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

Mistermeaner

If youre rich enough you can buy friends

ukcarper

Mistermeaner wrote: »

The 20mile radius around guildford appear to be in the not so cheap category. Its a pity right move does not allow searches in other areas

There are 2 bedroom houses in Bordon for just over £200k which is 20 miles from Guildford.

CLAPTON

setmefree2 wrote: »

And this has always been true. Even in the 80s it was impossible for singles to buy in London. People bought with friends.

I was quite possible to buy in large parts of London in the 80s

my modest family home was bought for £32k (non working wife and little baby) on 4 x my salary (mortgage 2.5 x salary)

now it sell at £1.2 million

but now London has a larger demand which is increasing about 100,000 people per annum; largely due to immigration.

I know not a single example of people in London in the 80s buying with friends (other than partners)

mwpt

The trouble with asking for advice here or posting about your situation is that most people here already own property (everyone?) and humans tend to reshape things in their head confirming their already held views. Hence why you won't find many empathetic posts, you'll mostly get advice that it's always been hard (true in some periods, not true in others).

I feel your pain. I saved for many years aiming for a specific type of property but in front of my eyes I saw that property fall out of my reach despite saving. So in effect this seems to be a broken market to me, it is mathematically impossible for that trajectory to continue. But that's not the same thing as saying that if you just wait it will eventually all reverse. It probably won't.

So for a bit of practical advice, if you are serious about owning a house, think longer term. Trust me, as someone in late 30s, the years fly by. I've owned my house for nearly two years and it's gone very quickly. If I were you I'd look at three options but all of them should be backed up by putting together a spreadsheet and working out the money and equity position through the years. Google "cash flow spreadsheet".

1) Sounds like you still live with your parents if you are managing to save this much each month. Calculate how much you will be better off staying at home vs how much the house you want to own is increasing by each year. It could be that the house you want is increasingly by less than the amount you save and it's better to wait for a couple more years.

2) If you really just want to get out and onto the ladder then perhaps think longer term. As a first step, buy a very affordable flat in which you could rent out the spare room to a lodger. You can make £7000 (I think) tax free per year this way. That is significant money in your budget. You'll be surprised at how quickly the years go by (unfortunately) and it's not such a hardship to 'suffer' in a flat for a few years to hedge against more house price inflation and meaning if houses go up massively, at least yours will be going up too. On the other hand if prices stay relatively static, well, you'll be building equity in the flat and can sell to move up later.

3) If at all possible, something I wish I'd done when I was younger, buy a bigger house than you think you need and rent out two spare rooms to lodgers. Tax free income and they'll be paying off your bigger house and your personal outgoings each month will be roughly the same as a smaller house with one or no lodgers. Getting the mortgage is the problem but perhaps approach a broker and see how they can help with this.

Good luck, there are some nice areas around Guildford.

chucknorris

CLAPTON wrote: »

I was quite possible to buy in large parts of London in the 80s

my modest family home was bought for £32k (non working wife and little baby) on 4 x my salary (mortgage 2.5 x salary)

now it sell at £1.2 million

but now London has a larger demand which is increasing about 100,000 people per annum; largely due to immigration.

I know not a single example of people in London in the 80s buying with friends (other than partners)

I know of two friends that bought together in the late 80's, but as far as I could see, it was unusual.

ukcarper

London has changed a lot since the 80s and areas that were pretty rough then have been gentrified leaving fewer lower price properties.

I first bought in the 80s and couldn't buy in the area I worked basically Wimbledon out to Leatherhead in the east and Byfleet in the west. I was earning a reasonable salary equivelent to about £35k ended up moving much further out.

TheeMaskedTurnip

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?

Are you a 30 plus year old man baby? How can you save £20 fat ones a year on your salary unless you are still living at home suckling on the teat of mummy and daddy? I'm pretty confident given this suckling and your savings you could buy but don't want to. As I said homeownership is not for everyone.

cells

TheeMaskedTurnip wrote: »

Are you a 30 plus year old man baby? How can you save £20 fat ones a year on your salary unless you are still living at home suckling on the teat of mummy and daddy? I'm pretty confident given this suckling and your savings you could buy but don't want to. As I said homeownership is not for everyone.

So long as the parent and kid have a good relationship what the issue with them living at home?

I dont see how its more or less of a man-baby thing to go and rent what is likely to be (or become) a !!!! house/flat with strangers. Also if someone is a man baby or woman baby they will be that at their parents home or in a hmo.

TheeMaskedTurnip

cells wrote: »

So long as the parent and kid have a good relationship what the issue with them living at home?

I dont see how its more or less of a man-baby thing to go and rent what is likely to be (or become) a !!!! house/flat with strangers. Also if someone is a man baby or woman baby they will be that at their parents home or in a hmo.

I my day men became real men when they left home at age 17-18 to make their own way in life. As a suitor a lady friend would laugh in your face if you dared to suggest returning home to your parents house when you were in your twenties so I can only imagine the pure shame of inviting a female to your mothers home being aged 30 plus. For I've learnt anything in life it is that women love real men being men. Being a man assured about his life and destiny gets the ladies engines purring. I can only imagine the shame of admitting to an attractive female that "yes love you can gone back to mine but please keep the noise down as mummy is asleep upstairs."

Generali

Part of the OP's problem is that on roughly average salary she is trying to buy in one of the most expensive towns in the UK.

The problem is pretty clear: if you want to buy somewhere expensive you need to be rich, the OP is averagely well off, if with an above average level of savings.