swankyman Posted September 17, 2012 Share Posted September 17, 2012 When will this madness ever end? Putting a deposit together can take at least 10 years Nottingham's first-time buyers predict they will be 39 before they get a foot on the property ladder, a new survey has revealed. The prediction from would-be homeowners in the East Midlands reveals one of the bleakest outlooks among the English regions, beaten only by the North East where buyers believe they will be 40 before getting the keys to their own home. The most positive outlook, the survey for Post Office Mortgages reveals, is from the neighbouring West Midlands, where residents believe they will be 29 when they own their first home. Figures show there has been a steady increase over the past 50 years in the average age at which people purchase their own property. While people were buying their first home at an average age of 24 in the 1960s, according to the research, the average had risen to 30 in 2005 to 2009. The biggest obstacle is saving up a deposit, it seems, with 47 per cent saying it will take at least 10 years to raise the funds needed to secure a mortgage. . . . . . . continued at link Gggggrrrrrr Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted September 17, 2012 Share Posted September 17, 2012 At least when you'll be 64 when it's paid off and then you can look forward to remortgaging to pay for your health care fees. Everyone will be working until dead. Quote Link to comment Share on other sites More sharing options...
montesquieu Posted September 17, 2012 Share Posted September 17, 2012 To be fair, its hard to raise a deposit when paying rent that can be equal to servicing a mortgage. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted September 17, 2012 Share Posted September 17, 2012 To be fair, its hard to raise a deposit when paying rent that can be equal to servicing a mortgage. That's because you are servicing a mortgage, it's just not yours. Quote Link to comment Share on other sites More sharing options...
winkie Posted September 17, 2012 Share Posted September 17, 2012 Once there was a time when almost everyone who was prepared to put a reasonable amount of effort into it could save a modest deposit obtain an affordable repayment mortgage and pay for a home in full over a working lifetime......now only the very well paid, those given or left a deposit have a chance or opportunity to buy their own home......the rest of the working population because of high house price inflation will be left to rent from the rest, climbing out of the hole of social mobility has only got harder.....then you wonder why some just give up, not worth fighting a system where it is seen to be impossible to win. Quote Link to comment Share on other sites More sharing options...
Timak Posted September 17, 2012 Share Posted September 17, 2012 It is hard saving for a 10% deposit when your household income is £30k a year, a house costs £300k and your rent is £1k a month. It is easy when your household income is £30k, houses cost £90k and your rent is £300 a month. The easiest way to make people's lives better is to make it a government policy to reduce the cost of housing. Quote Link to comment Share on other sites More sharing options...
winkie Posted September 17, 2012 Share Posted September 17, 2012 It is hard saving for a 10% deposit when your household income is £30k a year, a house costs £300k and your rent is £1k a month. It is easy when your household income is £30k, houses cost £90k and your rent is £300 a month. The easiest way to make people's lives better is to make it a government policy to reduce the cost of housing. "it's a little bit more complicated than that". Quote Link to comment Share on other sites More sharing options...
Bob Loblaw Posted September 17, 2012 Share Posted September 17, 2012 How many youngsters complaining about saving for a deposit will be getting their iPhone 5s delivered on Friday? That's what a boomer might say. Quote Link to comment Share on other sites More sharing options...
winkie Posted September 17, 2012 Share Posted September 17, 2012 How many youngsters complaining about saving for a deposit will be getting their iPhone 5s delivered on Friday? That's what a boomer might say. Are you a boomer......boom,boom? Quote Link to comment Share on other sites More sharing options...
ska_mna Posted September 17, 2012 Share Posted September 17, 2012 (edited) How many youngsters complaining about saving for a deposit will be getting their iPhone 5s delivered on Friday? I wish I thought you were being deliberately humourous. But alas I suspect you are not. Anyway, here is some troll food for you - I start from the basis that in 2012, owning mobile smartphone / internet device is becoming close to the point of being a necessity in order to participate in society (and for most working professionals it already is an essential). So one must now have an mobile internet device. OK, so it doesn't have to be an iPhone. Let's say you got an imitation iPhone like a Samsung on £15/month contract. That's £180 a year. If you'd got an iPhone, perhaps it would have been more like £30/month. So £360. So by choosing the device at half the monthly cost, you've saved yourself £180. A 20% deposit on a house is around £30,000. So if you choose a Samsung instead of an iPhone, and put the £180 savings into a savings account, it would take you 167 years to save your deposit. #winning EDIT: clarity EDIT 2: Space-time-continuum correction Edited September 17, 2012 by ska_mna Quote Link to comment Share on other sites More sharing options...
Lone_Twin Posted September 17, 2012 Share Posted September 17, 2012 I wish I thought you were being deliberately humourous. But alas I suspect you are not. Anyway, here is some troll food for you - I start from the basis that in 2012, owning mobile smartphone / internet device is becoming close to the point of being a necessity in order to participate in society (and for most working professionals it already is an essential). So one must now have an mobile internet device. OK, so it doesn't have to be an iPhone. Let's say you got an imitation iPhone like a Samsung on £15/month contract. That's £780 a year. If you'd got an iPhone, perhaps it would have been more like £30/month. So £1,560. So by choosing the device at half the monthly cost, you've saved yourself £780. A 20% deposit on a house is around £30,000. So if you choose a Samsung instead of an iPhone, and put the £780 savings into a savings account, it would take you 41 years to save your deposit. #winning EDIT: clarity I must have missed something but how does £30 pm become £1500 ? The problem a lot of lowly paid boomers sitting in big houses with a tiny mortgage £30 a month probably seems like a lot of money. For a 20 something 30 quid is absolutely nothing compared to the unscalable mountain of a bedsit in staines. Why save when there's nothing worth saving for? Quote Link to comment Share on other sites More sharing options...
ska_mna Posted September 17, 2012 Share Posted September 17, 2012 I must have missed something but how does £30 pm become £1500 ? Lol, I'll correct my post You see I live in another galaxy where there are 52 months in a year. Quote Link to comment Share on other sites More sharing options...
ska_mna Posted September 17, 2012 Share Posted September 17, 2012 (edited) For a 20 something 30 quid is absolutely nothing compared to the unscalable mountain of a bedsit in staines. Why save when there's nothing worth saving for? Ah but you see many Boomers also think that the "housing ladder" still exists. So Bob's answer will be that rather than put down a £30k deposit on a £160k house, one should instead put down a £10k deposit on a £60k house (if you can find one) then "climb the ladder". So in this scenario, I could save my £180/year by not buying an iPhone and have saved my £10k deposit after 55 years. I could then buy the bedsit in Staines. Then by the time I'm 90 years old I'd be ready to buy my second house and start a family. Edited September 17, 2012 by ska_mna Quote Link to comment Share on other sites More sharing options...
jonb Posted September 17, 2012 Share Posted September 17, 2012 How many youngsters complaining about saving for a deposit will be getting their iPhone 5s delivered on Friday? That's what a boomer might say. How do you correspond with recruitment agents to get a job to save up for a deposit without an iPhone or similar? The difference between an iPhone and a similar cheaper phone that would do the job is maybe £200 per year at the absolute maximum. It isn't really going to make a huge amount of difference in the overall scheme of things. Quote Link to comment Share on other sites More sharing options...
Gerinako Posted September 17, 2012 Share Posted September 17, 2012 (edited) Most of them won't get them on Friday - two week delay already. ... Edited September 17, 2012 by Gerinako Quote Link to comment Share on other sites More sharing options...
winkie Posted September 17, 2012 Share Posted September 17, 2012 Most of them won't get them on Friday - two week delay already. ... Not that old chestnut.......reduce the supply to create the demand. Quote Link to comment Share on other sites More sharing options...
Bob Loblaw Posted September 17, 2012 Share Posted September 17, 2012 Ah but you see many Boomers also think that the "housing ladder" still exists. So Bob's answer will be that rather than put down a £30k deposit on a £160k house, one should instead put down a £10k deposit on a £60k house (if you can find one) then "climb the ladder". So in this scenario, I could save my £180/year by not buying an iPhone and have saved my £10k deposit after 55 years. I could then buy the bedsit in Staines. Then by the time I'm 90 years old I'd be ready to buy my second house and start a family. ermm I am not a boomer and it was a poor attempt at humour. Anyway, if you can only save £180 a year towards a deposit then perhaps home ownership is not for you? Quote Link to comment Share on other sites More sharing options...
ska_mna Posted September 17, 2012 Share Posted September 17, 2012 (edited) ermm I am not a boomer Ok fair enough, if you say so. Anyway, if you can only save £180 a year towards a deposit then perhaps home ownership is not for you? What do you think an average household should be able to save a year towards a deposit? (genuine question) Edited September 17, 2012 by ska_mna Quote Link to comment Share on other sites More sharing options...
campervanman Posted September 17, 2012 Share Posted September 17, 2012 It is hard saving for a 10% deposit when your household income is £30k a year, a house costs £300k and your rent is £1k a month. It is easy when your household income is £30k, houses cost £90k and your rent is £300 a month. The easiest way to make people's lives better is to make it a government policy to reduce the cost of housing. The survey was from Nottinghamshireso I would have thought the latter is more appropriate than the former example. Quote Link to comment Share on other sites More sharing options...
Bob Loblaw Posted September 17, 2012 Share Posted September 17, 2012 Ok fair enough, if you say so. What do you think an average household should be able to save a year towards a deposit? (genuine question) Hard to say what the average household could save. If you had a dual income and were being careful I would imagine it would be more than £180 a year. Maybe a minimum of £500 a month? What do you think? Quote Link to comment Share on other sites More sharing options...
olliegog Posted September 17, 2012 Share Posted September 17, 2012 if interest rates for savings were higher (or tax free ISAs had higher limits) it would not take so long and if interest rates were higher house prices should fall and the 10% would be less have I missed something Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted September 17, 2012 Share Posted September 17, 2012 At least when you'll be 64 when it's paid off and then you can look forward to remortgaging to pay for your health care fees. Everyone will be working until dead. What mortgage term are you using? In their last report Nationwide said the average term had increased from 25 to 28 years. The government pyramid schemes have terms "up to 52 years" Quote Link to comment Share on other sites More sharing options...
disenfranchised Posted September 17, 2012 Share Posted September 17, 2012 1980 figures - year was picked at random - average house price £23.5k, average gross salary £5.7k, so 15% deposit would be £3525. Saving 10% of your gross salary per month, this would take you just over 6 years to save a 15% deposit to buy. So, work from 18 to 24 on average wage, buy average house. Now, I know 18 year olds tend to earn less than average, but if you lived at home, you could save a higher percentage, and you can also factor in that FTB's tend to be lower than the average price too - it doesn't seem unachievable. Average salary now apparently £26k, average house is apparently £160k, so 15% deposit is £24k and saving 10% of your gross salary per month would take you 9 and a quarter years. Not far off the 10 years quoted. Unfortunately, nearly half of the population will be starting this process no earlier than 21 and saddled with vast student debt as well. Of course the majority of Daily Fail readers will claim that the fact FTB average age is getting older is all because the youth of today squander their money, and nothing to do with the prices being far too high in relation to incomes. Quote Link to comment Share on other sites More sharing options...
longtomsilver Posted September 17, 2012 Share Posted September 17, 2012 Hard to say what the average household could save. If you had a dual income and were being careful I would imagine it would be more than £180 a year. Maybe a minimum of £500 a month? What do you think? House prices are way too high but anyway... I think £500 a month should easily be achievable for a couple earning a combined £40,000 per annum (1.5xaverage salary) that's a sh1t load of money. Say £2,500 month net £600 rent (not feasible in your area then move area) £500 transport £125 council tax £125 utilities £100 comms and insurances ===== £1,450 leaving over £1k a month. There's only one income that comes into our family and we still manage to save £500 a month. Most youngsters could do with a lesson in finance. Quote Link to comment Share on other sites More sharing options...
Dorkins Posted September 17, 2012 Share Posted September 17, 2012 Most youngsters could do with a lesson in finance. The youngsters aren't the ones who owe banks six figure sums on five figure houses... Quote Link to comment Share on other sites More sharing options...
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