MILLIONS of Young People WANT & NEED Higher House prices!!!

thequant

Millions of younger homeowners are stuck in their property with no hope of moving up the housing ladder unless their current home value increases, according to a poll.
Of homeowners aged 18 to 34 who would like to buy their next home within the next two years, 71 per cent say it is unrealistic they will be able to do so, research from Santander Mortgages found.
The main barrier is the need for their home value to increase, with 63 per cent saying this. Price rises raise the equity stake of owners and give them more money to plough into their next property. The bank has dubbed those stuck as 'frustrated middle movers.'


Read more: http://www.thisismoney.co.uk/money/mortgageshome/article-2865295/Millions-younger-homeowners-struggle-ladder-two-years.html#ixzz3LLG3yygH

thequant

thequant wrote: »

Millions of younger homeowners are stuck in their property with no hope of moving up the housing ladder unless their current home value increases, according to a poll.
Of homeowners aged 18 to 34 who would like to buy their next home within the next two years, 71 per cent say it is unrealistic they will be able to do so, research from Santander Mortgages found.
The main barrier is the need for their home value to increase, with 63 per cent saying this. Price rises raise the equity stake of owners and give them more money to plough into their next property. The bank has dubbed those stuck as 'frustrated middle movers.'


Read more: http://www.thisismoney.co.uk/money/mortgageshome/article-2865295/Millions-younger-homeowners-struggle-ladder-two-years.html#ixzz3LLG3yygH

Dispels the myth that increasing house prices are bad for our younger generation.

Thrugelmir

thequant wrote: »

Millions of younger homeowners are stuck in their property with no hope of moving up the housing ladder unless their current home value increases, according to a poll.
Of homeowners aged 18 to 34 who would like to buy their next home within the next two years, 71 per cent say it is unrealistic they will be able to do so, research from Santander Mortgages found.
The main barrier is the need for their home value to increase, with 63 per cent saying this. Price rises raise the equity stake of owners and give them more money to plough into their next property. The bank has dubbed those stuck as 'frustrated middle movers.'

Perhaps they should cut their spending and overpay their mortgages instead.

Nikkster

thequant wrote: »

Of homeowners aged 18 to 34 who would like to buy their next home within the next two years, 71 per cent say it is unrealistic they will be able to do so, research from Santander Mortgages found.
The main barrier is the need for their home value to increase, with 63 per cent saying this. Price rises raise the equity stake of owners and give them more money to plough into their next property. The bank has dubbed those stuck as 'frustrated middle movers.'

How about paying down the mortgage as a way to 'raise the equity stake of owners' or saving up to give themselves 'more money to plough into their next property'?

Edit: Cross posted with Thrugelmir

dawyldthing

I'm surprised how many get flats first as with all the selling costs involved it's crazy. I know one who was only there must have been 2 years before they bought a house

Aberdeenangarse

thequant wrote: »

Dispels the myth that increasing house prices are bad for our younger generation.

Have you been mixing alcohol with your medication again

stator

What a silly load of nonsense. This is clearly the result of house prices being too high. They struggle and claw their way onto the first 'rung' of a ladder that doesn't exist and then expect to be able to move 'up'? If you can only just afford a 30 year 95% mortgage you won't be going anywhere. The first step for many will be their only step. Increasing house prices will only make that first step harder to reach and transfer the problem to the next generation.

Chrisblue1962

Personally, I've always thought of rapidly increasing house prices as a bad thing, mainly due to house builders strangling the short-term supply to extort greater profit margins. Invariably, prices of all goods, commodities, etc rise over time but where there is a massive disconnect between earnings and housing costs , this is bad for the economy overall as levels of disposable income for other goods and services are then seriously compromised.

jamesd

dawyldthing wrote: »

I'm surprised how many get flats first as with all the selling costs involved it's crazy. I know one who was only there must have been 2 years before they bought a house

The difference between rent and interest only mortgage where I am is around £3,500 a year for a one bedroom flat. That sort of saving makes the cost of moving into a purchased flat look like a good deal over two years.

Spidernick

Madness! If house prices increase at a uniform rate then all it means is that it's a wider gap for that next rung up the ladder - simple maths really!

TickersPlaysPop

It's all been said on this thread.

As always ThisIsMoney is coming out with nonsense?!