Average family will have to save for more than 30 years to raise first deposit

Percy1983

justjohn wrote: »

Most first time buyers are at bottom end of market.

As a first time buyer I can confirm that we are not buying a 'bottom rung' house.

quantic wrote: »

Additionally, this might be a very naive view, but I always thought it was best to save up for a house BEFORE having the family?

That has certainly been our plan to which we are buying at 28, but dare I say it was a balancing act and we aren't going to wait another 8 years to have kids.

macaque wrote: »

Good point. Added to this, the analysis is also based on the false premis that the average FTB house meets the needs of the average first time buyer of today.

A average first time buyer of today is over 35 and a tiny 1 bedroom flat with paper thin walls is about as useful as a motor boat to a cattle farmer. To meet the needs of the average first time buyer will probably require a property in the range of £200-300k.

An don't me started about ladders in a climate of low house price inflation. If you try to aspire to a bigger house by trading up, all you are doing is throwing money away on stamp duty, estate agent fees and lawyers.

This is very much the point, if I could have afford to buy at 18-23 then the 2 bed terrace etc would have been just fine, its by the age of 28 for the first time I can afford to buy and as mentioned above we won't delay children too long so it would be more than foolish to buy said 2 bed terrace as our first home. As it is we have skipped the whole ladder idea on gone straight to the house for life.

ukcarper

marlonthemagnificent wrote: »

i work for one of the UK's biggest companies

our graduates start on 28k...which must one of the best graduate salaries around...and way, way above the national average....but they are amongst the best graduates in the country and go through a rigorous selection process

on average, i'd guess they are paying about 700pcm on rent (to even rent a room), 200pcm on bills and another 200pcm on travel....then they have to repay their student loans (as they are above threshold)......that's before they have eaten, bought clothes or done anything else........so they ain't got much left to save.....and they are the amongst the top paid young people in the uk

so how do the rest save to buy...?

I now someone living in a bedsit in outer London £500 a month including bills. Someone on £28k would be taking home £1780 less student loan that leaves over £1000 a month spend half which is a lot more than person I now has and you could save £6k a year.

marlonthemagnificent

ukcarper wrote: »

I now someone living in a bedsit in outer London £500 a month including bills. Someone on £28k would be taking home £1780 less student loan that leaves over £1000 a month spend half which is a lot more than person I now has and you could save £6k a year.

a bedsit in outer london for 500pcm?? that must be a crime ridden blackspot

you are simply not being realistic on your cost of living assumptions
if they lived in outer london, say zone 6, then the extra price of a monthly travel pass would eat up any cost's saved on living in the aforementioned hellhole

do you really think yon can live in london and take home 1780pcm and save 500pcm, every month?

what about the people earning 20k...or 18k....or even 15k...of which there are many.....how do they save to buy an over-inflated property?


the sooner property prices revert to sensible prices, the better off every single person in the UK will be
so many people in the uk are saddled with a massive mortgage which is effectively a noose around their neck
they got sucked into buying a depreciating asset at a hugely inflated price
i genuinely feel sorry for anyone who has bought since 2007, especially first time buyers, who got sold a dream that was based on a pack of institutionalised lies

Graham_Devon

ukcarper wrote: »

I now someone living in a bedsit in outer London £500 a month including bills. Someone on £28k would be taking home £1780 less student loan that leaves over £1000 a month spend half which is a lot more than person I now has and you could save £6k a year.

In what world do you live in?

6k to live for an entire year?!

I spent £40 on one pair of shoes and some leg warmer things for the buggy just yesterday on my son. That's forgetting everything else.

The car alone costs me 300-400 a month.

ukcarper

Graham_Devon wrote: »

In what world do you live in?

6k to live for an entire year?!

I spent £40 on one pair of shoes and some leg warmer things for the buggy just yesterday on my son. That's forgetting everything else.

The car alone costs me 300-400 a month.

We are takling about a single person trying to save i live quite comfortably on £12k a year

marlonthemagnificent

ukcarper wrote: »

We are takling about a single person trying to save i live quite comfortably on £12k a year

and are you retired and do you own your own home..and did you buy your house for a fraction of todays inflated prices?

MrRee_2

Ridiculous .....

Assuming average price of £160,000 (LR figures)

20% = £32,000

£1,000 a month saving = 32 months to buy NOT 31 years!!

I don't know which planet half of you live on.

marlonthemagnificent

MrRee wrote: »

Ridiculous .....

Assuming average price of £160,000 (LR figures)

20% = £32,000

£1,000 a month saving = 32 months to buy NOT 31 years!!

I don't know which planet half of you live on.

and which young people have 1000pcm to save?

Carl31

MrRee wrote: »

Ridiculous .....

Assuming average price of £160,000 (LR figures)

20% = £32,000

£1,000 a month saving = 32 months to buy NOT 31 years!!

I don't know which planet half of you live on.

how many families do you know that can save 1000 a month?

Carl31

ukcarper wrote: »

Why is that all my family the oldest being 36 have had their own homes for at least 5 years as is the case for most of their friends.

5 years ago you could buy places with little or no deposit

it was easier to buy then. One of my mates bought his first flat with 4k he had in the bank, that was deposit and fees, and another bought a 2 bed house with less than 10k

Thats in sussex, just north of Brighton. Try doing that now