Ownership amongst the young

GreatApe

London is expensive but 8 regions of the UK are cheap

Even in expensive areas many UK families are not net buyers but will inherit Property. I know at least a dozen 'kids' who earn below average wages and some of them are below average Education and IQ yet even London property will be no problem for them as they will inherit property. A few of them already have.

Yes I know some people have had bad luck and were born to lazy or ignorant or careless or unlucky or spiteful parents. They form websites and forums and convince each other that the world is just about to crash and they will come out on top. For everyone else grandma gives them a paid for house. (Something like 80% of pensioners own and vast majority own outright). And assuming you weren't born of a virgin like Jesus then you will have 2 sets of grandparents and thus have a 96% chance that at least one set owns 80% chance that both sets own and only a 4% chance that neither own.

Housing isn't a problem. As house prices go up so do Inheritances. Pound for pound

Windofchange

So the considered view of this forum seems to be that it is simply that the young waste their money on things and don't want to save for a house deposit? I can certainly accept that there are things that the young do now that was different to times gone by - university, travelling, putting marriage on hold etc, but we're not talking about a small drop in home ownership. It's a seismic shift.

economic

Windofchange wrote: »

So the considered view of this forum seems to be that it is simply that the young waste their money on things and don't want to save for a house deposit? I can certainly accept that there are things that the young do now that was different to times gone by - university, travelling, putting marriage on hold etc, but we're not talking about a small drop in home ownership. It's a seismic shift.

i suggest you read up on GreatApes posts and actually learn from it as he clearly explains why its dropped.

chucknorris

GreatApe wrote: »

The oddity is not house prices today the oddity us why they were so cheap 20 years ago.

This was one of the main reasons that I came down to London in 1990, it just looked like free money (eventually in the long term), by 1993 I had bought 4 properties. I remember asking some of my fellow students at Leeds poly if they would consider being my tenants. At the time they joked , no thanks we aren't going to make you rich, but nevertheless 5 of them did. It allowed me to feel my way into the market, and also help them at the same time, they got good deals and I got long term tenants who I was friends with, win, win.

chucknorris

Cakeguts wrote: »

I don't think it is iphones I think it is car finance. Young people used to buy cheap old cars. Now they buy the latest model on finance. When you go out next just look to see how many young people are driving old cars.

I just don't get the 'car thing', I've been a multi-millionaire for well over a decade. In that time I've owned 2 cars which I bought for under £10k (average), they both got me from a to b in a very satisfactory manner, why do people spend so much on cars? In the past I have always invested my money, rather than 'spent' it ( I accept that now I should move to 'spending' (that isn't in dispute). People have actually pointed at my cars and laughed (I tend to hold them for about 10 years, so they do look very tired at the end), but those same people who laughed either had bought cheap property or were renters (yes really, that is true!).

Windofchange

The trouble is though that although it all sounds very lovely - people inheriting houses, 8 regions of the UK being cheap etc etc, the figures from the ONS, the above article etc show that home ownership is falling rapidly. If this was not the case, I could accept that all was well, but it clearly isn't.

GreatApe

Windofchange wrote: »

So the considered view of this forum seems to be that it is simply that the young waste their money on things and don't want to save for a house deposit? I can certainly accept that there are things that the young do now that was different to times gone by - university, travelling, putting marriage on hold etc, but we're not talking about a small drop in home ownership. It's a seismic shift.

Its not all that big a fall. Ownership peaked at close to 71% in 2004 and was 68.8% in 2011 census for UK born Brits.

That's not much of a fall especially considering we are measuring from the very peak year and also there was a big !!! recession 2008-2011.

Ownership has indeed continued to fall slightly more but that is primarily driven by the continued increase in recent migrants. The UK native population is probably shrinking with UK born women now only having 1.75 kids on average plus iirc some 100,000 Brits annually emigrate and leave the country.

Simply put things aren't as bad as the crash cheerleaders want to paint it especially for the natives who have a >90% chance of inheriting half a house and a 80% chance of inheriting a full house. Oh and of course 8 regions of the UK are so cheap it would cost more to rent a social house for 25 years than it would cost to buy the median terrace with a mortgage.

Crashy_Time

Windofchange wrote: »

The trouble is though that although it all sounds very lovely - people inheriting houses, 8 regions of the UK being cheap etc etc, the figures from the ONS, the above article etc show that home ownership is falling rapidly. If this was not the case, I could accept that all was well, but it clearly isn't.

Don`t forget that the central banks had to act as one to prop it all up as well, with the biggest intervention of all times :rotfl:Maybe Chuck can post links to the cars he has sold over the years, or have they been "lost" as well The "discussion" on here is strictly comedy value, don`t take it too seriously!

Crashy_Time

GreatApe wrote: »

Its not all that big a fall. Ownership peaked at close to 71% in 2004 and was 68.8% in 2011 census for UK born Brits.

That's not much of a fall especially considering we are measuring from the very peak year and also there was a big !!! recession 2008-2011.

Ownership has indeed continued to fall slightly more but that is primarily driven by the continued increase in recent migrants. The UK native population is probably shrinking with UK born women now only having 1.75 kids on average plus iirc some 100,000 Brits annually emigrate and leave the country.

Simply put things aren't as bad as the crash cheerleaders want to paint it especially for the natives who have a >90% chance of inheriting half a house and a 80% chance of inheriting a full house. Oh and of course 8 regions of the UK are so cheap it would cost more to rent a social house for 25 years than it would cost to buy the median terrace with a mortgage.

Housing Benefit doesn`t do mortgages, how many times do I have to spell it out?

GreatApe

Windofchange wrote: »

The trouble is though that although it all sounds very lovely - people inheriting houses, 8 regions of the UK being cheap etc etc, the figures from the ONS, the above article etc show that home ownership is falling rapidly. If this was not the case, I could accept that all was well, but it clearly isn't.

Most renters only rent temporarily. I rented from age 18-27 and if I live to be 88 years old that means 13% of my adult life I was a renter. If we expect my situation to be reasonably desirable we would need 13% of homes as private rentals.

Right now its about 20% private rental however recent migrants disproportionately rent. Which is why we have seen renting boom from 2004 onwards. The natives have probably shrunk in number yet the overall population has boomed. A lot of the additional demand for rentals is from migrants that have come over the last 15 years.

Also a big change has been the AGR people get married or the fact that fewer and fewer get married at all. My parents married in their early 20s me in my early 30s so about a decade difference. I rented longer than they did probably because I got married later. Had I married in my early 20s I'm sure I would have bought sooner.