Home Ownership at Lowest Level for 30 Years

davomcdave

ukcarper wrote: »

You could always move 20 miles out like I had to in the 70s and get this for much less
http://www.rightmove.co.uk/property-for-sale/property-63170315.html

Awesome.

To buy the place in Horley you'll need almost £15,000 deposit plus £4,750 in SDLT. Once you add in conveyancing that's going to be north of £20k.

Then you need an income to service the £280k mortgage that remains. The median household income is £23k so you need to be earning about 3x the median household income plus have more than a year's average disposable income to put down.

I think we're starting to see the problem.

I suppose we can always Google around until we find a 1 bed flat in Walthamstow selling for £200k and pretend we can then extrapolate that example out to a generation.

http://www.zoopla.co.uk/for-sale/details/40188689?search_identifier=8e8e5b16789250b96205e759d984bcff

Ooh look, there's one.

kabayiri

It's boiling down to the Bank of Mum and Dad, more and more.

It's great if they can lend you £50K, but not so much if you come from poorer stock.

I'm sure there are some enterprising financiers out there looking at ways right now of leveraging a parent's home to support the 1st home for the offspring.

davomcdave

caronoel wrote: »

You've put your finger right on the problem there.... I want the private gym, to shop the boutique deli, international holidays, the latest iPhone AND a £1m in central London.... but I don't want to work or save for it.

I was more amazed that the price of a 3 bed semi in Herne Hill is so high.

Herne Hill isn't central London BTW, it's firmly in the suburbs. It's on the border between zones two and three!

ukcarper

davomcdave wrote: »

Awesome.

To buy the place in Horley you'll need almost £15,000 deposit plus £4,750 in SDLT. Once you add in conveyancing that's going to be north of £20k.

Then you need an income to service the £280k mortgage that remains. The median household income is £23k so you need to be earning about 3x the median household income plus have more than a year's average disposable income to put down.

I think we're starting to see the problem.

I suppose we can always Google around until we find a 1 bed flat in Walthamstow selling for £200k and pretend we can then extrapolate that example out to a generation.

http://www.zoopla.co.uk/for-sale/details/40188689?search_identifier=8e8e5b16789250b96205e759d984bcff

Ooh look, there's one.

I don't think anybody is dissputig property is expensive in the South East especially in commuting distance of London.

I needed a larger deposit larger than that in relation to earnings in the early 70s. As i have been saying if you earn enough to get mortgage (which would be a joint income of £70k for that house) you can save deposit.

MobileSaver

ruperts wrote: »

Given that houses are both essential to our survival

Owning your own home is not essential to anyone's survival; your sense of entitlement is quite shameful.

ruperts wrote: »

Essential communication tools, Internet and phones - £70 per month
Health related activities, sports club, gym etc - £70 per month
The bare minimum social life required to avoid mental health issues - £180 per month
One solitary weeks holiday at a bargain basement £400 each = £66 per month

Seriously?!? £70 a month is the lowest someone who was making an effort could get broadband and a mobile for? And therein lies the problem, you are not prepared to make any effort or sacrifices.

£70 a month for health related activities?!? £180 per month "bare minimum social life required"? Required? Is it any wonder there is so little sympathy for a generation with such an appalling sense of entitlement?

One solitary weeks holiday £400 each... Again the entitlement rears its ugly head, you focus on "solitary" as clearly you believe you are entitled to more than one holiday a year.

As Cakeguts posted, our "holiday" was being shipped off to the grandparents for a week in the summer holidays. A weekend treat for my girlfriend and I was a four pack of lager and friends would come round with their four pack for a real party! Health activities were cycling everywhere on a £10 push bike with 5 previous owners. Essential communication was 10p a week in the pay phone down the road.

It's actually quite offensive that you wilfully ignore the previous generation did go without and did make do with things that you wouldn't consider in a month of Sundays. The sooner you wake up to that the sooner you might start doing something about it rather than spending your days complaining that life is so unfair.

TrickyTree83

MobileSaver wrote: »

Owning your own home is not essential to anyone's survival; your sense of entitlement is quite shameful.



Seriously?!? £70 a month is the lowest someone who was making an effort could get broadband and a mobile for? And therein lies the problem, you are not prepared to make any effort or sacrifices.

£70 a month for health related activities?!? £180 per month "bare minimum social life required"? Required? Is it any wonder there is so little sympathy for a generation with such an appalling sense of entitlement?

One solitary weeks holiday £400 each... Again the entitlement rears its ugly head, you focus on "solitary" as clearly you believe you are entitled to more than one holiday a year.

As Cakeguts posted, our "holiday" was being shipped off to the grandparents for a week in the summer holidays. A weekend treat for my girlfriend and I was a four pack of lager and friends would come round with their four pack for a real party! Health activities were cycling everywhere on a £10 push bike with 5 previous owners. Essential communication was 10p a week in the pay phone down the road.

It's actually quite offensive that you wilfully ignore the previous generation did go without and did make do with things that you wouldn't consider in a month of Sundays. The sooner you wake up to that the sooner you might start doing something about it rather than spending your days complaining that life is so unfair.

This. ^^^

I made these sacrifices in my twenties (2004 - 2014) which puts me close to or in the age bracket of this generation complain. No branded items, never owned anything prefixed with "i", didn't own a laptop, drove around a car everyone laughed at, all my furniture was 2nd hand or worse and I travelled nowhere of note or significance. Think day trips to cathedrals, free museums, parks, nature reserves, family, friends etc..

In my 30's I can now own everything I'd like and go on many holidays a year.

The priorities of some are !!!! about face if owning a home is so important to them. I read that list of expenditure and it really isn't anywhere near "the minimum" and does indicate an overwhelming sense of entitlement.

economic

im 34 and own my own property in highgate and have saved hard on average 100k a year for last 10 years by cutting costs as much as possible. I still live frugally and am careful with my money despite savings and investments of around 500k. those who spend without thinking should have only themselves to blame if they cant afford to buy.

westernpromise

HAMISH_MCTAVISH wrote: »

You have decreased the stock of rented houses by 100, and increased the stock of owner occupied houses by 100.

No, you've displaced 133 people from renting and enabled 100 people to own. The other 33 have to rent in what is left of the rental pool.

Herzlos

ruperts wrote: »

They're nice. So now they just need to save £28k for a deposit. Don't forget you're quoting average wages across all age groups while we're realistically looking at younger people here who, even if they earn the average for their age group, actually earn about 15% less than the overall average. So all things considered they might be looking at a joint take home of around £2k per month with typical expenses as follows.


Rent on a bottom end one bed flat - £500 per month
Council Tax - £90 per month
Electricity, Gas and Water - £120 per month
Essential communication tools, Internet and phones - £70 per month
One car purchased, maintained and fueled - £300 per month
One public transport season ticket - £100 per month
Basic food rations - £350 per month
Essential items, toiletries, clothes etc - £150 per month
Health related activities, sports club, gym etc - £70 per month
The bare minimum social life required to avoid mental health issues - £180 per month
One solitary weeks holiday at a bargain basement £400 each = £66 per month


Total = £1,996 per month.


So they'll be able to save a whacking £4 per month towards their £28k target and should achieve their aim in roughly in 583 years. Great stuff.

Once you break it down a lot of that seems fairly reasonable, when you're talking about 2 people, but 2 people earning £2k between them implies that they aren't both full time? 1 full time and 1 part time?

That said, there is still a lot of things you should be able to do to trim those outgoings a bit (phones, off-peak gym, less nights out, cheaper/no holiday, cheaper clothes, cheaper car).

I'm not saying it's at all easy to get a mortgage, but for everyone there's a compromise between getting on the ladder and enjoying life whilst you're still young.

ukcarper

Herzlos wrote: »

Once you break it down a lot of that seems fairly reasonable, when you're talking about 2 people, but 2 people earning £2k between them implies that they aren't both full time? 1 full time and 1 part time?

That said, there is still a lot of things you should be able to do to trim those outgoings a bit (phones, off-peak gym, less nights out, cheaper/no holiday, cheaper clothes, cheaper car).

I'm not saying it's at all easy to get a mortgage, but for everyone there's a compromise between getting on the ladder and enjoying life whilst you're still young.

In fact two people working full time in minimum wage jobs would take home more that £2000