The Trouble With Gen Y

Generali

Is that they are constantly being compared with Baby Boomers who are 40 years older than them.

If they were compared with the answers to surveys Baby Boomers gave 40 years ago then they'd be seen to be no more or less vacuous IMHO. Wasn't the point of the explosion of popular culture in the 1960s and 70s that the vacuous and mundane became the culture? It was kicking over the statues of Mozart and High Art (quite proud of that last one actually).

As George W Bush said, "When I was young and irresponsible I was young and irresponsible". I expect no more and no less from the generation I am raising despite my best efforts.

moneyinmypocket

The young ones want to have it all now without working towards building a nest egg

Generali

moneyinmypocket wrote: »

The young ones want to have it all now without working towards building a nest egg

And I bet it was the same for those that turned 18 in 1970.

Turn on, tune in and drop out is hardly encouraging people to save for the future!

Carl31

As with anything economic, you cannot compare then, with now

too many variables have changed, the UK was different 40 years ago. Ok it was hard then as it is now, but hard for different reasons. My parents bought their first house in the 19th for 11k. They had to save, they both paid towards it, but their joint salaries were over 50% of the value of the house, and they were average earners

try doing that now

CLAPTON

Carl31 wrote: »

As with anything economic, you cannot compare then, with now

too many variables have changed, the UK was different 40 years ago. Ok it was hard then as it is now, but hard for different reasons. My parents bought their first house in the 19th for 11k. They had to save, they both paid towards it, but their joint salaries were over 50% of the value of the house, and they were average earners

try doing that now

why didn't 100% of people own houses then as they were so cheap?

thequant

clapton wrote: »

why didn't 100% of people own houses then as they were so cheap?

exactly!!!

marlot

I bought my first house in 1989. Things were really mad then, with mortgage interest rates peaking at 15%. To buy a terraced 2 bed I had to pay 5 times my salary (and I was pretty well paid, working in computing). We had a black and white TV, no meals out, a 10-year old car etc.

When house prices crashed shortly after, we lost a third of the value of our house - but still had the debt.

So things weren't always easier back in those days.

Many of the young people I meet, who complain about not being to get a deposit together, drink expensive coffees at work, eat in the staff restaurant, have expensive phone plans etc. I still take sandwiches and make my own coffee.

marlot

Just to add, my first house was 60k, and I was earning 12k.

Mortgage payments (25 year repayment at 15%) would have been around £768 a month.

That same £768 a month at today's 5% rates, would fund a 130k mortgage. But of course, salaries are now higher. Let's say that they've doubled. So the equivalent salary today would fund a 260k mortgage.

So, whilst I realise that house prices have soared, I'm not convinced that things are as black and white as people make out.

Edited to add a final point. I've just checked the area where I bought my first house (in Bedford). Prices for similar property seem to be around £160-180k. So I make houses much more affordable than they were back in 1989 when interest rates are taken into account.

ukcarper

Carl31 wrote: »

As with anything economic, you cannot compare then, with now

too many variables have changed, the UK was different 40 years ago. Ok it was hard then as it is now, but hard for different reasons. My parents bought their first house in the 19th for 11k. They had to save, they both paid towards it, but their joint salaries were over 50% of the value of the house, and they were average earners

try doing that now

I get really fed up with this clap trap. I bought my house in 72, I was earning more than average my wife was earning an average income our earnings were 20% of the value of our house and prices were increasing so fast that if I had not bought that one I would not have been able to buy.

ukcarper

marlot wrote: »

I bought my first house in 1989. Things were really mad then, with mortgage interest rates peaking at 15%. To buy a terraced 2 bed I had to pay 5 times my salary (and I was pretty well paid, working in computing). We had a black and white TV, no meals out, a 10-year old car etc.

When house prices crashed shortly after, we lost a third of the value of our house - but still had the debt.

So things weren't always easier back in those days.

Many of the young people I meet, who complain about not being to get a deposit together, drink expensive coffees at work, eat in the staff restaurant, have expensive phone plans etc. I still take sandwiches and make my own coffee.

This is the problem prices have gone up and down and prices have been pretty high in the past may be not as high now but then you can borrow more now and interest rates are lower.

ukcarper

Generali wrote: »

And I bet it was the same for those that turned 18 in 1970.

Turn on, tune in and drop out is hardly encouraging people to save for the future!

I'm not sure it was but that was because most boomers were use to going without and it was extremely difficult to borrow so you had to save. If we were born later we would probably behave just like Gen Y.