Ownership amongst the young

ukcarper

Herzlos wrote: »

£399 a month will get you some pretty nice cars, so the people you're talking about on £35k aren't the same ones with £400 car finance. I'd figure average payments on a lease/PCP deal is probably about £150-200, and isn't necessarily that bad a deal, all in.

Even if the person on £35k can do without a car and travel free, the mortgage multipliers mean they can stretch to £140k, and in a lot of the UK that doesn't get them much at all.

If you can't afford a house yet, do you live in poverty hoping to save enough to offset the house price inflation, or do you spend the money on a nice car instead of driving a banger?

If you add a 10% deposit that's £155k the only places where average flat price is above that London, south east and east.

Cakeguts

ukcarper wrote: »

If you add a 10% deposit that's £155k the only places where average flat price is above that London, south east and east.

Yes and someone who was prioritising buying a house would save up and move to a cheaper part of the country. There are lots of nice places you can live where you can buy a nice house for less than £155k. No one is forcing anyone to live in the most expensive places in the country.

ukcarper

Cakeguts wrote: »

Yes and someone who was prioritising buying a house would save up and move to a cheaper part of the country. There are lots of nice places you can live where you can buy a nice house for less than £155k. No one is forcing anyone to live in the most expensive places in the country.

I don't think it's quite as simple as that and the better paid jobs are normally in areas where property is more expensive. But if you are in an area where your earnings enough to get a big enough mortgage I think you should be able to save deposit.

lisyloo

Cakeguts wrote: »

No one is forcing anyone to live in the most expensive places in the country.

My husband was out of work for 12 months and spending everyday full full time looking, then found a job in London, that would pay enough to cover the London costs.

You are seeing things as black and white and life simply isn't like that for many people. You can't just go and pick up any job in your 50s.

Millions of people work in London because they can find jobs there.
Millions commute or stay with friends or stay in tiny studios, boats or air bob. Do you think they would all stand up for hours on trains if they didn't have to. either those millions are stupid or things aren't quite as black and white as you say. I'd plump for the latter.

Graham_Devon

Cakeguts wrote: »

They can't afford it because they earn £35k a year but have £399 going out every month on car finance. There are so many new cars being bought on finance that the prices of second hand cars is set to fall. The people who buy the second hand cars are the people who know that a house is more important than a car and so have spent their money differently.

There is nothing that anyone can do about someone who puts a new car as a higher priority than buying
somewhere to live. If you allow them to borrow more for a mortgage they will just buy a more expensive car on finance. So instead of £399 a month they will spend £799 a month. It isn't a finance problem it is a priority problem. If your priority is to spend money on new cars, expensive phones and all the latest gadgets then you are never going to be able to afford a house however much you earn because the priority is to spend money on cars and gadgets rather than to save for a deposit. There is nothing wrong with this anyone can spend their money as they please but they do have to understand that if they want to buy new cars and expensive new iphones then they won't have enough disposable income left over to save for a deposit.

People have to choose which to prioritise. Cars on finance, expensive phones and latest gadgets, eating out, holidays or to buy a home. There is no correct choice but whichever they choose that choice is down to them.

I don't know a single person who falls into the territory you have listed above.

£400 a month on car finance? Is this just random figures you are pulling out of thin air?

The truth is, it's easy to pretend your scenario is the norm than it is to accept reality.

The sub £150 car leases make a lot of sense though, if you can bear the cars that come with them. Especially those with maintenance.

Cakeguts wrote: »

Yes and someone who was prioritising buying a house would save up and move to a cheaper part of the country. There are lots of nice places you can live where you can buy a nice house for less than £155k. No one is forcing anyone to live in the most expensive places in the country.

And the above? Fantasy land stuff again.

You can't just move to another area of the country and take your income with you. Not without getting new jobs first. And then you'll have the age old mortgage problem of having to gain pay records again to prove you can afford the mortgage.

This idea that you somply up sticks and move again ignores reality. Only a few will be able to do this and keep the same employer and same income in order to secure a mortgage.

Windofchange

ukcarper wrote: »

If you add a 10% deposit that's £155k the only places where average flat price is above that London, south east and east.

And how many people in places where you can get a house for £155k earn £35k a year or can save £15k?

Windofchange

Cakeguts wrote: »

They can't afford it because they earn £35k a year but have £399 going out every month on car finance. There are so many new cars being bought on finance that the prices of second hand cars is set to fall. The people who buy the second hand cars are the people who know that a house is more important than a car and so have spent their money differently.

There is nothing that anyone can do about someone who puts a new car as a higher priority than buying
somewhere to live. If you allow them to borrow more for a mortgage they will just buy a more expensive car on finance. So instead of £399 a month they will spend £799 a month. It isn't a finance problem it is a priority problem. If your priority is to spend money on new cars, expensive phones and all the latest gadgets then you are never going to be able to afford a house however much you earn because the priority is to spend money on cars and gadgets rather than to save for a deposit. There is nothing wrong with this anyone can spend their money as they please but they do have to understand that if they want to buy new cars and expensive new iphones then they won't have enough disposable income left over to save for a deposit.

People have to choose which to prioritise. Cars on finance, expensive phones and latest gadgets, eating out, holidays or to buy a home. There is no correct choice but whichever they choose that choice is down to them.

Yup, the reason that someone earning £35k per year can't afford to put down a £200,000 deposit and get a 4 x mortgage on a studio is because of that new iPhone. If they could save every penny they earned after tax it would take them around 11 years to save that amount. This is if they didn't eat of course.

And yeah, the entire country has a PCP Range Rover Evoque at £400 a month which explains the whole unaffordability thing. Do any of you it's all OK lot actually think before you post?

ukcarper

Windofchange wrote: »

And how many people in places where you can get a house for £155k earn £35k a year or can save £15k?

We are talking about a flat and median full time earnings are £28k and I quoted average flat price and most of regions are below £120k. If you are on £35k you can save £15k if you really want to.

Windofchange

ukcarper wrote: »

We are talking about a flat and median full time earnings are £28k and I quoted average flat price and most of regions are below £120k. If you are on £35k you can save £15k if you really want to.

Ok let me rephrase that:

And how many people in places where you can get a flat for £155k earn £35k a year or can save £15k?

ukcarper

Windofchange wrote: »

Ok let me rephrase that:

And how many people in places where you can get a flat for £155k earn £35k a year or can save £15k?

Why should they buy average flat