But, my first house cost 20K. My salary was 4300 pa. Interest rates were at 12% (I think-something like that). I crapped myself as had just got married and had a kiddly on the way. But I got by (just).
Sold the house 4 years later for 22K, banked £2000 and felt really rich. Bought my next house for 32K and sold it for 45K. And so on. I was always close to the edge and worried about paying the mortgage, but managed it. Times were always hard and budgeting difficult. That's why I don't see myself as selfish. And, lets face it, when you die a big chunk goes back to the state anyway.
I didn't grow up in a golden age. BUT - eventually you reach a turning point; somewhere along the line, where your repayments seem to diminish and your assets appreciate.
To be perfectly frank, the only way to accumulate wealth in this country is through property.
So, go on, be an entrepreneur and create some wealth for yourself.
It's easy being a socialist when you don't own anything.
But what you had back then , was a lovely , free, fairy godmother called inflation . Yes it has always been hard to set up and buy one's first house . But if you struggled it was only for a few years , as inflation kicked in your salary went up in leaps and bounds , intrest rates , may have gone up and down but the mortgage amount did not.
So very quickly big mortgages got small.
If you had stayed in your first house , you must have had less than 20k mortgage unless you did get 100% loan , vary rare back then . Your salary would have gone up and up from the £4300 P.A. that you state . Just to give an example how salary's went up , I left school in 1979 in 1980 I and everyone at my firm got 25% pay rise.
My Dad started out before you , he and my mum paid £3,750 for a nice 3 bed semi with garage outskirts of London , They borrowed £2,750, they had saved £1000 through 4 years . My Dad was nothing special for a job insurance clerk , they had two kids I followed 1 year later and a fourth followed four years after me. My mum never went back to work untill my younger brother was at school and then only part time. My Dad when he bought took home £80 per month. The mortgage was £20 just 25% of his take home pay.
I remember my mum stating while I was growing up that the mortgage had shrunk so much in real terms and that renting of the council would be more expensive. They finished their mortgage years back and having never moved Dad still lives in that house . Peak Price was £350,000 now about £300,000.
People buying today taking huge mortgages will have huge mortgages for years as their is very little wage inflation .3% if lucky not 20-25% of those far flung days.
The fairy god mother inflation that helped you has Fu---d off now that the next generation need her.
Edited by miko, 18 November 2009 - 09:49 PM.