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Darkman

"in 30 Years, Only The Rich Will Be Able To Buy A House"

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Nice to see stories like this hitting the mainstream media :)

When I was 21 I bought my first flat, but if I was starting out now, there is no way I could get on the property ladder. That’s why I was not surprised at the news that home ownership in Britain is at its lowest level for 30 years.

Prices are soaring, and the reality for millions of people is that owning their own home has become an impossible dream.

The average price paid in the last quarter of 2013, according to Nationwide, was £174,444, up from £162,924 last year. That’s a rise of 7.1% at a time when average wages have pretty much stood still.

If things continue like this, in another 30 years only the rich will be able to buy their own home.

Mirror

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Anyone can buy a house, provided that the bank are willing to lend them enough money and they are provided to take on the debt. Meeting the terms of the debt contract is the tricky part, (meeting the terms of the debt contract and saving for retirement and maintaining the property is IMO going to be well beyond the wallets of a great many weak hands - their belief that you can't go wrong with property is already killing them slowly - they just don't know it yet).

Certainly now that we have bonkers high prices (and not by coincidence bonkers low rates), meeting the terms of a debt contract stretching 25 to 30 years in the future may prove to be a very big ask, certainly if trends in real and household incomes which have been in train for a decade remain the same.

There has to be an end game. UK residential property is a bubble.

Edited by ChairmanOfTheBored

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She's 30+ years behind.

No, she's perfectly right. Only the rich have ever been able to afford to buy a house. Programmes like the sale of council houses for a song just created a new cohort of the rich.

Of course there are different degrees of rich, and different levels of expectations. My parents as FTBs at thirtysomething could afford to buy a big house, but not to repair it. I can't afford anything like that house, but I can afford a place with a roof that keeps the rain out, mod-cons like hot water on tap, and a bunch of labour-saving devices.

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No, she's perfectly right. Only the rich have ever been able to afford to buy a house. Programmes like the sale of council houses for a song just created a new cohort of the rich.

Of course there are different degrees of rich, and different levels of expectations. My parents as FTBs at thirtysomething could afford to buy a big house, but not to repair it. I can't afford anything like that house, but I can afford a place with a roof that keeps the rain out, mod-cons like hot water on tap, and a bunch of labour-saving devices.

No, only the middle have ever been able to afford to buy their one only home.....now only the rich can afford to buy their own many homes. ;)

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Only the rich have ever been able to afford to buy a house.

Depends what you mean by "the rich" I suppose. If you were to define a rich person as "somebody with enough money to buy the house they live in" then I guess that'd be consistent with your assertion above, if a little circular.

I think in most people's minds "the rich" is more of a relative term such as "the wealthiest x% of households" or "the top x% of households ranked by income" where x is a number less than 20.

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If you have to work, you're not "rich"... or, quite frankly, "middle class" :)

The middle classes have always had to work. Even the Victorian middle classes who could afford to keep servants still had to work for their money.

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No, she's perfectly right. Only the rich have ever been able to afford to buy a house. Programmes like the sale of council houses for a song just created a new cohort of the rich.

Of course there are different degrees of rich, and different levels of expectations. My parents as FTBs at thirtysomething could afford to buy a big house, but not to repair it. I can't afford anything like that house, but I can afford a place with a roof that keeps the rain out, mod-cons like hot water on tap, and a bunch of labour-saving devices.

My father brought up a family and bought a house while employed as a tv repairman on a very modest salary in the 60s and 70s. Had to save for his own pension too. All of his neighbours did the same, in various semi-skilled occupations that ranged from fireman to production line supervisor. There was nothing extraordinary about it then.

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My father brought up a family and bought a house while employed as a tv repairman on a very modest salary in the 60s and 70s.

Same here. My parents bought a house in the 60s on the wages of a factory worker and part-time cleaner. It sold a couple of years back for about 300,000 pounds, so today it would require the wages of two full-time doctors, lawyers, or similar.

Pretty much everyone on the street owned their house, and most were solidly working class. Now much of it is rented out with half a dozen Eastern Europeans in each house.

Edited by MarkG

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My parents paid £20k for their house in 1982, if i could buy at the monetary equivalent of around £60k today i would

Alas i'm not prepared to pay the £130k asking prices for similar houses, out of principle

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If you have to work, you're not "rich"... or, quite frankly, "middle class" :)

...there is no middle class now ...it's working or benefits class....or a blend of the two...all due to our Governments and the BofE losing total control of the economy and now the Tories destroying the housing base with inflation through subsidy ..supported by the BofE... :rolleyes:

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The middle classes have always had to work. Even the Victorian middle classes who could afford to keep servants still had to work for their money.

That's kind of my point. The key word surely is "working". If you have to work, you're working class.

So what distinguishes "working class" from "middle class"? If you work down a mine, you're working class, but if you work as a teacher or lawyer, you're middle class?

Ultimately, it all sounds like a form of social snobbery to me, a way for the so-called middle classes to make them feel superior, when most of them are actually *working* their socks off just to pay a mortgage each month.

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That's kind of my point. The key word surely is "working". If you have to work, you're working class.

So what distinguishes "working class" from "middle class"? If you work down a mine, you're working class, but if you work as a teacher or lawyer, you're middle class?

Ultimately, it all sounds like a form of social snobbery to me, a way for the so-called middle classes to make them feel superior, when most of them are actually *working* their socks off just to pay a mortgage each month.

I think middle class are the people who get paid more than they are worth, and working class get paid less than they are worth.

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That's kind of my point. The key word surely is "working". If you have to work, you're working class.

So what distinguishes "working class" from "middle class"? If you work down a mine, you're working class, but if you work as a teacher or lawyer, you're middle class?

Ultimately, it all sounds like a form of social snobbery to me, a way for the so-called middle classes to make them feel superior, when most of them are actually *working* their socks off just to pay a mortgage each month.

Divide and conquer by the ruling class

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No, she's perfectly right.

Wow. "Perfectly right" - that's a high bar.

Only the rich have ever been able to afford to buy a house. Programmes like the sale of council houses for a song just created a new cohort of the rich.

Just total nonsense. I mean really - TOTAL NONSENSE. <noReally>TotalNonsense</noReally>

Porca always passes off his underwhelming stock of anecdotes as hard gained wisdom. Where, when and why hell he made those 13,000 posts, I don't know. His profile indicates 8,000-ish on the main board, but the only comment on his profile says

Troll of the highest order! Do not listen to this posters tripe.

And apart from the missing apostrophe, I couldn't agree more.

Of course there are different degrees of rich, and different levels of expectations. My parents as FTBs at thirtysomething could afford to buy a big house, but not to repair it. I can't afford anything like that house, but I can afford a place with a roof that keeps the rain out, mod-cons like hot water on tap, and a bunch of labour-saving devices.

Classic Porca nonsense. Free associating the vacuous generalities with the anecdotal. Sound and fury, signifying nothing. I'd put Porca on the ignore list, but it's important to challenge this nonsense in order to maintain the quality of discourse.

<porca>Some posts are good, others are bad - but you should pay loads for a house because, well this fellah I met in the pub said that way back when, he did</porca>

Edited by ChairmanOfTheBored

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That's kind of my point. The key word surely is "working". If you have to work, you're working class.

So what distinguishes "working class" from "middle class"? If you work down a mine, you're working class, but if you work as a teacher or lawyer, you're middle class?

Ultimately, it all sounds like a form of social snobbery to me, a way for the so-called middle classes to make them feel superior, when most of them are actually *working* their socks off just to pay a mortgage each month.

I think the difference is to do with ownership of capital. If you could realistically expect to earn or inherit a significant sum of capital during your life (e.g. enough to buy a house, but not enough to stop working), that would mark you out as middle class. If you basically lived a hand to mouth existence for your entire life, that was working class.

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