Young generation want too much too soon

moneyinmypocket

Just seen some young pros - with there iPhones, car each, sky tv, several tvs moaning about house prices, what ever happened to saving up? My theory they are so used to credit binges that they don't know how to save up - generations gone by would go without - we even used to rent are tv and VHS player back in 80s - it's simply put too much too soon for sone people - work harder friends

lilac_lady

Times have changed since credit cards were made readily available to most people. If you've nver saved or waited to buy anything it must be hard to break the habit of spending what you haven't got.

As for working harder, many young people would like to do that if they could get a job.

wannabehermit

moneyinmypocket wrote: »

Just seen some young pros - with there iPhones, car each, sky tv, several tvs moaning about house prices, what ever happened to saving up? My theory they are so used to credit binges that they don't know how to save up - generations gone by would go without - we even used to rent are tv and VHS player back in 80s - it's simply put too much too soon for sone people - work harder friends

The deposits you have to save are unobtainable for the normal couple. My parents were able to buy a large 3 bed house in a decent area for £30,000. My dad earned £12,000 a year as a postman, needing to save a £1,500 deposit to buy said house.

That same house is now worth £300,000. A postman may be able to save a £30,000 deposit over a period of time, but he sure as hell ain't gonna get a mortgage for £270,000.

DH is a lorry driver (so a proper skilled job, unlike a postman), he earns £14,000 a year. Max mortgage we'd be able to get therefore would be £42,000, so even to buy a 1 bed flat we're looking at over £100,000 for a deposit. The only way to save that would be to live in a cardboard box and not eat for the next 8 years.

It's not a simple case of youngsters wanting everything now. I'm a saver. I love saving. I love the satisfaction of buying something that I've worked hard for and knowing that it is mine 100%. But I'm also realistic and sadly we know that our own house is just not possible.

moneyinmypocket

Maybe. I do feel for those who want to work that can't but even they seem to be able to afford phones, Internet, clothes, beer, drive - I remember being broke and would just kick a football around on park with friends to pass time. I am of the opinion though anyone who buys a house to live in themselves shouldn't require a deposit up front as long as re payments are affordable

Carl31

This arguement is rather boring now

Yes people have mobiles now, but way back when people paid more for land lines, which most young people dont have now

Cars are more widely used now days as theres more commute, theres also more on the road hence they become cheaper to obtain on the second hand market

Electronics such as vcr were by comparison a lot more expensive back then, and renting the item would have meant paying a premium, hence you were paying more anyway

Its not comparing like for like, hence its a poor arguement the economy and world has changed. I bet all these old generation people that bang on about 'the youtb with their latest mobiles and expensive coffee' would have done exactly the same if the devices and products were available, but they werent

moneyinmypocket

So a postman earned 12k at the same time house he bought was 30k? That doesn't sound right?

Carl31

wannabehermit wrote: »

The deposits you have to save are unobtainable for the normal couple. My parents were able to buy a large 3 bed house in a decent area for £30,000. My dad earned £12,000 a year as a postman, needing to save a £1,500 deposit to buy said house.

That same house is now worth £300,000. A postman may be able to save a £30,000 deposit over a period of time, but he sure as hell ain't gonna get a mortgage for £270,000.

DH is a lorry driver (so a proper skilled job, unlike a postman), he earns £14,000 a year. Max mortgage we'd be able to get therefore would be £42,000, so even to buy a 1 bed flat we're looking at over £100,000 for a deposit. The only way to save that would be to live in a cardboard box and not eat for the next 8 years.

It's not a simple case of youngsters wanting everything now. I'm a saver. I love saving. I love the satisfaction of buying something that I've worked hard for and knowing that it is mine 100%. But I'm also realistic and sadly we know that our own house is just not possible.

This is the main problem, the salary to house value divide is very much off from Where it usually resides. When my parents first bought, their house was about 24k, they earnt about 8k each. If only that was the case now!

moneyinmypocket

I don't think they will drop 50%

Desperate_Housewife_2-2

The problem with this argument is that it blames ordinary people for the problems created by the well off in society.

I think it is an urban myth perpetuated by the uninformed that people have the latest mobile phone but the *rse hanging out of their pants, yes, there are people like that but please don't generalise as it perpetuates the blame culture so useful for politicians.

There are a lot of people out there struggling to make ends meet. Its easy to see the world gone by through rose coloured specs, I was a child of the 70s and we didnt have anything except the basics and were grateful for it. Things have moved on, we live in a more complicated world, interent access is a must if you want to find a job, transport is way more expensive and public transport is an expensive joke, hence the need for a car to get to work.

The 80s spawned a 'me, me, me' culture which has infiltrated through to every strata of life, housing, jobs, education, even healthcare and I fear it is so ingrained it has become part of the national psyche.

There is a shocking problem in this country as regards housing, it is unaffordable for many hard working people and the consequences of poor housing are affecting peoples health, wealth and happiness.

I have no idea what is to be done, hopefully the govt will initiate a building program of affordable housing and get the banks sorted out so people can get mortgages, or even sort out social housing so families can live in a decent place for a reasonable amount.

moneyinmypocket

V good post above. If you had to hedge a bet do you think house prices will drop massively?

Desperate_Housewife_2-2

moneyinmypocket wrote: »

V good post above. If you had to hedge a bet do you think house prices will drop massively?

Unfortunately my crystal ball is not working this morning! There are loads of threads already on here with this very same debate. I will say though that a simple equation of not enough housing stock coupled with keen btl ers would suggest that it is probable in my humbe opinion that house prices will not fall massively.

There may be an element of a correction, a slow down and unfortunatley for some poor souls, repossessions due to job losses and debts, forcing sales but......there will always be someone out there ready to pick up a bargain at an auction and has the readies to do this. People will always need a place to live.

So, if I was forced to give an answer, I would say no, IMO house prices will not drop massively, but what do I know? I certainly would not gamble any money on it, if I wanted a place to live I would try and buy a house to use as a home, if I could afford it then I have won!