Young people increasingly giving up on buying property

redux

It's not unbelievable, but it's also evidently not someone on average or low earnings and thus doesn't illustrate how easy or difficult it would be for such people to make commitments or for how much.

Herzlos

wotsthat wrote: »

Is someone saving £330/ week for a deposit really so incredible?

That'd be the entirety of an approx £27k/year salary after tax. Considering the average wage is about £24k it's certainly not a common occurrence.

Assuming you also need to buy food, rent, bills and commute to work you likely need to be on 2x or even 3x that in order to save £330/week comfortably. So someone on £54-76k a year isn't really likely to be the people we're discussing here.

System

My situation isn't that relevant, but way back then I had very low outgoings, lived like a hermit and got as much overtime as I could.

The point I was making was that anyone who was only "prepared" to save £33 a week to buy a house is never going to buy a house. Even if house prices fell 50% it's not going to be enough, delusion.

Running_On_Empty

Average house price in England and Wales is £180K. That means there are plenty of houses below the average.
Average wage is £26.5 per annum.
Should take two years to save ten per cent deposit for someone to buy the average house who is on average wage. That is if they make sacrifices and they are in a couple.

Today, people want to spend 40 quid a month on a phone, go to expensive pop festivals and run a car and live away from parents.
I did none of those things because having my own property was top priority not going out living for the moment.

wotsthat

Herzlos wrote: »

That'd be the entirety of an approx £27k/year salary after tax. Considering the average wage is about £24k it's certainly not a common occurrence.

Assuming you also need to buy food, rent, bills and commute to work you likely need to be on 2x or even 3x that in order to save £330/week comfortably. So someone on £54-76k a year isn't really likely to be the people we're discussing here.

Ford Capri suggested it was a lie rather than an uncommon occurrence.

I doubt it's that uncommon anyway to be honest. I'd bet the majority of deposits were saved not as regular savings but in a highly focused approach once it became a real priority. i.e. a couple could easily live on one wage for a year or 18 months if they really wanted to. In this thread there's a couple living in their parents conservatory on an average wage saving £1200/ month and simultaneously attacking debts.

Same with pension savings. We all really know we should save regularly from a young age but most will instead increase their savings ratio as retirement gets closer and pension savings move up the priority list.

stator

Joeskeppi wrote: »

My situation isn't that relevant, but way back then I had very low outgoings, lived like a hermit and got as much overtime as I could.

The point I was making was that anyone who was only "prepared" to save £33 a month to buy a house is never going to buy a house. Even if house prices fell 50% it's not going to be enough, delusion.

A minute ago it was £33 per week, now it's only £33 per month?

pinpin

Joeskeppi wrote: »

Has saving £33 a week ever been enough to save a deposit? I saved 10 times that amount per week when I was saving for mine. These people are royally deluded.

But you were likely on £70k+ or so per year to be able to save that.
Lots of people earn £6.50 per hour.
Good luck EARNING £330 per week, nevermind SAVING it in that situation!
People also need to eat and pay their rent lol

chucknorris

pinpin wrote: »

But you were likely on £70k+ or so per year to be able to save that.
Lots of people earn £6.50 per hour.
Good luck EARNING £330 per week, nevermind SAVING it in that situation!
People also need to eat and pay their rent lol

You obviously have not read the context that Joe's post was made in. The point he was making was that people were expecting to save up for a deposit at the rate of £33 per week, which isn't feasible.

System

stator wrote: »

A minute ago it was £33 per week, now it's only £33 per month?

Thanks, I'll fix it

westernpromise

£33 a week would be £10,000 after 5 years assuming 5% annual return (which you could get, in some sort of fund held in an ISA).

£330 a week would be £100k after 5 years.

2 people saving £33 a week each for 5 years would have a £20k deposit. Reasonable chunk of change.