Home Ownership

[Gin96]

Article in the Guardian about home ownership being out of reach to most young people, it makes me very sad, poor families struggling, our generation were lucky, i’m not saying we didn’t have it hard but owning our property was within our reach, now it just seems impossible.

www.theguardian.com/money/2019/jul/31/young-britons-believe-dream-of-owning-home-is-over-survey-says

I agree. It's so sad. I feel incredibly sorry for people trying to get on the housing ladder now.

I count my blessings every bloody day that I was able to buy my first home in 2002. It £89k for a 3-bed semi. The same houses in same area now go for £265k.

Sold that £89k house 3 years later for £158k and bought 4-bed semi for £168k, which I still live in and is now worth £275k.

I wouldn't have been able to do it if buying nowadays.

The cost of everything has increased and wages seem to have stated stagnant.

^^ same here .. we were very lucky to be able to get a lovely 2 bed semi for £80 k in 1998... the same house is now worth £350k and yet it was a starter home really and who could afford that on 'normal ' wages .. it's crazy although the market has all gone in our favour , I'm very grateful

My son is 28, even though he earns a good wage, he can’t afford to buy a house on his own and renting is such a waste money so he might as well stay with us. It seems so unfair

Some times I think we were complete mugs buying a house. We had reduced disposable imcome, and eventually it will be taken to pay for care homes.

On the other hand, had we rented, we could have had extortionate holidays, big cars, and safe in the knowledge that the same level of care in the same care home will be paid for by the state.

My son is 28, even though he earns a good wage, he can’t afford to buy a house on his own and renting is such a waste money so he might as well stay with us.

^^ This was the same in the 80's and 90's, people co bought with friends or colleagues to get on the ladder

True .. he will need to buy a flat with a friend to get on the ladder .. a lot of the current generation expect too much .

It's just 5000 people.
The article says 70% BELIEVE they will not be able to afford a property.
It also says that nowadays the starter property is a 3 bed due to people buying later. Obviously 3 beds are expensive compare to 1 bed flat which should be the starter.

And that 42% even haven't saved anything at all towards the property🤷

It's not cheap, but with 5% deposits it's possible. Even if you are on 21k and keep your outgoings low, you can get about 85k. Which I know buys nothing in central London, but it can buy plenty elsewhere.
As pp said. Buy with someone.

DF is trying to sell his house , has had three accepted offers recently, all potential buyers have been rejected for mortgages so far. Seems nearly impossible to get one these days unless you're pretty wealthy.

I am 36 and have accepted I will probably not own a home. I do not know anyone who brought a property without some level of assistance from family.
We looked into shared ownership, but we want to start a family and I do not want to get trapped in a one bedroom flat because I cant sell it.

I'm a millennial feel incredibly lucky to own my own home, however...I do think our (my generation) expectations have raised somewhat. Lots of people I work with claim not to be able to afford a house but both partners have BMWs or similar on PCP.

When my mum and her first husband bought their first place it was so bad they lived on the drive in a Morris Minor for three months whilst getting it habitable. They had no furniture so when they did move in they slept on the floor until someone gave them a bed. Couldn't afford the pub so made their own home brew and Friday nights would be a veggie curry and aforementioned home brew for entertainment.

I really can't see anyone I know living like that now. My friends are horrified we're buying a house with a 1950s kitchen and won't be able to afford to replace it for many years, but for our budget our next house would be a shoebox new build or a spacious detached with huge garden but with Bakelite switches and some - ahem - updating required. So yes, I think house prices in relation to income are shocking, but I also think there are/were differing approaches to 'doing what it takes' to get on the ladder.

I also suspect (but no evidence to back up!) more people move out into rented now rather than saving at parents house. I know people who live in London, and went into halls for Uni in London for the 'experience' - imagine that was unheard of in the 70s!

There's another thread about this that I've already posted on, but I've since realised that it goes much further than just being able to get out of rented, I can actually retire early. We don't have dependents. I can retire by 55 because I can save.

Also wanted to add I know some people don't have the privilege of even attempting these sacrifices, but I do know an awful lot of people who don't even take advantage of their own privilege (by choosing to move out early and rent, for examply) or seem to be forever #livingtheirbestlife in exotic destinations and bars on Instagram, then moaning at the office that they'll never afford a house and can't save.

That's interesting poowilly, my first home was a do-er upper and I didn't have a nice kitchen and bathroom update from the original 70's-tastic version for well over 10 years.

My first place was ex-council flat in a not-great area, and looks (then as now) pretty run down outside.

Previous owners RTB for £55,000 in 2000
I bought for £107,000 in 2003
I sold for £135,000 in 2006.

The (identical) flat next door is for sale for £200,000 today.
It's not as massive a leap, and is MASSIVELY cheaper than the fancy new builds springing up all around my area. I bought it because that's all I could afford.

I live and work in the South East and there are young people who I work with (under 25) buying their first homes It's not impossible if you live at home first.

I'm not sure how people manage to save whilst renting but that's always been difficult.

Oh come on, its not as a simple as too many avocado brunches.

To buy a one bedroom little flat in outer London I need a deposit of £29000.

To buy a one bedroom little flat in outer London I need a deposit of £29000.

Are there really no 1 bed flats under 580k?

Nope dont feel sorry for them. Interest rates are at their all time low & will stay that way for a good few more years. I bought my first flat in 1988 with interest rates at 10%. Main difference between then & now is that they have to find a bigger deposit as houses prices have gone up more than wages but most lenders do 95% loans so only need to find 5%. Lenders generally lend 4.5 x income as well compared to around 3x in my day.

a lot of it is where you live, you can buy a 1 bed flat or house for about 50 grand here, if you're willing to live somewhere a bit rough (prob no rougher than some bits of London I suppose!)

Oh come on, its not as a simple as too many avocado brunches.

No it isn’t that simple, but people do spend money on eg a water bottle or a lunch or Starbucks every day - especially commuting where you don’t want to lug it all up down with you - lunches even basic Boots meal deal (4 quid) is a grand a year; bottle of water £250 annually, Starbucks - another 750 annually - it does all add up. Living at home is always far cheaper - how many save the difference? Renting a room locally is 600 a month with shared facilities. I might take money, I might not, it depends. But you can be sure my DS doesn’t save that £7,200 a year in rent he isn’t paying out, he takes a packed lunch when he's broke and eats out when he' flush. Using those simple calculations, annually DS theoretically should be saving a minimum of £9k per annum.

Ps a nice lunch last week for 2, in a cafe in Ladywell was 20 quid. Nearly fell off my artisan chair.

Excellent point @PooWillyBumBum but not exclusive to your generation. I've friends that drive around in Mercedes and Audis, have a brand new kitchen, loft conversion and new double glazing, but all of it is on the never-never, everything is on finance. Yet they moan they are skint.

I'm not particularly great with money myself, but in comparison I drive a 9 ywar old Astra paid for I full, I've just had my garden landscaped after 7 years of trying to get the money together and my kitchen is about 20 years old and in desperate need for replacing, but I can't afford it and refuse to get into debt for a new one. So we painted the cupboards and bought some expensive (but second hand) handles off eBay. So it certainly looks better and can't last a few more years.

But I agree, it's about expectations and priorities, everyone seems to want everything new and right away. Plus we are in a disposable society, where we throw away things instead of repairing them.

My corner sofa and chair suite are looking tired after 15 years from new, but I'm genuinely considering buying second hand for our next suite rather than £1500-£2000 having been genuinely surprised by what great quality furniture you can get second hand, for s good price.

The street I grew up in is: central London, Georgian terrace, ok but not hugely desirable, 15-20 mins walk to tube, estates either end and sides. My mum’s neighbour just sold their three bed terrace for £1.6 million. Now I understand people need to move and no not everyone can expect to live where they grew up, but I think most people can agree that this is pretty outrageous. Normal, and not particularly interesting terrace, is only available for millionaires. Ex council flats etc in same area are truly not much cheaper. Madness.

Fridge, it's not only based on property price but how much you earn in salary. The above poster may need a larger deposit in which to have a mortgage accepted on their current wage.

@TheFridgeRaider 29K would be 10% - that is the usual deposit these days

Ownership rates are dropping and purchase is becoming less affordable, but OP you're about to hear from a lot of people who either can't or won't understand that and think that higher interest rates at various points are a refutation to that.

The avocados and takeaway coffee argument is ridiculous in the face of paying millions for a house near family and work. Not everyone can move away from help and support, or work. Come on.