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

Herzlos

DigForVictory wrote: »

Not just minimum wage families, either...
Still, I keep reading here & learning.

Definitely. We're managing it now on well above minimum wage.


If I'd had some financial understanding in school, and was putting the debt interest I'm paying into savings I'd probably get to retire 10 years earlier.

phillw

Herzlos wrote: »

If I'd had some financial understanding in school, and was putting the debt interest I'm paying into savings I'd probably get to retire 10 years earlier.

I feel the same way, however I do wonder how much of it would turn into a zero sum game. So if they taught it in schools, would there actually be an advantage?

qwert_yuiop

triathlon wrote: »

It is just so painful reading all your theories. Hand on heart I could never imagine a potential life partner willing to sit on her hands waiting for the "inevitable property crash" for years or decades as she watches her friends nesting, going to work and at weekends bbq's with the family etc.

If my daughter brought someone like you home and shared his views of the world, how he was going to wait it out for a bad event in the world so property prices crash as he he sits it out in his bed sit it would horrify me.

Yes, at some point something will test us, and event will come along that hurts people, something we never saw coming, but you are totally wrong to think you are going to profit from it, the type of people that will survive will be the ones that we surviving anyway at any given moment.

Possibly if you’ve lived a frugal enough life in your bedsit, you’ll have saved enough to buy a newly cheap house following the property crash. It was quite possible to do this in the 80s, deferring buying till after the 90s crash, apparently. Provided youd stable employment, of course. You’re right, it did involve profiting from others ‘ misfortune.

Green_Bear

phillw wrote: »

I feel the same way, however I do wonder how much of it would turn into a zero sum game. So if they taught it in schools, would there actually be an advantage?

There would be winners (those who invested earlier, who would not otherwise have done).
There would be losers (those who sell cigarettes and TVs etc).

I expect those who stand to lose, currently have influence over school policies.

Follow the money....

Green_Bear

westernpromise wrote: »

In Liverpool they would surely nick a TV, not finance it.

These days it would more likely be money from selling drugs.
Now, sensible drug dealers would not own such seize-able assets in their own names.

Green_Bear

triathlon wrote: »

It is just so painful reading all your theories. Hand on heart I could never imagine a potential life partner willing to sit on her hands waiting for the "inevitable property crash" for years or decades as she watches her friends nesting, going to work and at weekends bbq's with the family etc.

If my daughter brought someone like you home and shared his views of the world, how he was going to wait it out for a bad event in the world so property prices crash as he he sits it out in his bed sit it would horrify me.

Yes, at some point something will test us, and event will come along that hurts people, something we never saw coming, but you are totally wrong to think you are going to profit from it, the type of people that will survive will be the ones that we surviving anyway at any given moment.

I think you need to differentiate between property as an investment and owning your own home.

As an investment, then timing your market entry is absolutely a sensible thing to do - provided you are investing in other suitable assets whilst waiting for property to drop in value. And in a deflationary event, cash is absolutely as asset worth having.

In many Asian cultures there is a saying:
''Turn your paper into metal and your metal into dirt''.

This means buy precious metals with your fiat currency, until you have enough to buy land / buildings. I think on a very long-term basis, this works well. But that relies on families accumulating wealth etc. In the UK we have a much more individualistic culture, with mortgage debt encouraging earlier home purchases.

I am not saying this is a bad time to buy residential property. Priced in gold, houses in the North East are at record lows.

Herzlos

phillw wrote: »

I feel the same way, however I do wonder how much of it would turn into a zero sum game. So if they taught it in schools, would there actually be an advantage?

The stock market is a zero sum - someone needs to lose for someone else to win, but I'm not sure things like avoiding payday loans and credit cards would hurt anyone. The industries relying on them (the credit industries) would suffer, but the people would have more money to spend on other stuff. People would still buy TVs but they'd save up and buy them in cash rather than buy and pay off.

Green_Bear

Herzlos wrote: »

The stock market is a zero sum - someone needs to lose for someone else to win, but I'm not sure things like avoiding payday loans and credit cards would hurt anyone. The industries relying on them (the credit industries) would suffer, but the people would have more money to spend on other stuff. People would still buy TVs but they'd save up and buy them in cash rather than buy and pay off.

Jack Bogle said this, but I think he was talking about shorter term trading and stock picking.

If I buy a selection of 10 FTSE shares at age 20 and hold them until I'm 50 - I'm not sure who the loser is when I sell them?

qwert_yuiop

Herzlos wrote: »

The stock market is a zero sum - someone needs to lose for someone else to win, .

This is not correct. That would only apply to gambling.

Overall, shares in well run companies will rise over time.

Herzlos

Green_Bear wrote: »

If I buy a selection of 10 FTSE shares at age 20 and hold them until I'm 50 - I'm not sure who the loser is when I sell them?

True, I don't think anyone loses with long term appreciation. I guess if everyone does it, then wealth remains relative.


If only the well-off have financial education, then only the well off will be able to take advantage of it and the poor will never have any opportunity to catch up. Naturally, that suits the well off.