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Dave Beans

Home Ownership Is A Disappearing Dream For Millions Of Young Adults

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http://www.dailymail.co.uk/news/article-2018767/Home-ownership-disappearing-dream-millions-young-adults.html

Home ownership is a disappearing dream for millions of young adults, figures reveal. The total value of all home loans approved in June was down by 11 per cent on the same month last year to £7.6billion.

At the same time, the number of new loans for home purchase was down by 6 per cent on a year ago to 31,747. Anxiety about debt, the economy, rising household bills and unemployment mean that millions are trying to avoid borrowing of all types.

City analysts believe such is the weakness in the housing market that prices will fall by an average of 5 per cent by next summer. At the same time, it is thought the Bank of England is now unlikely to raise interest rates until the middle of 2012 at the very earliest.

The home loan figures were published by the British Bankers’ Association and form part of a wider picture of an economic slowdown. Household borrowing on credit cards, personal loans and overdrafts is down, which is killing spending on the High Street, creating real problems for retailers. At the same time, businesses are paying back more than they are borrowing, which is a threat to investment and jobs.

The BBA said: ‘Demand for unsecured borrowing remains weak with repayments continuing to outweigh new lending.

‘Borrowing on cards has expanded only slowly over the past two years - and largely relates to the interest added to accounts, because spending is regularly more than offset by repayments.’

People are turning to their savings to cover big increases in must-pay bills, such as food, petrol and energy. As a result, the amount of money people are saving increased by just £6.1billion in the first half of 2011, compared to £15.9bn in the same period last year. Looking at business lending, the BBA said firms, particularly those in construction, are paying back more money than they are borrowing. Lending to non-financial companies was down by £2.5billion in June.

‘Repayments outstripped new borrowing in June as demand remained weak,’ it said.

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One wonders who is actually going to be buying all these houses in the years to come?

Or is the plan to let investors rent them out to HB claimants whilst anyone with a job gives up and leaves the country?

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*Millions of lazy, spendthrift, unintelligent, and economically oblivious young adults.

Personally I found it quite easy by age 22, despite a large student loan & minimal help from parents. Tips?

Stop spending so much money on alcohol and nightclubs.

Stop spending money on gadgets and designer clothes.

Don't do a course like art/history/philosophy.

Learn to cook cheaply.

Sell your car, walk everywhere.

Get a job. Be prepared to move across the country for a good one.

Learn how to invest properly.

Start looking abroad for places to emigrate to.

Amongst others..

Of course prices are stupidly high. We're paying for the boomers reckless MEWing and it's disgusting.

However, the blame doesn't solely rest with everyone else.. the prices, sure.. the ability to pay them? That's a more complicated argument.

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One wonders who is actually going to be buying all these houses in the years to come?

Or is the plan to let investors rent them out to HB claimants whilst anyone with a job gives up and leaves the country?

Chinese property investors of course, they will have to step over the young homeless families as they buy and sell UK homes between an ever shrinking circle of wealthy investors, anyone with a portable skill will be long gone and then when the HB and welfare cheques stop arriving it will be a different story altogether :blink:

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*Millions of lazy, spendthrift, unintelligent, and economically oblivious young adults.

Personally I found it quite easy by age 22, despite a large student loan & minimal help from parents. Tips?

Stop spending so much money on alcohol and nightclubs.

Stop spending money on gadgets and designer clothes.

Don't do a course like art/history/philosophy.

Learn to cook cheaply.

Sell your car, walk everywhere.

Get a job. Be prepared to move across the country for a good one.

Learn how to invest properly.

Start looking abroad for places to emigrate to.

Amongst others..

Of course prices are stupidly high. We're paying for the boomers reckless MEWing and it's disgusting.

However, the blame doesn't solely rest with everyone else.. the prices, sure.. the ability to pay them? That's a more complicated argument.

I tend to agree with you, in principle, as I am a spendthrift, but.

No car

No booze

No leisure activity (Art course for you, Heavy metal concerts and sports for me)

No fancy food (yes I can cook cheaply but sometimes I like a treat, that's what I work for)

What's left?

There needs to be balance, and at this point in time, what is causing the most pain is household costs.

Edited to say - WTF, they have closed AND deleted the comments????

Edited by stuckmojo

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*Millions of lazy, spendthrift, unintelligent, and economically oblivious young adults.

Personally I found it quite easy by age 22, despite a large student loan & minimal help from parents. Tips?

Sell your car, walk everywhere.

Amongst others..

If Carlsberg specialised in stupid tips, this is probably the one they would use.

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If Carlsberg specialised in stupid tips, this is probably the one they would use.

Care to explain why? Personally I save a lot of money just by walking to work. It used to be a good 40 mins away. MOTs, servicing, repairs, depreciation, fuel, insurance... better off putting your money in some solid oil stocks. Kept me healthy too, and I do like fresh air. I can't imagine why I would want a car at the moment.

stuckmojo - I agree with your point. I've had some in depth talks with people I would consider mentors regarding this. You can save every penny you earn and only buy essentials, but a buldging portfolio of cash/stocks/metals/property won't make you happy.. there must be a balance. Personally I think I'm overboard on the saving side at the moment, I'm currently trying to navigate back towards the fun side a little. But I do think a few years of pain and saving to get where you want is good character building, really teaches you the value of money. My favorite form of socialising is dinner and cheap wine with friends in our homes anyway.

Goat - Earlier this year. I had my reasons despite the coming crash, I'm happy that I made a good choice given the situation, but I won't go into details here or try to defend my choice because I know what this forum can be like (:

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*Millions of lazy, spendthrift, unintelligent, and economically oblivious young adults.

Personally I found it quite easy by age 22, despite a large student loan & minimal help from parents. Tips?

Stop spending so much money on alcohol and nightclubs.

Stop spending money on gadgets and designer clothes.

Don't do a course like art/history/philosophy.

Learn to cook cheaply.

Sell your car, walk everywhere.

Get a job. Be prepared to move across the country for a good one.

Learn how to invest properly.

Start looking abroad for places to emigrate to.

Amongst others..

Of course prices are stupidly high. We're paying for the boomers reckless MEWing and it's disgusting.

However, the blame doesn't solely rest with everyone else.. the prices, sure.. the ability to pay them? That's a more complicated argument.

Hard to do without paid employment mind.

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Personally I found it quite easy by age 22, despite a large student loan & minimal help from parents. Tips?

Stop spending so much money on alcohol and nightclubs.

Stop spending money on gadgets and designer clothes.

Don't do a course like art/history/philosophy.

Learn to cook cheaply.

Sell your car, walk everywhere.

Get a job. Be prepared to move across the country for a good one.

Learn how to invest properly.

Start looking abroad for places to emigrate to.

Add "Be born before 1975".

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*Millions of lazy, spendthrift, unintelligent, and economically oblivious young adults.

Personally I found it quite easy by age 22, despite a large student loan & minimal help from parents. Tips?

Stop spending so much money on alcohol and nightclubs.

Stop spending money on gadgets and designer clothes.

Don't do a course like art/history/philosophy.

Learn to cook cheaply.

Sell your car, walk everywhere.

Get a job. Be prepared to move across the country for a good one.

Learn how to invest properly.

Start looking abroad for places to emigrate to.

Amongst others..

Goat - Earlier this year. I had my reasons despite the coming crash, I'm happy that I made a good choice given the situation, but I won't go into details here or try to defend my choice because I know what this forum can be like (:

I find that somewhat hard to believe; even if you walked into a job with a graduate starting salary of £50,000 you'd still struggle to build up much of a deposit in 12 months and (assuming london) you'd still struggle to buy anything much with that sort of money.

And if you are fortunate enough to earn that sort of money then you're hardly representative.

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*Millions of lazy, spendthrift, unintelligent, and economically oblivious young adults.

Personally I found it quite easy by age 22, despite a large student loan & minimal help from parents. Tips?

Stop spending so much money on alcohol and nightclubs.

Stop spending money on gadgets and designer clothes.

Don't do a course like art/history/philosophy.

Learn to cook cheaply.

Sell your car, walk everywhere.

Get a job. Be prepared to move across the country for a good one.

Learn how to invest properly.

Start looking abroad for places to emigrate to.

Amongst others..

Of course prices are stupidly high. We're paying for the boomers reckless MEWing and it's disgusting.

However, the blame doesn't solely rest with everyone else.. the prices, sure.. the ability to pay them? That's a more complicated argument.

OK I have a smallish SL (7k or so) no help from parents - who have worked hard all their lives and have nothing to show for it.

I drink a little every month probably spend £40 a month on alcohol, is that too much?

I do have gadgets but all of them have been presents and I buy all my cloths in Primark.

My course was IT - which is the industry I now work in.

I still live with my parents so I don’t pay for food

I need my car for work so can’t sell it.

I have a job.

I don’t know how to invest properly

I have looked at places to emigrate to but getting a job in these places is quite difficult.

I also have my wage in savings which would normally mean a 25% deposit if homes were 4x salary

Do you think I’m lazy, spendthrift and unintelligent? Yet I’m still not in a position where I can afford to buy and there are plenty like me.

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If Carlsberg specialised in stupid tips, this is probably the one they would use.

Agreed. This sell your car nonsense is fine for someone who just has to be an office worker. I'm an electrcian. I get by with using my motorbike for now, but sooner rather than later I need a van. let alone a car. This guy is in cloud cuckoo land.

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Do you think I’m lazy, spendthrift and unintelligent? Yet I’m still not in a position where I can afford to buy and there are plenty like me.

All three presumingly.

I'd say you're well represented. Best to ignore the all right jacks who think their situation is (or should be) typical.

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*Millions of lazy, spendthrift, unintelligent, and economically oblivious young adults.

Personally I found it quite easy by age 22, despite a large student loan & minimal help from parents. Tips?

Stop spending so much money on alcohol and nightclubs.

Stop spending money on gadgets and designer clothes.

Don't do a course like art/history/philosophy.

Learn to cook cheaply.

Sell your car, walk everywhere.

Get a job. Be prepared to move across the country for a good one.

Learn how to invest properly.

Start looking abroad for places to emigrate to.

Amongst others..

Of course prices are stupidly high. We're paying for the boomers reckless MEWing and it's disgusting.

However, the blame doesn't solely rest with everyone else.. the prices, sure.. the ability to pay them? That's a more complicated argument.

Hmm, some of the points I would agree on- try and minimize car usage, don't buy tat, don't buy designer clothes, cook frugally etc... but I also believe that you must do the utmost to enjoy life. In reality you could spend nothing, save for years and have your whole entire savings wiped out by hyperinflation. Then you realise you have just wasted some of the "best years" of your life.

I am in my 20's and used to have a similar attitude. Now I don't live as frugally nowhere near as much. I try and save up a bit in gold and silver, cut wastage, dont drive as much etc, but i also go out every weekend and get slaughtered. Because its bloody fun. I spent a load of money on a second-hand sports car (although it was spent wisely, on a good car, which will barely depreciate) because it makes me feel alive.

Lets face it the UK is going to collapse into a hell hole. Even if you have some form of wealth during that period, it is still going to be a miserable existence watching your friends and family going down the pan, watching infrastructure and the economy detoriate, facing the daily-increasing crime rates and watching society decay in front of your eyes.

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Hmm, some of the points I would agree on- try and minimize car usage, don't buy tat, don't buy designer clothes, cook frugally etc... but I also believe that you must do the utmost to enjoy life. In reality you could spend nothing, save for years and have your whole entire savings wiped out by hyperinflation. Then you realise you have just wasted some of the "best years" of your life.

I am in my 20's and used to have a similar attitude. Now I don't live as frugally nowhere near as much. I try and save up a bit in gold and silver, cut wastage, dont drive as much etc, but i also go out every weekend and get slaughtered. Because its bloody fun. I spent a load of money on a second-hand sports car (although it was spent wisely, on a good car, which will barely depreciate) because it makes me feel alive.

Lets face it the UK is going to collapse into a hell hole. Even if you have some form of wealth during that period, it is still going to be a miserable existence watching your friends and family going down the pan, watching infrastructure and the economy detoriate, facing the daily-increasing crime rates and watching society decay in front of your eyes.

100% agree chris. The UK is a fecking disgrace and is going to get worse very soon imo. It's all gone to hell in a handbasket, so all this "buying a house and have no cash for food" rubbish is pathetic.

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Hmm, some of the points I would agree on- try and minimize car usage, don't buy tat, don't buy designer clothes, cook frugally etc... but I also believe that you must do the utmost to enjoy life. In reality you could spend nothing, save for years and have your whole entire savings wiped out by hyperinflation. Then you realise you have just wasted some of the "best years" of your life.

Good post. I am also in my twenties and live very frugally, some of which is in my nature and some is a legacy from being unemployed for the whole of 2010 (earning okay again now though). I think you're right, I probably need to save less and spend more on fun.

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Good post. I am also in my twenties and live very frugally, some of which is in my nature and some is a legacy from being unemployed for the whole of 2010 (earning okay again now though). I think you're right, I probably need to save less and spend more on fun.

No, your civic duty is to live like a pauper to be able to pay the outrageous mortgage on a slavebox so some boomer in a semi-detached house in Wimbledon can "trade down" to a country cottage and a 50 year retirement punctuated by regular cruises

Society says so

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  • 335 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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