Has the objective of buying a house changed?

Crashy_Time

Caraway90 wrote: »

The objectives for me were a lovely place to live, our own space, independence, the next step in our relationship and responsibilities - I don't see our house as a money making machine.

Many people did though, and were actively encouraged to do so by the banks to get them to borrow big, we wouldn`t be where we are if everyone thought like you.

hazyjo

Most young people seem to buy their first home thinking they have a 25 (ish) year mortgage, will be mortgage free by 40-odd (as that sounds ancient) and will definitely be retiring to the country at 50-ish.


It's not often the case (obvs there are exceptions!).


Most people who I know (including me) who bought back in the '90s have increased on the amount they've borrowed and the length of the mortgage (my sis is actually in the same house they bought back in '95!) whereas I've moved 8 times! They've borrowed against it though and still have a mortgage (paid £70k-odd in '95 and it's prob now worth £600k-odd). Having something with lots of equity has enabled them to extend and make the house suitable for them to stay in instead of having to move. They had 3 kids so they did well to buy their first property and still manage to be in it!


I've had to sell 3 properties after splitting up with 2 husbands and a fiance so it depends what happens in the future really which you can't predict! It's expensive doing that! I've only moved to change areas - I've not moved to move up the ladder as such, although it has sometimes worked out that way.


I'm in a popular pricey area and do want my home to keep enough value in it to sell in the future to release some dosh and buy cheaper by the sea further out. Expect we'll be here for some time yet (unusual for me!) unless I get to retire early!

TamsinC

And of course just a couple of generations ago jobs were for life and you tended to live where you were born for all your life. Nowadays people are far more mobile and transient in life. Jobs are now longer for life. It makes a difference.

Hoploz

The key thing that's changed is long term thinking.

People indeed don't have jobs for life like they used to. And where people used to be able to buy a house big enough to stay in forever they can't. There's social mobility that there didn't used to be in the first half of 20th century. If people didn't have enough money to have things, they didn't have them. People would wait until they had a house before starting a family. They didn't worry about house prices and moving because it just wasn't a thing in the old days. People stayed put for good, having married someone from the same village and with their local job they walked or cycled to!

Those things have lead to a difference in the way people live their lives, and the housing market has changed along with globalisation, increased consumerism and debt-led society. It's a very interesting topic in social history.

RubyHouse

When I say I am not concerned - I mean I am not concerned about losing a huge value - I live in the north east where prices are low but stable. The house is in a desirable location and a popular style - 50s 3 bed-semi with bay windows etc.

And in reference to moving up the ladder, I eventually want to move to a local seaside town which is out of my budget at the minute. In 10 or 15 years time, I hope we will have enough equity to make that step.

RubyHouse

Hoploz wrote: »

The key thing that's changed is long term thinking.

People indeed don't have jobs for life like they used to. And where people used to be able to buy a house big enough to stay in forever they can't. There's social mobility that there didn't used to be in the first half of 20th century. If people didn't have enough money to have things, they didn't have them. People would wait until they had a house before starting a family. They didn't worry about house prices and moving because it just wasn't a thing in the old days. People stayed put for good, having married someone from the same village and with their local job they walked or cycled to!

Those things have lead to a difference in the way people live their lives, and the housing market has changed along with globalisation, increased consumerism and debt-led society. It's a very interesting topic in social history.

This is what I find interesting, social mobility and different kinds of employment have created what seems to me to be whole new industry - the housing market.
I lived in an old miners village whilst I was growing up, most of my friends parents had lived there all their lives, as did their parents also. My generation have all but upped and left, leaving the village looking a little deserted with plenty of empty homes. As there is not a great deal good employment in that area i wonder if it will ever recover.

westernpromise

If the only reason it existed was the mine, and the mine has closed, there's no reason why the village should survive.

It will presumably eventually become the equivalent of those Wild West ghost towns which were abandoned when all the gold was gone.

hazyjo

Planet_Switzerland wrote: »

Really? I don't think I've ever met anyone who's thought that, though I have known a couple of older people who have more or less done that.


If anything I'd say it's the opposite. Many people see themselves paying the mortgage or rent and working till they drop dead as property is so expensive and the retirement age keeps getting higher.

Only very young people. Once they get to my age, they realise they're working forever lol! Maybe it's regional or maybe the youngsters I know think they'll make loads more money than their parents have done!

Crashy_Time

Planet_Switzerland wrote: »

Really? I don't think I've ever met anyone who's thought that, though I have known a couple of older people who have more or less done that.


If anything I'd say it's the opposite. Many people see themselves paying the mortgage or rent and working till they drop dead as property is so expensive and the retirement age keeps getting higher.

More and more people are just not bothering with over-priced property, as the transactions figures keep showing us

Hoploz

Crashy_Time wrote: »

More and more people are just not bothering with over-priced property, as the transactions figures keep showing us

Well that's just fine as long as they realise they will be having to find their rent money for their landlords until the day they die ... State pension would nowhere near cover this so unless they have a nice fat pension pot it could mean they have to work ... rather than having it all bought and paid for.