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For those who think we had it easy...
Running_Horse
Posts: 11,809 Forumite
...buying our houses in the 1980s, a quick history lesson:
http://en.wikipedia.org/wiki/Black_Wednesday
I was sitting on a National Express coach visiting a relative at the other end of the country, when it came over the radio that interest rates had been raised twice in one day, and that Norman Lamont would keep raising them forever if necessary.
This would have ruined me, and many others who were hanging on by a thread. I remember feeling physically sick that my homeowning dream was over. My neighbours sold at a huge loss, and houses that today sell for over £100,000 in Chatham were being put in auctions with guide prices of £20,000 to £30,000; dozens of them. I just clung on, despite interest rates that meant nearly my whole salary was going on mortgage payments.
Yes, it is hard to buy a house today, just as it always has been, but interest rates are low, incomes are higher on average, and multiples are high. If you want to buy a property, start saving a deposit now. Think of commuting, from a rougher area if necessary. Buy a flat for a few years instead of your dream house. Take a part time job, or lodgers. Get more qualifications and consider other career options.
If you can't do this, then I am sorry, but home ownership is probably not for you.
http://en.wikipedia.org/wiki/Black_Wednesday
I was sitting on a National Express coach visiting a relative at the other end of the country, when it came over the radio that interest rates had been raised twice in one day, and that Norman Lamont would keep raising them forever if necessary.
This would have ruined me, and many others who were hanging on by a thread. I remember feeling physically sick that my homeowning dream was over. My neighbours sold at a huge loss, and houses that today sell for over £100,000 in Chatham were being put in auctions with guide prices of £20,000 to £30,000; dozens of them. I just clung on, despite interest rates that meant nearly my whole salary was going on mortgage payments.
Yes, it is hard to buy a house today, just as it always has been, but interest rates are low, incomes are higher on average, and multiples are high. If you want to buy a property, start saving a deposit now. Think of commuting, from a rougher area if necessary. Buy a flat for a few years instead of your dream house. Take a part time job, or lodgers. Get more qualifications and consider other career options.
If you can't do this, then I am sorry, but home ownership is probably not for you.
Been away for a while.
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Comments
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It's more difficult today than it was 7 years ago.Happy chappy0
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So you're suggesting that people should buy now before the crash and just put up with it?
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Its more difficult today than every before you wally!
Jobs are harder to get. Im not talking about jobs in general but jobs that will LAST longer than 3 months temp contract! Ever wondered how those new graduates who cant get jobs will find a house? Didnt think so........
I love the way people cite the way things used to be and tell us things are all rosey in the garden?....
20 Years ago you didnt have to loan £20000+ to go to university JUST TO GET A JOB! All you did was go to the nearest factory and ask!
20 Years ago you didnt have to work for minimum wage in a skilled job because the Polish will work it for £4 an hour!
20 Years ago houses didnt cost £150000 average!
20 Years ago you didnt need to be Polish/Have a qualification and registration number to be a Binman/Labourer/Insert non skilled job.
20 Years ago when you applied for a driving licence you got just that... Now we have to get a new licence and test just to pull a bloody trailer. This costs upwards of £1000 a pop!
So keep your wisecracks about how easy it is for us youngsters! We have to be smarter/wiser/fitter/quicker and still sucumb to years of debt to get the training to suceed in this new age.
Oh and if you call for an Ambulance dont mention your username to the crew. It might be me and il just leave you there!
Sorry for the rant but I hate people like you!0 -
So keep your wisecracks about how easy it is for us youngsters! We have to be smarter/wiser/fitter/quicker and still sucumb to years of debt to get the training to suceed in this new age.
Oh and if you call for an Ambulance dont mention your username to the crew. It might be me and il just leave you there!
Sorry for the rant but I hate people like you!
Calm down...
I agree its a lot harder to get on the ladder now, but Running Horse makes a valid point about the difficulty of staying on the ladder in 1992 when interest rates were 15%, three times higher than now.
Just keep saving up that deposit ready for the inevitable correction...0 -
You obviously never experienced 3 million unemployed.Its more difficult today than every before you wally!
Jobs are harder to get.
Sorry for the rant but I hate people like you!
Jobs are easier to get today.
I don't hate people like you. I pity your lack of experience.Been away for a while.0 -
...Running Horse makes a valid point about the difficulty of staying on the ladder in 1992 when interest rates were 15%, three times higher than now....
Are you an estate agent??:eek:
5.75 x 3 = 17.25
Not 3 times.....
about 2.61 times:D
No no no you're a mortgage advisor for prudential!!!;)"A goldfish left Lincoln logs in me sock drawer!"
"That's the story of JESUS."0 -
7 years ago was an unusual one off.tomstickland wrote: »It's more difficult today than it was 7 years ago.
It was not the norm, and only ever will be again if the economy collapses.Been away for a while.0 -
20 years ago there was no minimum wage.20 Years ago you didnt have to work for minimum wage in a skilled job because the Polish will work it for £4 an hour!
I lived in London (yes London) on £2 an hour. £1 an hour was not unknown (I started on £0.65 an hour in 1982).Been away for a while.0 -
Zebedee, a tad sensationalist. i.e. No one forces people into uni. For me this is a tyranny of numbers. Too many take degrees in Micky Mouse subjects then expect a decent job at the end of it. New Labour propagandist BS. Many employers don't employ graduates because they're found out at interview as being thick as pig muck. This is what happens when we promote HE to all and sundry.
Also the "poles" are taking our jobs is just xenophobe ideology. Think really hard about this but if they weren't doing the jobs who would be? If I was in government I'd be more concerned by our home bred scroungers.
We all know how tough the property market is now and being part of the "younger generation" myself I think many cannot get on the ladder because they want all the trappings of success (nice car, multiple holidays, decent clobber, nights out etc) but are not prepared to sacrifice. The debt mountain proves this.
However, with population increase predictions and the intricacy of planning regs this so called 'correction' may never materialise. Far more likely that prices will just remain stagnant in many areas while wages catch up.0 -
20 years ago only a handful even went to university. We didn't enjoy going to the nearest factory, it was all there was. That or unemployment.20 Years ago you didnt have to loan £20000+ to go to university JUST TO GET A JOB! All you did was go to the nearest factory and ask!Been away for a while.0
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