Saturday, Jul 26, 2008
David Smith talking sense?
Times: Is home ownership still an aspiration
Young adults did not think much of the idea of home ownership. Why tie yourself to a big mortgage when there are better ways to spend your money? Why get lumbered with years of housing maintenance and having nothing more exciting to do than getting the windows done? The old argument that paying rent is dead money left them unconvinced.
Only 44% of 18-to 25-year-olds favour home ownership.
For some people, renting is indeed the best option.
Posted by little professor @ 10:08 PM (677 views) Add Comment
10 Comments
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1. Malct said...
meaning 56% had other ideas
oh please get a life
only 44% ? what died on the roads? got knifed? oh come on stats wake up
who do you think is listening to this cr@p?
2. paul said...
Still an Alistair Argument. Whenever anyone says that the reason the market isn't moving is excessively high house prices, certain less educated hacks say "Look over there! HIPS! Land banks! Greedy lenders! Rates too high!".
David Smith is one of these dullards. He cherry picks statistics to suit his worldview, and parades them as neutral POV.
Nice try: 9/10 for effort, 4/10 for results.
3. montesquieu said...
Nice little column - remember that's what he does for a living, craft a few thoughts out of not very much. It's not intended to be a footnoted economics thesis.
For once I think he makes a few very sensible points.
4. paul said...
Hang on monty.
His argument is something like this "young people don't want to own houses any more, so policy makers shouldn't worry too much about affordability anyway".
But he has argued before and maintained that debt "wont't bring down the economy":
http://www.economicsuk.com/blog/000348.html
In other words he's flip-flopping depending on who's listening. Don't worry, David Smith moronic reputation is in tact ...
5. inbreda said...
I think what he is basically saying is that 44% of 18-25 year olds have a better understanding of economics than him, and wouldn't have "invested" quite so much in shoddy BTL flats.
6. it_is_going_with_a_bang said...
Prices are simply soooo high and unaffordable that nobody in their right mind would or should take out a mortgage for the frist time.
It's not about liquidity - it's about common sense.
The age of first time buyers has been going up for years. The statistic is 34 isn't it? So it's hardly suprising that the 18-24 yr old group don't appear that interested.
David Smith changes his views depending on the direction of the wind. Although in this case he is just stating the obvious.
7. Dave said...
I suppose the average young person is more concerned with sitting on a foreign beach, getting a sun tan and drinking ale. How exciting! I think I'd rather get the windows done as the other would be just too much excitement atonce!
8. Whostolemyendowment said...
The age of most new graduates is around 22, already lumbered with student loan debt from 3 years at uni, the last thing they want is more debt...first choice is a reasonable job, but this will not be a job for life, and they will no doubt want to move on to bigger and better things within 2 to 3 years of graduating. So they would not want to put down roots too early - renting is the best and mobile option. So if they are then in to the second and firm career - so heading towards 30 - and student debt is paid off, and salary is now good - then is the time to think about buying a property - and hey they still have the hope of 25 years paid employment to pay off a mortgage.......
My point is18-24 years old....either they are still in education, or newly graduated - so house purchase, savings, pensions, etc.....are low priority.....it ain't rocket science!
9. dohousescrashinthewoods said...
I think what he is basically saying is anything that comes into his head that will sell papers and suit the political aims of his masters, which is presumably how he got to be where he is today.
I find his articles at best confusing and at worst damaging to clear understanding and now refuse to read them.
Papers are not in the business of providing good, clear and helpful information to their readers, they are in the business of selling copy. Insofar as the former supports the latter, it will be reported, but little further, except for the valliant, self-defeating efforts of information philanthropists.
It's the old classic that doing "a good job" at work is not really what gets you promoted, which is why decent people (politicians included) get frustrated at the bottom of the pile whilst the faeces apper to float effortlessly into middle management, frustrating directors above and stifling talent below. Strikes me that the board and the graduates are both keen to get something done, but it gets lost in a thick layer of porridge that is eminently qualified in covering its ass at others' expense.
So, rant over, but my policy is to avoid reading the "successful" or "famous" journalists and focus hard on the unknown and marginalised because they have the best things to say but are far too good for advancement.
10. last_days_of_disco said...
@dohousescrashinthewoods
I think the debt based economy has made this problem chronic. The good news is the economic crash that is coming is going to purge this. The important thing is to be ruthless with the useless middle mangers from above and below. Get the talent talking to the leadership. We might actually have a time of brilliant productivity in the UK economy coming. We will get the useless, spineless middle managers into the jobs the deserve, cleaning up parks n stuff.
Show no mercy, our livelihoods depend on it.