How can anyone born in the 90s purchase a property?

surfer9

I was born in the mid-80's. I have saved £70k for a deposit and have a £30k salary. As far as I'm aware lenders tend to lend up to 4.5x salary, which means I can afford a property up to £200,00. I am from Guildford, Surrey which is a ruddy expensive town. There is not much variety within a 20mile radius. The only options are 1 bed houses or 1 or 2 bed apartments/maisonettes. Personally I'd like a 2 bed house at least or a decent 2 bed apartment, but these are virtually non-existent at my budget......I kind of feel like I am being ripped off. I have worked hard to save that massive sum of money which was specifically saved as a deposit. I am not sure buying is an option for me now (at least not in this area). So that could be me, even with my savings and reasonable wage ruled out of home ownership......I can save £20,000 a year which I am pretty sure is waaay above the average non-home owners save, but the properties within my budget are going up £20,000 a year. It's impossible.

So what is it going to be like for those born in the 90's. House prices are said to rise another 10% this year, and one article I read said house prices could rise 42% nationally by 2020.

Surely the 90's kids will definitely be generation rent. I don't see how any young people are going to be able to afford to get on the property ladder. First time buyers will be non-existent. I'd guess it will be all the rich people who already own houses who will be purchasing extra properties to rent out to the 90s generation.

I don't know if there will be enough landlords to keep up demand for housing, there won't be much interest from the next generation approaching the typical average home ownership age of the late 20's.

Just another 10% increase in property prices and I think that's it for the dreams of anyone wanting to own a home....another 10% rise the following year.......:eek:

The Government isn't helping much - a Starter Home with 20% discount would be nice. But prices are going to go up 20% before they start building any in my area. The only ones that have been announced so far are being built miles from my home town. This scheme is effectively useless for me, unless they build this year.


House pricing collapse in 1-3 years time as nobody will be able to afford to get into Home Ownership?

padington

Tally up how much you are spending on rent and consider moving else where where you can afford which might enjoy a future uplift for whatever reason. Also consider uniting forces with another family member you can trust and make a clear contract for eventualities.

Given the tax benefits, housing supply and demand fundamentals and lack of rent obligations when being an owner occupier, owning your own home is a no brainier.

*~Zephyr~*

Yes, 90's babies can buy houses, but it depends on where they are buying.

My 22 yr old step-daughter bought her first house in 2013. She's worked a just over minimum wage job since the day she got her NI numbercard through. With her BF (who earns under 20k) they saved a 20k deposit and bought a 3 bed victorian terrace in need of modernisation for £100k. In the last 12 months they have worked their butts off renovating and now have a gorgeous home worth about £130k. So, at nearly 23 yrs old they have a home with nearly 40% equity.

Its not their first choice of area, and they didn't really want a fixer-upper, but they bought what they could afford. In a couple of years they will be able to sell and move to something closer to their ideal.

It's not easy, but yet, if a couple of minmum wages earners can do it, almost anyone can.

I think you're going to have to accept that Guildford is out of your price range and buy somewhere cheaper. Maybe your second home purchase can be back in the area you want?

fromtheshires

I was born in late 87. I saved all my money and at 22 purchased a repo dump for nearly 20k less than its value. Im of the ilk of taking my time an doing things slowly bit by bit. There are parts of my house that once remedial work was done I haven't even touched (and its been 5 years) as Im doing everything bit by bit and thats the way to get on the property ladder - not buying a new build at an over inflated price.

Yes - house prices have risen and I have done very well out of my property but its been hard work and I have had to make decisions to have what I have. For example, I have no sky, small modest low spec car, not many fancy clothes, don't buy expensive food etc. Im not some pauper who lives in one set of clothes and eats value everything but its al about choices. I have other friends who have the latest everything and complain (from their £60 a month phones) they are always skint and can't afford to buy a house. The me me me now now now life we now lead does matter when it comes to being able to save for a house.

cells

What you need to do is find a nice girl/guy who also has a £70k deposit and a £30k wage and then your budget jumps to £400k which I will guess is enough to buy what you are looking for where you are looking for it

In popular places a single wage will be outbid by two wages.

POPPYOSCAR

My son, born in the 90's bought a house with his girlfriend last year.


Not in the area he wanted but he is working towards that.


So not impossible.

ukcarper

Try Aldershot plenty of 2 bed flats for around £200k

Samsonite1

cells wrote: »

What you need to do is find a nice girl/guy who also has a £70k deposit and a £30k wage and then your budget jumps to £400k which I will guess is enough to buy what you are looking for where you are looking for it

In popular places a single wage will be outbid by two wages.

Although relationships can be complicated, buying with someone else really is the simplest way to double your buying power - potentially you can get exactly what you want if you have a partner in crime in your particular situation it would seem.

PasturesNew

There are always some people priced out of where they know, where they grew up. Where I lived the cheapest house is £385k and that's in a village outside a medium-sized town, nowhere near London.

Some areas are just pricey and, yes, it sucks.

I was a lot older than you when I first bought. Some things you just have to accept.

You've a great deposit and a great salary - you just need to cling onto the thought that one day, somewhere, there'll be a house you want and you'll be able to buy it.

It just won't be where you are right now unless you team up with somebody else or move.

GwylimT

My son was born in 1992, he purchased a three bed semi two years ago.

chewmylegoff

surfer9 wrote: »

I was born in the mid-80's. I have saved £70k for a deposit and have a £30k salary. As far as I'm aware lenders tend to lend up to 4.5x salary, which means I can afford a property up to £200,00. I am from Guildford, Surrey which is a ruddy expensive town. There is not much variety within a 20mile radius. The only options are 1 bed houses or 1 or 2 bed apartments/maisonettes. Personally I'd like a 2 bed house at least or a decent 2 bed apartment, but these are virtually non-existent at my budget......I kind of feel like I am being ripped off. I have worked hard to save that massive sum of money which was specifically saved as a deposit. I am not sure buying is an option for me now (at least not in this area). So that could be me, even with my savings and reasonable wage ruled out of home ownership......I can save £20,000 a year which I am pretty sure is waaay above the average non-home owners save, but the properties within my budget are going up £20,000 a year. It's impossible.

So what is it going to be like for those born in the 90's. House prices are said to rise another 10% this year, and one article I read said house prices could rise 42% nationally by 2020.

Surely the 90's kids will definitely be generation rent. I don't see how any young people are going to be able to afford to get on the property ladder. First time buyers will be non-existent. I'd guess it will be all the rich people who already own houses who will be purchasing extra properties to rent out to the 90s generation.

I don't know if there will be enough landlords to keep up demand for housing, there won't be much interest from the next generation approaching the typical average home ownership age of the late 20's.

Just another 10% increase in property prices and I think that's it for the dreams of anyone wanting to own a home....another 10% rise the following year.......:eek:

The Government isn't helping much - a Starter Home with 20% discount would be nice. But prices are going to go up 20% before they start building any in my area. The only ones that have been announced so far are being built miles from my home town. This scheme is effectively useless for me, unless they build this year.


House pricing collapse in 1-3 years time as nobody will be able to afford to get into Home Ownership?

Your salary is £30k, so your net after tax is £23,500... and you can save £20,000pa?

Suggest you set up a website called "moneysavingexpert.com" and teach people how to live off £290 a month. I expect you will be able to make more than £30k from it.