We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Debate House Prices
In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Locked out of the property market. Generation X and Y's Dreams stymied.
Comments
-
ruggedtoast wrote: »As has been pointed out, you are well into your 40s and are therefore one of the oldest Generation Xers, you are nearly a boomer.
Ummm, unless you've altered my birth certificate while I wasn't looking, that's not the case.
I'm barely into my 40's, not well into them.
And I'm around a third of the way through Gen X.
If you want to argue that the very tail end of the generation had fewer opportunities, then fair enough I'll agree with you.
But the vast majority of the generation had one or more of the opportunities I outlined.Otherwise, anyone from Generation X who failed to buy [STRIKE]the single most expensive item that most people ever purchase, just before a massive and unforeseen house price bubble predicated on reckless sustained lending and corrosive housing policies put it far out their reach, regardless of what their personal circumstances were[/STRIKE] a house, when either houses or mortgages were cheap; has only themselves to blame?
Do you actually, believe that?
Fixed that for you, so yes.
Virtually everyone I know bought a house as young as they could.
It was their top priority when leaving education.
A 38 year old of today (average FTB age according to some) is only 3 years younger than me, and I really do have to ask !!!!!! they were thinking failing to buy a house through the decade and a half of opportunities to do so outlined in my earlier post.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Well we only have to get that far to know that the writer hasn't got a clue.ruggedtoast wrote: »In my borough, Tower Hamlets (one of the poorest areas in the UK)"It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis0 -
Since you followed the thread you will be aware that house prices are tanking at auction. Auctions can be a good lead indicator.
Something else I noticed whilst browsing rightmove this morning was that not only a local new builds from independent builders remaining unsold - but also plots of land are remaining on the EA's books. One such plot was up for 75k. It has full planning for a bungalow, the garage is already built, and all the services are in place. It's now been listed for aution at a guide price of 40k.
Nobody is too keen to build....I wonder why.
I really don't get the disagreement on this board between the bulls and the bears, I really don't. House prices shot up far more than peoples incomes, the beards who forecasted the crash in 2008 were of course all wrong because nobody could have forseen the goverment doing everything to prop up the (false) bubble.
Do I know which way house prices will go? Nope - no idea. The last few years has made me stand back in amazement. But to not even acknowledge that House Prices are in a very precarious position is pretty optimistic in my view.
The builders I mentioned above must be willing to leave the unsold houses on the market and not drop ther price until things pick up because the properties probably stand them for a LOT of money, land costs were exorbitant at boom time. Having all that money tied up must hurt - I would want to be turning it over.0 -
Do I know which way house prices will go? Nope - no idea.
"An Englishman's home is no longer his castle: it's a bedsit on a six-month lease that he's not allowed to redecorate."
It may take some time, but that quote says a lot. If Gen Y is trapped in these situations, and they are the ones expected to buy the houses of Gen X and the BabyBoomers, then prices only have one way to go.
Theres also other problems. Two thirds of the 900,000 properties in the UK today in negative equity, are owned by those under 35. The people who the older generations need to move, are strangled either by negative equity, rents, or out of reach house prices.
If thats not bad enough, the new government scheme takes prospective buyers of this age, and directs them to new builds instead of existing stock, instantaneously throwing them into negative equity, and strangling another family from buying for a good few years.
The one thing that's problematic is the time frames. Prices HAVE to fall. It's just a case of when...everyone seemingly appears to be simply hanging on for now.
And another little factoid, Gen Y are the biggest savers when it comes to proportion of income. Yet they see the rewards for saving stripped to bare minimums...probably the worst savings rates known in living memory....so they can't even get a head start there.0 -
Graham_Devon wrote: »Apparently generation X reached the height of their earning power during the great recession.
.
Eh?
Gen X won't reach the height of their earning power for another few years as they replace the boomers in the senior positions.
I'm Gen X and my earning power won't peak for another decade or more.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »Eh?
Gen X won't reach the height of their earning power for another few years as they replace the boomers in the senior positions.
I'm Gen X and my earning power won't peak for another decade or more.
It's from Forbes.
http://www.forbes.com/sites/kenrapoza/2012/02/28/approaching-mid-life-are-gen-xers-doomed/
It is America based, but you are always outside of the mould Hamish, on everything.Gen X reached the height of the earnings power during the Great Recession. If the Baby Boom generation was an overall positive for the market, spending money with reckless abandon and earning more year over year to encourage it; Generation X exists in a nickled and dimed America with stagnant incomes.0 -
ruggedtoast wrote: »http://www.guardian.co.uk/lifeandstyle/2012/may/06/renting-property-eva-wiseman
A beautifully written piece that sums up the bleak hopelessness of younger people in modern Britain, crushed between the twin pillars of job insecurity and a rocketing cost of living.
A society that treats its' young this way should hang it's head in shame.
A nice piece of writing - emotive, expressionate and imaginative.
I particularly like the "soupy, rust-coloured water" and the "smell from the downstairs chicken shop", both of which are of course highly representative of rented accommodation.
I also like the Thatcherite notion of aspiration to ownership for those "flitting from call centre to job centre and back again", which surely underpins the excesses of credit over the past decade.
The final paragraph takes the reader into an imagined fantasy land that even includes "fried toast" - whatever that may be. A dystopian anti-blyton world of gloom.
Shouldn't it be in the "Fiction" section though. it's more creative writing than journalism. :cool:0 -
The natural level of the housing market is already well below the actual level, so the main issue is if and when the artificial props will fall out. That's mostly down to the banks, though the government may feel moved to intervene.Graham_Devon wrote: »The one thing that's problematic is the time frames. Prices HAVE to fall. It's just a case of when...everyone seemingly appears to be simply hanging on for now.
Even then, the most immediate effect will tend to be a decline in new building, which will have to grind to a halt before prices start to fall."It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis0 -
As the average house price to earnings ratio goes through the long term average in the early 2000s about 2002 I would say that anyone over 30 (born 1982) was not that badly effected. By 2005 prices were higher than they had been before so people born after 1985 were badly effected unless they were able to buy in their mid 20s.0
-
As the average house price to earnings ratio goes through the long term average in the early 2000s about 2002 I would say that anyone over 30 (born 1982) was not that badly effected.
How do you work this out?
When prices went through the long term average, the people you say should have been not all that effected were 18.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.1K Banking & Borrowing
- 253.5K Reduce Debt & Boost Income
- 454.2K Spending & Discounts
- 245.1K Work, Benefits & Business
- 600.7K Mortgages, Homes & Bills
- 177.4K Life & Family
- 258.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards