PLEASE READ BEFORE POSTING
Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.Where have all the 20 something’s gone?
Options
Comments
-
The house that I bought in my middle 20s in the northwest is as affordable now to a single person doing the same job as I was doing as it was when I bought it. So no change there.
On the other hand in the 1970s London property was too expensive for the average single person to buy on their own without help from their parents or having a property to sell in another part of the country. Interest rates were higher then too.
I think you will find that a lot more 20 somethings could buy a house if they didn't have a car and used public transport or walked to work, had the cheapest bottom of the range phone used the internet at their local library, didn't eat out or have takeaways, didn't buy coffee or drinks out and basically didn't buy anything that they didn't actually need. Years ago buying somewhere to live was treated with more importance than anything else. So you wouldn't rent a 1 bed flat if you could house share etc.
That last statement is total nonsense. Yes some under 30s are finacially reckless but to be honest not spending £500 on a smart phone isnt going to help you save £80,000 for a deposit. My wife and I saved hard for 8 year living with our respective parents. We saved around 90% of our joint full time incomes per month. Only outgoings were rent to our parents and about £10 each on a mobile phone bill.
I suppose things are different in the north west. Prices are certainly lower but I dont think wages are that much lower than rural essex. Ive just looked up similar house around the road of my childhood home. The are £380,000 for a fairly small 3 bed semi. So if my father was in the same position now; lets assume he saved a 10% deposit £38,000 (somehow! :rotfl:) he needs to borrow £342,000. So he would need an income of around £78,000pa!! As a 24 year old electrician!! Its a different world now...0 -
Go easy, there are ways of saying things, anyone can make a mistake. I'm sure the OP was well intentioned. No need for rudeness.then post it on the DEBATE BOARD
https://forums.moneysavingexpert.com/forumdisplay.php?f=149
do 20 something millennials not read instructions before using the internet?0 -
charlie792 wrote: »Me and my partner bought 4 years ago, aged 24 on very modest incomes - I was on £15k at the time, he being self employed, his income for mortgage purposes was calculated as an average of 2 years earnings at £11k - we bought a 4 bed semi for £135k with 15% deposit.
You did well to save £20k plus by the age of 24 on such low incomes.0 -
Thrugelmir wrote: »You did well to save £20k plus by the age of 24 on such low incomes.
Admits to thinking enviously "Must have had parents that charged them peanuts money to stay with them".
Only jealous - as I can recall my own mother back then charged me much more than anyone else I knew:( (and I am Baby Boomer generation - not the generation before me - who I know were uniformly charged a lot for their keep).
Guess that was one way to make sure I moved out the first chance I could - on the basis that "If I'm going to pay a lot - then I'd rather pay a lot to a landlord instead of my own mother. At least I won't be upset about it".0 -
That last statement is total nonsense. Yes some under 30s are finacially reckless but to be honest not spending £500 on a smart phone isnt going to help you save £80,000 for a deposit. My wife and I saved hard for 8 year living with our respective parents. We saved around 90% of our joint full time incomes per month. Only outgoings were rent to our parents and about £10 each on a mobile phone bill.
I suppose things are different in the north west. Prices are certainly lower but I dont think wages are that much lower than rural essex. Ive just looked up similar house around the road of my childhood home. The are £380,000 for a fairly small 3 bed semi. So if my father was in the same position now; lets assume he saved a 10% deposit £38,000 (somehow! :rotfl:) he needs to borrow £342,000. So he would need an income of around £78,000pa!! As a 24 year old electrician!! Its a different world now...
It depends on several things. As well as prices being lower in lots of parts of the country than the southeast many people are paid on national pay scales or even if you look at the national minimum wage it is the same all over the country so if you live in an area where house prices are cheaper you don't always earn less.
What I will say is that in order to buy my house in my 20s I moved job and areas to an area where I could afford to buy on my own. Where I had my first job I couldn't afford to do that.
It isn't just the smart phones though. People who have expensive phones also tend to have cars on finance, sky television, eat out, have takeaways, holidays abroad, expensive televisions and gadgets. Someone is buying all these new cars on finance and it isn't many people of my generation. What many young people don't realise is that all these "its only x much a month" add up and make it impossible for them to save.0 -
moneyistooshorttomention wrote: »Admits to thinking enviously "Must have had parents that charged them peanuts money to stay with them".
Only jealous - as I can recall my own mother back then charged me much more than anyone else I knew:( (and I am Baby Boomer generation - not the generation before me - who I know were uniformly charged a lot for their keep).
Guess that was one way to make sure I moved out the first chance I could - on the basis that "If I'm going to pay a lot - then I'd rather pay a lot to a landlord instead of my own mother. At least I won't be upset about it".
This just shows that it wasn't easier to buy a house years ago in most of the country than it is now. It is just that people in their 20s were more realistic and were not trying to buy what their parents had in their 50s after 30 years work.
There are threads on here regularily about people buying upgrades to go into their new built homes. Does that sound like people who are struggling to afford to buy a house?0 -
Round the corner from this one http://www.rightmove.co.uk/property-for-sale/property-53767230.html but not in quite such a nice area.
I paid £18950 for mine new and my deposit was £950. I seem to remember that I was earning about £6000 a year. So I borrowed around 3 times my salary. Now it would be worth about £100k so you with a 10% deposit and salary that is now £30k there is no difference. In fact it would be cheaper to buy now because the interest rates are lower so the monthly mortgage repayments would be less.
Sholver? Yes I can see that then. The 'worst' areas have stayed much more affordable. Having said that I know perfectly lovely people who grew up on Sholver so that's not a criticism!
Are you sure the equivalent salary is 30K though? Wages have really stagnated compared to house prices.0 -
It depends on several things. As well as prices being lower in lots of parts of the country than the southeast many people are paid on national pay scales or even if you look at the national minimum wage it is the same all over the country so if you live in an area where house prices are cheaper you don't always earn less.
What I will say is that in order to buy my house in my 20s I moved job and areas to an area where I could afford to buy on my own. Where I had my first job I couldn't afford to do that.
It isn't just the smart phones though. People who have expensive phones also tend to have cars on finance, sky television, eat out, have takeaways, holidays abroad, expensive televisions and gadgets. Someone is buying all these new cars on finance and it isn't many people of my generation. What many young people don't realise is that all these "its only x much a month" add up and make it impossible for them to save.
Plus the money wasted on these things would otherwise have earnt interest compounded which over a few years would all add up to quite a bit.
Property has clearly become more expensive relative to earnings but there are many good reasons for it many which people don’t even think about. Eg the average house has gotten bigger as over the decades people spent money on extensions. Also home appliances have gotten better and higher quality and there is more of them. Just these two things mean the average house is of higher quality and needs to be reflected in the price.0 -
Red-Squirrel wrote: »Sholver? Yes I can see that then. The 'worst' areas have stayed much more affordable. Having said that I know perfectly lovely people who grew up on Sholver so that's not a criticism!
Are you sure the equivalent salary is 30K though? Wages have really stagnated compared to house prices.
I liked it there. It was affordable next to the council estate but not council.
The salary would be what I said as I looked it up for this year before I posted. It is a national pay scale. In fact you can buy a two bed house in Oldham cheaper than this so you wouldn't need to earn £30k.
http://www.rightmove.co.uk/property-for-sale/property-52896558.html You could get this one on a single income of less than £20k0 -
http://www.rightmove.co.uk/property-for-sale/property-57693559.html
Now here is a case in point. This house is within walking distance of a train station that will take you into Manchester. In fact just recently people have started to commute to Manchester from this village. Manchester is doing very well. A short distance away there is a large reservoir where people do water sports and the village itself has a canal running through it with narrow boats so quite a nice area. It is just under 30 mins from this village to Manchester Victoria where you can get the tram. Yet I can guarantee that someone will moan about not being able to buy a nice house in a nice area because they don't earn enough to buy in the southeast but will make absolutely no effort to look at moving to a different part of the country like this one.0
This discussion has been closed.
Categories
- All Categories
- 343.2K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.3K Work, Benefits & Business
- 608.1K Mortgages, Homes & Bills
- 173.1K Life & Family
- 247.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards