Interest rates at historical lows, housing prices through the roof, wages stagnant and Brexit.

CreditCardChris

How to remain positive for the future as a young person?

How exactly does a young person save for the future when:

a) Interest rates are pathetic.
b) Wages are pathetic.
c) House prices are ridiculous.
d) Brexit uncertainty.

I honestly feel like now is the worst time to be a young person in the UK since world war 2. I look at images like this https://i.redd.it/7t146welfv041.png and it just makes me want to vomit. Call it self pity but I feel like I've been robbed at the opportunity to own a home, to secure a future for me and my children.

Like seriously what's going to happen in the next 20 years when the average price of a house costs half a million? Why is the government purposely withholding land to cause house prices to skyrocket? It's almost like they don't want people to own their own homes.

I earn £38,000 a year before tax and I feel like no matter how hard I try, how much I save, I'll never own a house. If I ever do it'll be terraced house, wedged like a sardine between two other houses.

I've been messing around with some mortgage calculation websites and apparently on a salary of £38,000 a year (by the way this was the average price of a house in 1990 outside London), the most I can borrow is ~£166,000, so I can buy a 1 bedroom flat in a run down tower block then?

Nice...

To buy a £300,000 home with a £25,000 deposit I require a mortgage of £270,000 and to get that mortgage I require a salary of, wait for it... £58,000! And it will take me 30 years to pay the !!!!ing thing off.

What an absolute joke of a country, !!!! this I'm immigrating to Canada. I could buy a 4 bedroom detached house on a 10 acre plot of land for £300,000.

Country is completely !!!!ed in too many ways to stay.

Poor_Leno

Well, unfortunately we live in a country which is very small and where lots of people desire to live.

Until something happens such as ;

Deaths and Emigration outstripping Births ad Immigration

or

Government taking measures to stop people firing so many kids out

or

Controlled immigration policies.


the current trend will most likely continue.

CreditCardChris wrote: »

I've been messing around with some mortgage calculation websites and apparently on a salary of £38,000 a year (by the way this was the average price of a house in 1990 outside London), the most I can borrow is ~£166,000, so I can buy a 1 bedroom flat in a run down tower block then?

Nice...

To buy a £300,000 home with a £25,000 deposit I require a mortgage of £270,000 and to get that mortgage I require a salary of, wait for it... £58,000! And it will take me 30 years to pay the !!!!ing thing off.

I suppose another way to look at it, if it was your wage and another person's factored in, you'd probably stand a better chance. I don't think its ever been easy for single income households regarding property affordability, not even way back when. I sympathise anyway, as I have a similar issue as you, though not anywhere near London, but in the South West where the cost of property is very high, while wages are similar to many northern towns. Towns where even a modest terraced house can cost around or just below 100,000. My parents' modest three bedroom terrace house is 'worth' £240,000. The scale of the problem faced with many west country folk, sadly. Be glad you don't earn less than 30k. How do you think I manage? ...

Zanderman

I do hope you're voting next month....

Darkslider

I take it you live in the south east? My partner and I have just bought a nice first time house for £160k on a combined salary of £40k in North Wales, with a goal and a bit of purpose raising £8k for a 5% deposit wasn't the struggle we were expecting.

Maybe you need to readjust your expectations of a first house? Starter homes aren't meant to be aspirational, the idea is once you've been there for a few years, built up some equity, increased the value of your house and made yourself more attractive to lenders you'll be able to move up the ladder quicker than you think.

CreditCardChris

Darkslider wrote: »

I take it you live in the south east? My partner and I have just bought a nice first time house for £160k on a combined salary of £40k in North Wales, with a goal and a bit of purpose raising £8k for a 5% deposit wasn't the struggle we were expecting.

Maybe you need to readjust your expectations of a first house? Starter homes aren't meant to be aspirational, the idea is once you've been there for a few years, built up some equity, increased the value of your house and made yourself more attractive to lenders you'll be able to move up the ladder quicker than you think.

Yeah I'm in the South East. If moving to North Wales / Scotland is the only hope then that really puts into perspective just how !!!!ed we are.

You'll probably be able to flip that £160k house for £300,00 in 5 years the way things are going :T

Thrugelmir

If you start out with a negative attitude then you are odds on to fail.
Nothing in life is an automatic entitlement. All has to be worked for over a lifetime.

Alistair31

A vote for Corbyn and all will be well...

Poor_Leno

83bn per year of borrowing...the end to all our problems i'm sure

CreditCardChris

Thrugelmir wrote: »

If you start out with a negative attitude then you are odds on to fail.
Nothing in life is an automatic entitlement. All has to be worked for over a lifetime.

I don't want to be negative but it's hard to find reasons to be positive.

A home is in my opinion, the single most important asset a person requires, it's an absolute necessity for every person in the country. So when this fundamental asset is out of reach of so many people, it almost feels like a crime against the people.

And it's not the home owners fault, it's not the mortgage lenders fault, it's the governments fault for simply refusing to let up new land for development. Even if companies wanted to build new homes they literally can't because there's no land for them to build on!

Alistair31

Poor_Leno wrote: »

83bn per year of borrowing...the end to all our problems i'm sure

And a come-one-come-all approach to migration, what could go wrong.

AnotherJoe

CreditCardChris wrote: »

How to remain positive for the future as a young person?

How exactly does a young person save for the future when:

a) Interest rates are pathetic.

So is inflation.

b) Wages are pathetic.
Define "wages". Depends on your job / career.

c) House prices are ridiculous.
In London and the SE, yep. Elsewhere and in some places they are "ridiculous in the other direction.

d) Brexit uncertainty.
Right... Which is better than the uncertainty about being vaporised by an H Bomb, a fear that pervaded Britain in the 50's and 60's (that you think were the "golden age" apparently ??

I honestly feel like now is the worst time to be a young person in the UK since world war 2.

Well, the actual factual statistics would show you were 100% incorrect. Longer life expectancy, better access to heath, cures for diseases that would have killed you in a year or two back then, much more equality and opportunity for minorities, etc

I look at images like this https://i.redd.it/7t146welfv041.png and it just makes me want to vomit.
One thing. Thats just one from hundreds of things that are much better now.
Call it self pity but I feel like I've been robbed at the opportunity to own a home, to secure a future for me and my children.
Its whiny self pity. Move out of London.

Like seriously what's going to happen in the next 20 years when the average price of a house costs half a million? Why is the government purposely withholding land to cause house prices to skyrocket? It's almost like they don't want people to own their own homes.

What land is the government "purposely withholding" ? Where i live what were once green spaces are being obliterated by massive estates with few local facilities able to cope. There's no sign of any withholding here indeed the government is riding roughshod over the locals wishes to retain some areas of country that arent massive modern estates.

I earn £38,000 a year before tax and I feel like no matter how hard I try, how much I save, I'll never own a house. If I ever do it'll be terraced house, wedged like a sardine between two other houses.
Of course you will but you are fixated on one area, London.

I've been messing around with some mortgage calculation websites and apparently on a salary of £38,000 a year (by the way this was the average price of a house in 1990 outside London), the most I can borrow is ~£166,000, so I can buy a 1 bedroom flat in a run down tower block then?

Nice...

To buy a £300,000 home with a £25,000 deposit I require a mortgage of £270,000 and to get that mortgage I require a salary of, wait for it... £58,000! And it will take me 30 years to pay the !!!!ing thing off.

What an absolute joke of a country, !!!! this I'm immigrating to Canada. Or emigrating even.
I could buy a 4 bedroom detached house on a 10 acre plot of land for £300,000.
Uhuh. In the middle of nowhere, yep. Same as you could buy something like that in the middle of Wales or Scotland or NI. Have you looked at prices in Toronto?



Vancouver?

"Current Vancouver MLS® stats indicate an average house price of $923,484"

Country is completely !!!!ed in too many ways to stay.

Get out of London. Or get a higher paid job. WHat gives you the God given right to buy a house anywhere you want? I dont know what your job is but if its something with an attraction to enable you to emigrate, lets say nurse, fire service, mechanic, I can tell you you wont be affording a property in Vancouver or Toronto any more than you can afford one in London..