Corbynomics: A Dystopia

Eric_the_half_a_bee

Cakeguts wrote: »

There is nothing to stop you from buying a house the same way that a boomer did. However you will have to... .

Exactly. Plus:

a) you don't buy coffee from coffee shops; you make coffee at home and take it in a flask
b) you don't buy sandwiches from sandwich shops; you make them at home and take them with you

Even very well off people did this.

ukcarper

Cakeguts wrote: »

There is nothing to stop you from buying a house the same way that a boomer did. However you will have to get rid of the car, the mobile phone in fact any phone, broadband, washing machine, fridge freezer.

You get a house without a fitted kitchen, you buy a freestanding cooker, and a fridge. You don't get central heating or carpets, curtains, or washing machine. You use public transport and if you need a book or newspaper you use the public library. You can also use the public library for computer access. You don't eat out, do your own cooking on the freestanding cooker.

In terms of bills you will have council tax, and electricity there will be no phone bill because you don't have a phone, no television licence because you don't have a television, you will have a radio instead, no gas bill because you don't have any central heating but you will have to buy something to put on your open fire so either wood or coal. The fire will be out during the day when you are at work so you can light it in the evenings when you get home. If you want hot water you can either get a fire with a back boiler or you can have a solid fuel boiler and wait until the water heats up. Furniture you will have to either be given by a family member or save up until you can afford it because you won't have a credit card. You can only spend what is actually in your bank account unless you use hire purchase.

Holidays will be spent visitng a relative in a different part of the country or camping. You can't afford foreign holidays.

I don't think it's as simple as that, I couldn't afford to buy the the house I bought in early 70s in the same position now. But blaming one age group is ridiculous and just makes Arkilght look bitter and stupid.

Cakeguts

ukcarper wrote: »

I don't think it's as simple as that, I couldn't afford to buy the the house I bought in early 70s in the same position now. But blaming one age group is ridiculous and just makes Arkilght look bitter and stupid.

In the same position now I could afford the house that I bought in the 1980s.

ukcarper

Cakeguts wrote: »

In the same position now I could afford the house that I bought in the 1980s.

I don't know where you are, I'm in south east and prices are at a all time high here the house I bought in 70s was almost 6x my earnings which were above average. A similar house now would be over 8x equivalent earnings.

buglawton

Cakeguts wrote: »

There is nothing to stop you from buying a house the same way that a boomer did. However you will have to get rid of the car, the mobile phone in fact any phone, broadband, washing machine, fridge freezer.

You get a house without a fitted kitchen, you buy a freestanding cooker, and a fridge. You don't get central heating or carpets, curtains, or washing machine. You use public transport and if you need a book or newspaper you use the public library. You can also use the public library for computer access. You don't eat out, do your own cooking on the freestanding cooker.

In terms of bills you will have council tax, and electricity there will be no phone bill because you don't have a phone, no television licence because you don't have a television, you will have a radio instead, no gas bill because you don't have any central heating but you will have to buy something to put on your open fire so either wood or coal. The fire will be out during the day when you are at work so you can light it in the evenings when you get home. If you want hot water you can either get a fire with a back boiler or you can have a solid fuel boiler and wait until the water heats up. Furniture you will have to either be given by a family member or save up until you can afford it because you won't have a credit card. You can only spend what is actually in your bank account unless you use hire purchase.

Holidays will be spent visiting a relative in a different part of the country or camping. You can't afford foreign holidays.

This brings back exact memories of when I bought my first house. Moved out of a shared rented house taking one of the sharers with me as my first lodger and rented out rooms for 5 odd years. Didn't buy 1st washing machine for nearly 6 months - it was launderette or wash in bath till then. Free standing 2nd hand Belling cooker, check. Free standing 2nd hand fridge - check. All other furniture collected in a job lot from a large used furniture warehouse. My TV was a 14" black & white portable that I'd had since being a student. 1st colour TV was about 2 years in and boy was my lodger chuffed, with some important footy matches just upcoming.

While paying about half my income as a mortgage, I had no other credit repayments whatsoever. Felt well off. It took about 10 years before I could start spending a bit. Now, I was single the while but had I coupled up, an extra income would've afforded more 'family' accoutrements. Couples I knew were also remarkably frugal, loads of DIY. One workmate - homebuyer - ran an Eastern Bloc style Skoda into the ground as his main work transport and only family vehicle. No lease cars and often, ancient hand me down furniture.

So part of our problem is the new normal of all these things that now seem essential and have to be new and high spec, or you'll be looked down on by your workmates or Facebook 'friends'.

Eric_the_half_a_bee

ukcarper wrote: »

I don't know where you are, I'm in south east and prices are at a all time high here the house I bought in 70s was almost 6x my earnings which were above average. A similar house now would be over 8x equivalent earnings.

And how do mortgage interest rates now compare with those in the 70s?

ukcarper

Eric_the_half_a_bee wrote: »

And how do mortgage interest rates now compare with those in the 70s?

Doesn't really matter if you can't get a mortgage because you don't earn enough.

Eric_the_half_a_bee

ukcarper wrote: »

Doesn't really matter if you can't get a mortgage because you don't earn enough.

OK let me rephrase that. How do allowable earnings multiples for mortgages now compare with those offered in the 70s?

ukcarper

Eric_the_half_a_bee wrote: »

OK let me rephrase that. How do allowable earnings multiples for mortgages now compare with those offered in the 70s?

Higher but you could borrow more in relation to earnings in 70s than many people think I know because I did. But even considering new rules I could not buy the same house.. I agree there is to much whinging and there are people who could buy if they were prepared put in the same effort we did but I don't think you can deny things are harder now.

Cakeguts

ukcarper wrote: »

I don't know where you are, I'm in south east and prices are at a all time high here the house I bought in 70s was almost 6x my earnings which were above average. A similar house now would be over 8x equivalent earnings.

It was a new 2 bed semi in a town north of Manchester. I think if I remember correctly I borrowed 3 times my annual income and the interest rate was around 11%. It certainly didn't go any lower than 11%.