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Two Out Of Five Young Adults Have No Interest In Buying A House

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http://www.dailymail.co.uk/news/article-2418546/House-prices-double-London-years-Young-adults-buying-house.html

Two out of five young adults have no interest in buying a house as they are priced out of the market as prices in London DOUBLE in eight years

Central London house prices up by 116% on 2005

More than half of Brits 35-and-under live in rented home

Number of renters across UK up 58% in eight years

Almost all 55- to 75-year-olds - 93% - say owning a home an 'ultimate goal'

article-2418546-1BA7273A000005DC-665_634x509.jpg

Although they couldn't resist putting in house prices have soared on the graph!

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Only 2 out of 5? Seems a bit low to me.

reflects pretty well the ratio of owners to renters.

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My interest in buying has declined, since I now make enough tax-free income on £97k investments[1] to pay rent on a house "worth" twice that.

Since I only started the portfolio in 2009, that feels a lot quicker than reaching an equivalent position by paying off a mortgage.

[1] Net cost just under £75k, the rest is profit.

Edited by porca misèria

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I am beginning to tend towards the rent forever camp myself. We have traveled around quite a lot with myself living in 22 different addresses since leaving home at 16.

It would 'be nice' to own our own place and I am sure we will buy one day, but renting has given us a chance to live where the grass is greener and in properties that we could only dream of owning.

My feelings on property is that it is just a roof over my head. I will never make money from owning a property, those days are over so there is no pressure there.

I do have a desire to keep some animals (sheep) and plant some cider apple trees, keep some ducks, and get some more chickens so I am tending more towards buying a manageable 5/6 acres of land and renting whatever house we require nearby. The nice thing is that it gives us a little protection against land price inflation and also gives us somewhere to grow our own food.

Another nice thing about that approach for us is that if we need a cheap 2 bed flat we rent it, no hassle - need a 3 bed detached house then we rent it. Need to move for work, then we move.

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My interest in buying has declined, since I now make enough tax-free income on £97k investments[1] to pay rent on a house "worth" twice that.

Since I only started the portfolio in 2009, that feels a lot quicker than reaching an equivalent position by paying off a mortgage.

[1] Net cost just under £75k, the rest is profit.

Do you worry about a stock market crash/correction wiping out your gains? I haven't got my head around the risks and returns on the stock market yet.

Q

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My interest in buying has declined, since I now make enough tax-free income on £97k investments[1] to pay rent on a house "worth" twice that.

Since I only started the portfolio in 2009, that feels a lot quicker than reaching an equivalent position by paying off a mortgage.

[1] Net cost just under £75k, the rest is profit.

That's a very impressive return (assuming you do rent in this country?). Would love to have a glimpse of what you are doing...

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Taking on something that ties you down to both your choice of property good or bad and ties you down to a regular job to pay a regular monthly mortgage and associated bills attached with having a mortgage for a fair number of years is not for everyone.....some people have got a life to live. ;)

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That's a very impressive return (assuming you do rent in this country?). Would love to have a glimpse of what you are doing...

The income-generating portfolio is Venture Capital Trusts. That's basically private equity with juicy tax breaks.

The paying-my-rent part is new this year, but it's on target to work for both the financial and calendar years. Counting April-September (first half of the financial year) the income is actually a full 8 months rent, but I expect Oct/Nov to be leaner.

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The income-generating portfolio is Venture Capital Trusts. That's basically private equity with juicy tax breaks.

The paying-my-rent part is new this year, but it's on target to work for both the financial and calendar years. Counting April-September (first half of the financial year) the income is actually a full 8 months rent, but I expect Oct/Nov to be leaner.

Ah ok. Thanks for that and congrats for doing so well with it. A very high risk investment though, not for everyone.

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There are loads of young people who all the Help to Buy in the world would not be enough for them to buy! If you're on the minimum wage and earning £12K a year - and the houses start at £150K in your neck of the woods, a 20% loan from the government is wholly insufficient!! Now a 70% loan - and you might be talking!

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Although they couldn't resist putting in house prices have soared on the graph!

93% of over 55s think owning a home is an 'ultimate goal' ?

Who's going to break it to them that if they haven't bought by that point, the likelihood that they ever will relies almost entirely on suddenly acquiring the money for a cash purchase?

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There are loads of young people who all the Help to Buy in the world would not be enough for them to buy! If you're on the minimum wage and earning £12K a year - and the houses start at £150K in your neck of the woods, a 20% loan from the government is wholly insufficient!! Now a 70% loan - and you might be talking!

That's where Shelter's 12% dual-income shared ownership proposals fit in. Madness. I wish I were joking.

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