An entire generation locked out of property ownership

PasturesNew

nicko33 wrote: »

Make them an offer and find out

Seems a bit rude really..... people hang onto their purchase price in their mind too often. Too much of an eye on what they've "lost" than the freedom getting out will gain them.

"people" no longer own it ... all taped up it is.

Cleaver

Thrugelmir wrote: »

Found some figures that made interesting reading (although slightly out of date).

Average Salary 1982 £7,117 2007 £23,307
Average House Price 1982 £23.644 2007 £194,362

Little direct correlation between an increase in average salaries and house prices in this 25 year period.

No, there isn't. But then you have picked a 25 year period ending in 2007 at the very height of the housing boom, and it looks to me as if we won't see house prices that high again for a long, long time.

I'm obviously not saying here that house prices aren't all out of whack against wages at the present time, because they are (in many areas, although not all). I'm just saying that over forty years you'll probably see two booms and two busts. We're in a bust period at the moment, and I don't doubt that we'll see a boom at some point over the next ten or fifteen years. We always do.

Cleaver

Percy1983 wrote: »

This is very true, to me personally I will be getting rid of my mortgage asap to which actual price is very relevant. To which I will probably be paying more than I would be renting. On the flip side my rent/mortgage free days will come a lot sooner.

Another interesting point to add in to the mix is that people see overpaying their mortgage as the be all and end all to financial freedom. And I guess it is, to a point. But let's say you have a spare £1,000 a month in your twenties or thirties. Nice position to be in. You could throw it all at the mortgage, but you might be better off throwing half towards the mortgage and half in to a sensible investment portfolio that has a risk / reward ratio that fits someone who is pretty young. If you're looking at financial security in later life, this would generally be the route to success rather than chucking everything at your mortgage.

Having said this, whether you're paying off the mortgage or investing, you're doing well. It's just like arguing whether keeping fit is best through running or biking, when in reality both are better than just sitting on your backside.

System

Do Premium Bonds count as investing? Looks like fun

PasturesNew

Cleaver wrote: »

... over forty years you'll probably see ... two busts.

You've met the wrong women.
Most men do better than that.

vivatifosi

PasturesNew wrote: »

Seems a bit rude really..... people hang onto their purchase price in their mind too often. Too much of an eye on what they've "lost" than the freedom getting out will gain them.

"people" no longer own it ... all taped up it is.

Could you live there Pastures if it was done up to your tastes? If so, why not try and buy? Forget rudeness and all that!

Percy1983

Cleaver wrote: »

Another interesting point to add in to the mix is that people see overpaying their mortgage as the be all and end all to financial freedom. And I guess it is, to a point. But let's say you have a spare £1,000 a month in your twenties or thirties. Nice position to be in. You could throw it all at the mortgage, but you might be better off throwing half towards the mortgage and half in to a sensible investment portfolio that has a risk / reward ratio that fits someone who is pretty young. If you're looking at financial security in later life, this would generally be the route to success rather than chucking everything at your mortgage.

Having said this, whether you're paying off the mortgage or investing, you're doing well. It's just like arguing whether keeping fit is best through running or biking, when in reality both are better than just sitting on your backside.

This is true and I will consider other options compared to just paying off the mortgage, having a nest which is enough to pay off the mortgage but is earning more than the mortgage is costing would be fine.

With that I will still be enjoying life and only spare money will go to overpaying, as much as overpaying is for the future I intend to live in the present.

IveSeenTheLight

Cleaver wrote: »

If you're looking at financial security in later life, this would generally be the route to success rather than chucking everything at your mortgage.

It's just a personal opinion, but I believe it's best to clear debts first.

That said as my mortgages have reduced, I have also invested elsewhere.

geneer

chucky wrote: »

whooooosh, you miss the point completely (again).

well done.

And you seem to be unable to make the point clear.

Well done.

mutter

dianadors wrote: »

In the office I work in, there are 2 girls of a very similar age, both on the same wage - £18500 . One of them is single and has bought her own home, cost £96K and has a 40 year mortgage. She pays £500 per month for this. She had no help from parents etc and saved for the deposit herself. ......

I'm not necessarily disagreeing with you here, in that I accept that some pople are prepared to make more sacrifices than others to achieve a home of their own, but I think you're in danger of looking a teeny bit ostrich-like.

My daighter is on similar wages to your workmates.
A quick look at the moneysupermarket.com mortage calculator suggests she could borrow £73,500.

That means she'd have to save in the region of £40,000 in order to buy this-
http://www.rightmove.co.uk/property-for-sale/property-18350814.html

Entrance Vestibule: 4'8 × 3' (1.42m × .92m)
Studio Room: 20'4 × 17'9 (6.2m × 5.41m)
Shower Room: 7'3 × 4'6 (2.21m × 1.37m)

Now I know people will come on here and say she could get a longer or cheaper mortgage, or that a broker might find her a bigger loan, or she could share or whatever, but the bottom line is it's hard to see how any single person in their mid 20s can get out of that cycle where their rent is eating up so much of their income that they can save anything like enough enough to buy a place of their own.