Kids moving out?

[Whataroyalannoyance]

When do you think yours will be able to move out / buy a property?
I'm Not sure if it's just prices in my area or if its a generational issue.
Ds(21) has a full time job earning 20k. In our area even rent on a house share is 100+ a week. A place on his own is 1000+ a month minimum. At those prices he couldn't afford to rent and save for his own house..
We have 3 kids so can't afford to subsidise him moving out.
Speaking to friends it seems like the issues we faced to get a property are significantly worse now.
Is there going to be any chance of 'kids' getting on the property ladder?

We're factoring in deposits for the 4 kids in our financial planning. Hopefully we will be able to do that.

With our own mortgage and bills I don't think we would ever have been in the position to save enough to make a dent in a deposit for all the kids.

You're right though OP, there is just no way huge numbers of young people can get on the property ladder till older and with a partner probably. Best thing you could do is encourage them towards well earning jobs and not to have a baby till financially well established.

There is plenty of chances for young people (this includes me) to get on the property ladder. But most young people (at least my friends and colleagues) didn't want to take the effort, make the sacfirice, or are willing to put the time in.

At 22: My initial job for 1 year while living at home - earning £18k. Saved £15k. (I was lucky that I lived rent free, appreciate that not everyone has this chance)

At 23: My 1st proper job - £26k per year base salary. But I also choose to work 100s/1000s of hours of overtime over 2 years (opted out of working time directive). During 2 years, I was renting a room for £500 (all inc), and spent only £250 per month (£200 food/clothes/phone and £50 petrol). Saved £30k over 2 years.

At 24 - Bought a 1 bedroom flat, for £180k

From 24 - 29: My salary continued to increase. But I kepy my expenses the same. I lived on 50% wages. I overpaid the rest into my mortgage.

(25 - Also got married to someone who also earns a decent salary. We both live/d frugally)

29: Son born.

30: Mortgage free now. Also on £50k now. But was still saving ~50% of my salary.

31: Bought a 3 bedroom house, for £550k

33: On £60k, still living on 50% of salary.

For the last 10 years I haven't been aborad, take food to work and have been driving a used VW. Next year, I'm going to go on my 1st proper holiday abroad since I was a teenager and upgrade my car.

My 3 best friends on the other hand have always (and still) earn more than me, but are only just getting on the property ladder, as they holiday every year, buy factory new mercs/bmw, eat at restuarents and dont live frugally.

For my own kid/s, I will help them to a point.

E.g. if they save a £30k deposit, I will top it up by £20k. But even though I will most likely have the money to help more, im not going to. Also, if they save nothing and are spenders, then I won't be giving them money.

Not because I want the money myself, but because I care about them, and want them to be stronger and harder working than me.

This is why we have saved for our children from them being born. It’s also why we stopped at 3 as we can afford to save for uni & house deposits for 3.
Prices are a lot higher than they were 21 years ago and will continue to rise I imagine although there is always a way to get on the ladder. It takes the right mindset & sometimes moving area is necessary.
And no, it doesn’t mean you have to go without everything.

Agree with Randomo I see a lot of younger people living the life of a successful 30 something (and often racking up debts in the process), but they're only early 20s at most. Then they complain they've got no money and can't move out of the parental home.

The assumption that everyone will be a home owner is not realistic these days either.

When I wanted to stop doing the house share thing I had to move away from my home town to afford the rent on my own place.

@Randomo that's super
My nephew and his GF did similar- lived at home rent free for a year after started proper jobs, bought no new clothes, only did free stuff in their time off and took sandwiches etc and bought their first flat at 23 and now looking to buy a house when the market has calmed down a bit. Both were savers rather than spenders with previous casual work while at university

@Randomo

There is plenty of chances for young people (this includes me) to get on the property ladder. But most young people (at least my friends and colleagues) didn't want to take the effort, make the sacfirice, or are willing to put the time in.

At 22: My initial job for 1 year while living at home - earning £18k. Saved £15k. (I was lucky that I lived rent free, appreciate that not everyone has this chance)

At 23: My 1st proper job - £26k per year base salary. But I also choose to work 100s/1000s of hours of overtime over 2 years (opted out of working time directive). During 2 years, I was renting a room for £500 (all inc), and spent only £250 per month (£200 food/clothes/phone and £50 petrol). Saved £30k over 2 years.

At 24 - Bought a 1 bedroom flat, for £180k

From 24 - 29: My salary continued to increase. But I kepy my expenses the same. I lived on 50% wages. I overpaid the rest into my mortgage.

(25 - Also got married to someone who also earns a decent salary. We both live/d frugally)

29: Son born.

30: Mortgage free now. Also on £50k now. But was still saving ~50% of my salary.

31: Bought a 3 bedroom house, for £550k

33: On £60k, still living on 50% of salary.

For the last 10 years I haven't been aborad, take food to work and have been driving a used VW. Next year, I'm going to go on my 1st proper holiday abroad since I was a teenager and upgrade my car.

My 3 best friends on the other hand have always (and still) earn more than me, but are only just getting on the property ladder, as they holiday every year, buy factory new mercs/bmw, eat at restuarents and dont live frugally.

I hate when people say stuff like this as if just because they did it, everyone else can. Depending on what job you do, not everyone will see their salaries increase or marry someone who earns a decent salary. I do own a house but that's only because they are cheap where I live, I'm nearly 31 and only earn £9 an hour. I was unable to live at home from age 17 so I was renting a room in a shared house, couldn't save any money until I turned 25 and my wages increased to national living wage.

Those people doing the essential minimum wage jobs often can't afford to buy and don't have the opportunity to move into a better paid job.

I think a lot depends on where you live, where I am it’s entirety possible to buy a reasonable starter flat/house for less than £100k. I’ll be encouraging my kids to save, to have as much choice in their employment as possible and to delay children until they are financially secure.

We’ll be able to help them financially to some extent but couldn’t give them both a deposit, they’ll need to decide how they want to live which may or may not include buying a house.

@Randomo

There is plenty of chances for young people (this includes me) to get on the property ladder. But most young people (at least my friends and colleagues) didn't want to take the effort, make the sacfirice, or are willing to put the time in.

At 22: My initial job for 1 year while living at home - earning £18k. Saved £15k. (I was lucky that I lived rent free, appreciate that not everyone has this chance)

At 23: My 1st proper job - £26k per year base salary. But I also choose to work 100s/1000s of hours of overtime over 2 years (opted out of working time directive). During 2 years, I was renting a room for £500 (all inc), and spent only £250 per month (£200 food/clothes/phone and £50 petrol). Saved £30k over 2 years.

At 24 - Bought a 1 bedroom flat, for £180k

From 24 - 29: My salary continued to increase. But I kepy my expenses the same. I lived on 50% wages. I overpaid the rest into my mortgage.

(25 - Also got married to someone who also earns a decent salary. We both live/d frugally)

29: Son born.

30: Mortgage free now. Also on £50k now. But was still saving ~50% of my salary.

31: Bought a 3 bedroom house, for £550k

33: On £60k, still living on 50% of salary.

For the last 10 years I haven't been aborad, take food to work and have been driving a used VW. Next year, I'm going to go on my 1st proper holiday abroad since I was a teenager and upgrade my car.

My 3 best friends on the other hand have always (and still) earn more than me, but are only just getting on the property ladder, as they holiday every year, buy factory new mercs/bmw, eat at restuarents and dont live frugally.

Did you go to university?

Well hopefully they won’t be on 21k for the rest of their life, so will be able to save and buy something as their income increases

@YellowFish12

Well hopefully they won’t be on 21k for the rest of their life, so will be able to save and buy something as their income increases

Hopefully. Altho where we live the cheapest 1 bed is well over 180k ( within 5 miles in of the Borough) so prices are high.he will need to move away but obviously that will impact his job. Husband and I are both on 20k jobs, which is higher than minimum wage, so it just makes me wonder how people on minimum wage would be able to do it.

@Whataroyalannoyance

Yes, but my job from 22 to 26 did not require a degree, or even A-Levels - It was an operational role!

(At ~27, I applied to an internal fast track, which again did not require a degree - but did need experience)