Youngsters cannot afford to buy a home?

Newlyboughthouse

Callie22 wrote: »

I think it's easy to forget how expensive renting is. One thing you need to factor in is the cost of moving. My OH and I moved practically every year for ten years - sometimes through choice but more often not. I'd conservatively estimate that each move cost us in the region of £2k, when you take into account fees, deposits, moving costs, time off work etc etc. So that's nigh on £20k (a good deposit!) we've spent just on moving, and it's incredibly disheartening when you're trying to save for a deposit and every time you save a few grand it disappears because you have to move. That makes saving for a deposit very, very hard. You're also working on the assumption that people will have a fixed amount coming in over a few years - realistically most people won't. Partnerships change, as do circumstances - people take time off work, change jobs, get made redundant, go self employed, have kids. All of these things make saving hard and sometimes impossible.

We bought a house about six months ago and even with moving costs and the few renovations that we've done, I'm a bit blown away by how much easier I'm finding it to save. Our 'housing' cost is fixed for a few years and I know that (all being well) we won't have to move for the forseeable future. I've managed to save a heck of a lot on utilities as I've been able to shop around and I'm not being forced to use key cards. Even stuff like our car insurance has reduced. More generally, I'm in a place that is mine and where I feel comfortable to relax, so we rarely go out anymore because we don't feel the same need to 'get away' from LLs and LAs. WE have got renovation costs which we are having to budget for, but even with that we are 'better off' each month than we were when we were renting.

Jesus 2k to move?? I've moved about 10 times and it was always pretty much free? Probably because I moved myself without a removal firm and never used letting agents (thieving toerags).

Bossypants

Nada666 wrote: »

Eh? Where are you getting £75 from?

£325 for rent, (that is a high rent, not low) and £400 for other bills. (£100 household bills, £200 for food, £100 allowance for sundries.)

And, yes, I'm talking about a shared house. How terrible.

Apologies, I read the post as living well on a £400 spend per month, out of which £325 would be on rent. £400 per month on the everything else part is much more reasonable, and I totally agree, can be done fairly comfortably (I do it myself as a 'young person', although a home owning one).

Bossypants

I would say that £325 is definitely not high, though. I'm currently renting out the rooms in my two bed place in Bournemouth while I live in the lounge. There's a tiny kitchen and bathroom shared between the three of us, and the house is in what is widely considered the worst part of town (though I like it and voluntarily live here, so it's not that bad), and at £450 I have never had a shortage of applicants.

System

I was a FTB under 4 years ago and I saw what OP said a lot among my peers. While some did really well to get on the ladder, a fair few did suffer from lifestyle choices.

Callie22

Newlyboughthouse wrote: »

Jesus 2k to move?? I've moved about 10 times and it was always pretty much free? Probably because I moved myself without a removal firm and never used letting agents (thieving toerags).

We've always used letting agents - we've tried to find landlords to rent from directly but it's not easy, especially if you're moving to a completely new area. Deposits are getting larger (6-8 weeks is the norm now) and last time we paid over £500 just in non-returnable fees for references, contracts etc etc. We also have our own furniture so have had to hire at least a man and a van - we're not youngers with no possessions and you can't get a sofa, washing machine, fridge and a bed in a car. Then you have to take into account time off work - my OH is self employed so any time he's not working, he's not earning. There are other costs too - having to pay utility bills at odd times as you're closing accounts and opening others, parking permits if you move to an area that has them, replacing stuff that gets broken etc etc. Like I said it's an estimate but I don't think I'm far off.

ViolaLass

Deposits aren't really a cost though - you can get them back.

katejo

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

You are being somewhat unfair to them. I bought my first flat in a cheaper area of London for £41 K. I was then earning £14 K and could get a £42K mortgage. It was a 1 bedroom leasehold. Today the flat just under my old one is on the market. The price is around £265-£270K. The 2 bedroom flats are all over £300K. I am earning around £30K so about 10 x my income. I could never buy as a first timer now.
My current house has increased in market value from around £250 K to £400 K in about 15 months! I am still living in the same area.

Sparx8

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

Disagree !!
My dad brought his house for £35,000 earning £12,000 a year ( not sure if that was with overtime or what) it's now valued at £190,000 .
I'm an electrician but in my 20s , my boss was saying when he was in his teens , sparkys were getting paid more then , then we are now . Assuming house prices were a lot cheaper back then also .

jaylee3

Nada666 wrote: »

But most don't. £325 rent, £100 bills, £200 food, £100 leisure. That's £725 from a £1200 net salary.

Large numbers of people live in towns and cities where they do not need cars or need to commute to work. They can easily have £5,700 left over every year after a generous monthly living allowance.

Washing machines are the responsibility of the landlord.

:rotfl::rotfl::rotfl:

Oh stop PLEASE!!!!! You're cracking me up.

Your posts are getting funnier and more absurd by the minute!

Newlyboughthouse

jaylee3 wrote: »

:rotfl::rotfl::rotfl:

Oh stop PLEASE!!!!! You're cracking me up.

Your posts are getting funnier and more absurd by the minute!

What exactly is funny? What is not true about this? Are you just really easily amused?