We'll never be able to buy a house!

Melissa177

izzybusy23 wrote: »

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.

Incidentally, if that is your situation, I do feel for you.

I wasn't trying to be flippant with my comments, I figured you were another 20 year old whining that they couldn't afford anywhere nice yet!

Lavendyr

Orion wrote: »

I'll take a guess that the average age of FTBs 20 years ago was quite a bit lower than 34.

Quick Google turns up the following:

http://money.guardian.co.uk/news_/story/0,1456,1521865,00.html

"Just over one in five people bought their first home by the time they were 25 in 2003, compared with more than a third in 1985."

http://www.hotproperty.co.uk/property_news/2002/03/08.html

"With property prices rising at a rate not seen since the late-1980s boom, the average age of first-time buyers is now 34, compared with 29 in 1974."

(and those last figures were from 2002)

Lavendyr

Melissa177 wrote: »

Incidentally, if that is your situation, I do feel for you.

I wasn't trying to be flippant with my comments, I figured you were another 20 year old whining that they couldn't afford anywhere nice yet!

I don't think there are very many 20 year olds on here complaining that they can't find anywhere else nice *yet* - the concern is rather that at the rate house prices have been increasing relative to salaries, they fear they will *never* be able to buy, nice or not.

ixwood

Orion wrote: »

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.

I sympathise with your current situation, but do you really think prices are going to go up for ever?

*Sigh*

It's a cycle. Prices get bid up out of control, then sprial back down when the money runs out. No doubt people were whinging contiously before the last crash too.

ixwood

Seems like a lot of people crying that they'll never be able to afford a house. It's madness IMO. There's no shortage of them, just that in this money cycle, they're all been bidded up by mugs who think prices will go up forever and they better not miss out.

They'll come down at some point, as sure as Gordon likes taxes IMO.

Lavendyr

Oh, I agree ixwood. But it doesn't stop people feeling nervous about the whole situation. No one can predict the future, after all.

ixwood

Apart from If you're talking about a cycle!!

ixwood

I'm no expert, but it seems like since money stopped being tied to anything of value (i.e. gold), it's been boom and bust all the way. Banks/governments print lots of money, things get really expensive until it's unstainable and then it all collapses and starts again.

You think we'd have a better system in this day and age. Mind you, banks and governments do alright out it, so maybe it's the optimal system for our corrupt society.

izzybusy23

Melissa177 wrote: »

izzybusy23 wrote: »

Incidentally, if that is your situation, I do feel for you.

I wasn't trying to be flippant with my comments, I figured you were another 20 year old whining that they couldn't afford anywhere nice yet!

Thanks! Yep I am in this situation due to no fault of my own. Obviously had a cr&p solicitor who didn't think my five years of paying half the mortgage and improvements to the house were worth more than £5k, even though the improvements helped with more equity. Factor in £1k on one months rent and deposit on my rental house and a baby on the way, that £5k didn't go far.

So I have moved to Gloucester to start 'yet' another new life and hoping this time it will eventually turn out to be a good move.

Running_Horse

Orion wrote: »

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

1988. And the parallels to today are uncanny. People (myself included) mistaking a short term bubble for permanent unaffordability. Headlines screaming about prices rising faster every month than anyone could save. And then the crash. Years of negative equity, even if you could find any buyer. I never regretted getting on the ladder, but fully sympathise with those who are wary about paying too much for too little at the moment. And if prices are completely beyond your reach, then what alternative is there to saving and increasing your earning potential?