Wealthy young people!

[Sushi4Dins]

There just seems to be a lot of them, suddenly! I just don’t understand how, in the middle of a cost of living crisis, droves of young people are still buying all these houses!

I live in a London suburb (leafy, green, ‘naice’ schools) and a young couple just bought the house next to us. They’re lovely, first time buyers in their 30’s and both consultants of some kind who used to live more centrally. There’s lots of similar people moving into the area.

This particular house was on the market for £750K. We’ve lived here just over 10 years, but certainly couldn’t afford to move here now! How is that affordable for first time buyers? They’ve also been on long haul holidays twice in the last three months.

I have teenage DC and I’d like them to become these people. How do I make that happen?

This is why it's important to talk about money and salaries. Some people seem very surprised that there are such high salaries out there. A family member, mid 20's will be earning £150k in Sept (corporate law). If they do well, will be easily on £250k 10 years later. Their partner is coming to the end of medical training so 10 years down the line will also be doing well financially. £350k annual salary combined. I also know lots of comfortably off young tradespeople who have been able to buy houses and renovate easily and 'flip' them.

It's important that we show our kids that these aspirational opportunities are out there.

Are you trolling, or do you genuinely believe that stating people’s nationalities, while giving a range of other info about them, is racism? If so, do please explain why you think this.

Why are their nationalities relevant? My gut tells me that this was the real surprise for the op- that two young foreigners could afford buy in her leafy suburb.

It must have been so stressful! My friends had an uncooperative vendor and they were down to the wire, as well! Nail biting!

This is a great read to understand some of it

www.theguardian.com/money/2022/dec/03/why-inheritance-is-the-dirty-secret-of-the-middle-classes-harder-to-talk-about-than-sex?CMP=Share_iOSApp_Other

Why is the fact that they’re nice relevant? It’s not, but you didn’t object to that, oddly enough.

London is extremely racially and culturally diverse. There’s literally no area where there aren’t ‘foreigners’. Your determination to be outraged is misplaced. And seems like race baiting on what’s been a very pleasant post.

"London is extremely racially and culturally diverse." Oh really I never knew? 🙄

I’ve name changed to reply. I have a child who is 28 and already on around 130k salary (director in retail), started on a grad scheme after university and has worked their way up. Their partner is on around 100k as a financial analyst. Both work abroad currently, but own a flat in our nearby city which is rented out. By the time they move back to buy in the uk they will have a large deposit and earning potential without our help. They did inherit an amount from each set of grandparents which helped with first property purchase (10k from each side). So it’s not unreasonable, it’s just that for some of us who could never have earned those salaries, even now after 40 years as a professional it takes some time to get our heads round it!

Well, last time I checked, I was still Black. Unless something happened to my husband on his way to work this morning, he’s still Black, as well. Ditto our kids. 😂

The fact that you appear to have assumed I was white based on zero information is interesting. If we’re going to be talking about racist assumptions. Do non-white people not live in leafy suburbs, then?

They work hard, they educate themselves, they Don't splash out on expensive holidays, cars, nights out, expensive gym memberships, daily Costa coffees , acrylic nails, expensive hair colouring, lip fillers , all of which young people deem necessities, then complain they can't afford to get on the property ladder

"The fact that you appear to have assumed I was white" I never said you were white.

I know number of people in their 30s earning 70k, some even more in various fields. Even with rents etc, you can save deposit.

However, it just feels better to think it's always bank of mum and dad on here I guess.

When I read title I thought it will be about rich 19 year olds.

Lots of interesting perspectives on here! Thanks, everyone. Just to clarify, I did mean business consultants, not doctors. Sorry if that was unclear. 😊

I know someone who has just become a partner at their law firm at 32. They will be earning over 300k a year. It’s possible.

Don't be a teacher, nurse or anything like that

You can earn 60k or 80k as a teacher in a secondary school in London if you are on the upper pay scale with an additional responsibly or on the Leadership scale.

You called me a racist. What race was I allegedly being racist towards? The Scottish? Are they a race now?

You can also earn 1.5m a yr as an equity partner in a MC law firm.

The majority of my friendship group have been gifted substantial deposits from their parents (I’m talking £100,000 plus) downsizing, family wealth or inheritance. My DH and I are very much in the minority for having to save up for our house !

Even a couple who are both teachers are in a massive house with a minimal mortgage thanks to inheritance. I honestly think you can’t guess peoples salaries form their houses now as so many people get gifted deposits.

Inheritance could help - a lot of people are skipping generations now.

FIL left his estate to his grandkids and quite few friends of my older Uni age children have been the beneficiaries over their parents

I think lots of people must get family help. I do think, though, that if I was a young person who hadn’t had family help, I’d be a bit indignant if everyone thought I had. It must feel a bit like having your achievements diminished.

Actually, thinking about it, maybe their nationalities are actually something here. At least one. None of my foreign mates got money from family to buy houses here. If anything most send money back actually. So maybe at least half of the couple, from my experience so of course anecdotal, did not benefit from bank of mum and dad.

I may be able to add some insight here, I'm in my mid 20s and have been a higher rate tax payer since 21. I am the youngest person in my very affluent neighborhood and the youngest parent in my ds all boys London private school and most of my peers who are also in their 20s and 30s, make alot more then me, often in the hundreds and thousands and additional tax payer bracket. And what I'll say you may not want to hear, but the honest reason for my success and so many of my peers is we went outside the system. We didn't do what society told us to do which was go to uni straight after school just get a standard job and work until retirement bla bla, we used our age while we was young to take risks to do things that may be slightly seen as unconventional but with high earning potentials and it paid off for the most part, as when you're young and living with parents you can afford to take risks, and fail, where as when you're older with a mortgage and a family to depend on you, you can't really take those risks. University is always going to be there and isn't going anywhere so why the rush to go straight after school and riddle yourself with debt for a career you're not even 100% sure about? Why not go later after a few years of work experience and trying different things? I myself started my career in sales for a corporate broker in the city after leaving school, and by the time I was 21 I had progressed to working as a senior account manager for a huge American MNC and made my first £100k that year. I have friends who are full-time traders, business people, do social media etc. and my colleagues in the same job as me make £200k-£300k+. My high earning friends who did go the traditional route such as going to uni straight after school etc. Were intentional about what they put their time and energy into studying, they pursued education that had a big return on investment such as studying law, banking, finance, medicine etc. And didn't waste their time going to uni just for the sake of, to just any old degree. They also made the right connections. The old system doesn't work anymore. Working a normal 9-5 just does not secure wealth or financial abundance especially as wages have stagnated and col had increased. Working a normal 9-5 for majority of jobs keeps you broke. Young people who are successful are either taking risks in doing something that has a very high earning potential such as high ticket sales, entrepreneurship, real estate, social media etc. OR they're picking career with a very clear high return on investment on their education.

I don't think early to mid 30s is particularly young to be buying a 750k house, particularly two professionals. Family sized homes tend to attract buyers who have either children already or are planning on having them, so the 30somethings fit into that bracket very well.

I think in the past, there was a focus on getting on the housing ladder, so couples would buy a small house or a flat, then gradually sell and build up that way.

Now, I think a lot more rent, move around a lot for jobs, so by the time they are ready to buy, they don't buy a "starter home" they buy something that they can settle in and have kids etc. and if you are moving frequently to build a career, renting is easier because you're not tied to the housing market.

Me and DH bought a 3 bed house as FTB - for exactly that reason, we had moved around a bit and rented smaller places and didn't see the point of buying somewhere smaller when we were staying in one place with the hope of starting a family. Ok it wasn't in London, but some people were surprised that it was our first purchased home.