want to get out of parents

MobileSaver

Sarah1Mitty2 said:

MobileSaver said:

Sarah1Mitty2 said:

MobileSaver said:

Sarah1Mitty2 said:

[Deleted User] said:

Sarah1Mitty2 said:

[Deleted User] said:

Sunsaru said:

My only advice is to set yourself some goals and work towards that. Set yourself a 'light at the end of the tunnel' and go for it. If it means keeping your head down at you parents then just focus on that light. You're a big boy now and your life is your own.

The problem is that the goalposts keep moving. In the last few years houses have been rising faster than most people can save, putting them further and further out of reach.

If you believe that the government or the next one will actually do something meaningful to fix this, that's probably 4-5 years away minimum.

Higher interest rates will do a good job of fixing it, and much quicker than five years.

Sadly I doubt it. It certainly won't bring prices back down to 1990s levels.

Most people will be happy with early 2000`s levels.

The 20 million people who already own property wouldn't be happy which is one reason why that would never happen!

Sarah1Mitty2 said:

inflated property prices were designed to make bankers big bonuses, nothing at all to do with shortage of houses.

Have you started early on the vino again?

Millions with big mortgages wouldn`t be happy with higher interest rates, that happened. 

So your expert financial analysis is that because interest rates increased by a few percent that therefore means that house prices will drop by 70% to bring them back to early 2000's levels?!?! You really have started early on the vino haven't you! LOL

imagine what their finances would be like if they had taken the advice to get into long term mortgage debt a couple of years ago!

Oh dear, official mortgage statistics show that most of those people fixed their rates for at least five years so those people will be laughing all the way to the bank for at least the next three years!

Imagine if instead they'd listened to the HPC crowd and sold to rent 14 years ago; they'd now be facing ever increasing rental costs, finding it harder than ever to move to a new rental and will probably never now be able to afford to buy their own home.

The sad reality is that for some their fundamental financial mistake was pointed out to them years ago but they thought they knew best and are now paying the price by probably spending the rest of their lives renting a bedsit in an undesirable part of town.

spoovy

Sarah1Mitty2 said:

MobileSaver said:

Sarah1Mitty2 said:

[Deleted User] said:

Sarah1Mitty2 said:

[Deleted User] said:

Sunsaru said:

My only advice is to set yourself some goals and work towards that. Set yourself a 'light at the end of the tunnel' and go for it. If it means keeping your head down at you parents then just focus on that light. You're a big boy now and your life is your own.

The problem is that the goalposts keep moving. In the last few years houses have been rising faster than most people can save, putting them further and further out of reach.

If you believe that the government or the next one will actually do something meaningful to fix this, that's probably 4-5 years away minimum.

Higher interest rates will do a good job of fixing it, and much quicker than five years.

Sadly I doubt it. It certainly won't bring prices back down to 1990s levels.

Most people will be happy with early 2000`s levels.

The 20 million people who already own property wouldn't be happy which is one reason why that would never happen!

Sarah1Mitty2 said:

inflated property prices were designed to make bankers big bonuses, nothing at all to do with shortage of houses.

Have you started early on the vino again?

Millions with big mortgages wouldn`t be happy with higher interest rates, that happened. 

People don't vote for BoE MPC members though. They do vote for MPs.
No government is ever going to allow a significant reduction in house prices as it would be electoral suicide. That's why it never happens.

This is always the main problem with the HPC crowd's analysis -- failing to appreciate the role of politics. The "housing market" is barely a market at all it is so consistently interfered with by governments. House prices are what they are because that's what politicians want them to be, even if they don't admit it. Everything else including interest rates are secondary factors that -- over the time frame of a typical mortgage -- are irrelevant.

Emily_Joy

MobileSaver said:

Imagine if instead they'd listened to the HPC crowd and sold to rent 14 years ago; they'd now be facing ever increasing rental costs, finding it harder than ever to move to a new rental and will probably never now be able to afford to buy their own home.

Actually many people just graduated from a University 14 years ago, were renting all the time since, and managed to accumulate a healthy deposit to buy a property now-ish.

Exodi

I've been following this thread for quite some time now and think it's pretty obvious the OP doesn't want to move out. Their head and their heart seem to be in different places. Many of the things said recently have been said umpteen times over the past 4 months / 23 pages, the OP will continue to move the goalposts and create arbitrary criteria until they address the underlying issues first.

Are they anxious about being alone? Scared of change? Fear they'll make the wrong decision or regret their choice of house? Worried about upsetting parents? I'm not sure, maybe a bit of each.

As others have pointed out, they have a staggeringly large amount of savings, they could move out tomorrow if they truly wished to.

[Deleted User]

Emily_Joy said:

MobileSaver said:

Imagine if instead they'd listened to the HPC crowd and sold to rent 14 years ago; they'd now be facing ever increasing rental costs, finding it harder than ever to move to a new rental and will probably never now be able to afford to buy their own home.

Actually many people just graduated from a University 14 years ago, were renting all the time since, and managed to accumulate a healthy deposit to buy a property now-ish.

And many people jumped on the property ladder after graduating.
They've benefited from the lowest interest rates ever and asset appreciation to boot.
Some are now mortgage free, some have multiple properties.
Imagine, mortgage paid before you're 40. No rent to pay and secure in the knowledge that you have a home for life.
Just offering another perspective...

MobileSaver

Emily_Joy said:

MobileSaver said:

Imagine if instead they'd listened to the HPC crowd and sold to rent 14 years ago; they'd now be facing ever increasing rental costs, finding it harder than ever to move to a new rental and will probably never now be able to afford to buy their own home.

Actually many people just graduated from a University 14 years ago, were renting all the time since, and managed to accumulate a healthy deposit to buy a property now-ish.

I can't believe there are that many graduates who chose to rent instead of buy for the last 14 years.

Those that did must be absolutely kicking themselves now since house prices have increased 70% over that time which is obviously diametrically opposite to the 50% fall in prices that Crashy and other HPC zealots convinced themselves was going to happen.

Sarah1Mitty2

spoovy said:

Sarah1Mitty2 said:

MobileSaver said:

Sarah1Mitty2 said:

[Deleted User] said:

Sarah1Mitty2 said:

[Deleted User] said:

Sunsaru said:

My only advice is to set yourself some goals and work towards that. Set yourself a 'light at the end of the tunnel' and go for it. If it means keeping your head down at you parents then just focus on that light. You're a big boy now and your life is your own.

The problem is that the goalposts keep moving. In the last few years houses have been rising faster than most people can save, putting them further and further out of reach.

If you believe that the government or the next one will actually do something meaningful to fix this, that's probably 4-5 years away minimum.

Higher interest rates will do a good job of fixing it, and much quicker than five years.

Sadly I doubt it. It certainly won't bring prices back down to 1990s levels.

Most people will be happy with early 2000`s levels.

The 20 million people who already own property wouldn't be happy which is one reason why that would never happen!

Sarah1Mitty2 said:

inflated property prices were designed to make bankers big bonuses, nothing at all to do with shortage of houses.

Have you started early on the vino again?

Millions with big mortgages wouldn`t be happy with higher interest rates, that happened. 

People don't vote for BoE MPC members though. They do vote for MPs.
No government is ever going to allow a significant reduction in house prices as it would be electoral suicide. That's why it never happens.

This is always the main problem with the HPC crowd's analysis -- failing to appreciate the role of politics. The "housing market" is barely a market at all it is so consistently interfered with by governments. House prices are what they are because that's what politicians want them to be, even if they don't admit it. Everything else including interest rates are secondary factors that -- over the time frame of a typical mortgage -- are irrelevant.

Seemed to work for John Major? And that was a big crash, not going to be as bad as the period we are now moving into though because so many people now have debt for everything, that wasn`t the case back then, but I`m sure the OP knows their history and realises that a decent house price crash can actually be a vote winner so best to keep those housing costs low OP and funnel as much as you can into savings/investments.

Sarah1Mitty2

Exodi said:

I've been following this thread for quite some time now and think it's pretty obvious the OP doesn't want to move out. Their head and their heart seem to be in different places. Many of the things said recently have been said umpteen times over the past 4 months / 23 pages, the OP will continue to move the goalposts and create arbitrary criteria until they address the underlying issues first.

Are they anxious about being alone? Scared of change? Fear they'll make the wrong decision or regret their choice of house? Worried about upsetting parents? I'm not sure, maybe a bit of each.

As others have pointed out, they have a staggeringly large amount of savings, they could move out tomorrow if they truly wished to.

Yes, but as pointed out numerous times in the thread, why wast those savings on a housing bubble with interest rates rising at their fastest pace ever! It just makes no sense....

CSI_Yorkshire

Sarah1Mitty2 said:

Exodi said:

I've been following this thread for quite some time now and think it's pretty obvious the OP doesn't want to move out. Their head and their heart seem to be in different places. Many of the things said recently have been said umpteen times over the past 4 months / 23 pages, the OP will continue to move the goalposts and create arbitrary criteria until they address the underlying issues first.

Are they anxious about being alone? Scared of change? Fear they'll make the wrong decision or regret their choice of house? Worried about upsetting parents? I'm not sure, maybe a bit of each.

As others have pointed out, they have a staggeringly large amount of savings, they could move out tomorrow if they truly wished to.

Yes, but as pointed out numerous times in the thread, why wast those savings on a housing bubble with interest rates rising at their fastest pace ever! It just makes no sense....

Owning your own home, if you choose to do so, is not "wasting those savings" despite how many times you decide to tell others what to do.

Similarly, investing in whatever index-linked special-money fund that you keep talking about, if you choose to do so, is not wasting it either.

Adults make choices and then live by the consequences of those choices, whether we would have made the same choice or not.

Sarah1Mitty2

CSI_Yorkshire said:

Sarah1Mitty2 said:

Exodi said:

I've been following this thread for quite some time now and think it's pretty obvious the OP doesn't want to move out. Their head and their heart seem to be in different places. Many of the things said recently have been said umpteen times over the past 4 months / 23 pages, the OP will continue to move the goalposts and create arbitrary criteria until they address the underlying issues first.

Are they anxious about being alone? Scared of change? Fear they'll make the wrong decision or regret their choice of house? Worried about upsetting parents? I'm not sure, maybe a bit of each.

As others have pointed out, they have a staggeringly large amount of savings, they could move out tomorrow if they truly wished to.

Yes, but as pointed out numerous times in the thread, why wast those savings on a housing bubble with interest rates rising at their fastest pace ever! It just makes no sense....

Owning your own home, if you choose to do so, is not "wasting those savings" despite how many times you decide to tell others what to do.

Similarly, investing in whatever index-linked special-money fund that you keep talking about, if you choose to do so, is not wasting it either.

Adults make choices and then live by the consequences of those choices, whether we would have made the same choice or not.

Both could turn out to be something that makes your savings disappear forever, but one is liquid (you can exit at the click of a mouse) the other is not (you could chase the market down for years and never get your money back)