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

AG47

People on low incomes will continue to rent and the government will have to carry on payin for it u TIL they can no longer afford to, then the crash will be forced on the market as the number of rent defaults will skyrocket and then repossessions will skyrocket as mortgages are defaulted on

AG47

What will average house prices need to fall to for the next generation with normal jobs be able to buy their own house with about a 5% deposit and a mortgage about 3.5 x income?

lisyloo

AG47 wrote: »

What will average house prices need to fall to for the next generation with normal jobs be able to buy their own house with about a 5% deposit and a mortgage about 3.5 x income?

They don't need to fall.

Average incomes around £25K so £50K*3.5=£175K.
So quite do-able with the average/normal amount of sacrifice/compromise i.e. you get a "starter" home not an average house.


But they won't fall (or rise or stay the same) to fit anyone's agenda.
The will fall/rise/stabilise at the level that people are willing to pay according to supply and demand.


It's anto-social to post the same thing on several threads, so I'll report your post for anti-social posting reasons.
I still maintain you need professional help (that is being nice to moneysavers but report if you want).

AG47

lisyloo wrote: »

They don't need to fall.

Average incomes around £25K so £50K*3.5=£175K.
So quite do-able with the average/normal amount of sacrifice/compromise i.e. you get a "starter" home not an average house.


But they won't fall (or rise or stay the same) to fit anyone's agenda.
The will fall/rise/stabilise at the level that people are willing to pay according to supply and demand.


It's anto-social to post the same thing on several threads, so I'll report your post for anti-social posting reasons.
I still maintain you need professional help (that is being nice to moneysavers but report if you want).

You are right they won’t rise or stay the same as they are now to fit anybody’s agenda, the free market always overwhelms the manipulative one

chucknorris

lisyloo wrote: »

They don't need to fall.

Average incomes around £25K so £50K*3.5=£175K.
So quite do-able with the average/normal amount of sacrifice/compromise i.e. you get a "starter" home not an average house.


But they won't fall (or rise or stay the same) to fit anyone's agenda.
The will fall/rise/stabilise at the level that people are willing to pay according to supply and demand.


It's anto-social to post the same thing on several threads, so I'll report your post for anti-social posting reasons.
I still maintain you need professional help (that is being nice to moneysavers but report if you want).

I really can't be bothered to post the links to the actual posts (but if you searched the history between him and I, you would find them), I've already done it at least once (ages ago), but he actually claimed that he had sold a portfolio of investment properties around the 2007 peak (peak then, not now). At the time I called him out, because he was also asking how to maximise benefits claims for himself or go bankrupt, I can't quite recall.

That is why I do not respond to him as much as my impulse would otherwise have me do, I do start quite a few posts, then just delete them, because he is just a waste of space, and not worth any effort.

Lets see if he responds to this post, my money is on that he does not.

triathlon

AG47 wrote: »

What will average house prices need to fall to for the next generation with normal jobs be able to buy their own house with about a 5% deposit and a mortgage about 3.5 x income?

I assume what you really mean is when will YOU be able to buy the average house, and at a guess I would say never, maybe you just don't have what it takes or your expectations are far too high for that what you capable of.
What do you earn and what savings do you have?

snowqueen555

For me it is a location problem. I am struggling to afford even a 1 bed flat where I am, but moving up north to Manchester/Liverpool/Newcastle etc I could comfortably get a 2 bed flat/house on my own (not necessarily in the best area).

It does surprise me the market is not higher in places like Liverpool, is there really not enough demand there?

Even on minimum wage, you could buy a 1-2 bed flat very easily, flats start around 50-60k.

westernpromise

I always enjoy visiting decent sized British cities. It is a genuine pleasure to sample another one other than London. I like Bath, I like Bristol, I have lived in Birmingham and I like Chester and Shrewsbury and Winchester and Salisbury as well. One of my retirement projects is to visit every British city - just drive from one to another and check them all out. I like old ships so I'd even be interested in visiting Dundee to see RRS Discovery.

Liverpool would be on that list but while I'm sure you can fill a weekend break in many if not most British cities, that's not the same as there being decent enough jobs as well, to make you want to live there. If it's £50k for a 1-2 bed flat then clearly there aren't.

lisyloo

snowqueen555 wrote: »

For me it is a location problem. I am struggling to afford even a 1 bed flat where I am, but moving up north to Manchester/Liverpool/Newcastle etc I could comfortably get a 2 bed flat/house on my own (not necessarily in the best area).

It does surprise me the market is not higher in places like Liverpool, is there really not enough demand there?

Even on minimum wage, you could buy a 1-2 bed flat very easily, flats start around 50-60k.

So are you considering moving?
I don’t think I would move away from family and friends just to buy unless there was something else like a great career opportunity or partner to make it worthwhile.
I’m just interested as it’s often suggested as a solution but I don’t believe it’s always the easy to move from family especially when children and/or elderly are concerned.

I did check IT jobs in Liverpool and there were some. Not as many as Basingstoke/reading/London but there were jobs.

westernpromise

lisyloo wrote: »

So are you considering moving?
I don’t think I would move away from family and friends just to buy unless there was something else like a great career opportunity or partner to make it worthwhile.

Well, yes. You take a pay cut to go do IT somewhere else and the supposed benefit is that even with the smaller salary, you can buy a bigger house in Coventry or Bolton wherever. The trouble with this bigger house is, it's in Coventry or Bolton. So if that's the only benefit, it had better be a really nice house because let's face it if that's where you live you'll be spending a lot of time in it.