FTB's need to save for up to 30 years in order to buy a house

GhIFA

Graham_Devon wrote: »

Very basic tool. But at least shows the problem.

Basic to the point of being worthless - would be good to see some of the assumptions that are used underneath the calculator, to understand the output a bit more, because at the moment it appears to be a totally arbitary figure.

GhIFA

Graham_Devon wrote: »

But from the start, anyone going on to try and progress their career through training will be saddled with debts.

That's a bit of a generalisation - some, yes, "anyone"? no.

Graham_Devon

GhIFA wrote: »

That's a bit of a generalisation - some, yes, "anyone"? no.

You actually got anything to say on the point of the thread rather than picking me up on the most trivial of things?

Mr._Pricklepants

GhIFA wrote: »

Basic to the point of being worthless - would be good to see some of the assumptions that are used underneath the calculator, to understand the output a bit more, because at the moment it appears to be a totally arbitary figure.

I assume it's just based on average incomes and average house prices for the area. Probably some arbitrary percentage thrown in to account for living costs.

A random number generator would be equally useful.

StevieJ

HAMISH_MCTAVISH wrote: »

The data in that table shows an average FTB advance of 82% in 2007, and 81% in 1971.

In other words, it thinks average FTB deposit percentages only changed by 1% in 35 years.

So if anything, that data completely contradicts the bears assertions that only loose lending caused prices to increase.:)

Seriously though, I have no idea what that data is, but it's not what you think.

Average FTB deposit size in 2007 was 11%, not 18%.

Maybe it is showing the primary loan, any loans above 80% were covered by MIG insurance that was paid by the borrower (normally added to loan) but compensated the lender on default.
http://en.wikipedia.org/wiki/Mortgage_insurance

wotsthat

Graham_Devon wrote: »

It's important to note that this article and study does not suggest mortgages are the problem, rather that, as stated in the third paragraph, high house prices, high outgoings combined with lower incomes is the issue here.

You forgot to mention higher mortgage deposits as a factor - easy to miss I suppose in that Mirror article - deposits were only mentioned 51 times.

HAMISH_MCTAVISH

Even Shelter understand the cause of all this.

From their website....

Too many people chasing too few homes has caused house prices and deposits to spiral out of control. We have to tackle the root cause of the housing crisis – and build more good quality, affordable homes.

Not a mention of "lax lending" in there anywhere.

GhIFA

Graham_Devon wrote: »

You actually got anything to say on the point of the thread rather than picking me up on the most trivial of things?

That is saying something on the point of the thread. You've discounted anyone from furthering their career without getting into debt, that's not the case. For some it will happen that way, but for others it won't.

If it's that trivial why bring it into the discussion in the first place?

olly300

GhIFA wrote: »

That is saying something on the point of the thread. You've discounted anyone from furthering their career without getting into debt, that's not the case. For some it will happen that way, but for others it won't.

If it's that trivial why bring it into the discussion in the first place?

You are having a go at Graham when WestonDave made the biggest generalisation of all.

Conrad

"“Despite working hard and saving what they can each month, today’s young people face life-changing choices between starting a family or buying a home of their own".


And????

Plenty of people I know put children off until their mid 30's - mid 40's. It's just what we do isn't it?

Again this sense from Devon that tough choices ought to be eradicated by some outside agency.


Thinking back even some couples from previous generations made similar and indeed even tougher sacrifices in order to buy a home. My first GF's parents waited until their mid 40's as the house was priority one to be sorted.