TheCountOfNowhere Posted June 19, 2013 Share Posted June 19, 2013 http://www.bbc.co.uk/news/business-22966312 "The average single person in their twenties will now have to save for over 14 years before they can buy a home, says the housing charity Shelter." Does anyone here know what they will want to do, where they will want to live in 14 years time ? Does anyone here want to commit their next 14 years of saving to fund JUST THE DESPOSIT for a house ? Does anyone here think house prices will go up ? Quote Link to comment Share on other sites More sharing options...
cashinmattress Posted June 19, 2013 Share Posted June 19, 2013 http://www.bbc.co.uk/news/business-22966312 "The average single person in their twenties will now have to save for over 14 years before they can buy a home, says the housing charity Shelter." Does anyone here know what they will want to do, where they will want to live in 14 years time ? Does anyone here want to commit their next 14 years of saving to fund JUST THE DESPOSIT for a house ? Does anyone here think house prices will go up ? Hmm. I think this nominal 14 years is complete bunk due to the cost of living and our impending demographic and energy crisis. More like NEVER unless they are given a significantly large amount of money directly from the government, or, their parents decease and have something left over for the kids via inheritance. Quote Link to comment Share on other sites More sharing options...
Tonkers Posted June 19, 2013 Share Posted June 19, 2013 Is that 14 years with house prices remaining static and no inflation? Quote Link to comment Share on other sites More sharing options...
winkie Posted June 19, 2013 Share Posted June 19, 2013 Look at it like this.......the more that can now no longer own any assets the more the burden will be transferred to those that own the assets.... Quote Link to comment Share on other sites More sharing options...
Tankus Posted June 19, 2013 Share Posted June 19, 2013 but then those assets need to be changed into cash ..so it can then be transferred .....easier to go after savings à la Cyprus ...after all, its already there in the banks Quote Link to comment Share on other sites More sharing options...
scrappycocco Posted June 19, 2013 Share Posted June 19, 2013 I just about have a deposit after ten years but the sort of box I'm looking at doesn't inspire me to make a move. Quote Link to comment Share on other sites More sharing options...
pathfinder Posted June 19, 2013 Share Posted June 19, 2013 At this rate they'll have to think about downsizing before they get on the 'ladder'. Funny enough the 60+ year old family members and friends can not get their head around not going up the ladder. I am not buying a house, Ill stay in my nice 2 bed large flat rather than spank £100k to get a small garden / £150k so I dont hear what the neighbours are up to . You always get, "But you will upsize in the end right?" .... "Erm no 2 of us worked our asses off to pay flat off in 10-12 years £145k. Now the jobs are paying 30% less Ild rather work less" Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted June 19, 2013 Author Share Posted June 19, 2013 At this rate they'll have to think about downsizing before they get on the 'ladder'. Quote Link to comment Share on other sites More sharing options...
The Knimbies who say No Posted June 19, 2013 Share Posted June 19, 2013 Funny enough the 60+ year old family members and friends can not get their head around not going up the ladder. I am not buying a house, Ill stay in my nice 2 bed large flat rather than spank £100k to get a small garden / £150k so I dont hear what the neighbours are up to . You always get, "But you will upsize in the end right?" .... "Erm no 2 of us worked our asses off to pay flat off in 10-12 years £145k. Now the jobs are paying 30% less Ild rather work less" Hmm, I've heard similar comments to the effect of "you'll have to buy eventually", from a position of renting rather than as a current owner though. In fairness to the Ladderistas their experiences were often as follows: Load up with debt. Wages+prices rise, repeat as required to get bigger house, job done. They think people are being irrational for being unwilling to buy in an environment where wages are in real-term decline and prices are way too high. Quote Link to comment Share on other sites More sharing options...
spyguy Posted June 19, 2013 Share Posted June 19, 2013 Let me re-write the headline for you: 'Old have to wait 14 years before Young have saved up enough money to buy House from them' Quote Link to comment Share on other sites More sharing options...
RichB Posted June 19, 2013 Share Posted June 19, 2013 Is that 14 years with house prices remaining static and no inflation? That is my assumption. The actual headline that Young unable to save fast enough to keep up with houseprice inflation and will never achieve a deposit would be a bit too long. Quote Link to comment Share on other sites More sharing options...
Tonkers Posted June 19, 2013 Share Posted June 19, 2013 That is my assumption. The actual headline that Young unable to save fast enough to keep up with houseprice inflation and will never achieve a deposit would be a bit too long. Ha ha, if I was at home I would be mocking up an Express front page right now... Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted June 19, 2013 Share Posted June 19, 2013 (edited) So with a 30 year mortgage that's going to take 44 years to get a house.... If you do the whole Uni exercise you'll have paid it all off just as you hit 65... Probably just in time for you to have to cash in the equity via equity release to retire.. Edited June 19, 2013 by interestrateripoff Quote Link to comment Share on other sites More sharing options...
@contradevian Posted June 19, 2013 Share Posted June 19, 2013 (edited) 14 years isn't so bad to save for a home. Oh you mean, just to save for the deposit on a home? Better cancel the iPhone subscription and Sky. Edited June 19, 2013 by Secure Tenant Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted June 19, 2013 Author Share Posted June 19, 2013 Quite it means an entire life time working to make the banks rich. A perfect plan to keep the 1% very rich. That's only if people buy into it. Actual sale prices round our way are at June 2004 level ( according to the land registry )...that means a decade and no House price rises. Why would anyone save up for 14 years to join such a scheme. The pyramid is not well, let it die. Quote Link to comment Share on other sites More sharing options...
SHERWICK Posted June 19, 2013 Share Posted June 19, 2013 Quite it means an entire life time working to make the banks rich. Quote Link to comment Share on other sites More sharing options...
R K Posted June 19, 2013 Share Posted June 19, 2013 1. Single people shouldn't be buying houses (when was that ever the 'norm'?) 2. Avg time to save for childless couple in the North is 4.5 yrs (5 yrs in West Mids) 4.5 yrs saving for a couple up North seems pretty reasonable. The moral of the tale is stick 2 fingers up to London/South-East. Quote Link to comment Share on other sites More sharing options...
Take Me Back To London! Posted June 19, 2013 Share Posted June 19, 2013 Look at it like this.......the more that can now no longer own any assets the more the burden will be transferred to those that own the assets.... That is incredibly precise and poignant. Quote Link to comment Share on other sites More sharing options...
Take Me Back To London! Posted June 19, 2013 Share Posted June 19, 2013 (edited) 1. Single people shouldn't be buying houses (when was that ever the 'norm'?) It was achievable before we had the great credit expansion and it was quite normal to have households only requiring one breadwinner. Edited June 19, 2013 by Take Me Back To London! Quote Link to comment Share on other sites More sharing options...
Dorkins Posted June 19, 2013 Share Posted June 19, 2013 Avg time to save for childless couple in the North is 4.5 yrs (5 yrs in West Mids) 4.5 yrs saving for a couple up North seems pretty reasonable. The moral of the tale is stick 2 fingers up to London/South-East. In the parts of northern England that have jobs, house prices are similar to SE England. Quote Link to comment Share on other sites More sharing options...
billybong Posted June 19, 2013 Share Posted June 19, 2013 (edited) How about London http:// www.mirror.co.uk/money/personal-finance/house-prices-first-time-buyers-need-1962846 House prices: First-time buyers need to save for up to 30 YEARS to afford deposit Start saving. Don't miss out. Of course London's bragging again but it's starting to be all hat and no cattle these days. Edited June 19, 2013 by billybong Quote Link to comment Share on other sites More sharing options...
Quicken Posted June 19, 2013 Share Posted June 19, 2013 What a feckless example: "A two bedroom flat in Brighton costs £200,000, so a 5% deposit would still mean finding £10,000, which is too much," she said.Between herself and her husband, who works as a gardener, they have good salaries, with a joint income of £50,000. Pathetic effort. I manage to save over £10,000/year on a much lower single salary, while living in similarly pricey Oxford and not sharing costs. Some people just have no idea how to budget. Quote Link to comment Share on other sites More sharing options...
apom Posted June 19, 2013 Share Posted June 19, 2013 What a feckless example: Pathetic effort. I manage to save over £10,000/year on a much lower single salary, while living in similarly pricey Oxford and not sharing costs. Some people just have no idea how to budget. I must admit, if you split the salary in £25,000 each that is an individual take-home of: £1,651.55, or a joint of: £3,303.10. It has to be possible to put £200 away a month, in a year £2,400.00.... and that is saving just £100 each... Not a great example of people on the breadline... Quote Link to comment Share on other sites More sharing options...
cashinmattress Posted June 19, 2013 Share Posted June 19, 2013 Oh man. The memories that image stirs up.... Like this one... It's beyond Kafka and entering Dali's insanity to consider that this turkey 'apparently' had his finger on the nuclear trigger. Although, I doubt anybody with a brain let the chimp near anything more dangerous than cufflinks. Quote Link to comment Share on other sites More sharing options...
Nomadd Posted June 19, 2013 Share Posted June 19, 2013 In the parts of northern England that have jobs, house prices are similar to SE England. London N14: http://www.rightmove.co.uk/property-for-sale/property-38297776.html WA15 Manchester: http://www.rightmove.co.uk/property-for-sale/property-39596696.html I know both areas very well, so know they are pretty comparable. The London property is £300k more expensive. Please, do even begin to suggest that house prices are comparable... Quote Link to comment Share on other sites More sharing options...
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