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

Poor_Leno

Just planning and savings? Add to that government investment in creating the 'jobs of the future' since nobody will be doing things like delivery driving and many of the other 'manual' tasks that currently require a human hand in the next 20-30 years from now - Human hands that are (still) able to get mortgages and such in today's market.

I think the problem will envelope before these kids try and get their mortgages though. It kind of already is upon us with talk of pensionable age going up to 75. Which makes sense for such discussion to be taking place, but whether its morally right is another. In the very near future more people will/would qualify for their rental costs to be paid or part paid by the state. Obviously the government(s) - blue or red - will pie in the sky the fact that most people are lucky to still have their marbles at 75 let alone be alive and fit enough to still be working up to that age, and place importance on that (than trying to fix the problem) in order to keep the welfare state bill at a manageable level by hoping people kick the bucket before the state needs to pick up 'their tab'. Yes...'their tab'. Tsk.

Who'd have thought. Government's moving the goalposts than fixing problems. And we wonder why young voters are fed up with the current trash in politics who (allegedly) represent them. I won't be surprised if we have a major political shake up before I reach retirement anyway, it feels we're headed that way - and not just regarding the parties. I never used to like politics, think events of recent years showed exactly why. The only newspaper I read is the 'i'. Everything else is self serving opinion/bias (IMO).

phillw

Green_Bear wrote: »

The 1929 crash was largely caused by leverage. The public were borrowing money to buy shares.

1929 & 2008 had a lot of parallels, lots of people were highly leveraged and there was fraud all around.

That doesn't mean that shares aren't gambling at other times. You can spread your bet and limit how much you spend, but I can do that on the horses.

When it comes to money, everything is gambling.

Hiding your money under the matress. House could burn down, someone can steal it, inflation will erode it.
Put more than £85k in one bank, it could go bust and you'd lose the value not protected by FSCS, inflation could erode it.

Cakeguts

Poor_Leno wrote: »

Just planning and savings? Add to that government investment in creating the 'jobs of the future' since nobody will be doing things like delivery driving and many of the other 'manual' tasks that currently require a human hand in the next 20-30 years from now - Human hands that are (still) able to get mortgages and such in today's market.

I think the problem will envelope before these kids try and get their mortgages though. It kind of already is upon us with talk of pensionable age going up to 75. Which makes sense for such discussion to be taking place, but whether its morally right is another. In the very near future more people will/would qualify for their rental costs to be paid or part paid by the state. Obviously the government(s) - blue or red - will pie in the sky the fact that most people are lucky to still have their marbles at 75 let alone be alive and fit enough to still be working up to that age, and place importance on that (than trying to fix the problem) in order to keep the welfare state bill at a manageable level by hoping people kick the bucket before the state needs to pick up 'their tab'. Yes...'their tab'. Tsk.

Who'd have thought. Government's moving the goalposts than fixing problems. And we wonder why young voters are fed up with the current trash in politics who (allegedly) represent them. I won't be surprised if we have a major political shake up before I reach retirement anyway, it feels we're headed that way - and not just regarding the parties. I never used to like politics, think events of recent years showed exactly why. The only newspaper I read is the 'i'. Everything else is self serving opinion/bias (IMO).

I think you have got into a bit of a muddle over the pension ages. At the moment 66 is the age at which you get a state pension.. The one that is paid for by people who are at present working. If you have a private pension you can probably take that at any age once you have built up a big enough amount to retire on. This is the reason why it is so important to make sure that you have got a private pension.

The-Joker

Today’s generation leaving school and starting families are the first generation of FTBers who have not been able to buy their own homes.

It’s never been easy but it’s always been possible to save a 5-10% deposit and then get a mortgage for 3.5x income and this could buy a family home.

It’s not true anymore even at emergency low interest rates

Zero_Sum

The-Joker wrote: »

Today’s generation leaving school and starting families are the first generation of FTBers who have not been able to buy their own homes.

It’s never been easy but it’s always been possible to save a 5-10% deposit and then get a mortgage for 3.5x income and this could buy a family home.

It’s not true anymore even at emergency low interest rates

They still can. It just depends on where you live.
And this is part of the problem that whats happening in London & SE is being made out to be the same everywhere, when it just isnt.

I do wonder if our local MP's bigged up that there is a lot of genuine affordable housing up here, then you might see more business chosing to come here resulting in a more balanced economy.

The-Joker

Zero_Sum wrote: »

They still can. It just depends on where you live.
And this is part of the problem that whats happening in London & SE is being made out to be the same everywhere, when it just isnt.

I do wonder if our local MP's bigged up that there is a lot of genuine affordable housing up here, then you might see more business chosing to come here resulting in a more balanced economy.

An average wage when leaving school is about £18k so what can you buy with 3.5x that with a 5% deposit?

MobileSaver

The-Joker wrote: »

it’s always been possible to save a 5-10% deposit and then get a mortgage for 3.5x income and this could buy a family home.

The-Joker wrote: »

An average wage when leaving school is about £18k so what can you buy with 3.5x that with a 5% deposit?

Utterly ridiculous!

Since when has a school leaver ever been able to buy a family home?!?!

The-Joker

MobileSaver wrote: »

Utterly ridiculous!

Since when has a school leaver ever been able to buy a family home?!?!

Obviously they need to save the deposit takes a few years, or even a decade

The point is there is now a discrepancy between average earnings and average property prices

ukcarper

The-Joker wrote: »

Obviously they need to save the deposit takes a few years, or even a decade

The point is there is now a discrepancy between average earnings and average property prices

I don't know how old you are but when I first bought in early 70s average earnings would not have bought you a house in London or suburbs, I was earning more than average earnings and had to move out to buy.

MobileSaver

The-Joker wrote: »

An average wage when leaving school is about £18k

The-Joker wrote: »

Obviously they need to save the deposit takes a few years, or even a decade

The likes of you and AG47 might still only be earning £18k after a decade of full-time work but most people would have significantly improved their lot by then; clearly you should have tried harder while at school.