Youngsters cannot afford to buy a home?

jules888

As a soon to be 48 year old when i was in my early 20s there wasnt the internet,sky tv or mobiles.Now they"re seen as the norm .
Growing up ,no video games.We did"nt even have a landline phone.
There is more now to spend your money on.

missprice

I only bought my house 10 years and 8 months ago. If I was to do that now, I could not afford it. House prices have shot up but my wages haven't.

And I don't have a wow factor, I live in a carp area, its only a tiny house with an oversized garden, its got the original bathroom circa 1980. I am waiting for the (only downstairs radiators)original boiler to quit stalling and actually die.
OK I am lucky that I have a home but I really feel for the next generation that will not be able to buy unless they live at home til they are around 45 ( joke but not by much)
The young have it bad from all sides, there are few jobs, a lot of jobs are ZHC so no way to get a mortgage anyways, then house prices shoot up way faster than wages, there aren't enough houses being built, etc etc.

agrinnall

Any reason why you wouldn't have posted this on the correct board: Debate House Prices and the Economy?

barbie_babe

Bought my first house nearlly 20 years ago but had to start over again three years ago after a marraige split up . I was able to start over as still living in house and bought ex out. I have a good job and would never have been able to afford to save the depoist otherwise. I think this is a big problem these days with young people trying to buy a house. Its not that they waste money its there wages are too low to find at least 20,000 deposit in some areas.

Talc1234

bigfreddiel wrote: »

I don't believe this is true!

When I was a youngster just starting out it was just as hard and here's what it was like.

Pay £120/month
Interest rate 10% and more peaked at 15+%

Bought a terraced house 2up 1down, no ch, no garden, miles from work.

Al my pay went on mortgage, rates water electricity and food, not much left over for entertainment, meals out and so om

Fast forward to now, kids want it all, new house, new furniture, near to work and so on. Must have an iPhone, Netflix, sky TV, new car, house with wow factor.

We'll you need to prioritise, is keeping your FB status up to date, your opinion via twitter more important than buying your own home more important? Is driving a new car and having Netflix so important?

We'll if yes don't moan you can't afford a house.

Right now you have it so easy, lowest interest rates ever, help to buy schemes, 20% discount all paid for you by the taxpayer - basically youngsters have never had it so good

My advice, dump the gadgets, dump the new car, dump the wow factor house, get what you can afford in an affordable area, make some sacrifices, buy second hand stuff, save

Cheers fj

Wow Mr Troll, what a truly enlightening post

fairy_lights

You're making some pretty big (and inaccurate) assumptions about why people can't afford to get on the property ladder there. And I say "people" rather than "young people" because its not just us frivolous youngsters who cant afford to buy, many older people are facing the same problems.

And netflix is only £5.99 a month by the way, so hardly breaking the bank...

Newlyboughthouse

Talc1234 wrote: »

Wow Mr Troll, what a truly enlightening post

Why is everyone giving OP such a hard time? I'm a 'youngster' and had no trouble buying my first home. I worked hard, had an average wage. Parents haven't helped me out and moved out of the family home at 16 to rent. Other people my age don't bother to save and that's the truth (possibly generalising but just my experience). I live comfortably and don't have to make too many sacrifices. I don't know what this 'the young of today have no chance' is all about.

Maybe you have to be a millionnaire to buy in London but I'm referring to the rest of the country.

princeofpounds

Move this to the other board.

The OP is somewhat ignorant.

Low interest rates make a mortgage cheaper, yes. But they also make houses (and indeed financial assets in general) more expensive. This is not a coincidence.

Interest rates are generally high when inflation is high. When inflation is high, the principal value of the mortgage is quickly devalued.

Buying houses at 10pc interest rates is a pain, but make three years of repayments and (crudely) your mortgage burden shrinks by a third.

Try doing the same at 3pc interest rates and you'll be waiting ten years.

Moving from low to high interest rates can hurt you a lot.

But those who had high interest rates and saw them drop over their lives had the biggest possible tailwind ever.

There are more angles to talk about, but that's enough for now.

penguingirl

I am a 20-something who doesn't have sky, Netflix or an iPhone, and my car is 11-years old (and only small/underpowered). I currently commute for 2.5hrs each day. My house is nice, but only because we have slowly done it up ourselves over the last 5 years. Our furniture is mainly hand-me-downs or cheap ikea. We're about to move and won't be able to do much to our new house (which really needs it) for a while. We've had one 'big' holiday (ie one that cost more than £500 all in) in the last 7 years. I currently save about a third of my salary each month and my partner saves more than half. We shop at lidl (but get nice food there and a £4 bottle of wine on a Saturday) and don't go out much.

All of this and we have huge student loans and won't retire until at least 68. I consider my pension to be better than most (public sector), but it has just been changed to career average instead of final salary, and I pay nearly 10% of my salary into that. There are baby boomers in my industry retiring at 55 (and that's not early retirement packages, it's what they were offered from the beginning) on a final salary pension that they've been paying into at about 5%. Oh and they get a lump sum which I don't.

Yep poor baby boomers...

ViolaLass

princeofpounds wrote: »

Buying houses at 10pc interest rates is a pain, but make three years of repayments and (crudely) your mortgage burden shrinks by a third.

Try doing the same at 3pc interest rates and you'll be waiting ten years.

Could you explain this please? I can't understand what you're saying.