What will happen when interest rates rise?

Graham_Devon

CLAPTON wrote: »

I agree I am out of touch with many here who think that the first pay cheque is the cue to rush out to get a car loan for a brand new 25,000 motor and replace it every 2 years by increasing the debt; but on that we have to agree to differ.

You're out of touch simply because you appear to believe the majority can get a pay cheque without having to commute.

Public transport is OK in the major cities, but outside of that, many hundreds of thousands of people rely on cars to get to work.

I note to make your point you've had to go to the extreme of suggesting everyone goes out and spanks their money on a 25k car every 2 years.

You assume so long as they don't have amortgage, they have no living costs. Bravo to you. Ever heard of rent? Of course your answer here is that everyone should live with their parents. Damned if they move to earn a better wage, damned if they don't.

As I said, completely and utterly out of touch - but I feel this will be another merry go round argument where you flip flop from one extreme to the next.

Graham_Devon

lippy1923 wrote: »

That's another choice though, having kids. Same as going to uni with no real reason to go. Same as moving out of the family home with no real reason, simply just to fly the nest. Same as deciding to travel for a few years instead of saving for a deposit.

So basically anything which revolves around having a life, then?

IveSeenTheLight

Graham_Devon wrote: »

So basically anything which revolves around having a life, then?

Life is all about choices.

choose life how you want to live it.

If you want something, then within the current environment, strive to achieve the preferred life and choices you make.

There is no right or wrong, just making the best of what you are able to.

lippy1923

Graham_Devon wrote: »

So basically anything which revolves around having a life, then?

Yeh pretty much lol

Graham_Devon

IveSeenTheLight wrote: »

Life is all about choices.

choose life how you want to live it.

If you want something, then within the current environment, strive to achieve the preferred life and choices you make.

There is no right or wrong, just making the best of what you are able to.

The bold bit I'd 100% agree with.

The issue here though appears to be that people assume that others should put their want for buying a house above everything else.

They appear to imply that should include relationships and children.

For me, I'd change your bold bit for the context of this thread and discussion into "within reason strive to acheive....".

Letting relationships go and possibly forgoing children in order to get a mortgage is not, in my humble opinion, reasonable.

It's all well and good sitting in bought houses telling others what they should do, but it misses the fundamental issue that for someone aged, say, 23 today, buying a house can seem like such a distant dream and in some ways completely untenable that putting their existence on hold for an unknown amount of years would be something I could never recommend, especially considering the cost of many missed opportunities along the way.

We just need to be sensible about it and stop pretending a one size fits all approach or that every under a certain age is buying 25k cars every time they need a new set of tyres.

CLAPTON

Mistermeaner wrote: »

Life ain't fair.

I left uni with 13500 of debt, I forget exactly but repaid mine at I think 11% of everything over 15k ish. Took me about 8 years I think and at one stage I was paying over 300 a month.

However I recognise I had a bloody great time spending it and there is no way I would be earning what I am today without it.

you would have been paying 9% of earning over 15,000 on the pre 2012 loans

to pay 300 per month on such a deal your salary would have been about £55,000 pa
so congratulations on achieving such a salary so young.

IveSeenTheLight

Graham_Devon wrote: »

For me, I'd change your bold bit for the context of this thread and discussion into "within reason strive to acheive....".

Letting relationships go and possibly forgoing children in order to get a mortgage is not, in my humble opinion, reasonable.

Your opinion and choice Graham.

I've said before, we delayed having children to focus on ensuring we were financially secure and owned our own property.

We did so to ensure that when we did have children, they received the best opportunity growing up.

I was 35 and 37 when we had our children. The wife was 30 and 32.

Delaying is not forgoing and by waiting until we were in our 30's, we were able to have a secure financial starting block to bring up our children.

Now you could choose to "live life" and enjoy your youth, or have children before setting yourself up financially secure. That's your choice. There is no right or wrong. You make that choices based on the experiences and considerations you have been exposed to.

Going back to the car analogies.
My wife was at me at the weekend to go out and buy a new car.
I could do, but relayed that I'd rather delay until next year where we may be in a different position. It's a choice. I could do it easily now, but chose not to and keep my current car whilst other exposures play out.

CLAPTON

Graham_Devon wrote: »

You're out of touch simply because you appear to believe the majority can get a pay cheque without having to commute.

Public transport is OK in the major cities, but outside of that, many hundreds of thousands of people rely on cars to get to work.

I note to make your point you've had to go to the extreme of suggesting everyone goes out and spanks their money on a 25k car every 2 years.

You assume so long as they don't have amortgage, they have no living costs. Bravo to you. Ever heard of rent? Of course your answer here is that everyone should live with their parents. Damned if they move to earn a better wage, damned if they don't.

As I said, completely and utterly out of touch - but I feel this will be another merry go round argument where you flip flop from one extreme to the next.

ok

you are right ; I am out of touch : you have shown me the light and I now see that
absolutely no-one under some-yet-to-be- agreed-age (or thereabouts) can possibility save a penny.

wotsthat

I fear we've bought into the extreme idea that the whole of life has to be put on hold to buy a house - it doesn't.

IveSeenTheLight

Graham_Devon wrote: »

It's all well and good sitting in bought houses telling others what they should do, but it misses the fundamental issue that for someone aged, say, 23 today, buying a house can seem like such a distant dream and in some ways completely untenable that putting their existence on hold for an unknown amount of years would be something I could never recommend, especially considering the cost of many missed opportunities along the way.

We just need to be sensible about it and stop pretending a one size fits all approach or that every under a certain age is buying 25k cars every time they need a new set of tyres.

First point: I never advocated that anyone should do anything in my earlier post. I merely said it's up to individual choices and relayed the choices I made. Do what you want?

Second point: I know of young people buying properties in the current market and throughout the last 15 years, when we actively got involved.

It's about choices. Do what you will.

Third Point: I never insinuated that everyone under a certain age is buying 25k cars everytime they need a new set of tyres. I do actually know some people who do, but that's their choice and to an extent, I can understand the choice they are making and why. It's their choices though