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neon tetra

The Lost Generation

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A case study for y'all (and why I feel part of the "Lost" generation).

This is based on something I had known for a long time but never really created the graph before.

I graduated in 2000, got a decent professional job with decent salary (above the "average" graduate salary). Since then, and one change of career later, my salary has risen pretty decently. However (and this is what has frustrated me the most) despite these increases in salary, I got less and less able to afford property, based purely on salary multiples.

In fact, in 2007 I was less able to afford than in 2000! ("average prices" being 4.3 times my salary in 2000 and 2008)

See graph (all values standardised to year 2000 = 100.0).

So I ask... If (moderately) well-paid professionals are in this position, what hope the rest?

Interesting_Graph.jpg

post-17162-1247944339_thumb.jpg

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Count your lucky stars: you'll be fine in 2 years or less.

It's the people who actually bought in that period that are lost: they'll be bankrupt for ever in 2 years.

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Guest happy?
A case study for y'all (and why I feel part of the "Lost" generation).

This is based on something I had known for a long time but never really created the graph before.

I graduated in 2000, got a decent professional job with decent salary (above the "average" graduate salary). Since then, and one change of career later, my salary has risen pretty decently. However (and this is what has frustrated me the most) despite these increases in salary, I got less and less able to afford property, based purely on salary multiples.

In fact, in 2007 I was less able to afford than in 2000! ("average prices" being 4.3 times my salary in 2000 and 2008)

See graph (all values standardised to year 2000 = 100.0).

So I ask... If (moderately) well-paid professionals are in this position, what hope the rest?

Yeh, in 1980 we all graduated to nothing, no jobs, and a mad experiment in monetarism. House prices didn't just escape our clutches, housing was beyond our wildest imaginings.

Stop feeling sorry for yourself, borrow Norman Tebbit's bike and get a well paid job.

This generation leaves me with despair - something for nothing Thatcher's babies the lot of them.

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This generation leaves me with despair - something for nothing Thatcher's babies the lot of them.

Actually, I do sympathise with the class of 2009... no jobs, etc, but on the upside the houses will be affordable in 7 or 8 years' time.

It has always been a frustration that some people are lucky enough to be "in the right place at the right time" with regard to picking up a property without mortgaging themselves into oblivion. (Graduates of approximately 1994 being the most recent example.)

The effect it has is to push various "life stages" back by a number of years. It is no coincidence that the average age of an FTB is increasing along side the average age of having first child....

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Yeh, in 2009 we all graduated to nothing, no jobs, and a mad experiment in quantitive easing. House prices didn't just escape our clutches, housing was beyond our wildest imaginings.

Stop feeling sorry for yourself, borrow gordo browns miracle economy machine and get a bloody nice loan.

This generation leaves me with despair - something for nothing Thatcher's babies the lot of them.

edited for contemporaryism

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QUOTE (happy? @ Jul 18 2009, 08:19 PM) *

Yeh, in 2009 we all graduated to nothing, no jobs, and a mad experiment in quantitive easing. House prices didn't just escape our clutches, housing was beyond our wildest imaginings.

Stop feeling sorry for yourself, borrow gordo browns miracle economy machine and get a bloody nice loan.

This generation leaves me with despair - something for nothing Thatcher's babies the lot of them.

edited for contemporaryism

:lol: ...nice one..

The future is...DEBT.

BTW..how does one correctly include a quote within a reply?

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If we accept that the majority of MP's have more than one home, and thus a massive Vested Interest in high house prices, how can we ever expect them do do anything that resist (with all their might) any forces that are trying to pull house prices back down?

I haven't heard a single politician ever who says houses are too expensive.

Has anyone?

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Most graduates have been conned. Their degrees are tissue paper 'not fit for purpose' according to the quality assurance people. Add to that employers who work on a 'tick box' system' and who are not prepared to train up people and, frankly, a generation, in large part, has been defrauded by the university system.

Add to that, the sleight of hand to convince everyone that pensions are unaffordable and flood the population with immigrants, hey, why bother getting up in the mornings.

I blame our metropolitan elite and the lack of courage of individuals to say 'NO'.

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A case study for y'all (and why I feel part of the "Lost" generation).

This is based on something I had known for a long time but never really created the graph before.

I graduated in 2000, got a decent professional job with decent salary (above the "average" graduate salary). Since then, and one change of career later, my salary has risen pretty decently. However (and this is what has frustrated me the most) despite these increases in salary, I got less and less able to afford property, based purely on salary multiples.

In fact, in 2007 I was less able to afford than in 2000! ("average prices" being 4.3 times my salary in 2000 and 2008)

See graph (all values standardised to year 2000 = 100.0).

So I ask... If (moderately) well-paid professionals are in this position, what hope the rest?

Historical perspective. I graduated in 1982 (started work in 1983 after one years postgrad), to exactly the same situation. House prices above what I could get as mortgage, and rising faster than my salary.

Except it was worse then. Rents were (relatively) much higher and quality worse.

If you stay on the bandwagon, you'll get your chance. As I would've done if I hadn't first got robbed by the mafia, then missed the 90s dip in house prices by spending an extended period abroad on woefully modest pay.

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Count your lucky stars: you'll be fine in 2 years or less.

It's the people who actually bought in that period that are lost: they'll be bankrupt for ever in 2 years.

Sad but true.

Lived in a cardboard box, did you?

You have a keen wit TCI!

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QUOTE (happy? @ Jul 18 2009, 08:19 PM) *

BTW..how does one correctly include a quote within a reply?

1. Click on both Reply and Quote boxes - bottom right of original post

2. When the Reply box comes up with the full OP, highlight and delete the bits you don't want.

3. Ensure

remains at opening and closure
of the bit you're quoting.

4. Add your Reply a space or two down.

5. Single space at the end of your reply for neatness

6. Click Preview Post and check/proof read

7. Click 'Add Reply'

Job done!

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So I ask... If (moderately) well-paid professionals are in this position, what hope the rest?

They marry other well paid professionals ?

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A case study for y'all (and why I feel part of the "Lost" generation).

This is based on something I had known for a long time but never really created the graph before.

I graduated in 2000, got a decent professional job with decent salary (above the "average" graduate salary). Since then, and one change of career later, my salary has risen pretty decently. However (and this is what has frustrated me the most) despite these increases in salary, I got less and less able to afford property, based purely on salary multiples.

In fact, in 2007 I was less able to afford than in 2000! ("average prices" being 4.3 times my salary in 2000 and 2008)

See graph (all values standardised to year 2000 = 100.0).

So I ask... If (moderately) well-paid professionals are in this position, what hope the rest?

I am pretty much in the same position no one reallly knows the future enjoy what you have. Keep working on a deposit if things become affordable in the next few years then great, if not spend it on those once in a life time things. I am in my thirties and earn more than double most of my houses (retail, nursing, unemployeed, etc). Don't just look up you will never be happy look down too you are qualified and above averagly paid. Recently I met a divorcy who was taking 50% of her husbands wage (£75k) in maintenance, children in private school and a nanny and she said and I quote 'We are living hand to mouth' any it was my fault I did not earn similar money, while wering a £3.8k Rolex. I have met richer and poorer people who are much happier with their lot be one of those. You must be prepared to accept you may never get the money for a house. Once you do this you will be a bit happier

All my friends bought houses when I went to Uni. In hindsight investing in education was not the best idea but no one can reposes my skill knowledge and education. Take them and do your best

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Count your lucky stars: you'll be fine in 2 years or less.

It's the people who actually bought in that period that are lost: they'll be bankrupt for ever in 2 years.

Erm, well, no. If they took on affordable loan then, it's still affordable now. How will they be bankrupt?

On the other hand, those who couldn't afford to buy are still at the mercy of the market, and like this gentleman, haven't had the benefits of having their own home, which are many more than just the financial ones.

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Erm, well, no. If they took on affordable loan then, it's still affordable now. How will they be bankrupt?

On the other hand, those who couldn't afford to buy are still at the mercy of the market, and like this gentleman, haven't had the benefits of having their own home, which are many more than just the financial ones.

the implication is it may have been affordable 2 or 3 years ago but with pay cuts/freezes and higher taxes in the future it may well not be, thats if you are actually lucky enough to still have a job in another 2 or 3 years and also assuming the initial loan period wasnt on an introductory offer of some sort

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....... As I would've done if I hadn't first got robbed by the mafia.................

Did you literally get robbed by the mafia or are you speaking metaphorically?

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You have just discovered the beauty of compound interest when applied to equity in an asset that is growing with stable debt the equity increases.

Einstein called it the 8th wonder of the world

I think it is the 1st one.

ps the debt also erodes with inflation

as does the holding costs

and the income increases

Of course, it also doesn't help that the 'asset' itself is a coercive arrangement that the market struggles to price

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