Home ownership among young people rises

Malthusian

lisyloo wrote: »

This is ok for the majority.
For people whose job relocates it can be an issue, similarly for people who want to grow their family.

If you relocate you can sell your property at low prices and buy another house which is also at low prices, thus saving stamp duty. Assuming you can find someone desperate enough to sell during a crash (e.g. a deceased's estate). Failing that you can rent out your existing home and use it to fund rent on your new home. None of those options are easy but they don't amount to financial ruin.

If your family has grown then a house price crash is good news because assuming you can find someone who wants to sell, it will be cheaper to upgrade. If you have a £300k 3-bed semi and want to upgrade to a £400k 4-bed semi, and houses crash by 50%, you now only need to find £50k to bridge the gap instead of £100k. And you will pay less stamp duty. House price crashes are only bad news for those downsizing, selling to rent, or for whom the property is pure capital and not a home (e.g. BTL landlords and inheritees).

I did know of a couple with 4 children in a 1 bed flat who couldn’t move.

I'm not in a position to question their life choices but they didn't accumulate 4 children during the course of a single house price crash. Unless the missus had quadruplets in which case fair enough.

lisyloo

Malthusian wrote: »

If you relocate you can sell your property at low prices and buy another house which is also at low prices

Not if you’re equity and therefore deposit is gone I.e. negative equity. To put it in context this is a minority scenrio and most people (including myself) kept their jobs and were fine, but I think it’s important to be balanced and not just dismiss all the risks involved in home ownership.

Failing that you can rent out your existing home and use it to fund rent on your new home. None of those options are easy but they don't amount to financial ruin.

I agree, there are options including horrible commute for a period etc. It’s undesirable rather than ruin.
Nobody died but people had horrible commutes, took redundancy rather than relocate or lived cramped for a while etc.

If your family has grown then a house price crash is good news because assuming you can find someone who wants to sell it will be cheaper to upgrade

You can’t do it if you are in negative equity and therefore have no deposit for your next place.

I agree it’s a possible opportunity for people swimming in cash, those people won’t have an issue, but that’s not the majority of normal people who’ve fairly recently purchased.

I'm not in a position to question their life choices but they didn't accumulate 4 children during the course of a single house price crash. Unless the missus had quadruplets in which case fair enough.

prices did go down between 1989 and 1996 and that’s the period I’m referring to. A future crash may or may not be different wrt the timescale but it certainly could cover the optimum period people want to start/increase their family.

There was a new estate in Bristol called Bradley Stoke at that time that was renamed to Sadly Broke.

I bought a house during that period of falling prices and I’m glad I did.
Yes sure with hindsight timing could have been better same as if I had next weeks lottery numbers.
I don’t regret buying a home in the least it’s just silly to pretend there aren’t any risks.

[Deleted User]

I'm not waiting for a crash, that implies I have a choice! We're now saving and looking to buy in five years, I'll be in my 30s by then.

BikingBud

lisyloo said:

I bought a house during that period of falling prices and I’m glad I did.

I must congratulate you on working so hard

lisyloo

BikingBud said:

lisyloo said:

I bought a house during that period of falling prices and I’m glad I did.

I must congratulate you on working so hard

Is that sarcasm? I’ve worked my whole life (started at 13) when not in education. why the angry emoji? I wasn’t given it, I worked for it.

swaledale_one

It's great that young folk are getting on the ladder but alot of them here with HTB have gone out and bought new cars and spend ££££'s on driveways n gardens by year 2/3 and now they're approaching year 5 and finding out they now have to pay more interest and most that are on 5yr fixed are getting awful quotes which mean paying yet more and cant remortgage elsewhere due to higher outgoings than when they first got their mortgage so are now selling up at a loss and driving down house prices.

afis1904

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BikingBud

lisyloo said:

BikingBud said:

lisyloo said:

I bought a house during that period of falling prices and I’m glad I did.

I must congratulate you on working so hard

Is that sarcasm? I’ve worked my whole life (started at 13) when not in education. why the angry emoji? I wasn’t given it, I worked for it.

We've all worked so very hard!
But some many have been extremely lucky!
How about reducing the house you currently have by the same percentage that you were fortunate enough to get it knocked down to and pass on some of that luck to the next generation instead of being so offended?

snowqueen555

If they extended help to buy to all housing that would help so many people out. As such it is just lining the pockets of the developers, and produces a new build premium, which pretty much negates the savings made through the scheme.

renegadefm

But I cant see this happening in Cornwall where house prices and cost of living is high,  yet jobs are scarce.