Is it really that hard?

ess0two

MARTYM8` wrote: »

The usual nonsense spouted on here.

If only they didn't spend all their money on ipads they could afford that 4 bedroom detached house they want immediately.

My parents bought their house in London on one and a half times an average London salary mortgage in the early 1970s - their house now costs 16 times the average London salary and its hardly in that glamorous an area but just standard suburban zone 4.

I spoke to my mum recently about this - and she wondered how much deposit you would need to buy their home now. She thought maybe £5k - when I told her more like £50k+ plus a combined salary of probably £80k+ she nearly fell off her chair. That I think perhaps illustrates the lack of perception - which is not uncommon.


But carry on with the delusion - no one says it was easy in the past but at least there was the chance to aspire to a 4 bed detached house rather than spend years scrapping a deposit together to buy a one bed flat!

Yep,this reply sums up the latest generation.


Oddly enough I could'nt afford the 3 bed semi with garden my parents are in,i had to make do with a 2 up 2 down back yard terrace,a few years later I managed to make the move.

MARTYM8`

ess0two wrote: »

Yep,this reply sums up the latest generation.


Oddly enough I could'nt afford the 3 bed semi with garden my parents are in,i had to make do with a 2 up 2 down back yard terrace,a few years later I managed to make the move.

Would be useful to understand why you think its as easy to buy a house when the mortgage required is 16 times average salary compared to only 1.5 times average salary when its even at lower interest rates.

Just some basic maths really?

I am alright jack - as they say.

PS Given my parents bought their final home in the early 1970s you might also work out with some basic maths that I am no 25 year old wasting all my money on beer, Ibiza holidays and Ipads. But I do recognise that we have a significant housing problem - its just too expensive - and it means as a country we are spending too much on rent/mortgages which crowds out spending on productive industries!

ess0two

MARTYM8` wrote: »

Would be useful to understand why you think its as easy to buy a house when the mortgage required is 16 times average salary compared to only 1.5 times average salary when its even at lower interest rates.

Just some basic maths really?

I am alright jack - as they say.

PS Given my parents bought their final home in the early 1970s you might also work out with some basic maths that I am no 25 year old wasting all my money on beer, Ibiza holidays and Ipads. But I do recognise that we have a significant housing problem - its just too expensive!

To be fair,which i've failed to omit,i'm up North and its never been hard to get on the ladder.

princeofpounds

You seem to be, I don't know where you live but where I live now and where I was bought up has had a lot of garden grabbing building on every bit of available land and family houses pulled down to build flats.

Well, I suspect then that either your perception is skewed or your area is more exception than the rule; because house-building levels are about 200k a year whilst population is rising about 400k a year, and there clearly is yet a solution to our housing crisis.

ukcarper

princeofpounds wrote: »

Well, I suspect then that either your perception is skewed or your area is more exception than the rule; because house-building levels are about 200k a year whilst population is rising about 400k a year, and there clearly is yet a solution to our housing crisis.

£200k a year is quite a few and the development in both areas has been over a few years. Where I am now there has not been to much development over the last couple of years mainly because there is nowhere left to build. There is a lot of building planned in the wider area with 35000 new homes planned in the local town another interesting plan is to convert an 60s office block to flats.

Where I used to live several family homes were pulled down and flats build mainly flats aimed at retired people. In another part of town several very large house have been demolished and 4 or 5 detached properties have been built in plot trouble is they still go for a couple of million each. There have been a couple of planning applications on adjacent green belt which have been turned down. A couple of miles away there is a planning application in for 2000 homes on airfield which is green belt but the nimbys are out in force.

ukcarper

MARTYM8` wrote: »

If only they didn't spend all their money on ipads they could afford that 4 bedroom detached house they want immediately. Yes - we know!

My parents bought their house in London on one and a half times an average London salary mortgage in the early 1970s - their house now costs 16 times the average London salary and its hardly in that glamorous an area but just standard suburban zone 4.

I spoke to my mum recently about this - and she wondered how much deposit you would need to buy their home now. She thought maybe £5k - when I told her more like £50k+ plus a combined salary of probably £80k+ she nearly fell off her chair. That I think perhaps illustrates the lack of perception - which is not uncommon.


But carry on with the delusion - no one says it was easy in the past but at least there was the chance to aspire to a 4 bed detached house on an average salary rather than spend years scrapping a deposit together to buy a one bed flat!

I'd love to know where in London that was I bought in early 70s and couldn't afford anything anywhere near London and had to move out 30 miles and commute and my modest terraced house still cost me 5x my more than average salary.

Pobby

Also there are choices. Thinking of my niece who is 29 and living with her fiance. Always wanted children and has given me a lovely little Great nephew. Now in truth, living in Reading she really does have a very small chance of getting something to live in that can be bought.

Rent is £850 a month,( cheap in fact as her partners brother owns the house) her partner pays CSA. Maybe with about a pre tax income of around £40k, it would be a struggle to find a deposit.

There is, of course, the dream of owning but as pointed out here, her place has better furniture, tv and so on than we have. MUST go abroad each year on holiday. Now I am very fond of her but have to agree that she, and as pointed out on here, and others don`t really have the right mind set to give up all but the basics and struggle to buy.

ruggedtoast

You would have to living in a world of delightful delusional fantasy to think that its anything other than a nightmare trying to buy or rent a property to live in now.

The trouble is, the boomers got so used to everything falling into their laps they can't understand why the same isn't happening to the young.

ukcarper

ruggedtoast wrote: »

You would have to living in a world of delightful delusional fantasy to think that its anything other than a nightmare trying to buy or rent a property to live in now.

The trouble is, the boomers got so used to everything falling into their laps they can't understand why the same isn't happening to the young.

You really need to do something about that chip on your shoulder

HAMISH_MCTAVISH

MARTYM8` wrote: »

Just some basic maths really?!

Quite....

Here's historical FTB mortgage payments as a percentage of income.

Current position is around the long term average.