone.

Ideally, I'd like my kids to be self sufficient and this pot wouldn;t be used for deposits either, althoguh reluctantly it may need to be.

Ideally, what I'd like is that when my kids have prooven themselves in the world, settled down, started to have kids, I could then make a grand jesture to clear off a huge part of their mortgage and leave them to truly enjoy life with their kids.

I'm not looking to benefit one generation, but two

Percy1983

dianadors has the same arguement I have seen times before, us young ones shouldn't be able to afford houses because holidays/cars/TVs are cheaper now.

Yes I do agree that the situation of people complaining and while having new everything and expensive holidays.

But from a real young couple, we haven't been abroad for years, last year we did a tour of scotland (travelodge sale) and this year we aren't having a holiday. We do own 2 cars but mine hardly moves as I do use public transport (hope to get 15 years out of said car), both cars are fully paid for and neither was bought new. The deposit is coming along nicely as we are on tight budget (no nights out every weekend etc).

In short am no better off, yes technology has moved on so I may have better gadgets etc, but doing a quick sum, your home was less than 2x you joint incomes, now we are looking at 4x joint income minimum and thats in an area many of you wouldn't even want to live in.