MSE News: Home ownership dream dwindles for young renters

minnieboo

the deposits required are unfair to buy houses - my rent is more than a mortgage would be and i'm trying to save for a deposit! we are soooo backwards!

its just stupid... the rules on this seem to forget that many people put lots of money into their education and get a decent ish job but then still can't afford the deposit to buy a house... its like you are punished for educating yourself and working hard!! not all professional jobs come with a high wage packet but many require you to study for years and provide no help with fees for post graduate courses. so you spend years paying back fees for them and then have to save up for a house for years and years, meaning u finally may own your own house in your 40's or something stupid... it all makes me wonder what is the point?

Froggitt

minnieboo wrote: »

the deposits required are unfair to buy houses

The reason why they are so "unfair" is because thousands of people just walked away from their mortgages, leading to the banking crisis......not just here but even more so in the USA. By asking for a 20% deposit, youre less likely to walk away from your house if it goes down a few grand in value, therefore less likely to leave banks with the shortfall/bad loan, and less likely for the whole economy to be at risk from a banking catastrophe.

HAMISH_MCTAVISH

Froggitt wrote: »

The reason why they are so "unfair" is because thousands of people just walked away from their mortgages, leading to the banking crisis......not just here but even more so in the USA. By asking for a 20% deposit, youre less likely to walk away from your house if it goes down a few grand in value, therefore less likely to leave banks with the shortfall/bad loan, and less likely for the whole economy to be at risk from a banking catastrophe.

Do you actually believe a word of what you just typed???:eek:

Froggitt

Two words.....Northern Rock.

Froggitt

And a few more......RBS and Halifax/Lloyds.

And its not just homebuyers, its small businesses as well who are now being penalised for previous history of poor repayments.

Doshwaster

I it any wodner that the average age of a first time buyer is now 38 - and it's over 40 in London. Unless you have major help from the Bank of Mum and Dad then it's virtually impossible for anyone in their 20s to buy a house these days.

Your 20s is supposed to be one of the best decades of your life but for many it has become 10 years of low paid work (if any work at all), debt and living in crappy rented accommodation.

From the age of 18 to 28 I was constantly overdrawn first as a student, a postgraduate and a then in a series of temporary jobs. University was easy - it's next 5-10 years which are tough. It wasn't until I was 31 or so that I started to feel financially stable and wasn't in a position to by a house until I was 37. Now, approaching 40, for the first time in my life I feel financially comfortable. I'm in a decent job, my mortgage is manageable, I have savings in the bank and I don't fear redundancy (well, not much) - but it's been hard getting here.

I'd hate to be 21 now (well apart from regaining my looks, ability to party all night and fit in 32" trousers again:))

minnieboo

but this is where we go wrong as a society... we reward those who made the mistakes then punish those who have done nothing wrong.

lending should be on a case by case basis... so those who have had loans in past, not missed a payment, keep everything up to date and worked hard for what they have should be rewarded and those who mess up all the time get nothing.

it really is common sense and would stop us having a society of hopeless angry youngsters who turn to crime or opt out of education/jobs and life! why work hard when u dont get anywhere and cant have the things you want in life?

isn't it time to turn it around and make this country great again? create some hope for the future??

jgriggle

tara747 wrote: »

Not quite...

Our rent is just over £6,000 a year (and, like I said, less than 10% of our income) and has not risen in 4 years.

Here, happily, LLs pay the rates (council tax), so renters have no further housing outgoings whatsoever.

I'm sure you'll agree that it's good to rent in NI (even if not elsewhere). :A

Whoever said that they were spending 50% of their income on rent must be living somewhere insanely expensive or on a very low wage. Either way, it's beyond their means.

Hi Tara747. It was me who's spending 50% of my take home pay on rent. I pay £575 a month rent and £117 a month council tax to live in a two bedroom end-terrace newbuild shoe-box in semi-rural Gloucestershire, where we have the wonderful combination of below average salaries and above average house prices.

Unfortunately, due to working on commission I've suffered a 20% pay cut in the last three years.

I wasn't always spending half my wage on rent! I'm hanging in there as the house is in a nice area and the landlord is prompt with repairs etc.

The only things I don't like about renting is the lack of security and the fact that I can't decorate or put up pictures/shelves.

Froggitt

Doshwaster wrote: »

I it any wodner that the average age of a first time buyer is now 38 - and it's over 40 in London. Unless you have major help from the Bank of Mum and Dad then it's virtually impossible for anyone in their 20s to buy a house these days.

Your 20s is supposed to be one of the best decades of your life but for many it has become 10 years of low paid work (if any work at all), debt and living in crappy rented accommodation.

From the age of 18 to 28 I was constantly overdrawn first as a student, a postgraduate and a then in a series of temporary jobs. University was easy - it's next 5-10 years which are tough. It wasn't until I was 31 or so that I started to feel financially stable and wasn't in a position to by a house until I was 37. Now, approaching 40, for the first time in my life I feel financially comfortable. I'm in a decent job, my mortgage is manageable, I have savings in the bank and I don't fear redundancy (well, not much) - but it's been hard getting here.

I'd hate to be 21 now (well apart from regaining my looks, ability to party all night and fit in 32" trousers again:))

It always was crappy rented accomodation whilst a student (we had slugs) and first few years after Uni......I lost track of the number of times I moved. With overdraft.

Froggitt

minnieboo wrote: »

but this is where we go wrong as a society... we reward those who made the mistakes then punish those who have done nothing wrong.

lending should be on a case by case basis... so those who have had loans in past, not missed a payment, keep everything up to date and worked hard for what they have should be rewarded and those who mess up all the time get nothing.

it really is common sense and would stop us having a society of hopeless angry youngsters who turn to crime or opt out of education/jobs and life! why work hard when u dont get anywhere and cant have the things you want in life?

isn't it time to turn it around and make this country great again? create some hope for the future??

It is unfair and I feel for you.....and my kids and the rest of the younger generation who will face the same challenges.

The country is broke and will take some time to fix.....maybe when it is fixed things like university will revert back to "affordable" rather than ending up with a £50K loan.