AIBU to be worried/annoyed that I will probably never own my own home?!

[Mydearyouareutterlywonderful]

Hi all,
Have been a MN lurker for a while and would like to gage reactions/ get some feedback on this.

From what I've heard through various sources, it seems the UK as a whole is a bit fixated on home ownership. Compared to other countries whereby renting is the norm. Had recently blindly started saving for a deposit, thinking if I could get 10k together, I'd be well on my way. Now I realise that was perhaps slightly naive of me if we're to avoid large monthly repayments.

On average in our area, a one bed flat goes for around £190k. Based on mine and DP's salary, we will be able to get a mortgage of between £150 - £175k. You see my problem here.

It got me thinking, who on earth sets these ridiculous prices?! Is there going to be an entire generation of renters because house pries have got so crazy? We could move to a different area but doing a property search within a 15 mile radius shows up areas which are a lot cheaper but rough as!!

Ive probably answered my own dilemma - rent in a nice area forever or buy in a seriously chavvy not very nice area.

Just had to vent .... Aibu?

Where do you live? Couldn't get a garage for that price round here. And yanbu

Moat people have to start off in something that has a large element of compromise somewhere. Size, area, condition... unfortunately that's the way it is. If you are desperate to buy, then maybe a less than perfect area is your starting point and you continue to save to upgrade in a few years.

Moat people? Who are they? Most!

Oh really? Haha I feel better already!

To be fair, the flats that are going for £190k need a complete overhaul....

We live out of London but only just....

Looking at house prices up north and the difference between what you can get for your money is just gobsmacking.

The cheaper areas are likely to become nicer as more and more people start to buy in them because they can't afford their first choice 'desirable' areas. That's how people make money on property.

Prices are set by supply and demand, property is only worth what buyers are willing to pay for it.

I live 50 miles out of London and commute daily. It is bearable. And you can get a perfectly good 2/3 bed house for under £200K in a decent village. That's the location compromise!

(I used to live up north and could be in a big house by now, but sadly there were far fewer jobs and those that were there were at half the salary I can get in London)

There may well be a generation of renters and the laws around renting probably need to change to reflect that renting is insecure even for good tenants.

It's compromise really IMO.

My friends who rent and moan about prices won't consider anything new build/no garden/flat…They want to move in to a 3 bed family home in the area they rent in.

I bought a cheap two bed flat in a student area. Did it up, rented the spare room (which paid the mortgage), and got saving.

Sold that, with savings and profit bought a tiny two up two down in a slightly nicer commuter belt area. Rented spare room.

Met DH, and now have a 3 bed family home in a reasonable area.

It is possible, but sometimes you have to lower your expectations to start. If you buy you're not stuck in the chavvy area forever, and quite often because it's cheap, it becomes popular -and before long tesco's and starbucks move in and you're in a nice area after all...

Location makes such a difference. I have just bought a 5 bedroomed house for £215000

It's also about being realistic. People rarely buy their forever or family home as their first property, but I think people are bypassing flats now as not big enough or whatever so they go straight for the 3 bed house. Well yes, that's going to be a a lot more expensive straight off. If you are determined to buy, then the 1 bed flat that needs some work is probably your option. Do it up, hopefully make some profit on it (but it's not a guarantee) and then move to the next level.

How does buying a 1 bed flat work if you're already mid 30s with two kids before you can afford even that?

I have been moaned at by friends as why they can't get on the property ladder but agree people have very high expectations, fine but it takes a lot of hard saving to get what you want and plan well ahead. It took me and my DH 7 years to get our deposit together, which took every spare penny we had, we had a very small/cheap wedding so as not to blow our savings and put off having kids for several years. We are now saving again like mad to pay off a big chunk of the mortgage in 5 years or a rental property for our retirement, I'm only 33 but sadly I feel this level of forward planning is necessary in our world today, trouble is most people are seeking instant gratification.

Obviously it won't, but I was answering the OP's question and she hadn't made any mention of 2 kids, mid 30s, etc.

The 1 bed flat next door to mine (rented) just went for £287k. It needed loads of work too. We're in Scotland.

We're in the same boat as you but are mid/late 30s with a baby. I try not to worry - we could save every spare penny and still not be able to afford to live here, so there's no point in stressing. We have a good amount of savings and good pensions, so we're content for the moment.

It's all very well for other countries to rent as the norm but here, there's VERY little protection for renters. Unless you get a Housing Association house.

I think you're right that we in the UK are slightly fixated on home ownership, but it's more than that, some people seem to want it all. Have kids young, have a nice social life, do a bit of travelling, good work/life balance, and own property too.

Thank you all for your replies,

Thankfully I am mid 20's, no children but setting a plan to have them within the next year or two, hence the whole wanting to buy instead of renting bee in my bonnet.

woowoo I am one of those people!! wasted spent far too long with my ex and so any plans that I had when I was 18 only started to happen a couple of years ago when I met my current DP.

Micah thats a very good way of looking at it. I guess areas evolve over time and generally theres no guarantee that the top areas now will be as desirable in 10 years time and vice versa for the not so nice areas now.