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

Davy_Jones_II

snowqueen555 wrote: »

I don't think it's fair to simply say they spend it on things they shouldn't.

If anything, the current generation don't go out on big boozy nights like they used to, the trend is the buy food/takeaways and stay in, because it's cheaper, the because youngsters nowadays drink less alcohol than previous generations.

But buying a takeaway is a luxury, the sort of thing that people like me did not do when saving for a house. No holidays, no car, cheap clothes, bought rarely, little alcohol, no mobile phone, and so on and so forth.

If you are buying takeaway food, if you have a mobile phone, if you buy an outfit for a night out, own a car, then you will find it that much harder to save.

I see people on here spending thousands on weddings, going on foreign holidays, owning an iPhone, having Sky, smoking, eating out, paying to have their hair cut, and then saying that they can’t save, or that they are in debt.

Of course they can’t save, or are in debt, they are spending literally thousands of pounds a year sustaining a lifestyle that their wage doesn’t stretch to, let alone leave them enough over to save or pay down debts.

Sailtheworld

Anyone that says they can't save but want to save a deposit ought to post a couple of bank statements on MSE. Five minutes looking at their statements and you'll have identified their priorities no matter what they say they are. People lie and they lie mostly to themselves.

Alarm bells should ring as soon as someone says a £30 'phone contract and £23 on Sky make little difference when faced with the mountain to climb of saving £30k for a deposit. Apart from the fact it does make a difference it indicates a state of mind - they're not as serious as they say they are.

ukcarper

In many areas saving the deposit is not the problem it's earning enough to get a big enough mortgage

Sailtheworld

ukcarper wrote: »

In many areas saving the deposit is not the problem it's earning enough to get a big enough mortgage

If you don't earn enough how does the problem of saving a deposit go away?

If the root cause of a problem is not earning enough it needs to be resolved by earning more. Easier said than done of course.

ukcarper

Sailtheworld wrote: »

If you don't earn enough how does the problem of saving a deposit go away?

If the root cause of a problem is not earning enough it needs to be resolved by earning more. Easier said than done of course.

It doesn't but if you can't borrow enough not much use having deposit, I've always though if you earn enough to get mortgage you should be able to save deposit.

Cheapest 2 bed house in my area is £280k so £28k deposit and £252k mortgage needing a joint income of £62.5k with 4x joint income, if you earn £62.5 between you £28k shouldn't be a problem.

Where I was brought up cheapest 2 bed is £380k

DannyGold

ukcarper wrote: »

In many areas saving the deposit is not the problem it's earning enough to get a big enough mortgage

Exactly this just show how property has gone up far more than inflation and this can not continue, there has to be a correction

ukcarper

DannyGold wrote: »

Exactly this just show how property has gone up far more than inflation and this can not continue, there has to be a correction

I don't believe the problem is national but in the areas where it does exists unless demand falls or supply increases I'm afraid it can continue.

The-Joker

ukcarper wrote: »

I don't believe the problem is national but in the areas where it does exists unless demand falls or supply increases I'm afraid it can continue.

First you have to correctly measure true supply demand fundamentals

In a refuge camp there is a huge discrepancy between supply and demand but does that mean property prices will keep going up and up until a tent is worth millions?

As has been said many times on here it doesn’t matter how many people would like to live in a certain property all that matters is how many can raise the funds, this is true demand.

ukcarper

The-Joker wrote: »

First you have to correctly measure true supply demand fundamentals

In a refuge camp there is a huge discrepancy between supply and demand but does that mean property prices will keep going up and up until a tent is worth millions?

As has been said many times on here it doesn’t matter how many people would like to live in a certain property all that matters is how many can raise the funds, this is true demand.

Yes affordability effects demand and with limited supply that can be a small percentage of people who would like to buy and in high cost areas those are people keeping prices high.

MobileSaver

The-Joker wrote: »

First you have to correctly measure true supply demand fundamentals

As has been said many times on here it doesn’t matter how many people would like to live in a certain property all that matters is how many can raise the funds, this is true demand.

That doesn't even need saying does it? Demand is people who want something and can afford it, always has been, always will be; has anyone ever said anything different? :huh: