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Where have all the 20 something’s gone?
Comments
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AdrianC this was a specific example not a general one.0
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Have to disagree, I know a few FTB!!!8217;s struggling to secure a home because they are being gazumped by investors adding to their portfolio with much more money to put down that the people who have skrimpt and saved for 10 years.
Also doesn!!!8217;t the 2007 crash prove that theory wrong, where suddenly it just got too much and the market collapsed, won!!!8217;t that happen again if they keep rising faster than wages can meet them and with lending criteria!!!8217;s becoming more select?
You would think that there would be a price correction.
Where are the investors getting their money from?
It takes two to make a successful gazump. The person making the offer and the person accepting it. A house is worth what someone will pay for it. So if an investor offers more that is the correct value of the property. Houses are not worth the imaginary number put on them by estate agents they are only worth what someone will pay. Looked at from the other side the first time buyer was trying to buy a house too cheaply from the seller?0 -
In answer to your question. Your right I!!!8217;m not on here complaining and you wouldn!!!8217;t have seen me do it even if I had struggled to buy.
I inherited a large estate from my late mother who battled cancer for 8 years, it was an open fact I would inherit her wealth so we didn!!!8217;t focus our lives on saving instead we spend money enjoying what time we had left together as a family (within reason) also my partner and I are well paid compared to others our age, but no means wealthy but enough to get by.
I had to loose my mom to be able to buy a family home It doesn!!!8217;t makes up for it. I!!!8217;d rent for my entire life to have her back, but had she not been ill it!!!8217;s a safe assumption that eventually she would of given me a deposit for a home as was her plan if she did beat the cancer and made it to 55, I have been very lucky to be left what I have. Many people I know won!!!8217;t ever come into something like this, hence what made me think, well what about them? Don!!!8217;t get me wrong I have friends who have spent silly money on silly things and still haven!!!8217;t started getting their lives together. I also know people who have skrimpt and saved every penny. I suppose I just wonder is home onwership in the future for the thrifty or the children of inherited wealth only? Do the standard working family have a chance without living without modern amenities. And frankly I can see why people don!!!8217;t want to, life is short as I have witnessed first hand. And I suppose we all priorities different, personally I would never spend £20k on a wedding but I know plenty that have. Maybe we millennials have just been fed this idea we can have it all when we really can!!!8217;t. Maybe we have this idea of what modern British life should include, own home, nice car, decent holidays, conviences etc.
I just think it!!!8217;s a sad state of affairs that prospects for this and coming generations feel bleak. And that isn!!!8217;t just the fault of the housing market. It!!!8217;s one wheel of a very large cog of dissolution.
I don't think people on here are saying that people should change how they spend their money. What I am saying is that you can't have everything. Life is full of choices. But if you make a bad choice you can't blame someone else for it. Using your example you can't spend £20k on a wedding and then complain that you don't have enough savings left for a deposit on a house.
Your generation expects, house, car, good holidays conveniences. Mine was house. Car if you could afford an old second hand one. One holiday a year if you could afford it. If not you stay at home or go to stay with a relative in a different part of the country. Conveniences if you need them if not don't buy them. Which generation is going to find it easier to save money and not buy things they don't need?0 -
moneyistooshorttomention wrote: »That's the thing though - you were prepared to move (and seem to feel okay about it) for a starter house. Others of us move - and are upset at having to do so.
I certainly feel it's wrong for people to have to move to elsewhere in the country to get a house - whether it's a starter or a further-up-the-ladder one and I don't blame people a bit who say "Why should I?" and won't - and I expect that's most people.
I don't know about "most people". This is not the way anyone in my peer group saw life. I left school in 1986. We all expected to leave home when we left school and go away to uni, poly etc, and then at the end of the course look for a job anywhere in the country and move there. Moving to a new job (either mine or my then husband's) generally meant moving across the country too.From the OP:
Do you ever wonder what is in store for the people who come after you?
Does it concern you? Or is it a ‘not my issue’ kind of feeling?
Yes, I do worry about my kids' prospects. And my much older boomer cousins do too. They're all appalled by how high house prices have got - the increases in value of their own houses doesn't come close to making up for the difficulties they see their grown up children experiencing.Koldweather1 wrote: »I think once your on the ladder and have a mortgage, it is EASIER than the past, simply due to the low IR we have been experiencing, even a decent uptick is still well below long term norm. BUT the problem is many can't even get a mortgage due to the salarys not having kept pace. No amount of beans on toast is rectifying that situation!
I disagree. Consider someone who buys a house that they can more or less afford with a bit of sacrificing in their lifestyle. These days, they will continue to find that they can more or less afford their mortgage payment with a bit of sacrificing of their lifestyle for many years to come. In the high interest, high inflation environment of the 1970s, for example, even if you stretched yourself to your absolute limit to make your mortgage payments in the first year, within just a few years, your salary and everything else would have gone up significantly, but your mortgage payment would have stayed the same, thus becoming much more easily affordable, and therefore rapidly requiring much less scrimping.Do you know anyone who's bereaved? Point them to https://www.AtaLoss.org which does for bereavement support what MSE does for financial services, providing links to support organisations relevant to the circumstances of the loss & the local area. (Link permitted by forum team)
Tyre performance in the wet deteriorates rapidly below about 3mm tread - change yours when they get dangerous, not just when they are nearly illegal (1.6mm).
Oh, and wear your seatbelt. My kids are only alive because they were wearing theirs when somebody else was driving in wet weather with worn tyres.
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OK now my parents where alive during world war 2. There was government rationing. So they got a very good lesson in you can't have everything you want because it is rationed. It didn't do them any harm...
My parents were also alive in WW2. They bought their first house when they were aged 33 and 30, when my dad was working as a junior lecturer at a university, and my mum was a SAHM. They bought their house, with a mortgage and a little help from their parents, for 2.5 times household earnings. There's a similar house in the next street over that's on the market now for £1.25 million. Admittedly, it's got a proper basement whereas my parents' one only has a cellar, but that would only make a small difference. There is no way at all that anyone on a junior lecturer's salary these days could possibly think of buying one of those houses.You forgot the interest. When you start to save in a big way you put the money into an account that earns as much interest as possible...
Up until a few years ago, this would have been a very good point. It is considerably less relevant now. Have you looked at the interest rates available on savings these days????I did warn people yesterday that this discussion would get very silly.....and it has.
DAVESNAVE!!! How lovely to see you again. :hello:
Do come and visit the NPT some time. Please? Pretty please?Do you know anyone who's bereaved? Point them to https://www.AtaLoss.org which does for bereavement support what MSE does for financial services, providing links to support organisations relevant to the circumstances of the loss & the local area. (Link permitted by forum team)
Tyre performance in the wet deteriorates rapidly below about 3mm tread - change yours when they get dangerous, not just when they are nearly illegal (1.6mm).
Oh, and wear your seatbelt. My kids are only alive because they were wearing theirs when somebody else was driving in wet weather with worn tyres.0 -
I don't know about "most people". This is not the way anyone in my peer group saw life. I left school in 1986. We all expected to leave home when we left school and go away to uni, poly etc, and then at the end of the course look for a job anywhere in the country and move there. Moving to a new job (either mine or my then husband's) generally meant moving across the country too.
es, I do worry about my kids' prospects. And my much older boomer cousins do too. They're all appalled by how high house prices have got - the increases in value of their own houses doesn't come close to making up for the difficulties they see their grown up children experiencing.
I disagree. Consider someone who buys a house that they can more or less afford with a bit of sacrificing in their lifestyle. These days, they will continue to find that they can more or less afford their mortgage payment with a bit of sacrificing of their lifestyle for many years to come. In the high interest, high inflation environment of the 1970s, for example, even if you stretched yourself to your absolute limit to make your mortgage payments in the first year, within just a few years, your salary and everything else would have gone up significantly, but your mortgage payment would have stayed the same, thus becoming much more easily affordable, and therefore rapidly requiring much less scrimping.
The only thing I would say about the 1970s inflation thing is that although mortgage repayments got less compared to earnings those earnings didn't keep up with inflation on everything else so people had less disposable income.
I think the answer these days is to not get drawn into the university thing and to go straight to work at 18 so that you get 3 extra years of earnings and seniority.0 -
My parents were also alive in WW2. They bought their first house when they were aged 33 and 30, when my dad was working as a junior lecturer at a university, and my mum was a SAHM. They bought their house, with a mortgage and a little help from their parents, for 2.5 times household earnings. There's a similar house in the next street over that's on the market now for £1.25 million. Admittedly, it's got a proper basement whereas my parents' one only has a cellar, but that would only make a small difference. There is no way at all that anyone on a junior lecturer's salary these days could possibly think of buying one of those houses.
Up until a few years ago, this would have been a very good point. It is considerably less relevant now. Have you looked at the interest rates available on savings these days????
DAVESNAVE!!! How lovely to see you again. :hello:
Do come and visit the NPT some time. Please? Pretty please?
There is another interesting thing that I have noticed. In the 50s the high earners were people like doctors and solicitors. Now the high earners are people who own a business. So our local multi millionaire is the local barber. The man who owns a chemist shop isn't poor either.
The house in the next street over in your example could be bought by a hairdresser not a college lecturer. When did that change happen?0 -
Also whoever moved my post. Thank you I did ask how to move it over but no one aswered
That's because you can't move it. You have to wait for a board guide to notice that it needs moving and move it for you.The only thing I would say about the 1970s inflation thing is that although mortgage repayments got less compared to earnings those earnings didn't keep up with inflation on everything else so people had less disposable income.
I think the answer these days is to not get drawn into the university thing and to go straight to work at 18 so that you get 3 extra years of earnings and seniority.
That rather depends on what sort of work you want to do. I'm a teacher. I don't think I'd have got very far with that without a degree. Admittedly, I don't actually need my doctorate, but when I decided to do it, I thought I wanted a career in scientific research, so the doctorate would have been essential. In teaching, it just earns me a bit of kudos (and in my current circumstances it's convenient to have a title that bypasses any consideration of marital status, but I couldn't have foreseen that).Do you know anyone who's bereaved? Point them to https://www.AtaLoss.org which does for bereavement support what MSE does for financial services, providing links to support organisations relevant to the circumstances of the loss & the local area. (Link permitted by forum team)
Tyre performance in the wet deteriorates rapidly below about 3mm tread - change yours when they get dangerous, not just when they are nearly illegal (1.6mm).
Oh, and wear your seatbelt. My kids are only alive because they were wearing theirs when somebody else was driving in wet weather with worn tyres.0 -
I've considered this situation. Renting can help and hurt. Yes you have the money to make that investment, but will it all be gone put into a house? Have you thought about the possibly putting it into private school for the children? Maybe investing the majority of it so it pays you to save? I mean I'm just saying don't throw your carton of eggs at once.0
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