Will the next generation be able to buy their own house?

Malthusian

AG47 wrote: »

You can’t deny the market distortions and say this is actually correct and the rest of the time was distorted.

You'd think you also can't say "Deutsche Bank will go bust in 2016" and then when it doesn't go bust, say you were actually correct and 2016 wasn't the year that went between 2015 and 2017. But here we are.

The simple fact is when the correction comes the next generation will be able to buy their own home just as they have been able to before the distortion we are still currently in.

Almost correct. When the correction comes the next generation will be able to buy their own home, just as the current generation can, and the one before that. Providing the members of that generation who want a home have sufficient income, realistic expectations, and basic financial ability.

No generation buys a house, only individual people do.

andrewf75

AG47 wrote: »

So 99% of recorded history was a distortion and the last decade or so was correct? Something does ring true with your theory;)

Not sure how you get to 99% of recorded history! I would say the last few decades have been unusual and most of the rest of the time lower proportions of the population have been able to buy. Also in the rest of the world in most countries fewer people can afford to buy

Given the fundamental problems in the world I see no reason why buying a home will be any easier for the next generation as it is for this one.

triathlon

AG47 wrote: »

So 99% of recorded history was a distortion and the last decade or so was correct? Something does ring true with your theory;)

Some of the most hilarious predictions I have seen in my lifetime have come from the "property will crash any minute cult" or HPC.com doomsters as I call them. For 20 years now I have witnessed them trying to squeeze a round pin into a square plug with absolute conviction they are indeed correct and everyone else is wrong. Regardless of what might happen in the future I have in that time made enough wealth to see me through the rest of my life as they continue from their bedsits to await the end of days.

AG47

Malthusian wrote: »

Almost correct. When the correction comes the next generation will be able to buy their own home, just as the current generation can, and the one before that. Providing the members of that generation who want a home have sufficient income, realistic expectations, and basic financial ability.

No generation buys a house, only individual people do.

Do you somehow try to claim that there is no disconnect at the moment between historical earnings and average property prices?

I think you are on your own there buddy

AG47

Some of the most hilarious comments I have ever seen come from the perma prop bulls who think property will go even further away from average wages and the disconnect will get even more extreme with no possible correction on the horizon

AG47

andrewf75 wrote: »

Not sure how you get to 99% of recorded history! I would say the last few decades have been unusual and most of the rest of the time lower proportions of the population have been able to buy. Also in the rest of the world in most countries fewer people can afford to buy

Given the fundamental problems in the world I see no reason why buying a home will be any easier for the next generation as it is for this one.

Given the fundamental problems of property price to earning ratio being extremely distorted at the moment?

The extreme distortion will correct, so yes the next generation will be able to buy a home easier than the present time because of the extreme distortion in the property to earnings ratio:T

MobileSaver

AG47 wrote: »

so yes the next generation will be able to buy a home easier than the present time

Where will all these cheap homes come from to make it easier for the next generation to buy?

Why would house builders be incentivised to build lots more houses in a falling market?

Apart from the minority who have to sell for personal reasons, why would the majority of current owners be motivated to sell their properties in a falling market?

Logic and history suggest lenders tighten their lending criteria in a falling market, making it harder to get a mortgage and thus a house; what is different this time that makes you think lenders will ease up on lending criteria at the exact same time as the secured asset is losing value?!?!

AG47

MobileSaver wrote: »

Where will all these cheap homes come from to make it easier for the next generation to buy?

Why would house builders be incentivised to build lots more houses in a falling market?

Apart from the minority who have to sell for personal reasons, why would the majority of current owners be motivated to sell their properties in a falling market?

Logic and history suggest lenders tighten their lending criteria in a falling market, making it harder to get a mortgage and thus a house; what is different this time that makes you think lenders will ease up on lending criteria at the exact same time as the secured asset is losing value?!?!

Yes chaos yes brexit no deal will be pulling the band aid off in one go.

Still better than slowly extending the pain.

triathlon

AG47 wrote: »

Some of the most hilarious comments I have ever seen come from the perma prop bulls who think property will go even further away from average wages and the disconnect will get even more extreme with no possible correction on the horizon

Most of my friends along with my very own family come from very humble beginnings yet every single on of them owns property. For your own sanity I suggest you take a long hard look at yourself, I am starting to get the impression that maybe you personally just do not have what it takes.

MobileSaver

MobileSaver wrote: »

Where will all these cheap homes come from to make it easier for the next generation to buy?

AG47 wrote: »

Yes chaos yes brexit no deal will be pulling the band aid off in one go. Still better than slowly extending the pain.

In other words you have no answer as to where all these affordable houses are going to come from...