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

PixelPound

triathlon wrote: »

As we speak there is unsurprisingly a housepricecrash.com thread "How can I convince my wife to sell up and rent". He might as well while he is at it ask how can I convince my wife that beer bellies are wonderful, poor job prospects and unskilled work are fantastic, no aspiration, work ethic or education are good things.
The more I read that website the more I realise that there are winners and losers in life, Alpha's and Beta's. This is the bad side to the still new internet, where substantial and sizable groups of minorities think they can get together and alter evolution overnight by complaining everyday.

Anyway, enough of this, this is got my heckles up, think I will go and raise the rents

The internet does allow those with minority extreme viewpoints to find like minded fellows to back up their own views and be in a place where they are not challenged. Some can be relatively benign like the flat-earth believers, but some a lot less palatable

I don't know why this subforum isn't called housepricecrash as it seems that's what most threads revolve around :rotfl:

AG47

I may be overly optimistic, but I am confident that the generation in school now will be able to buy a home far easier than people can do today.

The doom and gloom patrol will disagree and say property will stay distorted for years to come. Time will tell.

PixelPound

AG47 wrote: »

I may be overly optimistic, but I am confident that the generation in school now will be able to buy a home far easier than people can do today.

The doom and gloom patrol will disagree and say property will stay distorted for years to come. Time will tell.

Home ownership wasn't always an aspiration for the masses it is today, and it is a very UK phenomena withit less prevalent in Europe. So it could actually change over the generations with what being important for people today and the last few decades becoming less so - maybe geographical mobility will become more important.

triathlon

AG47 wrote: »

I may be overly optimistic, but I am confident that the generation in school now will be able to buy a home far easier than people can do today.

The doom and gloom patrol will disagree and say property will stay distorted for years to come. Time will tell.

I love your posts, they are just so funny:)

How you can call yourself "overly optimistic" of all people I find hysterical along with suggesting happy homeowners and investors with decades of positive growth are full of "doom and gloom".

I just cannot see how life can get any better for so many of us compared to the housepricecrash cult who live in very expensive bedsits as they log onto their comfort blanket website struggling to support each other now after decades of failure.

I will give you the valid point that a bad blip should have happened by now, most of us are only too aware, but it just did not come and does not look like coming. 3 million more immigrants knocking on our door in the next decade alone, prices will rocket again sooner rather than later, though I will be gearing down by then, there is only so much money you can make and spend
I can only thank you and people like you AG47, for paying for my properties, I swear housepricecrash.com could have been set up by a smart property investor, thanks to them so many people have sat it out in rentals waiting for the big C:rotfl:

PixelPound

I wonder if anyone has checked the odds of a big house price crash? After all it must be fairly large - get a mortgage, take out the bet, if the crash happens you have a back up plan to avoid negative equity.

westernpromise

nic_c wrote: »

I wonder if anyone has checked the odds of a big house price crash? After all it must be fairly large - get a mortgage, take out the bet, if the crash happens you have a back up plan to avoid negative equity.

The thing crashtrolls always miss is that if you crack on and buy somewhere, attacking the mortgage as best you can, you'll repay 15 or 20% of it over just the first five years. The window in which you're exposed to actual immobilising cash losses from a price correction is very low. It has to be big enough to wipe out all your original deposit and whatever you've repaid. This really means a late 80s scale crash in the first five years of any mortgage. At any point after that you'll have enough equity to ignore it.

getmore4less

Even with a big crash the mortgage will still be cheaper than rent unless rents crash as well,

Rents tend to stay high propped up by benefits and wage levels so unless they crash rents stay high.

High rents set the investment level on a property so sets a floor on the crash.
10% yield will get investors to start sniffing.


The result of property crash is more property ends up in the hands of investors.
Plenty of crashy types about that will stick with renting because they can't see the long term the mortgage will be less than the rent.

USA where lending to people that could not afford them resulted in investors picking properties with 20%+ yields rented by the people that lost them in the first place.

westernpromise

getmore4less wrote: »

Even with a big crash the mortgage will still be cheaper than rent unless rents crash as well,

Rents tend to stay high propped up by benefits and wage levels so unless they crash rents stay high.

High rents set the investment level on a property so sets a floor on the crash.
10% yield will get investors to start sniffing.


The result of property crash is more property ends up in the hands of investors.
Plenty of crashy types about that will stick with renting because they can't see the long term the mortgage will be less than the rent.

USA where lending to people that could not afford them resulted in investors picking properties with 20%+ yields rented by the people that lost them in the first place.

And of course if buying is hard or costly because of the negative equity risk, what does all the housing demand flow into? Er, that's right, renting...

triathlon

westernpromise wrote: »

The thing crashtrolls always miss is that if you crack on and buy somewhere, attacking the mortgage as best you can, you'll repay 15 or 20% of it over just the first five years. The window in which you're exposed to actual immobilising cash losses from a price correction is very low. It has to be big enough to wipe out all your original deposit and whatever you've repaid. This really means a late 80s scale crash in the first five years of any mortgage. At any point after that you'll have enough equity to ignore it.

Exactly.

I have seen crash trolls on HPC.com quoting what they predicted 15 years ago and unable to see the irony. I am now reading a new thread on there started by one of their greatest cult members just starting a "sentiment is changing" made up story that he again witnessed. Yet again they will now try and convince themselves that the property market is crashing.

It's just so sad and painful to watch them, but funny:)

triathlon

getmore4less wrote: »

Even with a big crash the mortgage will still be cheaper than rent unless rents crash as well,

Rents tend to stay high propped up by benefits and wage levels so unless they crash rents stay high.

High rents set the investment level on a property so sets a floor on the crash.
10% yield will get investors to start sniffing.


The result of property crash is more property ends up in the hands of investors.
Plenty of crashy types about that will stick with renting because they can't see the long term the mortgage will be less than the rent.

USA where lending to people that could not afford them resulted in investors picking properties with 20%+ yields rented by the people that lost them in the first place.

We now have a huge market in the UK where even workers have to rely on housing benefit, something like £30 Billion per year, and with 3 million new non EU immigrants the UK in the next decade many with few skills there is little to zero chance of crashing the rental market