Ownership amongst the young

chucknorris

GreatApe wrote: »

Do you think you might have left it a bit too late?

I don't see how I could spend a couple of million over just 20 years. That's something like £150k a year.

Even if I purchased a new car every 3 years and went on 4 holidays a year and went out for breakfast lunch and dinner 365 days a year and bought expensive cloths I don't see how I could spend more than £50k a year. Even that would seem like work rather than enjoying yourself as often just sitting at home doing nowt or just going for a walk is the most comfortable of ways to pass a day and that costs little to nothing.

Definitely left it too late (from a purely financial prospective), I've been telling my wife that for ages, but she did finally retire last year, it is well over £5m (although my wife is only 48). But what is more important is that I enjoyed the ride, it was a great challenge to get from poor to rich and also that I (we) will be as comfortable as I (we) want to be until the end. I am still working one day a week, most people will think that is crazy, because I can't possibly spend the money that I earn form being a university lecturer. But I really like doing it, it is only one day a week and it gives me immense pleasure. I think happiness is more important than getting the finances 100% timed correctly. Also you never who what is lurking in the future, what looks extremely comfortable today, might only be adequate if bizarre circumstances intervene.

GreatApe

Thrugelmir wrote: »

Years of lax lending allowed prices to get out of control. The tightening actually started a long time later. By then the horse had bolted. Now we have ultra low interest rates to stop the level of defaults rising. A crash only requires 10-15% of property on sale to fall suddenly in value to trigger an avalanche.

You are just peddling false hope just like the other crash cheerleaders that have been peddling false hope for 20 years.

We had a crash, 2008-2010 was the crash but the crash cheerleaders were too busy patting each other on the back to realise the buying opportunity.

There will be another crash but again it won't help
many of the crash cheerleaders because only 3% of homes transact in a given year and only a fraction of those are people who wouldn't have bought roughly at that time anyway.

There simply is no way for a mass conversion of renters to owners post crash its just not mathematically possible. So trying to time the bottom is futile most will never be able to do it

What we know and can act on is the fact that interest rates are low. Buying a house in Birmingham for £130k using a 2% mortgage or renting it for £650 per month. House prices need to crash 20% just to break even. Low mortgage rates has killed the idea of trying to wait for a crash its just stupid to wait when rates are so low.

The crash cheerleaders have been defeated already they just don't realise it. Every year they hold out they are losing paying 6% rent rather than a <2.5% mortgage

Good news is that there aren't many crash cheerleaders only a handful of silly bears on a small interweb forum

Windofchange

GreatApe wrote: »

There is no housing crisis. Housing is free for a lot of UK born Brits. 80% will inherit a house. >90% wipp get at least half a house. Only about 5% won't inherit a house.

GreatApe

Windofchange wrote: »

Out of maybe over a hundred families i know only a handful of families wont be passing down homes or significant Inheritances and those are mostly the dysfunctional ones that have alcohol or gambling addiction problems

Windofchange

GreatApe wrote: »

Out of maybe over a hundred families i know only a handful of families wont be passing down homes or significant Inheritances and those are mostly the dysfunctional ones that have alcohol or gambling addiction problems

Ok, well there we go, thread closed. Can anyone else be bothered?

economic

GreatApe wrote: »

Out of maybe over a hundred families i know only a handful of families wont be passing down homes or significant Inheritances and those are mostly the dysfunctional ones that have alcohol or gambling addiction problems

its very true, i almost laughed at the dysfunctional comment, but realised it is actually very true.

economic

Windofchange wrote: »

Ok, well there we go, thread closed. Can anyone else be bothered?

i also know many people myself who will inherit significant wealth.

zagubov

This is nonsense. The big empty houses owned by older citizens will not be passed on in time for their children with growing families to make use of them.

They'll be passed from parent to child when the children have retired and the grandchildren are in their 20s and 30s and out trying to find affordable accommodation and finding it's cramped and overpriced.

That's assuming that the houses won't have to be sold to pay for the lengthy care that the elderly homeowners will need to have.

economic

No. what is also not mentioned is not only is there wealth in the baby boomer generation homes. but also the savings they have accumulated over the years during periods of rampant wage growth and high interest rates. this occuring over a workign life of 40 years is huge sums of money that canbe easily gifted early enough to help children buy a property for themselves.

Windofchange

economic wrote: »

i also know many people myself who will inherit significant wealth.

Yup we've already covered you, your millionaire parents and your millionaire friends. Congratulations.

Care to post anything meaningful or are we going for the usual anecdotes and made up numbers?