Resentment of this generation

ukcarper

Oldernotwiser wrote: »

You must have been lucky, that was quite unusual.

It was extremely unusual even a broker I used couldn’t get me that much. But after contacting quite a few building societies one agreed. They used a formula which if my memory serves me right was that the mortgage payment could not be more that a weeks gross pay. It was possible to have the miras taken of the monthly repayment instead of your tax as was usual done so by doing that it bought the payment down enough.

As an aside house prices on the estate I bought on doubled between the beginning of 72 and the beginning of 73.

ukcarper

Graham_Devon wrote: »

What a stupid thing to say.

Debt is debt.

However, depending on factors, debt can move someone forwards, and cripple someone else.

Out of reach may be out of reach. But theres much more to it than that.

There might be more than that to it but I think my example show it is possible to pay a mortgage of 4x joint. But if you can't get a mortgage you can't buy.

System

412 posts.

Does it matter if the previous generation had it easier or harder? What will anyone achieve from winning this argument?

Thrugelmir

ukcarper wrote: »

Not if the interest rate is twice as much and other thing are relatively more expensive.

When purchased first property interest rates were 10%. Month after completion rates rose to 11%. Then for 3 further consecutive months to 14%.

So only borrowing 2.5 times joint salary was a godsend.

As although money was tight. It was possible to scrape by. That included walking round Sainsbury's with a calculator while doing the weekly shop to see what was in the trolley. Never resorted to credit cards to tide over.

ukcarper

Joeskeppi wrote: »

412 posts.

Does it matter if the previous generation had it easier or harder? What will anyone achieve from winning this argument?

Not much I suppose does anyone ever win an argument on here.

By the way I do feel lucky that I was born in the 50s, not because my house was a bit cheaper but because it was possible to leave school at 16 with hardly any qualifications and still get a job with a future no so easy to do that now.

Londonsu

Graham_Devon wrote: »

Could you buy the same house today, as you did back then on the equivalient wages?

It always comes back to this. Regardless of washing machines, holidays etc, could you buy the same house?

Actually no it doesnt

We bought a flat In Clapham in the 80s and sold it last year.

In the 80s Clapham was a dump, we had a race riot, a rape murder and armed police storming the flat opposite in the the first 6 months of moving in.

When we sold last year Clapham was being marketed as a desirable area full of trendy bars and eateries which it is to a large extent, young people bought into that and paid over the odds just to live there

So no we couldnt have afforded a Clapham flat on our wages now but we could have afforded one in a less trendy area of London.

Now thats the same position we were in in the 80s, we couldnt afford a property in Chelsea or Battersea but we could afford a property in the 'Rougher' Clapham.

So to ask could we afford to buy our property today is meaningless, when asking prices in Clapham are due to factors that didnt exist when we moved there

grizzly1911

Thrugelmir wrote: »

When purchased first property interest rates were 10%. Month after completion rates rose to 11%. Then for 3 further consecutive months to 14%.

So only borrowing 2.5 times joint salary was a godsend.

As although money was tight. It was possible to scrape by. That included walking round Sainsbury's with a calculator while doing the weekly shop to see what was in the trolley. Never resorted to credit cards to tide over.

And you could carry a calculator, Reverse Polish Logic or Abacus:rotfl:

Oldernotwiser

Graham_Devon wrote: »

What a stupid thing to say.

Debt is debt.

If you can only afford £100, it doesn't really matter whether the thing you want costs 1 or 2 grand, you can't afford it.

Oldernotwiser

ukcarper wrote: »

As an aside house prices on the estate I bought on doubled between the beginning of 72 and the beginning of 73.

I remember it well. The 1 bed flat I would have liked to buy (at £5,000 it was 5 times my income! ) went up to £10,000 in less than a year.

Oldernotwiser

Joeskeppi wrote: »

412 posts.

Does it matter if the previous generation had it easier or harder? What will anyone achieve from winning this argument?

Personally, I think it's worth explaining that my generation didn't have it as easy as some people think - it's not a question of winning the argument.