The First Time Buyer - How do they have it really?

Prothet_of_Doom

From what I've seen of 'Young' people, is that they know how to spend.

An example of this : As a university student, I think that in 4 years I went out for meals maybe 10 times. in 4 years.
My informant suggests that this would be 15 times in 1 year.
When I moved into my first house, every single peice of furniture was lent, or given to me by relatives. When my nephew moved into his new house, I offered him some perfectly good furniture and cooking equipment, and was snubbed, as "not what we want"
When I got married, the total cost of the wedding and reception was a 10th of our salaries.
When the woman I sit next to gets married she will spend 100% of thier joint income.
When I buy a car, I buy something I can afford, and afford to fix, ie something old, but well looked after. but they buy a new car on easy credit...

and then these 'young people' turn around and say they struggle to raise a deposit.

That said I work with a 30 year old single guy who is mortgage free, all off his own back, starting from scratch with no deposit 8 years ago. I only found this out because I asked how he affords to run an M3....

[Deleted User]

Jack_Johnson_the_acorn wrote: »

It's hardly a difficult bit of logic.... kids are expensive, houses are expensive....... plan ahead

And if someone can't afford to buy a home they should delay starting a family? Oh dear, and what if there is a mistake, should they get an abortion because they haven't got a mortgage yet?

chewmylegoff

thedalmeny wrote: »

I think you've have to be pretty dense to think i'm suggesting the average first time buyer takes 16 years to save for deposit in London, what it does illustrate is that somebody on an average salary in London cannot reasonable afford to purchase a flat in London at the average value.

Furthermore, what you say is pure conjecture. You have yet to state a reputable source for your information or even prove how the source data used in this analysis is not suitable.

Well, your conclusion from the data was that it is a myth that there is any economic benefit to working in London which is a pretty dense conclusion if you ask me. I have explained why I think that the data doesn't show that and why it is skewed compared to other areas. If you really care about sources for the numbers (e.g. Owner occupier % or housing benefit claimants) then google is your friend but I expect that you aren't bothered since you seem determined to conclude that some high level averaged data which is clearly not actually relevant to the question of affordability proves your simplistic conclusion.

Graham_Devon

The problem here, as I see it is the amount of income left over after the cost of living and rent is taken into account.

In the South West, for example, you are left with just over £100 per month. It therefore suggests it will take over 10 years to save for a deposit.

Without interest, saving ALL of that £100 each month would give you a deposit of £12,000 after 10 years, which still isn't a 10% deposit.

That doesn't allow for any discretionary spending outside of the costs included in the JRF living costs index. So how have they come to the conclusions they have on how long it would take to save for a deposit?

Surely no one can think that only having £100 a month left after rent and cost of living makes things "easy"?

[Deleted User]

You may also be a tad moody after 12 years without holiday or a day out

Graham_Devon

lazer wrote: »

I will give you my experience on buying a house

Left University in 2004 (Aged 21)
Completed post Graduate training 2008 (Aged 25) (This was paid but relatively low pay in comparison to normal graduate wages - started on £10k a year)

So no debt to speak of after 5 years at uni and 4 years in a very low paid trainee course? Also free board and rent at home enabling you to save your entire income?

I'd suggest your example isn't the norm, rather an extreme.

Jack_Johnson_the_acorn

ringo_24601 wrote: »

And if someone can't afford to buy a home they should delay starting a family? Oh dear, and what if there is a mistake, should they get an abortion because they haven't got a mortgage yet?

not at all... if a family is what they're desperate for but they can't afford to buy as well then they should rent, How are you puzzled by this???

Graham_Devon

ringo_24601 wrote: »

You may also be a tad moody after 12 years without holiday or a day out

Well I genuinely wouldn't give 10 years of my life away to enable me to afford a deposit on a starter home.

Sorry, we live once, and 10 years of living like a hermit, having no life experiences, trying nothing new and living hand to mouth for 120 months is asking too much IMO.

Secondly at the end of that 10 years, you are likely to find that the deposit means nothing anyway, due to HPI.

In this case I'd rather have a life, than a small, but owned, roof. More than happy to make sacrificies....but that level of sacrifice for that long? Sod that. By the time you actually have your deposit you may well find it's too late to enjoy other stuff such as children and family living.

OffGridLiving

ringo_24601 wrote: »

And if someone can't afford to buy a home they should delay starting a family? Oh dear, and what if there is a mistake, should they get an abortion because they haven't got a mortgage yet?

Well if they can't afford a home when they have 2 incomes and no kids, then it's highly unlikely that they will once they do have kids. They will then need to make some hard choices, where they either defer starting a family, lower their property expectations, invest in education/training to get a better income, or give up the idea of home ownership.

If there is a mistake then they have to re-plan and make the same hard choices, though with more limited options.

It's not rocket science.

OffGridLiving

Graham_Devon wrote: »

The problem here, as I see it is the amount of income left over after the cost of living and rent is taken into account.

In the South West, for example, you are left with just over £100 per month. It therefore suggests it will take over 10 years to save for a deposit.

Without interest, saving ALL of that £100 each month would give you a deposit of £12,000 after 10 years, which still isn't a 10% deposit.

That doesn't allow for any discretionary spending outside of the costs included in the JRF living costs index. So how have they come to the conclusions they have on how long it would take to save for a deposit?

Surely no one can think that only having £100 a month left after rent and cost of living makes things "easy"?

Bit of a strawman argument seeing as buying a house would be the least of their worries for someone who had just £100pm disposable income.

To be honest, why settle with £100pm disposable income, why not go with 5p and we can all wring our hands for the poor blighter, until we remember that it's all a fantasy and the poor blighter has been invented for forum discussion purposes.