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Young Fellow

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About Young Fellow

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  1. I’ve not been on for ages, but am still young (I think) and with only a limited financial knowledge (mostly owing to my background – mathematics and pet interest – economics). Wouldn’t mind some advice on what to do next from the more worldly-wise on here Circumstances • 31 years old - was sharing with friends and now with a sibling -- you really do have to in London • On 55k as an analyst (junior manager) - good maths helps you get promoted at regular intervals but that said my salary is not all that great in London • Though do worry about my job -- no more or less threat than most but can't help but worry!!! • Saved up nearly 200k - some gained by getting out of £s before QE1 -- saving >= 2k a month • Similar to many others on here, I guess I’m out of the market for years to come - sad, because I really was sensible on finishing 2nd degree some years back Story The bank gave me a special relationship contact or whatever they call them some years back, and he’s always been hassling me to put money away for periods at a time. Though I never do because I like to be in control of my cash, and would only make those kind moves seldom and with some conviction of where things are going e.g. the QE1 thing ditch Sterling go into another currency. Strangely, the bank has been aggressively hassling me for months now to come in and discuss what I want from them in the future. I finally succumbed, thinking if I showed my face and told them I am uncertain about the future, then they would leave me alone. I did not expect this to take very long as I’m quite sure I’m not well-off by London standards, hence what need do I have for complicated financial instruments. Any how last Monday I went in and how much more wrong could I have been; I was subjected to tortuous hour with someone asking me: (1) what I want from life? – I did know banks had qualified life coaches, I said; (2) what my views on the economic situation where? Then just a bit of telling me what I should think… - I said I didn’t really know, I’m just a kid; and (3) why don’t I want to buy a flat or even a house? – At this point I just said that I’m poor, I can’t afford it -- a bit false I know, but he was getting on my nerves! After all that he morphed into an estate agent, telling me how great it was for FTB now that LtV of 95% are available for some. I said but isn’t that only available at very high APR, he went to great pains to say not by historic standards and if I went for 75% LtV then the APR would much lower. I just shrugged my shoulders and said you don’t get much for my level of money in London. I left feeling quite annoyed because I expect they do this with even younger and less numerate young people than me – It is all a bit immoral!
  2. I previously said: > 31 years - was sharing with friends and now back with a sibling -- you really do have to in London > on 55k - though do worry about my job -- no more or less threat than most but can't help but worry!!! > Saved up nearly 200k - some gained by getting out of £s before QE1 -- saving >= 2k a month > Similar to some others on this thread, I guess like many I will be out of the market for years to come > Sad, because I really did try to be sensible I'm a analyst - good mathematics helps you get promted at regular intervals but that said my salary is not all that great in London I live frugally and save like mad, but as you can see it does not help me much.
  3. 31 years - was sharing with friends and now back with a sibling -- you really do have to in London on 55k - though do worry about my job -- no more or less threat than most but can't help but worry!!! Saved up nearly 200k - some gained by getting out of £s before QE1 -- saving >= 2k a month Similar to some others on this thread, I guess like many I will be out of the market for years to come Sad, because I really did try to be sensible
  4. With due respect: - putting all of your savings into a mortgage, which is what you have suggested, is the kind madness that got this country into a mess. I would never do something so irresponsible, leaving 50k in reserve is what people should be encouraged to do - This leaves me with 120k; - borrowing more than 3.5x salary, which is what you have suggested, is the kind madness that got this country into a mess. I do not have a other half, so that is immaterial, 3.5x salary gives me 175k or so; - believe it or not, I do not know where your from but sub-300k does not buy you much in London - it really does not, and of course you have to think about how you would finance it with interest rates for non-existing mortgage holder already at 5% APR (last I checked) and this with the BoE base rate at 0.5% - what if this went up; and - there is the financing of your next (non-starter home) to think about, if virtually bankrupt yourself getting anything then you might stuck with that forerver.
  5. point 1 would just drive HPI further. point 2 is basically tyranny, and persecution of the young.
  6. Thanks for te understanding tone, many would not show the general benevolence to my generation that you do. The way I see it: 1) I'm young-ish (30), so can probably wait a few more years, but is it worth it? Not sure! 2) I have qualifications (mathematics based) and a fair bit of experience (5 years+), so should be able to get a job in a English speaking country, but do I really want to leave friends and family behind? Not really, but might have to! 3) I have worked really hard on my career (now earn 50k+) - was a son of refugee (25+ years back when it was very difficult to get come to the UK - long time waiting in queue of the deserving then), so did not start off with a silver spoon. Even this does not seem like much of an achievement, because the cost living in London is so high. So, I am really frustrated and have no piece of mind, should I jack it all in and stop working so hard - many on benefits do not seem to care about making the country better (more productive) why should I, but then am I just letting myself and tomorrow's children down? Probably! 4) I started off with student debts, but have paid it all off and built up my saving by living with my sister and her family (horrible arrangement), but it did allow me save-up like mad (170k). However, this is not a large sum of money in the grand scheme of things in London, certainly not enough to get me started without taking on crippling debt (5%+ APR last I checked, and only likely to go up). So, what is point of being a good citizen when the powers that be only hate you for it, should really take th hint and emmigrate? Back to point 2.
  7. Thought about this lots of times, but am afraid that a correction to the over-heated housing market (if/when - you take your pick) will hurt these place the most. Also thought, given my mathematics background, maybe emmigration is the best option, say the US where HPs have already fallen away. Truth is, I sometimes feel the country does not want people like me! ...why else would the government be targeting a particular demographic to take all the punishment.
  8. I worry about this quite a bit. Thus, my desposit stays put. I take on board Fadeaway's point - saving is not that difficult; indeed, I put away the vast majority of my salary too. Even so, it seem near on impossible to buy a starter flat without taking on crippling debt. I wonder how much longer things can go on like this.
  9. This is made me a bit cross - I would like buy a starter home (I guess a flat is all I hope for in London). However, despite having the average house price in saving, I cannot afford one without taking on too much debt. Before, anyone gets the wrong idea; I did not inherit, I just worked hard and got on in my career. I am 30 and by the time I get to 37, I have the horrible feeling the average FTBs age will something like 40. Any advise for the incredibly frustrated?
  10. I know what you mean Mike, I'm a bit older than you (30) and have the national average house price value in savings, but still cannot afford a place albeit I am in London. I was born 1979 but have choosen not follow the mass of people in my peer group who mortgaged themselves to the limit to get a flat. I think the generation after mine, will by in large be better off, as some form of correction has to bring house prices down sooner or later, and they have not indebted themselves.
  11. Agree with Garch about: - what is happening in London -2 tier mortgage market, low volumes and most important of all low IRs; and - on public sector cuts - will effect the SE less than other areas. Where I potential differ is that I think there are 2 possibilities for the future: - one, a Japanese style long unwind of demographic imbalances, as Garch says, with low growth and slowly falling house prices; or - else, rise in inflation driven by oil prices, as other properly run economies emerge from recession trade-up prices, and/or a fall in credit rating/Sterling criss all of which points to a dramatic rise in IRs.
  12. thanks there, had moody down moment. I suppose there is always the plus point too - not in any debt, with transferable mathematics based skills
  13. Is your work portable? No, in the near-term, but is largely based on mathematics so opportunities elsewhere should not be a too much of problem later on. Take your point on the jargon - what is 'young' and 'professional' thesedays anyway? Your guess is as good as mine. Have really been thinking about the US, prices have fallen more there and I've always wanted to live out there. I guess with the UK having turned its back on productivity, meritocracy etc.. what is keeping me here.
  14. Work mainly, and family to lesser extent ...will see what happens after the election, but the UK is quickly becoming a pointless place for young professionals
  15. In the same boat, 30 y/o have the average house price in savings, but still can't buy London - 170k gets you a car parking space, I guess
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