The crushing housing burden on the young. Boomers, investors and landlords profit

ash28

Loughton_Monkey wrote: »

Well spotted. But you'll notice No 36 is 'vacant' and so capable of being rented out to a family of 6, on £500 pw housing benefit.

I guess by the time you've done the "cosmetic improvements", which I believe consist of magnolia walls and vase of twigs, it might well be worth £500 a week.

Is it gaffs in garages rather than beds in sheds now?

Cornucopia

I bought my first property in 1988. It was a studio flat in a nice part of SE London. My 100% mortgage was 4 times my salary.

I see that similar properties are now £125-150k, which places them only slightly above 4 times the salary of a junior IT person (say £30k), as I then was.

The difference, of course, is that back then, interest rates were 8-10%. Even for a 95% mortgage, you can get sub-5% now.

Graham_Devon

Cornucopia wrote: »

I bought my first property in 1988. It was a studio flat in a nice part of SE London. My 100% mortgage was 4 times my salary.

I see that similar properties are now £125-150k, which places them only slightly above 4 times the salary of a junior IT person (say £30k), as I then was.

The difference, of course, is that back then, interest rates were 8-10%. Even for a 95% mortgage, you can get sub-5% now.

Junior IT person? 30k? You must be kidding. More like 18-22k.

Cornucopia

Graham_Devon wrote: »

Junior IT person? 30k? You must be kidding. More like 18-22k.

In central London - graduate intake.

ruggedtoast

Graham_Devon wrote: »

Junior IT person? 30k? You must be kidding. More like 18-22k.

IT paid a lot more back then Graham, and houses were a lot cheaper.

Again this is something that the generational lotto winners don't seem to be able to understand.

When Cornucopia was snapping up London real estate with his wages from a growth industry that had yet to even hear the words "outsourced to India", we were in primary school.

A couple of decades of mass immigration, globalisations, privatisations, council house sell offs, buy to let parasitism, 125% mortgages, and new developments grinding to a halt put paid to the conditions he doubtless remembers so fondly, and assumes are still extant in 2013 - despite an avalanche of evidence to the contrary.

the_flying_pig

Cornucopia wrote: »

In central London - graduate intake.

the Accenture [i.e. v high proportion of Oxbridge & whatnot - an elite 'IT' employeer by any standard] graduate intake gets £31.5k

so blithely painting £30k as a norm that huge swathes of grads, enough to fill street after street of housing, would get is, well, I mean it's not right.

CLAPTON

ruggedtoast wrote: »

IT paid a lot more back then Graham, and houses were a lot cheaper.

Again this is something that the generational lotto winners don't seem to be able to understand.

When Cornucopia was snapping up London real estate with his wages from a growth industry that had yet to even hear the words "outsourced to India", we were in primary school.

A couple of decades of mass immigration, globalisations, privatisations, council house sell offs, buy to let parasitism, 125% mortgages, and new developments grinding to a halt put paid to the conditions he doubtless remembers so fondly, and assumes are still extant in 2013 - despite an avalanche of evidence to the contrary.

yes indeed

but you can rejoice that even the poorest in our society are better of that in 1988

ILW

the_flying_pig wrote: »

the Accenture [i.e. v high proportion of Oxbridge & whatnot - an elite 'IT' employeer by any standard] graduate intake gets £31.5k

so blithely painting £30k as a norm that huge swathes of grads, enough to fill street after street of housing, would get is, well, I mean it's not right.

Basically there is an oversupply of grads. A middling degree no longer carries any sort of employment premium. When only the elite were grads it was different.

ruggedtoast

The problem is, you get these people who are basically well off. Partly they are well off because they have worked hard and are clever, and partly they are well off because they have been lucky to have been born into the right circumstances.

There are some battlers who come from mendacious beginnings but the majority of well off people I know come from decent supportive families, went to good schools, good universities, and then into decent paying jobs where they were picked at the interview rather than the 50 other applicants they never got to see.

They then work and socialise and live, and holiday with people like them and through the magic of confirmation bias all the schools, universities and help from friends and family, and little things like wearing the right clothes and being seen to drive the right car when it mattered are air brushed from history and it all comes down to 'hard work'.

ILW

Guess I am older than you. (Left school late 70s). Nobody I knew went to uni at the time. The better off ones now are all self employed and some are doing very well for themselves.