How low will property go?

ukcarper

mrlegend123 wrote: »

I am using common sense (dangerous I know), renters and mortgage holders will have the same income levels. I don't see many higher paid jobs being advertised stating this "Only apply if your a mortgage owner. Renters may not apply".

Do you want application forms to have a new box stating if you are mortgage owner or not? If your a renter, we will pay you less.

It's not common sense common sense is that you need to be earning more than median earnings to buy an average house that if you are a low earner you can't buy. I'm sure many high earners choose to rent but low earners have no option other than to rent.

System

I do understand what you are saying about low earners having no choice but to rent. I agree with that.

The younger generation aka Millennials who are stuck in the rental sector will have the same income levels as most mortgage owners. It would be very hard for them to save for a deposit and pay rent at the same time.

ukcarper

mrlegend123 wrote: »

I do understand what you are saying about low earners having no choice but to rent. I agree with that.

The younger generation aka Millennials who are stuck in the rental sector will have the same income levels as most mortgage owners. It would be very hard for them to save for a deposit and pay rent at the same time.

I'm not sure Millennials are earning the same as most mortgage owners and that is a problem on its own. As for saving a deposit whilst renting the only time that hasn't been a problem is when 100% and 95% mortgages were freely available, if you are determined to save you have share or if possible live with parents. I also think that the problem varies enormously depending on where you are in the country.

System

ukcarper wrote: »

I'm not sure Millennials are earning the same as most mortgage owners and that is a problem on its own. As for saving a deposit whilst renting the only time that hasn't been a problem is when 100% and 95% mortgages were freely available, if you are determined to save you have share or if possible live with parents. I also think that the problem varies enormously depending on where you are in the country.

I don't understand why you are saying that Millennial renters earn less than mortgage owners in general? Explain please backed up with some facts.

ukcarper

mrlegend123 wrote: »

I don't understand why you are saying that Millennial renters earn less than mortgage owners in general? Explain please backed up with some facts.

Yes I'm saying that in general a Milleniennial will be earning less than a mortgage owner of course there will be exceptions.

http://www.ons.gov.uk/chartimage?uri=/employmentandlabourmarket/peopleinwork/earningsandworkinghours/bulletins/annualsurveyofhoursandearnings/2015provisionalresults/1199a2f6

System

If that is the case, generation Z and A are screwed then.

ukcarper

mrlegend123 wrote: »

If that is the case, generation Z and A are screwed then.

Peoples earnings have always increased as they get older. No one knows what is going to happen in the future there have been times in the past where people have thought that.

System

ukcarper wrote: »

Peoples earnings have always increased as they get older. No one knows what is going to happen in the future there have been times in the past where people have thought that.

According to BoE, people's wages have increased but 'real' wages have decreased by 10% over the last ten years. They forecast people's real wages (inflation adjusted) to decrease further over this parliament.

We need a lot higher wages in order to fuel inflation. Hopefully the Government's tactic of the NLW will work.

ukcarper

mrlegend123 wrote: »

According to ONS, people's wages have increased but 'real' wages have decreased by 10% over the last ten years. They forecast people's real wages to decrease further over this parliament. It sounds like happy times.

That's correct but it's still almost 100% more than 1971 when according to a lot of poster we had it easy.

System

Most Baby boomers and a small amount of generation X dipped in when the housing market tripled over a short period of time, right place at the right time. My dad is a baby boomer and he openly admits it.