We'll never be able to buy a house!

Orion_3

Dead_Eye_Jones wrote: »

I bought a lovely house in London recently, I did this not by overstretching or earning a massive amount of cash. I simply saved as much money as I could from the time I started work until now (almost 30).

That's all very well for you now, having saved for 10-odd years. But If house prices keep rising at the present rate then your path will not be an option for someone, say, two years younger than you who started saving at the same age.

For a lot of people even now, its not about throwing a pique cos they can't afford a 'dream house'. They can't afford full stop. And it's pointless comparing this situation to your parents 30 years ago, when one could buy a decent house for the equivalent of 3 times your salary, then upgrade every few years for an affordable amount. Nowadays, for many people upgrading is impossible too, as the gap between their house and the next one up is growing at a faster rate than their salary.

Orion_3

Running_Horse wrote: »

My first house was in a run down area and miles from my job. That was the decision I made to get on the property ladder. Years later that enabled us to buy a village house 10 minutes down the road from work. I respect your decision not to do the same; that is your choice.

Would this work NOW though? You're still applying the situation of 10 years ago to today. One could now buy in a run-down area (though even THOSE are expensive nowadays) and a few years later the houses closer to work have increased in value far more than yours. It may still be far beyond your reach, if not even further than it was originally!

Running_Horse

PasturesNew wrote: »

Not quite true

A lemming believes he is off to a better place.

Sometimes you get hemmed in by the decisions you made, which were made based on the choices you could see at the time.

Everybody has different information available to them. And are in different locations.

So life is what you end up with when you make decisions based on the information you had at the time and your judgement over what would be best to do - based on the timescale you believed you had.

Everyone has it in their power to improve their lot. To suggest otherwise is absurdly limiting people's aspirations. Not everyone can be a brain surgeon or nuclear physicist, but anyone can sign up for a adult education course, or switch off Big Brother and read a book.

My uni group included a woman in her 80s, people who were lazy at school, a single mum on a rough estate, and several who also worked full time. The one thing we all shared was motivation to improve ourselves. It didn't get me a cushy well paid office job (do such things exist?), but when redundancy came it showed employers I was a hard worker and keen learner.

Running_Horse

Orion wrote: »

Would this work NOW though? You're still applying the situation of 10 years ago to today. One could now buy in a run-down area (though even THOSE are expensive nowadays) and a few years later the houses closer to work have increased in value far more than yours. It may still be far beyond your reach, if not even further than it was originally!

With that attitude you might as well give up and not bother. Whoever told you life was going to be easy was lying. It is a struggle sometimes, but that is what makes it so satisfying when you achieve things.

Orion_3

Running_Horse wrote: »

It didn't get me a cushy well paid office job (do such things exist?), but when redundancy came it showed employers I was a hard worker and keen learner...

Can you tell us in what year you joined the housing market?

Running_Horse wrote: »

With that attitude you might as well give up and not bother.

Sorry, but what attitude? I stated facts about the housing market and how it's changed from a few years ago. Attitude is irrelevant to that. No-one told me life was going to be easy, and I didn't say it was or should be. I'm just saying your views seem to be based on the housing market being the same as when you joined it, when it clearly isn't.

wolvoman

The average age of FTBs now is said to be 34. I wonder how many of the folks here whinging about the cost of houses is anywhere near 34 - indeed it sounds like some aren't even 24.

Rent like most people do in their early thirties, be frugal, save every penny you can and invest it weisely. Then buy in your mid to late twenties, or even past your 30th birthday and you'll be surprised just how good a house you can buy.

And those outside London count yourselves lucky that FTBs can still afford 2 bed terraced homes - in London these are at least 15 times average earnings. In fact you regularly see £400K flats being advertised as ideal first time purchases in London.

Orion_3

No-one has yet explained how you can save up for something that is increasing in value at a greater rate each year than you earn in that year. It doesn't matter how much you save up - it'll get further and further out of your reach.

The rising age of FTB is not something to celebrate either. That just proves it's as hard for the general public to join the housing ladder as it is for posters on this board. I'll take a guess that the average age of FTBs 20 years ago was quite a bit lower than 34.

izzybusy23

Melissa177 wrote: »

But that is your choice. You could choose to work somewhere else, and have a house that you can afford near your work. You might not be happy as you might not be near friends, but that's the choice you make.

Do people want houses near their work, or to work near their houses?

You might decide to move to another country where the wages are higher and the homes are more affordable - one of the reasons by parents moved to America, as an example.

Life is all about decisions, no one is tied into working or living in one particular area.

I was simply stating what seems to be the attitude of 'well if you can't buy near to where you currently live/work then move areas'. In this day and age people should not be forced to have to move with a big commute to work each day just to be able to afford a house. This whole situation has gone beyond ridiculous.

I have lived in portsmouth when prices were low, then moved to cheshire when prices started to rise, had a very messy divorce, ex got out of paying me hardly anything so thanks to him I ended up in rented accomodation because prices had risen to the point I couldn't afford a motgage on my own. I am now in gloucester where house prices are higher than cheshire and although now in a relationship, we could push ourselves to buy a 2 bed 'starter home' at ages 35 but I simply refuse to pay so much of my wages for a tiny weeny place. Thats not living, simply exisiting and falling into the sheeple mode. And I simply refuse to move again. I have just settled in Gloucester and got a job I wanted and I refuse to move again simply to get on the property ladder.. to me that really is desperation. I'd rather rent and have somebody else pay for the repairs for me whilst I save up the money I would had paid in mortgage payments.

Some people who are in this situation are not in it through laziness or being too young... there are people like me who were forced into rented by divorce. I was a single woman with a baby on the way and I wasn't entitled to any help from the council.

What a wonderful place britain has become... :mad:

izzybusy23

wolvoman wrote: »

The average age of FTBs now is said to be 34. I wonder how many of the folks here whinging about the cost of houses is anywhere near 34 - indeed it sounds like some aren't even 24.quote]

Me. I am 35 and simply in this situation because of a messy divorce, ex-husband paid me £5k out of £60k equity and because house prices had risen so far I had no choice but to rent. Also I was pregnant and still had to find a private rental as the council refused to help me.

So yes, I am one of those 'FTB' over the now average age. I am very annoyed to be in this situation BUT I refuse to join the bandwagon. House prices are ridiculously overpriced and I simply cannot understand why people want to borrow any more the X4 of their salary just to get on the property ladder. Its financial suicide. I am quite happy to rent now until this madness comes to a much needed end.

If I end up buying into my 40's then so be it. I will be older and wiser for visiting these forums and hopefully have enough saved up to have a shorter than average mortgage than if I bought in this present climate.

Melissa177

izzybusy23 wrote: »

I was simply stating what seems to be the attitude of 'well if you can't buy near to where you currently live/work then move areas'.

Well, we are living in an era of globalisation, people regularly move to different continents and countries for their education, never mind their jobs.

In this day and age people should not be forced to have to move with a big commute to work each day just to be able to afford a house. This whole situation has gone beyond ridiculous.

But you're not forced to - there are lots of options out there. It all depends on whether you value your career, the cash, or your quality of life more - most people have to compromise between the three.

Many years ago, people didn't get any choice - they had to work in the mills, or down the coal pit. We're all so lucky we have choices.