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Caulkhead

First Time Buyers In This Generation Are Stuffed!

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How are hard-working young families supposed to get on the first rung of the property ladder if a) we don't get a decent interest rate on our savings for a deposit and B) if we get to the magic stage where we have a 20% deposit, the banks are only offering limited deals? There really is starting to be a divide between the baby-boomers and the rest of us who were unlucky enough to be born after 1970. We won't even have the luxury(?) of a decent pension when we retire!!! I can't see a way out of this situation and can imagine we'll be renting forever! I'm trying to keep the faith but it's not so easy. :(

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How are hard-working young families supposed to get on the first rung of the property ladder if a) we don't get a decent interest rate on our savings for a deposit and B) if we get to the magic stage where we have a 20% deposit, the banks are only offering limited deals? There really is starting to be a divide between the baby-boomers and the rest of us who were unlucky enough to be born after 1970. We won't even have the luxury(?) of a decent pension when we retire!!! I can't see a way out of this situation and can imagine we'll be renting forever! I'm trying to keep the faith but it's not so easy. :(

As a boomer, I whole-heartedly agree. My children, bar a miracle, are stuffed, in spite of both having good engineering degrees. It doesn't make any difference what my house is worth, I bought it to live in, not to "invest" in. I only require to be able to buy like for like if I want to move on.

In fact, it really smarts to see my savings, which I need to live on, being stolen via pathetic interest rates lower than inflation, to basically pay off the excesses of those who robbed my children of their opportunities!

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On the plus side you will still be young enough and healthy enough that you will probably survive the impending revolution. Please be nice to the older generation, even though they have screwed you over consistently.

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How are hard-working young families supposed to get on the first rung of the property ladder if a) we don't get a decent interest rate on our savings for a deposit and B) if we get to the magic stage where we have a 20% deposit, the banks are only offering limited deals? There really is starting to be a divide between the baby-boomers and the rest of us who were unlucky enough to be born after 1970. We won't even have the luxury(?) of a decent pension when we retire!!! I can't see a way out of this situation and can imagine we'll be renting forever! I'm trying to keep the faith but it's not so easy. :(

Just wait your turn in the property cycle. The next trough to pass is in about three years time.

Dont miss that one or you'll have another 18 years to wait.

VMR.

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The only way the property cycle will continue is if someone discovers another Saudi Arabia worth of oil tomorrow. The way down isn't going to look anything like the journey up.

p.s. or nuclear fusion is mastered, money = work = energy, HPI is the exponential increase in the money supply backed by increases in the amount of work carried out which is subsequently derived from energy.

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How are hard-working young families supposed to get on the first rung of the property ladder if a) we don't get a decent interest rate on our savings for a deposit and B) if we get to the magic stage where we have a 20% deposit, the banks are only offering limited deals? There really is starting to be a divide between the baby-boomers and the rest of us who were unlucky enough to be born after 1970. We won't even have the luxury(?) of a decent pension when we retire!!! I can't see a way out of this situation and can imagine we'll be renting forever! I'm trying to keep the faith but it's not so easy. :(

You don't seem very bearish.

A very large group of people have bought overpriced houses. They are the ones who will be uncomfortable.

p-o-p

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How are hard-working young families supposed to get on the first rung of the property ladder if a) we don't get a decent interest rate on our savings for a deposit and B) if we get to the magic stage where we have a 20% deposit, the banks are only offering limited deals? There really is starting to be a divide between the baby-boomers and the rest of us who were unlucky enough to be born after 1970. We won't even have the luxury(?) of a decent pension when we retire!!! I can't see a way out of this situation and can imagine we'll be renting forever! I'm trying to keep the faith but it's not so easy. :(

not as stuffed as the people that bought into this madness.

all its taken from genuine FTBs is time.

time for them to come back to their greedy senses will take 5-10 years.

they will stubbornly hold on, but im not throwing all my income into one of these rat traps.

id buy at the norml price is 3.5x salary, nothing more.

if that takees another 5 years to reach, i will consider never buying at all.

im having fun having money and no debt.

i would not want to give that to someone else in exchange for what ?

the pretence of 'owning' a loan.

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As a boomer, I whole-heartedly agree. My children, bar a miracle, are stuffed, in spite of both having good engineering degrees. It doesn't make any difference what my house is worth, I bought it to live in, not to "invest" in. I only require to be able to buy like for like if I want to move on.

In fact, it really smarts to see my savings, which I need to live on, being stolen via pathetic interest rates lower than inflation, to basically pay off the excesses of those who robbed my children of their opportunities!

By "those" you really mean "your" generation.

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not as stuffed as the people that bought into this madness.

all its taken from genuine FTBs is time.

time for them to come back to their greedy senses will take 5-10 years.

they will stubbornly hold on, but im not throwing all my income into one of these rat traps.

id buy at the norml price is 3.5x salary, nothing more.

if that takees another 5 years to reach, i will consider never buying at all.

im having fun having money and no debt.

i would not want to give that to someone else in exchange for what ?

the pretence of 'owning' a loan.

Same here.

+1

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not as stuffed as the people that bought into this madness.

all its taken from genuine FTBs is time.

time for them to come back to their greedy senses will take 5-10 years.

they will stubbornly hold on, but im not throwing all my income into one of these rat traps.

id buy at the norml price is 3.5x salary, nothing more.

if that takees another 5 years to reach, i will consider never buying at all.

im having fun having money and no debt.

i would not want to give that to someone else in exchange for what ?

the pretence of 'owning' a loan.

+1

You do not own a your house until the mortgage is paid off

you are just renting it from the bank and they can put your

payments/interest up at the drop of a hat

and reposses "your" their house if you do not pay

not my kind of Landlord

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+1

You do not own a your house until the mortgage is paid off

you are just renting it from the bank and they can put your

payments/interest up at the drop of a hat

and reposses "your" their house if you do not pay

not my kind of Landlord

yep. they have been 'conditioned' over time to think that 'ownership' is the key to success.

it isnt.

freedom and debt free living are far better than 4 magnolia walls and building insurance.

working like a pig while your life passes you by.

had they remained stable at 3.5x salary we would all not be stressing about our jobs.

they tried to screw us over, but ended up doing themselves in.

whan (if) fairness returns to housing im sure business will pick up.

until then, well i guess the countrys run out of total sheep.

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And you seriously think the boomers will get their pensions?

LOL

they will if your stupid enough to pay it for them via over bloated tin pot homes.

not for me. id rather keep my money with me and their money with them.

they can live in poverty in their 'homes'

cash is everything.

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You don't seem very bearish.

A very large group of people have bought overpriced houses. They are the ones who will be uncomfortable.

p-o-p

Indeed, and if the OP times it right, he/she should be able to bypass flats altogether.

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+1

You do not own a your house until the mortgage is paid off

you are just renting it from the bank and they can put your

payments/interest up at the drop of a hat

and reposses "your" their house if you do not pay

not my kind of Landlord

Putting aside 'when' to buy a house, mortgage holders with a decent amount of equity can shop around for the best deal if the current lender bumps the interest up. This is also balanced by landlords being able to bump up rent, refusing to extend leases, withhold deposits etc.

Your home can be repossessed if you don't service the debt, but try skipping a couple of months rent, let me know how you get on...

The long and short of it is, if I own a mortgage on a property, then at the end of that agreement I will own that house. Renters will always rent.......

p.s. Don't give me the 'its cheaper to rent' line. In my part of the country, that has only been true for the last 6 months.

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Putting aside 'when' to buy a house, mortgage holders with a decent amount of equity can shop around for the best deal if the current lender bumps the interest up. This is also balanced by landlords being able to bump up rent, refusing to extend leases, withhold deposits etc.

Your home can be repossessed if you don't service the debt, but try skipping a couple of months rent, let me know how you get on...

The long and short of it is, if I own a mortgage on a property, then at the end of that agreement I will own that house. Renters will always rent.......

p.s. Don't give me the 'its cheaper to rent' line. In my part of the country, that has only been true for the last 6 months.

buying is dead money. buying before the boom at 3.5x salary is not.

as soon as it returns to that level its back on. if not it isnt back on.

its called sustainability, not buy a shit box at all costs cos the tv said so.

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There really is starting to be a divide between the baby-boomers and the rest of us who were unlucky enough to be born after 1970. We won't even have the luxury(?) of a decent pension when we retire!!!

Actually, neither will most of the people born before.

The only people who got a good deal with their pensions are the ones who have already retired (and not all of them).

Going forwards, everybody will find that their pension is much less than they were led to believe it was going to be.

tim

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Actually, neither will most of the people born before.

The only people who got a good deal with their pensions are the ones who have already retired (and not all of them).

Going forwards, everybody will find that their pension is much less than they were led to believe it was going to be.

tim

i think they were expecting US to fund it for them, via incredible house price asking prices.

they havent earned this pension. they are attempting to extort it instead.

they seem to be failing. badly.

and we will all reap the ill wind.

some of us lose valuable time waiting, others waste their lot on a pot box.

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p.s. Don't give me the 'its cheaper to rent' line. In my part of the country, that has only been true for the last 6 months.

I don't believe you.

Which part of the country is that?

I don't believe that there's a single part of the country where, during the boom time, the yield on a normal family house (rather than an HMO student conversion) has exceeded 5%.

tim

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i think they were expecting US to fund it for them, via incredible house price asking prices.

they havent earned this pension. they are attempting to extort it instead.

they seem to be failing. badly.

and we will all reap the ill wind.

some of us lose valuable time waiting, others waste their lot on a pot box.

I was actually referring to people who have put money into personal pensions which were supposed to grow into a fund to pay for a reasonable lifestyle in retirement.

One of the reasons why this is not going to happen is because the payments were calculated on the basis that people were going to claim from age 65 to 75, not from 65 to 90.

tim

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How are hard-working young families supposed to get on the first rung of the property ladder if a) we don't get a decent interest rate on our savings for a deposit and B) if we get to the magic stage where we have a 20% deposit, the banks are only offering limited deals? There really is starting to be a divide between the baby-boomers and the rest of us who were unlucky enough to be born after 1970. We won't even have the luxury(?) of a decent pension when we retire!!! I can't see a way out of this situation and can imagine we'll be renting forever! I'm trying to keep the faith but it's not so easy. :(

Every FTB thinks the same. Don't forget, it's not for FTBs to reach the first ladder, the first ladder will fall until FTBs can afford to get on. If housing is too expensive for the vast majority of FTBs to afford then the housing market is unsustainable and will collapse.

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How are hard-working young families supposed to get on the first rung of the property ladder if a) we don't get a decent interest rate on our savings for a deposit and B) if we get to the magic stage where we have a 20% deposit, the banks are only offering limited deals? There really is starting to be a divide between the baby-boomers and the rest of us who were unlucky enough to be born after 1970. We won't even have the luxury(?) of a decent pension when we retire!!! I can't see a way out of this situation and can imagine we'll be renting forever! I'm trying to keep the faith but it's not so easy. :(

Don't be so eager to get on the housing ladder - it's not the guaranteed road to riches that many still perceive.

If you want to get a mortgage to buy a house to live in (yes a home not an investment) then your turn will come.

House prices will fall and speculation will be wrung from the system.

Banks will eventually lend but only on old fashinoned standards to those with deposits who can repay the mortgage.

The very best thing you can do now is rent, save and wait - there is a long way to go yet.

Good luck.

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I don't believe you.

Which part of the country is that?

I don't believe that there's a single part of the country where, during the boom time, the yield on a normal family house (rather than an HMO student conversion) has exceeded 5%.

tim

It has in Aberdeen.

3 bed terraced, at peak 180K.

Rent 900.

Thats 6%.....

1 bed flats were closer to 8%.

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