Aibu to think that "suspended adulthood" is going to lead to large problems?

[BlancheBlue]

www.theguardian.com/society/2016/sep/22/young-people-living-in-a-suspended-adulthood-finds-research

Just this really. There was a telling comment about this article with the ever increasing age profile of parents the chance of children knowing grandparents is going to be remote.

I think lots of the boomer generation really fail to understand this. Whenever it is said it is tough for young people que loads of "well I worked my arse off and owned a house by the time I was 21" type comments.

brasty true but in the past many, many people rented social housing which was secure and reasonably priced

So overinflated London salaries for nonjobs that could be performed by chimps then?

Are you just on this thread to troll?

I bought my house in Nottingham 6 years ago for 76K. It needed a lot of renovation but it's perfect now.

I spent my early twenties doing what many younger millennials will be doing - paying back student debt. My situation was a bit unusual as I wasn't eligible for a student loan loan (didn't meet residency requirements) so funded my studies with part time work and credit card (awful but true). My parents couldn't afford to support me at uni, so I had to do it. If you're paying off debt it's very hard to save for a mortgage, and as others have said - many banks now want a 20-30% deposit so even if you are buying a cheap as chips property oop north for say £100k, that's still 30k you need to save, while paying off student debt and keeping yourself alive in the meantime

This is silly. 44% of the English population lives in Greater London or the Southeast. If I could get figures based on age, I would imagine that the figure for genY and millenials would be even greater. It's not a "niche" concern.

How are these kids going to pay off their student loans? Remember with 50% going to university, they now have to go to uni, and pay for it, to the get same jobs people managed with just A-levels, or even just O-levels in the past. So of course, they have to go to where the jobs are. Good jobs and cheap housing are inversely related.

As for inflation, it's very tough when your variable rate mortgage shoots up. But historically, when inflation jogs, so do wages. They lag a bit, so it feels tough, but they do follow. And, inflation eats away at the real value of your mortgage. High interest rates are a transfer of value from creditors to debtors. So, I think it is very hard to argue that as a group, baby boomers did not benefit from the macroeconomic conditions at the time of life when most of them were taking on debt (mortgages.)

Additionally, 5% mortgages are hard to find these days and if you do the interest rate is relatively punitive.

If millenials are moaning about the system being unfair to them, well, they are right. Frankly, the system has neither been designed nor tweaked with their interests in mind. Of course, the best way to change that, is for them to become more politically engaged and to vote more often.

So overinflated London salaries for nonjobs that could be performed by chimps then

Charming. What chip do you have on your shoulder that you need to be so nasty for the sake of it?

Industries that attract multinational companies to London and pay a lot of tax to the UK exchequer.

But perhaps you'd prefer to decline that income? Perhaps you have no need of public services?

Barbarian, I'd actually love it if i could work in another UK city. Many of these companies are global and like being in London because it's such a hub. I wish it were different.

44% of the English population lives in Greater London or the Southeast.

Yes, but why do they? And why is it desirable that they do? And why do the concerns of that 44% outweigh the problems and concerns of everyone else in the country (hi Wales!)?

If you're income is £24k a year, that means your income is about £1760 per month after tax. If you pay £400 a month on rent then you have £1360 for all other bills and expenses. It should be possible to save about £200 of that a month, which over 3 years adds up to £7,200 - a very healthy deposit.

£7,200 wouldn't get you a deposit on a shoe box where we lived.

sparrowhawk many, many people are buying VASTLY more rent than £400 - can you understand that? Are you also aware of the cost of commuting by public transport that most young people (and most who work in large cities have). You are also not taking into account the student debt that young people have.

Yep, but 400 pcm rent is comedy low. Average in Zone 3 London is 1200 per person a month. But you don't get more than 24k just because it's London.

Yes, but why do they?

They live there because they can find jobs there. They are no more able to rebalance the whole British economy on their own than you are.

There concerns do not outweigh everyone else's, but they are entitled to their concerns as much as you are entitled to yours.

Additionally, 5% mortgages are hard to find these days and if you do the interest rate is relatively punitive.

Just took 30 seconds to run a quick search through compare the market on a ftb with 5% depositand 95% ltv. 15 different lenders at around 1% above the base rate.

Come back to me when interest rates are 6% and we'll talk about high. Come back to me when they hit 13% and we'll talk punitive.

I was answering another post that mentioned £400 a month in rent.

But as has already been pointed out a £7200 deposit is less than a third of what many people require as a deposit so even by your calculations you would need to save for over 10 years. (Ignoring the fact that 24k is a fairly high wage & £400 a month wouldn't rent you a room around here.)

Their concerns

sorry for the homophone swap

The 1-bed flat DH and I shared when we were dating is now £900 PCM, up from £600 twelve years ago. That's what rent looks like.

£400 PCM would have been a dream.

I had 2 children and was in my 30s before i owned a house whats the matter with renting ?

But don't you think addressing the inbalance in the economy would actually go a long way to sorting out everyone's concerns? And if so, why doesn't that constantly make the headlines as the real problem?

Where I live, a three bedroom house costs about £550 a month to rent. So a bit more expensive. But you can buy a house for £100k so a 10% deposit on that is still doable.

t4 I have already explained to you how 13% interest shrunk your mortgage in real terms. It felt hard at the time, but you benefitted from it.

What's the matter with it is the rents keep increasing, squeezing the amount between the cost of living and the amount to be saved for a future deposit, to smaller and smaller amounts. That's what's wrong with renting.

Many "normal" parts of London a room only is £700-800 odd a month

It's good that there are places where a house costs £550 to rent. Point the millenials to the jobs that fit their skill sets near there and I'm sure there will be a stampede.