Can Millenials Buy A House?

capital0ne

I've posted this subject in the past and today we had a discussion/argument in the office.
Half of us think a young person can buy a house or flat. The other half said it was too hard! This came about when someone said youngsters stay at home til thy're 35 or more.

So I did a bit of research, where I live a three bed detached house can cost £350k-£650k which I'm guessing is about average.

Where I work new starters (5 o'levels only) salary is £19k which would be about £1,400/month.

So living at home, running a cheap car you could easily save £800/month, which after a year is £10k.
Quick Zoopla brought up a 20 houses/flats, 2 or 3 bed within 15 miles at £100k.

And a 90% mortgage would be about £420/month - far cheaper than renting.

So I don't see what the problem is - I guess it just a matter of weighing up being a home owner and freedom to do what you want in your own place, or living with the 'rents and buying a new car/phone/tv etc and living by their rules.

Or paying double and renting!

So top tip youngsters, move home, save for a year and buy your own place.

SG27

Depends on the area. The first time buyers buying my 2 bed house are getting a mortgage of £292,500. :eek: They obviously earn a lot more than I do! The price is £325k. They are late 20s and have £32,500 deposit saved.

Its incredibly hard in the South East. Took us 8 years to save for our deposit while livingwith parents and saving every penny possible. Bought 5 years ago and now prices are 30% higher. We couldnt buy now. In fact we are really struggling to upsize because of the increase cost of the step up. Ended up buying a wreck and plan on moving our family of 3 back in with parents while we save to do it up! Not looking forward to it

Davesnave

There are many discussions like this, both here and in the correct place. No one will come to any earth-shattering conclusions.

But the answer to your question is: 'Some will do so and some won't, same as always.'

Now to unsubscribe......

tori.k

As SG27 said it depends very much on area 19k may be a starting wage in your area but its the higher end average wage here in Cornwall with the average house price around 225k.
A lot of the cheaper 100k houses are priced reflecting work needed so a bit of an illusion you need a lot more then just the money to fund the mortgage, and ultimately they end up the same price or more then the done up houses in any location.

Strebor123

It depends where you live. Myself and all my friends bar one or two (who went travelling instead) all had houses by the time we were 23/24.

A lot of people my age will complain about house prices but then they will go and spend £300 a month on designer clothes. They'll have an £80 phone contract because they just had to have the latest iPhone. It goes on.

Between my friends and I we have places in Plymouth, Hertfordshire, Derby, Northampton, Reading etc. So we have quite a wide spread of places and varying prices.

It's all about sacrifice. Whilst I saved for my deposit I cut a lot of things out. I still went to the pub with my friends, but had a drink of water. Downgraded my phone plan to a simo at £8 a month. I cut my food bill down by making large meals I could eat over several days (large stews, spag bol, chilli etc.) and just generally cut down on buying things I didn't actually need.

People also need to stop using the "average house price in ..." thing. If you're buying your first house you shouldn't be expecting to buy a 3 bed semi. If it's out of your reach, buy a 1 bed flat. They're affordable pretty much everywhere except London. Then you pay the mortgage off over a few years and upgrade.

People's expectations for a first home are far too high.

AdrianC

Friends of ours are just turning 30, and the SOLD sign has just gone up on their first house, an ex-colliery village terrace in the Brum orbit, because they're moving to a larger place, with a 3yo and baby number 2 on the way. She's a qualified primary school teacher, but isn't working. He's worked his way off the production line in a large factory. They've had no substantial family financial help.

Other friends of similar age have not long purchased a house in East London. She's IT in academia, he used to be but is now private sector. Again, no substantial family help.

shortcrust

Maybe buying a bit later in life isn't such a terrible thing. If you're not earning loads of money buying a house needs to be your number one goal. The last thing I wanted in my 20s was to be sensible and frugal. I'd probably have sold up (or had it repossessed!) to peruse some daft scheme within a couple of years. My budgeting back then involved spending until the cards stopped working.

I'm sure if you'd asked me I'd have said it was incredibly unfair that I wasn't able to buy a home.

dunroving

Of course they can, and Strebor has described how ... I couldn't add much to that.

Learned helplessness and victimhood seems to be flavour of the millennium. Millennial housebuyers are just the latest perceived victims.

FTBlalala

Being a 24 year old FTB in the last legs of buying a place it definitely is possible. I agree, I think people my age have too higher expectations of a first home.

We live near Reading and tiny 1 bed houses (no garden, no drive) start at £260k, new build 2 bed houses start at £360k round the corner! So we looked for 1 bed maisonettes/flats and eventually settled on a lovely 2 bed maisonette for £230k. I must also say that on a modest salary of £25k I wouldn't be able to buy on my own unless I saved for many more years for a much bigger deposit but then if I was on my own I would buy a 1 bed or studio.

2 years of both living at home and we had enough for deposit, fees, furniture, appliances etc. We pay decent rent (I pay £80 pw, bf pays £70 - not possible to live together in one house) as we realise it is much cheaper than private (we did this for a couple years too £800pm for one bed). The rent is literally for room and contribution towards bills as we buy all our own food and are basically lodgers. I only bring that up as I also have friends who complain they can't afford to rent or buy but live at home rent free, food in the cupboard at parent's expense and all their washing done etc. Basically still living at home as children not adults so where their income goes, I have no clue.

Sorry for the long post and a bit ranty but it definitely can be done if you put your mind to it. Anywhere! (maybe not London!)

agrinnall

If only there was a dedicated board for the discussion of house buying...

ibizafan_2

My son and his best friend from university bought a flat in Clapham, South London, in 2008 when they were both 26 for £315,000. My son was on £26,000 at the time, and although they had a good deposit, he found it very hard for a couple of years, so didn’t go out much as he couldn’t afford to. Over the years, he got promotions, better jobs etc and is now on £100,000. His friend moved out to get married a few years ago, and my son bought him out and can easily afford the mortgage on his own. Meanwhile, the flat has gone up in value to approximately £650,000. It was the best thing he ever did in my opinion. All I’m saying is that it can be done, but means sacrifices, and also trying very hard to improve your employment situation.