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

lisyloo

AG47 wrote: »

Yes and the next generation could afford to buy a home fairly easy with a normal job. Unlike today.

The disconnect can’t get any wider, it has to drag up the price of everything else or come down to meet it. End of story.

When though?


Its pointless making untimed predcitions - like the world will end.
I've bought a nice house during the time some people have been whining (and I'm not rich).
The best approach would be to get on and make some personal progress.


your signature says we were can kicking in 2008 which was 11 years ago.
I'm sure a number of posters have died since then!

AG47

lisyloo wrote: »

When though?


Its pointless making untimed predcitions - like the world will end.
I've bought a nice house during the time some people have been whining (and I'm not rich).
The best approach would be to get on and make some personal progress.


your signature says we were can kicking in 2008 which was 11 years ago.
I'm sure a number of posters have died since then!

I wouldn’t buy right at the top of the market before the correction

I don’t know when it will correct all I know isn’t that incorrect markets will correct one way or another

triathlon

AG47 wrote: »

I wouldn’t buy right at the top of the market before the correction

I don’t know when it will correct all I know isn’t that incorrect markets will correct one way or another

The top to you has been £100k, £150k, £200k, £250K........
I read on another thread someone giving you advice about your real circumstances now like Crashy. I think it;s too late for the pair of you and you need to work on your perspective in life. I know an old hippy come homeless Guy who I think is a bit of a tramp near me, I see him all the time on the way to work with his two greyhounds and big Gandalf staff, he always raises it and gives me a big smile, wave and hello, it is possible to be happy or happier with the right attitude even though you have nothing

AG47

triathlon wrote: »

The top to you has been £100k, £150k, £200k, £250K........
I read on another thread someone giving you advice about your real circumstances now like Crashy. I think it;s too late for the pair of you and you need to work on your perspective in life. I know an old hippy come homeless Guy who I think is a bit of a tramp near me, I see him all the time on the way to work with his two greyhounds and big Gandalf staff, he always raises it and gives me a big smile, wave and hello, it is possible to be happy or happier with the right attitude even though you have nothing

Yep, and when the long awaited correction in property comes, I hope those bought near the top of the market can have a good attitude when they realise how much value has been knocked off their overvalued property.

chucknorris

AG47 wrote: »

I wouldn’t buy right at the top of the market before the correction

I don’t know when it will correct all I know isn’t that incorrect markets will correct one way or another

If you are buying a home then you shouldn't concern yourself with trying to time the market, the market can make fools of us all, and anyway it is a home, much more than a financial investment.

Investors will of course consider where the market currently is when they buy, and markets can be regional too, for example I wouldn't currently invest in London (my subjective opinion), but if I was interested in the North East (I'm not) I wouldn't let the market influence me, and in any case equities and bonds also have their risks too, you have to invest it somewhere, and I have very little interest in savings accounts. I am definitely regretting putting £170k in 2 one year savings accounts paying just over 2% in April (after tax and inflation, they guarantee a loss, which is a complete mismatch to my risk profile). I wish now that I had invested it in the Provident financial 2003 individual corporate bond, which paid just over 5.2% (back in April when I invested in it, I think it pays about 5.175% currently, on the running yield).

triathlon

AG47 wrote: »

Yep, and when the long awaited correction in property comes, I hope those bought near the top of the market can have a good attitude when they realise how much value has been knocked off their overvalued property.

OK

I love the world with people like you in it, it makes life so much easier. It really is pointless getting angry at me, I am just playing by the rules and laws that are there, there is no morality in just making the best of your life.

P.S I don;t think there will be many on here who would have purchased at the top or will be damaged all that much if the froth is blown off. Plus I won't be rejoicing by the poor young buyers who would be hit by what you seek

chucknorris

AG47 wrote: »

Yep, and when the long awaited correction in property comes, I hope those bought near the top of the market can have a good attitude when they realise how much value has been knocked off their overvalued property.

For investors it only matters when you sell, and property is a long term investment, I don't think that there has never been 25 year period where property is worth less, even if you look either side of that 25 year period, and compare peak to trough values. But why sell in a trough?

For home owners it only matters if you are selling to downsize, or want to switch mortgage deals, so you are talking about a tiny percentage of the population. Otherwise it is just a notional meaningless paper loss, that only you, crashy and others like you seem to care about. We had a good attitude back in 2008 when our property value dipped by about £1m, we bought another London house, taking advantage of the lower prices.

theoretica

It is interesting to me that five pages in there has been no mention of the other side of high house prices - inheritance. With high house prices more families will have inheritance to leave. One ordinary house owned can become a 10% deposit for ten new house buyers - fewer obviously if needed for care costs.

Silvertabby

chucknorris wrote: »

If you are buying a home then you shouldn't concern yourself with trying to time the market, the market can make fools of us all, and anyway it is a home, much more than a financial investment.

Exactly. In hindsight (that wonderful thing) we bought at just the right time in the early 1990s, when house prices were still flat-lining after the late 1980s crash. We bought then because we wanted our own home, in preparation for leaving the RAF (and our married quarter). It was always intended to be our long term home (still here, retired, and no intentions of moving) so our only concern was being able to comfortably afford the mortgage payments, not the investment potential.

Zero_Sum

theoretica wrote: »

It is interesting to me that five pages in there has been no mention of the other side of high house prices - inheritance. With high house prices more families will have inheritance to leave. One ordinary house owned can become a 10% deposit for ten new house buyers - fewer obviously if needed for care costs.

Youve been listening to Great Ape havent you?

Most wont inherit anything until theyre in their 50's or 60's. Very few people in their 20's or early 30's would benefit when theyd be wanting it for a deposit.

If the parent are already well off, they could pass it to grandkids. But chances are if theyre well off then kids would do alright without help (statisticially anyway)