Homes for FTB's at most affordable in 10 years

Graham_Devon

ukcarper wrote: »

Apart for perhaps in the 90s that is what people have had to do perhaps not 5 years but I would say that is because people saved before they rented and had kids. A 10%deposit would be about £18k where I am if you save £1000 a month you could save that in less than 2 years. Very difficult I know if you are renting a 3 bed house and bringing up a couple of kids but if before you do that you rent a room if a shared house it is easily achievable.

Nonsense.

My dad didn't have to. He supported 2 kids, and my non working mother on a HGV driver wage AND bought a house.

He's all for HPI, but he states categorically they had an easier time of it. Sure, he states they were scraping the barrel, but then they WERE on one wage as apposed to 2.

IveSeenTheLight

Graham_Devon wrote: »

Nonsense.

My dad didn't have to. He supported 2 kids, and my non working mother on a HGV driver wage AND bought a house.

He's all for HPI, but he states categorically they had an easier time of it. Sure, he states they were scraping the barrel, but then they WERE on one wage as apposed to 2.

The last 40 years is the anomoly in terms of home ownership opportunities.
It's possible that the opportunity will return to being far harder to achieve.

People need to stop thinking about the past and consider what they need to do to achieve going forwards

ukcarper

Graham_Devon wrote: »

Nonsense.

My dad didn't have to. He supported 2 kids, and my non working mother on a HGV driver wage AND bought a house.

He's all for HPI, but he states categorically they had an easier time of it. Sure, he states they were scraping the barrel, but then they WERE on one wage as apposed to 2.

I don’t now when your dad bought or where but I first bought in the early 70s and my future wife and I stayed with our parents and save almost all the money we earned and then we had to move 20 miles from work to be able to buy. Almost all the people I know did the same.

wotsthat

Graham_Devon wrote: »

While I will commend anyone for knuckling down and doing what they have to do, trying to make out everyone should sacrific large chunks of their young adult life, and it being a good ting is a step too far in my book!

Not everyone has to do it and, in fact, nobody does. Life's about making choices and working out, for themselves, whether the effort/ reward ratio makes it worthwhile.

For some people they'll work it out and decide that they'll rent.

Our chap has decided the opposite despite the sacrifices that have been made.

The people I feel sorry for are those that don't take the time to work out what they want or how they're going to get it.

Graham_Devon

ukcarper wrote: »

I don’t now when your dad bought or where but I first bought in the early 70s and my future wife and I stayed with our parents and save almost all the money we earned and then we had to move 20 miles from work to be able to buy. Almost all the people I know did the same.

He bought in 1981. They had rented until that point.

ukcarper

Graham_Devon wrote: »

He bought in 1981. They had rented until that point.

One of the cheapest times between the early 70s and the 90s crash.

IveSeenTheLight

Has your friend sold her house?
Maybe she needs to drop it more
Maybe she needs to entice more viewers.

I was interested in a property, but they dropped £100k off the price and advertised it £120k below valuation.

http://www-k.aspc.co.uk/cgi-bin/public/LiveProperty/296804?ID=CJIALCAG#picture

In the end, the wife didn;t fancy the work that needed doing (the bathrooms were ok, but all four could have done with modernising)

DervProf

IveSeenTheLight wrote: »

Has your friend sold her house?
Maybe she needs to drop it more
Maybe she needs to entice more viewers.

Not yet sold, and still only one viewing (before the price was reduced).

I don't think she'll take any more off the price, as she isn't desperate to move. She did give the place a really good clean/tidy and some decorating has been done. It is a fair bit of property for the money, and the location is pretty good. I think (as I said to her) that the problem is the current economic climate, and there are a fair few properties for those with ~£450k to spend to choose from.

I'm simply posting this "news" as some anecdotal on the property market. Like I previously said, it isn't to prove a bearish point or anything (although I admit that it was used to counter a rather bullish post). Whatever happens (if anything) I'll post an update.

yertiz_2

IveSeenTheLight wrote: »

The market will always find it's level.

If there is reduced demand such as you predict above, properties will likely decrease as supply will have a lower limit it's unlikely to break through (as a result of death, diveroce etc).

Either that or there will be fewer property transactions and more people will share / live at home.

When I think about your proposed outcome, it make me think back to the Victorian era where property was held by the rich and passed down through the famalies.
Would you consider that this would be the outcome of your predicted future?

This would be a possibility, but maybe substitute 'rich' for 'middle class'. However young people may still have to live with their parents for some time, as many did in past times until they were eligible for a council home.
'Homes for FTB's at most affordable in 10 years?' My son has just got a job after finishing Uni this year. He will be earning c £18,000 pa. He has moved away from home to get a job. He is paying £450 pm rent in a house share. He needs a reliable car for his job so needs to tax and insure it which is very expensive for a 21 year old. He has student debt of £24,000. Whether or not pay rises will keep up wth inflation remains to be seen. What chance does he have of buying a house in the next 10 years? He may have to wait until we pop our clogs and share the proceeds with his siblings.

IveSeenTheLight

yertiz wrote: »

This would be a possibility, but maybe substitute 'rich' for 'middle class'. However young people may still have to live with their parents for some time, as many did in past times until they were eligible for a council home.

Council Homes are contracting.
There just simply is not the sufficient supply of council houses to supply the required demand.

yertiz wrote: »

'Homes for FTB's at most affordable in 10 years?'

Statistically it's true, largely due to lower mortgage rates.
However getting a deposit together would appear to be the main issue with getting the access to credit in order to afford the mortgage

yertiz wrote: »

My son has just got a job after finishing Uni this year. He will be earning c £18,000 pa. He has moved away from home to get a job. He is paying £450 pm rent in a house share. He needs a reliable car for his job so needs to tax and insure it which is very expensive for a 21 year old. He has student debt of £24,000. Whether or not pay rises will keep up wth inflation remains to be seen. What chance does he have of buying a house in the next 10 years? He may have to wait until we pop our clogs and share the proceeds with his siblings.

Let's first look at the student debt, for me that seems quite a high amount (possibly could have done something differently to reduce the debt in the first place), however to tackle it going forward, I believe the policy is that it doesn;t need to be repaid unless you are earning over £21,000, so you don't need to offset any earnings for that debt at the moment and it should be on a low rate (although I would always recommend to reduce your debt at the earliest opportunity

Next, he needs a car for his work. Can I ask why and if so are the company expensing the need?
If it is simple travelling to and from work, then potentially he doesn;t need a car and could use public transport like many others do. He moved away from home, so he could live quite near to the work if he wanted to.

What's his degree? Is he on a good salary progression path?
If he has moved away from home, possibly there is better options for employment and career.

We don't know the location, so it's hard to discuss without knowing the local variables.
Rent, could he rent a cheaper room? For £450 pcm I reckon you could get a single bed flat in many areas of the country.

On £18k, with £450pcm rent, it would still leave circa £550 per month.
Sure there's other bills to pay, but I'm sure there would be lots of opportunities to reduce that (check out all the MSE pages on this;))

yertiz wrote: »

Whether or not pay rises will keep up wth inflation remains to be seen. What chance does he have of buying a house in the next 10 years?

I'm sure you could see that there are many variables and it will depend on your son's focus, determination and will-power to succeed in his goal.
In the 10 years from when I was 18, my salary doubled.
Different times maybe, but there are still industries and opportunities out there for those with a desire to succeed.

Best of luck to your son and his other siblings.