How do people afford expensive houses

moneyistooshorttomention

Family money does help a lot if that's the way the cookie crumbles.

The buyer of my last house was getting a LOT of help with it from their family (ie the majority of the cost).

Looking back in my own family and I guess my parents had help from their parents and we are talking mid-20th century (3 generations back from todays FTB-ers according to my quick calculations then).

It's what you do isn't it? and, if I'd had children, then their children would be getting help from me in effect (as quick calculation reveals they would be in their 50s before anything went in their direction - as I would have had them in my 30s).

Davesnave

ringo_24601 wrote: »

What is life, if it is not just a game of chance?

Born in the right year, born in the right country, to the right parents. Born the right gender, the right genes, the right personality...

https://www.youtube.com/watch?v=U8Kum8OUTuk

But even if one gets those things 'right' that's only one version of right, surely?

There's another version where, instead of just owning an expensive house, an individual has an incredibly interesting, history-changing life, or even just has a hell of a good time because of not caring about material things, or has great spiritual development, or whatever.

That game of chance can have much more interesting consequences than financial security

[Deleted User]

Davesnave wrote: »

But even if one gets those things 'right' that's only one version of right, surely?

There's another version where, instead of just owning an expensive house, an individual has an incredibly interesting, history-changing life, or even just has a hell of a good time because of not caring about material things, or has great spiritual development, or whatever.

That game of chance can have much more interesting consequences than financial security

Yes, but to be of that 'screw it all, I'll do something more fun' you have had to have been brought up in circumstances that allow it. We probably don't have many 'life' paths available to us, free will is a hopeful thought; we are the product of our biology, upbringing and experiences.

There's an irrevocable desire to procreate within our society and species (as in most; Pandas never got the memo), and this requires a mate and stability to raise a family. This does not fit the "screw it" mindset.

I had to laugh at the spiritual development bit. Like you can't grow as a human being because you've got a mortgage.

clint_S

ScorpiondeRooftrouser wrote: »

I think your regional examples are a bit sweeping; you wouldn't get anything like that in Cardiff, for example. It's more "remote areas with no jobs vs. areas with lots of jobs".

That said it is clear the luckiest people are those who can find decently paying jobs in remote areas.

Just searched Rightmove for Cardiff £400K, first to pop up was a 6 bedroom detached house.


http://www.rightmove.co.uk/property-for-sale/property-57799385.html


Manchester has this 5 bedroom semidetached first on the list
http://www.rightmove.co.uk/property-for-sale/property-57799385.html


Cities are more expensive but London just seems silly when you look elsewhere.

mumps

Gigervamp wrote: »

She could well be in her 60s when that happens!

Well possibly but as I was almost 40 when she was born it will probably be sooner than that. My husband was late 40s when she was born and if he goes before me, statistically likely, I certainly won't stay in a big house by myself so probably sell up, give kids some money and move into something smaller.

Rosemary7391

Loanranger wrote: »

The digital generation have an entirely different attitude towards life than the post war generations. The digital gen live for today and spend not just what they earn but borrow as well. Expensive wedding anyone?

Mostly people who work hard and increase their qualifications by continually updating their knowledge will earn more and thus be able to buy more expensive houses. Rocket science it ain't!

You still have to pick a financially rewarding career. Personally, I want to remain in academia. That makes it hard to save (frequent moving, low pay) and it isn't especially well paid, compared to folks who graduated with me who have permanent jobs as accountants even though they're not qualified yet, with better pay now and at every career stage. Qualifications aren't everything! I'm trying to save, but I expect that most of my savings will be used on living costs between jobs until I land a permanent one. Then I can start aspiring to, say, not literally live on top of my neighbours.

Incidentally, my friends in their mid twenties are either doing further studies (PhD) or they're saving to buy a house/have bought. I can't think of anyone who is living on borrowed money and splashing out here, there, and everywhere! Most of them aren't married yet but I expect they won't have flashy, expensive weddings, they'll be more interested in the marriage bit. The largest expense will probably be the money spent traveling/on accommodation by the guests!

Life is more expensive when your friends and family are spread across the whole country - it costs me at least £50 to just travel to see my best friend or my parents. Perhaps that's another factor hampering saving, the way that people are more spread out and moving/traveling more from necessity?

ReadingTim

saverbuyer wrote: »

5 x times joint mortgage = No sleep for me at night.

It may be a little worrying at first. But imagine you work as a lawyer and your other half an accountant. You'll be relatively high earning professionals whose salaries are only likely to increase over time as you gain more experience. Furthermore, even if your employer went under, you'd be likely to pick up another job pretty easily.

And that's the last factor - personal attitude to risk. Some people are more willing to gamble than others.

As an example, with my first (and thus far only) house, I was very sensible with the amount I borrowed relative to what I earned at the time and opted for a repayment mortgage, and left myself enough left over for quality furniture and the proverbial exploding boiler.

That was 10 years ago in 2006. Since then I've more than doubled my salary, had my grandparents pass away (leaving a £50k inheritance) and the boiler hasn't exploded. Furthermore, a few months after my initial 2 year fix came to an end, interest rates plummeted to 0.5%, where they've stayed to this day.

So in hindsight I should have stretched myself to the limit and beyond a decade ago - got a 125% interest only liar loan and a charity shop sofa. I'm in a chartered profession too, so knew my income would rise as my experience did, and also that my grandparents (in their nineties when I bought the house) would pass away before the mortgage was up (sounds callous, but death is inevitable for all of us). I also should have borrowed more during this time of low interest rates, as now I've paid off the mortgage I'm earning b*gger all in savings, while property prices where I'm looking to buy continue to rise, reducing the relative size of mortgages.

moneyistooshorttomention

Davesnave wrote: »

But even if one gets those things 'right' that's only one version of right, surely?

There's another version where, instead of just owning an expensive house, an individual has an incredibly interesting, history-changing life, or even just has a hell of a good time because of not caring about material things, or has great spiritual development, or whatever.

That game of chance can have much more interesting consequences than financial security

Very true Dave.

Hmmm...to a history-changing life (as in living long enough after having a Really Good Idea for the better and seeing it widely adopted:D can lead to severe disillusionment later of the "Why did I bother - considering Society is on a steady downward trajectory by the look of it?" if the person lives long enough afterwards).

Great spiritual development - yep...I'd go along with that. I've been fortunate enough to meet (and be good friends with...just finished phonecall today with) one incredibly "developed" person and she seems to be pretty satisfied with her life overall. I've recently made friends with someone else here that I suspect is probably pretty well "developed" and he seems to be pretty much the same. People like that are very very few and far between indeed imo.

Arthritic_Toe

No axe to grind, but its annoying when people who have had an enormous amount of luck with their timing, mistakenly attribute it all to their own hard work and thrift.

moneyistooshorttomention

Arthritic_Toe wrote: »

No axe to grind, but its annoying when people who have had an enormous amount of luck with their timing, mistakenly attribute it all to their own hard work and thrift.

But that can go both ways.

In own life - good timing that mortgages were allowed to women as well at the right time for me BUT bad timing that it didn't make life any easier for me and it still took years (because of all the married woman who also thought "Oh goody" and took advantage of that).

Good timing that I managed to slip through a little "window of opportunity" that was only there pretty briefly for hardworking childless working age people to get onto the Council waiting list for just long enough for "me to get mine".

Good timing (just in nick of time:eek:) that I had a bit of financial luck that provided the deposit I simply didn't earn enough money to save for for that starter house.

Yep...fully aware of the part timing played in it all. I could have done all the hard work and economising in the world - but, if it hadn't been for those two bits of good timing, I might very well not own a place of my own to this day (in my 60s!!!!).

The one thing that was effort on my part was that I had worked out I HAD to have help or I couldn't manage otherwise - and was keeping all eyes/ears/braincells firmly fixed on looking for directions that help could come from (as a lot of others would probably have let those opportunities pass them by by not spotting them).