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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

To think these baby boomers are missing the point?

999 replies

Hundredacrewoods · 28/01/2018 08:55

I grew up in an area where house prices have quadrupled since 2000. I consider this an intergenerational equity issue. Whenever the topic of house prices and 'millennials' comes up with my parents' generation, all I hear is how hard they worked and how much they sacrificed to get on the property ladder. AIBU to think that they're missing the point? No one is denying that they worked hard and sacrificed. The point is that if they worked just as hard today, and made the same sacrifices, it wouldn't be anywhere near enough.

OP posts:
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Yellowsubmarine75 · 30/01/2018 17:03

I started work at 18. My starting salary including London weighting was about 7k. In five years I saved 10k as I lived at home. Even with a season ticket loan I could save
enough for a deposit on a small property with a subsided mortgage rate of 5 per cent. The home was furnished with hand me downs mainly. I had a portable TV only.
Money was incredibly tight but I did it to get on the housing ladder.
I am not a baby boomers and I am grateful to have been able to buy when I did.
However my baby boomers siblings were no more fortune imo as they had high interest rates to deal with.

The80sweregreat · 30/01/2018 17:03

My dad has dementia - it’s an awful disease but looks like his paying out again. Whole other thread though.

getsorted21 · 30/01/2018 17:05

Yellow - did you pay market rent when you lived at home for 5 years?

Maireadplastic · 30/01/2018 17:20

What is your point, Yellow? (That's not meant to be aggressive, btw)

The80sweregreat · 30/01/2018 17:26

Yellow is just pointing out that you can do it - she said that she lived at home , so maybe her parents didnt take much or any rent from her? she was obviously very careful. its good to hear the positive stories actually, but its not the same for everyone and a lot of people do have help too with the deposits. Going back to the original opening post, its the people that say 'everyone can do it if they make sacrifices' which we know is meaningless when prices out strip wages and not everyone has help of any kind or can save up 24k on their own, or might live in expensive areas with parents and not wish to move miles away and commute for hours and pay 4 or 5k a year rail fares. its a complex thing and house prices are out of hand just now.

Shimmershimmerandshine · 30/01/2018 17:40

Assuming yellow is generation x as dob 75. I am also a late generation x-er (76) and DH and I aren't really worse off than our baby boomer parents. Maybe with free uni, opportunities etc gen x are the most fortunate with best of both worlds. My parents were able to buy a better house younger but they started work younger and our salaries/ earnings went up.

BrownLiverSpot · 30/01/2018 17:47

Housing crisis doesn't mean that nobody is able to get on the property ladder now. Just means that it's more difficult now and unattainable to too many workers.

LuluJakey1 · 30/01/2018 18:02

I started off in a one bedroom flat (converted terrace) that was all I could afford and in a quiet but not sought after bit of town.
Sold it two years later for double what I bought it for.
Put deposit on a 3 bed semi in a nice street but less sought after bit of town. Really stuggled with mortgage at first. Worked fell-time as teacher, twice a week at youth club and at weekends in off-license for the first year or so.Always over-paid mortgage even just by £50 a month.
Met DH a few years later. He had a flat to sell that had some equity on it. Got married. Used his equity to pay off a chunk of my mortgage. Kept over-paying. Paid it off at 34.
Both had a couple of promotions. Saved well.
Moved at 37 to 5 bed Edwardian semi in smart street. Paid difference from savings. Have small mortgage at 38.
We have decent incomes, but have always saved. We could not buy our house in London. Cost just over £500,000 here but would sell for about £600,000 now. Even in the smart bits of Newcastle we could not afford it.
We are not baby boomers but property is still manageable up here to get on the ladder.

getsorted21 · 30/01/2018 18:11

Also the days of buying property for x & doubling it in a few years are over in London.

SimonBridges · 30/01/2018 18:20

The thing is that saying things like ‘I started work at 18’ and ‘I lived at home and saved’ doesn’t really help anyone.

There are many people who can’t get a job at 18. Who can’t live with their parents as their parents don’t have the space. Who want to live with their partner. Who have a possibly unplanned baby.

The80sweregreat · 30/01/2018 18:24

My relatives did the ' stepping stone ' thing. Worked for them. Cant do that now ( moving costs are higher, prices are high to start with)
I hate sounding so negative, but its still not possible for so many people to buy these days until prices come down i think. Or its back to bank,of mum and dad, if your lucky. ( that word again)
If your renting it must be even harder.

Olga81 · 30/01/2018 18:24

I bought my first house- a one bed terrace in 1989 for £53000

If I bought the same house today it would cost about £130000 to £140000

I'm interested in what part of the country this is.

The house I live in now (a 3 bed semi in the Midlands) was worth about £8000 in 1987, but is now worth around £125,000.

£53,000 for a 1 bed terrace in 1989 sounds like an expensive area, but the current price you've given doesn't line up with that.

FruitCider · 30/01/2018 18:35

Of course that price rise is possible!

To think these baby boomers are missing the point?
FruitCider · 30/01/2018 18:38

This is why people are struggling to afford property in some parts of the country... it’s literally trebled in price in 20 years!

To think these baby boomers are missing the point?
To think these baby boomers are missing the point?
Olga81 · 30/01/2018 18:39

I'm not questioning that the price rise is too much, rather that it's too little!

The example posted gives price rise from 1999 not 1989

Olga81 · 30/01/2018 18:41

The poster above was trying to say that the price was 8 times salary in 1989 and remains 8 times salary. It seems unusual to me which is why I wanted to know what part of the country it was

RaspberryCheese · 30/01/2018 18:44

YANBU hundredacre..but the issue is that it isnt a millenial/baby boomer thing. Thats just bullshit touted around the press.

The real reasons for rampaging house prices are;

The 2008 financial crisis /credit crunch caused a rush to buy tangible assets be it gold,silver,land ,houses because those with money realised that if they kept it as cash, it would be devalued. They had to engage in wealth preservation and capital growth somehow and that wasnt going to happen in a savings ISA.

The other area that people piled into was the stock market which is still riding high.

The people paying for all this are those with cash savings and those with little disposable income because rampaging inflation is slowly making them all poorer.

Of course the smart money could see it coming a while before the big crash of 2008. Way back in 2002 an ounce of gold was around £200.

By 2008 it had doubled to around £450 and today,well its around £960.

Its the same ounce of gold so why is it dearer? Answer,well you need more pounds to buy it and why? Because the pound has been devalued by creating more of them in an effort to restart the economy by the mechanism of QE. Its a total ponzi scheme and a sham.

But back to houses. Houses are tangible assets and assisted by QE they became more costly just like Gold.

Unfortunately peoples incomes didnt go up to match this inflation in prices.

Coupled with this, people are being conned. The media has no end of programmes about getting on the so called housing laddder, homes under the hammer etc etc.

People will enslave themselves to a lifetime of debt in their rush to get a mortgage and yet the British live in the smallest,cramped most overpriced homes in the whole of the developed world.

Meanwhile your government, both labour and tory have made the situation worse by inventing all manner of schemes to keep the whole ponzi scheme afloat.

What right do Governments have to use taxpayers money to keep house prices high by subsidising new housebuilding and lining the pockets of the big housebuilders?

What else will they subsidise? new cars (oh they did that,the scrappage scheme)

The way to solve the housing crisis is the place strict controls on foreign investment in both new build and the purchase of property just to leave it empty.

Housebuilders must be prevented from land banking.

ALL land in the UK MUST be registered at HM registry whether it has been traded or not. HM Land registry currently connives with landowners to hide who "owns" all the land.

Housing assocs must be facilitated to build more affordable housing for affordable sales and rentals.

I would make it compulsory to build three storey family homes and not 2 storey. This would mean more homes on smaller land parcels but homes of decent size rather than rabbit hutches.

Housebuilding should be a fairer deal for all. It should not be an investment vehicle.

The problem is that Governments are too cowardly to take the pin out and burst the housing bubble because it would leave swathes of people in negative equity and stall the economy.

But the economy is built on wobbly foundations anyway and what does it matter about negative equity?

Who said that house prices must always rise? What use is it anyway? If you sell your house for more than you paid then you have to pay more for a new one?

If your paying £500 a month mortgage on a negative eq house so what? Stay there and keep paying your £500 and in ten years time your £500 pm will have been devalued by inflation.

Dont assume that all so called baby boomers are loade, have DB pensions and a big fat paid off house. It is far far far from the truth.

Mivery · 30/01/2018 18:49

YANBU. They got lucky and so many act like they were just harder workers.

Yellowsubmarine75 · 30/01/2018 19:10

No I didn't pay market rent but paid about 20% of my salary, poll tax and a season ticket loan.

FruitCider · 30/01/2018 19:12

I'm not questioning that the price rise is too much, rather that it's too little

Ahhh now I understand you!

Yellowsubmarine75 · 30/01/2018 19:16

I agree re jobs. In those days it was much easier to find work.
Yes shimmer I am generation x and I am grateful as house prices have risen condiderably and I didn't have to deal with 15% interest rates.
I lived at home as it was cheaper than a flat share.

Bluelady · 30/01/2018 19:17

Your maths needs some work, Fruitcider. That second property hasn't even doubled, let alone trebled, literally or otherwise.

FruitCider · 30/01/2018 19:19

Your maths needs some work, Fruitcider. That second property hasn't even doubled, let alone trebled, literally or otherwise.

Did you not look at the first or third photo then? Maybe your reading needs some work.

FruitCider · 30/01/2018 19:21

I mean rightmoves calculator informs me that one property is now 3.8 times the value it was 19 years ago. Unless Rightmove also need to work on their maths?

To think these baby boomers are missing the point?
Bluelady · 30/01/2018 19:23

I was talking about this.

www.mumsnet.com/uploads/talk/201801/large-335953-image1