Young generation want too much too soon

EchoLocation

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

You find it unreasonable that a young person should have a phone, a car and a TV? Had there not been massive, manipulated, greed-driven house price inflation, and prices were at realistic affordable levels, were they still moaning then you might have a point.

homelessskilledworker

morganedge wrote: »

Not knowing anything about this sort of stuff, as I live with my girlfriends parents, how on earth are people supposed to be able to buy a house nowadays then? Who are the first time buyers? Are they just people in really really well paid jobs? I've got 1 or 2 friends who bought a small house last year, but I've never sat down and asked them about the financial aspects of it all. (because i'd embarass myself as I know nothing about that sort of stuff. Mortgages etc etc) lol

The way it has been working for the last 10 years is that investors buy what would have been classed as FTB properties. They then put it on the rental market not giving a damm if it is paid for by housing benefit(biggest unspoken UK crime in recent years), or crammed with a dozen eastern europeans. The biggest group of victims in the UK today are working under 35 year olds holding average salary jobs who try to pay their own way, they have no chance in todays Britain if they start out with no back up from rich parents.

moneyinmypocket

If you can afford to pay rent you can afford a morgage. A FTB can't expect to move into a big house, like another poster said they bought a flat at 19 and now have a great place all paid off mid 40s - that's 25 years paying into there pot. I go back to my original point young people want too much too soon

Le_Chuck

moneyinmypocket wrote: »

If you can afford to pay rent you can afford a morgage. A FTB can't expect to move into a big house, like another poster said they bought a flat at 19 and now have a great place all paid off mid 40s - that's 25 years paying into there pot. I go back to my original point young people want too much too soon

you maybe able to afford the mortgage, the problem is being able to save the deposit.

Le_Chuck

homelessskilledworker wrote: »

I get the feeling that this is more a cry for reassurance, everyone now knows deep down that prices are heading down, some it seems are still in denial.

Saying that younger people are just work shy spenders is just a stupid over generalistaion, those who are under 35 and are working have never had it so hard since at least the WW2. People are forever going on about flat sveen TV's and I phones, people seem to forget that the Babyboomers were paying close on three of full months wages to buy a colour TV back in the 70's, and many were constantly on strike for the most silliest of reasons, and then it was common to buy property that was no more than two or three times the annual wage of ONE person.

Today you can buy a TV for a few days wages, a days wage in many cases, and I phones are similar.

I know i'm being a bit pedantic, but would revise that figure to 'under 30'

moneyinmypocket

I agree with the deposit bit hence why I think they should scrap that for anyone who is going to buy to live in it. Even still though it can be saved up it just takes a few years. What I don't get is there are people out there who think they will wake up one morning and house prices will be 50% lower and suddenly they will move into there house

Masomnia

If I bought a two bed flat round here, and took a lodger, the rent from the lodger would more or less cover the mortgage, maybe £100 per month or so for me to find on top. So I'd be much better off.

I'd do it in a heartbeat, but getting the deposit together would take me a very long time indeed.

homelessskilledworker

moneyinmypocket wrote: »

If you can afford to pay rent you can afford a morgage. A FTB can't expect to move into a big house, like another poster said they bought a flat at 19 and now have a great place all paid off mid 40s - that's 25 years paying into there pot. I go back to my original point young people want too much too soon

young people cannot get a mortgage because the Banks know property falls are on the way.

samtoby

I am 26 and I live at home with my Mum. My Mum is 51 and owns her own home outright.

My Mum bought her first house for 17k in 1984. My grandfather gave her 3k to buy the house. She sold that house and bought another in 1995 which she was able to buy out right at 52k. So my Mum only had a mortgage for around 10 years. She over paid and I am sure the interest rates initally were terrible.

My Mums house now is worth around 190k in a nice area so in 12 years my Mums house is worth nearly three times more than initally bought.

I believe that it is all relative the situation and salaries. Salaries do not go up really; and people are paying huge rents. My mum said rent used to be much cheaper than a mortgage but now really if you have the opportunity to get a mortgage you will probably paying less than someone who is renting!

suburbanwifey

I agree, the problem is the actual deposits that they demand nowadays. That first flat I bought at 19 was on a 100% mortgage, the 2nd house a 5% deposit (paid for by profit from sale of first flat) etc. I have actually never saved up or had to save up a penny to buy any of my homes over the years. To have to contemplate saving up 30K to just 'lose it' the minute you move in seems incomprehensible to me! You do lose that money too, as you never see it in your hands again in cash do you, not unless you sell up, take the money and move into rented. Any new property you buy takes the money from the previous property (the 'moving up' bit) so having to save up and then 'lose' 30k on a deposit must be soul destroying. To pay a mortgage is cheaper than renting nowadays and yes, its the deposit that kills them.

Why have deposits gone so huge? is it so that the building society/bank don't lose out if the house prices crash, you default and they have to repossess? I don't understand why they want such big deposits!