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tomandlu

More Young People Are Living With Their Parents Than Ever Before

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BBC News presenter read out an email from a viewer saying that after a year of renting privately and "paying his landlord's mortgage", he decided to move back in with his parents.

Smart cookie, pity the poor landlord. Oh I forgot, now according to media world Landlord = Bad Man! Boo Hoo how things change, one minute you are being bailed out, the next you are a sacrificial ScapeSheep. Ah well there is always the day job selling double glazing :lol:

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I house shared through my 20s (actually, from my late teens) and have rented my own place since my early 30s. I will probably buy shortly though as locally prices are what I would consider somewhat sane and the alternative avenues for investing my wealth are all looking iffy.

Whilst I wouldn't willingly go back to house sharing at this stage in my life, it was great at the time. I met loads of new people through housemates and when you're younger you are much more open to putting up with the hassle. Much better than 'house sharing with parents' IMO even if you don't get the financial and comfort benefits.

The good thing about house sharing with parents, as opposed to friends, is that at least you are not paying a parasite Buy To Let landlord's mortgage with your rent.

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The good thing about house sharing with parents, as opposed to friends, is that at least you are not paying a parasite Buy To Let landlord's mortgage with your rent.

Don't think I could even bring myself to buy a house from a landlord selling up, even if they were offering the house at a reasonable discount to comparable houses on the market, trying to escape with their profit, in early HPC main event 2.0 stages.

Unless it was a repo and the landlord heading into big financial distress themselves, ideally with renting in their future. Even better if they're one of the older types who should have been set up for life with HPI in their own private homes.

I've managed to get by mostly without paying BTL landlords too much of my income over the years, although still more than I would have preferred, especially thanks to all measure to stop HPC in 2009 and reflate prices back to stupid heights for VIs.

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You can get the stats by constituency, its under 20k in both for Northampton, however, people hit peak earnings later in life, the average for 18-30's is going to be well short of the averages

Wonderful.Any chance of a linky please.

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After years away I moved back to my folks in London when I got my current job. It is irritating at times, but basically I stay out of their way and spend a lot of my spare time either at the airfield or my girlfriends down in the West Country (where I'll eventually move back to). I did contemplate commuting from Somerset, but it's basically impractical.

There's no way I'll buy or rent in London, and if I did I wouldn't be able to afford my hobby which is turning into a real passion with me. Fortunately my parents are of the "I can't believe the prices of houses these days, they're ridiculous. I don't blame you for not buying and getting into debt" school so I don't get my ears bent over not owning a rabbit-hutch somewhere.

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You can get the stats by constituency, its under 20k in both for Northampton, however, people hit peak earnings later in life, the average for 18-30's is going to be well short of the averages

Yes, becoming later and later in life....fewer people are also reaching any kind of peak earnings that can sustain the rising cost of living inc housing costs......a job is no longer a regular job for life with pension for life, the flow of income has become increasingly very uncertain and irregular..... but a long-term mortgage working lifetime of debt and rent can be a lifetime of high ongoing financial commitment....payments along with other living costs have to be paid every month and on time....job, in between job, or no job. ;)

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You can get the stats by constituency, its under 20k in both for Northampton, however, people hit peak earnings later in life, the average for 18-30's is going to be well short of the averages

https://www.gov.uk/g...cy-2010-to-2011

Ok it's 2011 stats but Northampton comes in at sub £20k.As you say given people hit peak earnings later on,given nowadays many will be carrying substantial student debts ,it's hard to see any upside away from London and the hot money flows out of places like Cyprus.

Edit to add,the differences between mean and median incomes are startling.

Edited by Sancho Panza

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https://www.gov.uk/g...cy-2010-to-2011

Ok it's 2011 stats but Northampton comes in at sub £20k.As you say given people hit peak earnings later on,given nowadays many will be carrying substantial student debts ,it's hard to see any upside away from London and the hot money flows out of places like Cyprus.

Edit to add,the differences between mean and median incomes are startling.

Indeed.. a couple who both worked full time on the median income for my area would take home about £37k pre-tax. A standard 3 bed semi is priced at £170k.

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Indeed.. a couple who both worked full time on the median income for my area would take home about £37k pre-tax. A standard 3 bed semi is priced at £170k.

Those median figures are frightening when you compare them to house prices. Even worse in London. The median income in my area (Kingston) is £25k, and a 3 bed semi is £500k if you buy one in a poor part of town. That is 10x dual median income :blink: and double that if you want to live in a nice part of town :blink::blink:

I notice that the median in Kensington is only £28k, while the mean is £110k!

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The sign of a highly unequal society and a recipe for disaster.

As far as I can see, there is a steady momentum dragging society back to a situation where you have a small number of incredibly rich and powerful people with just about everyone else being essentially peons/serfs. The middle is being squeezed out.

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Yup - there are swings and roundabouts - if the wrong person moves into a houseshare things can go south rather fast, but then you can always leave yourself (relatively) painlessly. I've done both in my 20's - lived with the folks and house shared. Both were fine - the living with parents thing is great too if you get on with them., But yep, the houseshare on balance for me is worth the cash. I've put myself in a position where I'm effectively a Bruce Banner with youth in terms of the cost of it anyway :-)

It was for me too.

Forget 'paying off LL mortgage cr.p'.

I had to move South for a job so house shared for a few years. The commute would have been >200 miles.

Its doable as long as you are all roughly the same age and same sort of work.

Splitting bills 4 ways makes it very cheap.

In fact, my living costs were cheaper than a co-workers commuting costs.

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I really hate it when someone is prejudiced until they experience something personally. It still lacks that important human quality - empathy. It smacks more of selfishness.

Not having empathy and selfishness are not the same thing. I know someone who is not at all selfish but has no ability to understand anyone else's point of view (no empathy).

When I was growing up I thought the benefit system was wonderful etc typical Guardian reader. When I realised that a sixteen year old who got pregnant could have the same standard of housing as someone in an average job my opinion changed - particularly as I was that someone!

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It was for me too.

Forget 'paying off LL mortgage cr.p'.

I had to move South for a job so house shared for a few years. The commute would have been >200 miles.

Its doable as long as you are all roughly the same age and same sort of work.

Splitting bills 4 ways makes it very cheap.

In fact, my living costs were cheaper than a co-workers commuting costs.

The media likes to make out that buying a house is the single most important thing in life for any person. Regarding the 'more children living at home with parents into adulthood' story currently running, there was a piece on one of the evening news reports last night where they were pointing out that expensive housing is preventing younger people from buying and that this is what is forcing people to live at home.

Whilst it's good that the mainstream media is identifying stupidly high house prices as a problem and pointing out how this affects people, there was no mention that maybe younger people might want to rent in a house-share as an alternative.

Apparently buying as soon as you can (and putting yourself on a lifetime treadmill of debt) is the only way forward. If you can't buy, you stay at home to save up enough for a deposit. Except that from what I can see, a lot of the 'stay at homes' with decent jobs who could arguably save up to make a deposit even at the current silly prices are buying cars, electronics and going on luxury holidays with the money saved.

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It was for me too.

Forget 'paying off LL mortgage cr.p'.

I had to move South for a job so house shared for a few years. The commute would have been >200 miles.

Its doable as long as you are all roughly the same age and same sort of work.

Splitting bills 4 ways makes it very cheap.

In fact, my living costs were cheaper than a co-workers commuting costs.

Yep, you just need to be careful/lucky with housemates. It generally helps if one of the housemates is already a friend or maybe a relative or 'friend of a friend'.

I did have some annoying experiences with total skinflints when I was a student - people refusing to pay 50p towards coal for the central heating and causing the place to be an icebox overnight, people sneakily using the landline phone (no mobiles back then) and not paying their share of the bill, getting stuff raided from fridges and cupboards for example - but so long as people are reasonable then you can live pretty cheaply. And most adults actually are reasonable.

As you say, helps if demographics in the house are similar.

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It was for me too.

Forget 'paying off LL mortgage cr.p'.

I had to move South for a job so house shared for a few years. The commute would have been >200 miles.

Its doable as long as you are all roughly the same age and same sort of work.

Splitting bills 4 ways makes it very cheap.

In fact, my living costs were cheaper than a co-workers commuting costs.

"Forget 'paying off LL mortgage cr.p'."

Sorry, the thought of paying a parasitic landlord's mortgage off makes me physically sick. So, no, I won't forget it.

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Except that from what I can see, a lot of the 'stay at homes' with decent jobs who could arguably save up to make a deposit even at the current silly prices are buying cars, electronics and going on luxury holidays with the money saved.

As we've discussed before, there's a fine line. If you are in a hopeless situation - and by that, I mean sub 18k p/a with no prospect of improvement because a) you lack ability or B) you are in the wrong place at the wrong time, you might as well blow it all because the minute amount of savings you'll be able to make given the cost of living isn't worth it.

Agree that for anyone else - especially those who have ability, you should look at the alternatives - and that doesn't necessarily involve the be all and end all of owning a house. Get a, to use football parlance, warchest together in your twenties and then use it as a psychological tool to allow you to live life the way you want. It kind of happened to me by accident - I initially targeted a house, saved furiously whilst prices rose even faster. When you're putting away a grand a month in savings, and prices are rising at double that (like in 2001/2002), you decide something rum is up. Fortunately, the warchest is real, like the debt is for others.

For today's younger youth, all they see is the high ticket price - they (perhaps because they weren't paying attention - I would have been) didn't have the benefit of seeing the run up to the insane level.

Now I can do what the hell I like in my 30's. A house outright is an option, but it's a poor one compared to the opportunity cost of losing the freedom the liquid savings and investments give. I'd suggest to any other young (single) person to do the same.

Edited by Frugal Git

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"Forget 'paying off LL mortgage cr.p'."

Sorry, the thought of paying a parasitic landlord's mortgage off makes me physically sick. So, no, I won't forget it.

Really? Even if the rent is cheap and the house is safe, comfortable and well located, like many of the deals I have had in recent years. We can`t expect them to let us live for in their property for nothing can we? Rent is just a cost IMO, in my case a pretty cheap cost, especially since I don`t have to repair/replace anything.

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.

Agree that for anyone else - especially those who have ability, you should look at the alternatives - and that doesn't necessarily involve the be all and end all of owning a house. Get a, to use football parlance, warchest together in your twenties and then use it as a psychological tool to allow you to live life the way you want. It kind of happened to me by accident - I initially targeted a house, saved furiously whilst prices rose even faster. When you're putting away a grand a month in savings, and prices are rising at double that (like in 2001/2002), you decide something rum is up. Fortunately, the warchest is real, like the debt is for others.

Elephant in the room

Student debts

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Really? Even if the rent is cheap and the house is safe, comfortable and well located, like many of the deals I have had in recent years. We can`t expect them to let us live for in their property for nothing can we? Rent is just a cost IMO, in my case a pretty cheap cost, especially since I don`t have to repair/replace anything.

Yup. As long as you're renting right (not some stupid luxury city centre status symbol flat), the cost of it is still reasonable.

4k p/a for a roof over my head that I don't have to pay any extra to maintain vs swapping a mountain of cash/future earnings for somewhere I would face 1k p/a in maintenance cost, have zero flexibility on moving if required and a complete loss the opportunity to invest in more productive assets with the now illiquid capital. If prices were around 40% lower, I'd buy, or if my wages went up 60% through no effort on my part, otherwise the maths doesn't stack up.

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As we've discussed before, there's a fine line. If you are in a hopeless situation - and by that, I mean sub 18k p/a with no prospect of improvement because a) you lack ability or B) you are in the wrong place at the wrong time, you might as well blow it all because the minute amount of savings you'll be able to make given the cost of living isn't worth it.

Agree that for anyone else - especially those who have ability, you should look at the alternatives - and that doesn't necessarily involve the be all and end all of owning a house. Get a, to use football parlance, warchest together in your twenties and then use it as a psychological tool to allow you to live life the way you want. It kind of happened to me by accident - I initially targeted a house, saved furiously whilst prices rose even faster. When you're putting away a grand a month in savings, and prices are rising at double that (like in 2001/2002), you decide something rum is up. Fortunately, the warchest is real, like the debt is for others.

For today's younger youth, all they see is the high ticket price - they (perhaps because they weren't paying attention - I would have been) didn't have the benefit of seeing the run up to the insane level.

Now I can do what the hell I like in my 30's. A house outright is an option, but it's a poor one compared to the opportunity cost of losing the freedom the liquid savings and investments give. I'd suggest to any other young (single) person to do the same.

.

You sound like you are in the same position as me I have been saving since 2000 to buy and house and watched in disbelief at the rampant HPI.

I have managed to save 130K, yet in the SE town I live in this would only buy a crappy flat. I am not going to let years of scrimping to save to only buy me something that offers zero value for money.

To be honest, I sometimes think that I should take to money and go and live in a cheap Asian country. I spent a year in SE Asia and India in 2009. The sort of money that people like us have saved can give you a very decent life in Cambodia/Vietnam/India etc.

I give it a couple of years and I reckon Ill be out there, life is too short to be put on hold, a decade of waiting has worn me out.

I should add that I have no kids or any real ties in the UK, oh and I was 40 last year, so maybe Im just starting out on the classic mid life crisis!

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  • 396 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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