Can Millenials Buy A House?

mayonnaise

Graham_Devon wrote: »

Quick look on the halifax website though shows that you wouldn't actually be able to get a mortgage for £90k though on that salary.

With 19,000, no debts, single person, no children, and a minimal £150 expenses per month, they would lend £71,000.

Just an online calculation, but basis for discussion.

So you'd need to save a deposit of £29,000 for that £100k house.

Good luck on 19,000 a year, pre tax, pension etc.

You just made the case for HTB.

Malthusian

LandyAndy wrote: »

It's nearly 40 years since I bought, at the age of 22, and that is exactly what I bought, as did many of my contemporaries.

You had fewer other interesting things you could do with your money 40 years ago than we do today.

Cakeguts

Malthusian wrote: »

You had fewer other interesting things you could do with your money 40 years ago than we do today.

Yes but televisions, cars, holidays abroad have got cheaper over the years.

Cakeguts

capital0ne wrote: »

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.

No one has taken O levels for years. I think you may mean GCSEs. If they really were O levels you would have to pay them a lot more. 5 O levels is roughly the equivalent of 5 A levels now.

John-K_3

brentcloning wrote: »

You're completely ignoring a large amount of people are on minimum wage, and not everyone can just go back home and live with their parents.

But even on minimum wage you can still buy a home if you are willing to live in a cheaper part of the country.

It is very easy though to rise above minimum wage. You only have to be one step better than the least productive workers in the country. A bit of ambition, thought, and planning, and nearly everyone is capable of earning a good chunk more.

We pay our cleaner £12 an hour, for example, which is not unusual.

Graham_Devon

mayonnaise wrote: »

You just made the case for HTB.

Couldn't you just say I've just made the case for 100%, 125% or 2300% mortgages, too?

Just saying!

westernpromise

John-K wrote: »

But even on minimum wage you can still buy a home if you are willing to live in a cheaper part of the country.

It is very easy though to rise above minimum wage. You only have to be one step better than the least productive workers in the country. A bit of ambition, thought, and planning, and nearly everyone is capable of earning a good chunk more.

We pay our cleaner £12 an hour, for example, which is not unusual.

I pay mine £11. It was £9 until recently but the agency then said that they were going to be paying new hires £11 while not putting the price up for existing ones. We thought that was unfair, because she'd be worse off than someone who had just rocked up and didn't speak the language, so we gave her a 22% pay rise.

John-K_3

brentcloning wrote: »

Home ownership for a 25 year old is 20%, compared to 46% twenty years ago.

Much of that is down to the age people leave education at. 90% of school leavers started work by the age of eighteen back then, and a fair few started at sixteen. Nowadays half of them do a four year degree course so are set back four or six years.

dawyldthing

I bought this when I was 26. To be fair I had a bit of help as inheritance early but still saved a heck of a lot. What I paid for this though some folks have cars worth more and I'm not joking. But it takes a lot of sacrifice.

The other thing is some one keeps mentioning flats for first time buyers. You forget the ground rent/ service tax or whatever it's called which is generally over a grand if not more every year, so it's like a second council tax which you don't have to pay in a house. You add up the selling things you'd need to do if you buy a flat then a house (selling with estate agent fees, buying and selling solicitor fees, second lot of searches for the house, removal costs, redecorating and the rest - you'd be lucky to have change out of a couple of grand) then you'd be better finding somewhere you like and can settle into first time round

AdrianC

dawyldthing wrote: »

The other thing is some one keeps mentioning flats for first time buyers. You forget the ground rent/ service tax or whatever it's called which is generally over a grand if not more every year, so it's like a second council tax which you don't have to pay in a house.

Woah, hold on a minute...


Ground rent and service charge are very different things.

Remember that in a flat, you only own the inside of your walls. Every other flat owner owns the inside of their walls. So who pays to maintain the outside of the walls, the common areas, the roof, the gutters, the drains?

If you own a house, you pay ALL of those yourself - they just aren't split out into a separate bill. You spend a Saturday up a ladder sorting that gutter out. You just pay the bill for the electricity for the outside light with the rest of the electricity. You paint the outside of the front door yourself every few years.

In a flat, somebody's doing all of that on your behalf, and splitting the bill between you and all the other flat owners.


If you rent the flat, the landlord's paying it for you.