Young generation want too much too soon

ukcarper

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 argument is always used but I bought my first house in 1972 I earnt quite a bit more than a postman and my house which was a small 3 bed terrace was over 5x my salary. It all depends when you bought and at times in relation to wages house prices have been almost as high as they are now.

Cleaver

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?

If we are going to have a go at young people in this cliched way can we actually pick expensive things? You can get an iPhone for free on contract for £20 a month, a TV costs a hundred quid, Sky £20 a month...

Some people seem to see mobile phones as some sort of luxury, but they are just standard items nowadays that most of us can't do without. My phone is also my camera, mobile internet, calendar, calculator, music player, GPS, e-mail and all sorts of other things. It's probably one of the best value things I own.

If a 20% deposit on a local home is £40,000 then spending £20 a month on a phone makes little difference does it? That type of money is simply out of reach for many young people no matter how frugal they are.

Oldernotwiser

ukcarper wrote: »

This argument is always used but I bought my first house in 1972 I earnt quite a bit more than a postman and my house which was a small 3 bed terrace was over 5x my salary. It all depends when you bought and at times in relation to wages house prices have been almost as high as they are now.

In 1971 I would've liked to buy a 1 bed flat but it was 5x my salary as a decently paid office worker. A year later my salary had gone up by 20% and the same flat now cost 8x my salary.

I couldn't afford to buy a flat until I married in my 30s.

ukcarper

Cleaver wrote: »

If we are going to have a go at young people in this cliched way can we actually pick expensive things? You can get an iPhone for free on contract for £20 a month, a TV costs a hundred quid, Sky £20 a month...

Some people seem to see mobile phones as some sort of luxury, but they are just standard items nowadays that most of us can't do without. My phone is also my camera, mobile internet, calendar, calculator, music player, GPS, e-mail and all sorts of other things. It's probably one of the best value things I own.

If a 20% deposit on a local home is £40,000 then spending £20 a month on a phone makes little difference does it? That type of money is simply out of reach for many young people no matter how frugal they are.

Bit silly trying to compare really back in 70s most people left school at 16 lived with parents until in their early twenties then got married and bought a house with deposit they saved whilst living with parents. Now people go on to further education leave home earlier and get married later.


We saved the equivalent £20k in a year but we both lived with our parents. I think we are all products of our time and if they were born earlier most young people would have behaved as we did and if we were born when they were would behave as they do.

StevieJ

ukcarper wrote: »

This argument is always used but I bought my first house in 1972 I earnt quite a bit more than a postman and my house which was a small 3 bed terrace was over 5x my salary. It all depends when you bought and at times in relation to wages house prices have been almost as high as they are now.

Tell me about, I bought in late 1988, not only had house prices doubled over the previous few years but the mortgage rate nearly doubled over the next 18 months :eek:

gailey_2

Cleaver wrote: »

If we are going to have a go at young people in this cliched way can we actually pick expensive things? You can get an iPhone for free on contract for £20 a month, a TV costs a hundred quid, Sky £20 a month...

Some people seem to see mobile phones as some sort of luxury, but they are just standard items nowadays that most of us can't do without. My phone is also my camera, mobile internet, calendar, calculator, music player, GPS, e-mail and all sorts of other things. It's probably one of the best value things I own.

If a 20% deposit on a local home is £40,000 then spending £20 a month on a phone makes little difference does it? That type of money is simply out of reach for many young people no matter how frugal they are.

Fantastic post cleaver.

we live in 3bed newbuild what they describe as family home.
we rent
its 3rd bedrooms a box.

we have 3kids 2girls who share the master and baby boy in box us squeezed in middle.

I have 3.5years between the girls and 20months between younger 2.

Flashfoward say 18-20years please not hopefully not in this house then!
all 3living at home be very squashed! we only have tiny kitchen , bathroom and 1reception room.

but my house I guess is quite typical.
even victorian terraces offer more space.

the larger new builds round here are called executive homes at £300,000 plus.
The 1930s detached and demi detached priced at £200,00+

we would love to buy but 20%of 200 is £40,000
reckon would take us 5-8years to save that
im 31 now.

not even sure what ratio of lending would be as thats decreased too.
neither of us have pensions or life insurance.
hubby works fulltime as childcare soo pricey with 3 when growing up lots of grandparents and family so parents had free childcare.

I wouldent have stayed living with my mam as we lived in 2bed house and i slept on the sofa bed house was tiny new build and we dident get on.

was small rural town so no jobs so off to uni I went and never returned.

I wonder how feasable it it is most adults living at home as houses are much smaller and people end up with whatn older generation would call starter homes or downsizing with families.

Social housing hard to get
private rents high we pay about 35%of income on rent
people cant get mortgages.

hubby aged lived with his mum when I met him, aged 30 but his parents had large 3bed detached house with 3beds, 2receptions they paid 2grand for it worth £180,000.

stepsons 13 feel bad as think he will probably leave school at 16 and theres no jobs for him. as single male he would never get social housing so imagine he will live with his mam for very long time.

just hoping by time mine all grown financial outlook bit better for them.
Saying that hope its better for us but we will see.

by way

tv 3years old in lounge nothing flash
bedroom tv about 20years old and huge

basic sky package-my 1luxury
cheap contract phones cheaper than landline
switched everything we can
keep tight grocery budget
buy 2nd hand a lot
rarly go out or get takeaway.

so dont tarnish younger generation with same brush.

johnny_storm

House prices will do whatever they will do, and its not possible to control them. Wishing will not work. Neither will knowing you are right that they are overpriced. (As all the HPC losers have realised)

All that will work is getting yourself off your bums and improving yourself and your income.

homelessskilledworker

johnny_storm wrote: »

House prices will do whatever they will do, and its not possible to control them. Wishing will not work. Neither will knowing you are right that they are overpriced. (As all the HPC losers have realised)

All that will work is getting yourself off your bums and improving yourself and your income.

I have to agree with you there, there is not one person on this planet who knows for certain how this is going to pan out.
And these "HPC losers" that you rightly say are now realising that the property crash just might not happen(they are thinking it, not me) are no different than those on here who claiming that there is no chance of a property crash when they actually bricking it.

AdmiralX

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 do not know whether these young people used them for work to make a living and not for entertainment only. Much of of these items are used also for working at or from home, and many for distance education. Some of these item are indispensable for certain occupations and jobs like an iphone and a car.

molit

one of the things I find it often overlooked is poelpe talk about house prices in terms of single income muliples, rather than huosehold income multiples. If we compared a few years back e.g. 70s, and looked at the household income multiple when buying a house, I think you may find that it is much more comparable.