Low salary can't afford to buy anywhere

StandingInTheSun

RelievedSheff said:

No matter what the era or the price of houses, buying a first house has never been easy. Why should that change now?

It's never been easy to buy your first home... but probably it's never been harder. Previous generations had higher mortgage rates but actually getting on the ladder was unquestionably easier.

This is worth a read for some perspective: https://www.theguardian.com/money/2016/oct/08/intergenerational-differences-children-1980s-out-of-pocket

The IFS estimate that if you were born in the 1980s you are, on average, half as well off as someone born in the 1960s was at the same stage of life.

AdrianC

BikingBud said:

AdrianC said:

Who defines what they're "worth" except a willing buyer and a willing seller in an open-market transaction?

How about considering what they cost to build and maintain

So the land has no value at all...?

What you've described is the rebuild cost, for buildings insurance purposes.
In some parts of the country, that's above the market value. In others, it's waaaaaaay below. And what's the rebuild cost for a listed property?

Near where I used to live, within spitting distance of the M25, there was a large estate of houses which were regularly sold for seven-figure sums then promptly pulled down and new houses built on the plot. Basically, the plots were worth seven digits on their own.

MobileSaver

StandingInTheSun said:

RelievedSheff said:

No matter what the era or the price of houses, buying a first house has never been easy. Why should that change now?

The IFS estimate that if you were born in the 1980s you are, on average, half as well off as someone born in the 1960s was at the same stage of life.

"There are three types of lies: Lies, damn lies, and statistics."

The problem of course is that you can pretty much claim anything and prove it if you only look at a limited number of factors.

So the purely financial figures the IFS quote may well be accurate but what they don't take into account, for example, is the quality of life difference between those generations. As stated previously my first house bought in the late 80's had no central heating, no double glazing, no carpets, no cooker, oh and no parking; many FTBs today wouldn't dream of buying a property without those things but not surprisingly all of those things come at a higher cost!

GeordieGeorge

Have you considered the North East? The economy’s picking up nicely, it’s a lovely part of the world, and you’ll get a very nice house for under £200,000.

Murphybear

AdrianC said:

Ditzy_Mitzy said:

MobileSaver said:

BikingBud said:

Cakeguts said:

If you want to buy somewhere you will need to move to an area where your job with its low salary buys more.  That won't be in the South East. 

Some regular posters will have them all moving to northern cities where buying property is "easy" as long as you're not discerning and are happy to live in sub standard accommodation!

There's an old adage, "beggars can't be choosers." If you are on a low wage then of course you can't be too discerning, how could it be any different?

What is your alternative? Perhaps you think everyone on a low wage should be offered a brand spanking new new-build in one of the most expensive cities in the world with a 50% discount paid for by the taxpayer?

You're right, offering people on low wages new houses would be utter madness, abject insanity and representative of the abandonment of reason. 

Someone lock this nutter up!

Of course, there was a rather different state of affairs during the period Attlee was PM - 1945 to 51...

How well do you think prefabs would go down now?

My parents moved into a prefab after the war as their town was very badly bombed.  They loved it.  They moved to a brand new council house with a big garden in 1954 when I was 2

I’m pretty certain the modern generation wouldn’t like it 

Harrybrown100121

Many thanks for your help
I work in central london, I was looking for jobs in Manchester/ Birmingham. As I feel I may be able to buy a property there but worried now the government is investing in these areas and moving jobs out of london to these areas. How's much will this affect properties prices?
I got about 10,000 in savings. I need to save more but I have to pay my parents back as I bought a car.

vimto456

Harrybrown100121 said:

Many thanks for your help
I work in central london, I was looking for jobs in Manchester/ Birmingham. As I feel I may be able to buy a property there but worried now the government is investing in these areas and moving jobs out of london to these areas. How's much will this affect properties prices?
I got about 10,000 in savings. I need to save more but I have to pay my parents back as I bought a car.

The prices in Manchester seem to be increasing but I can imagine it is still a lot cheaper than London.

[Deleted User]

Murphybear said:

AdrianC said:

Ditzy_Mitzy said:

MobileSaver said:

BikingBud said:

Cakeguts said:

If you want to buy somewhere you will need to move to an area where your job with its low salary buys more.  That won't be in the South East. 

Some regular posters will have them all moving to northern cities where buying property is "easy" as long as you're not discerning and are happy to live in sub standard accommodation!

There's an old adage, "beggars can't be choosers." If you are on a low wage then of course you can't be too discerning, how could it be any different?

What is your alternative? Perhaps you think everyone on a low wage should be offered a brand spanking new new-build in one of the most expensive cities in the world with a 50% discount paid for by the taxpayer?

You're right, offering people on low wages new houses would be utter madness, abject insanity and representative of the abandonment of reason. 

Someone lock this nutter up!

Of course, there was a rather different state of affairs during the period Attlee was PM - 1945 to 51...

How well do you think prefabs would go down now?

My parents moved into a prefab after the war as their town was very badly bombed.  They loved it.  They moved to a brand new council house with a big garden in 1954 when I was 2

I’m pretty certain the modern generation wouldn’t like it 

I’m pretty certain that most of the current generation wouldn’t stand a snowball’s chance in hell of getting a brand new council house with a big garden.

moneysavinghero

Harrybrown100121 said:

Many thanks for your help
I work in central london, I was looking for jobs in Manchester/ Birmingham. As I feel I may be able to buy a property there but worried now the government is investing in these areas and moving jobs out of london to these areas. How's much will this affect properties prices?
I got about 10,000 in savings. I need to save more but I have to pay my parents back as I bought a car.

If you think prices are going to rise in Manchester / Birmingham than surely now would be a great time to buy in one of those places. Rising prices on a house you own is not a bad thing.

AdrianC

Murphybear said:

AdrianC said:

Of course, there was a rather different state of affairs during the period Attlee was PM - 1945 to 51...

How well do you think prefabs would go down now?

My parents moved into a prefab after the war as their town was very badly bombed.

Exactly.

That was a proper housing crisis.