Divorcees Squeeze Young Buyers Out Of House Market

[mercsl]

http://www.telegraph.co.uk/news/main.jhtml...1/ixportal.html

[Converted Lurker]

Lazy lazy journalism In best Blue Peter tradition here`s one prepared 10 days earlier

http://firstrung.co.uk/articles.asp?pageid...1138&cat=44-0-0

[Realistbear]

http://news.bbc.co.uk/1/hi/uk/4200410.stm

Men and women aged

25 to 29

continued to have the highest divorce rates.

Charity Relate said the rise was partly due to pressure being put on family life by an increasingly "individualistic way of living".

DIVORCES IN ENGLAND AND WALES 2004

Divorce rate is 14 per 1,000 marriages

Average age at divorce for men is 42.7 years

Average age at divorce for women is 40.2 years

Average length of marriage is 11.5 years

69% between couples where neither were married before

Source: ONS

The number of divorces in England and Wales alone

dropped slightly

by just 91 to 153,399

What can we conclude from the above?

1. Divorce rate improving

2. 25-29 age bracket unlikely to have enough equity to buy 2 homes

Split-ups usually flood the market with more expensive homes as the couple buys 2 less expensive properties. This may explain the sharp declines in detached home prices

Every action has a counteraction it seems?

Edited January 21, 2006 by Realistbear

[munro]

Here's a quote from the article:

"Martin Cunningham, an estate agent who heads the Norfolk-based property chain Howards, said people splitting up and divorcing were a major factor in propping up the market in his area.

"This year we have seen more people than normal coming in," he said. "They have more money than first-time buyers and can put more money down on a property.

"They have been absolutely crucial. This is one of the reasons we haven't seen the expected slump in the market."

He said the large numbers of people splitting up could be caused by high levels of consumer debt.

"As my aunt always used to say, 'when poverty comes through the door, love flies out of the window'.""

So, to get this straight...they divorce because of high levels of debt, realise the "equity" in their house, then go and buy two smaller ones. And keep the debts? And to do this they must have already sold their houses, so a weakening market will cut their numbers and the amount of money they have.

Assuming he's not talking completely out of his a%se, how sustainable is this? Yet another blackmail strategy to FTBs - "buy now before the divorcees with loads of equity (from selling to who?) price you permanently out of the market". T*ss*rs.

[boom_and_bust]

Lazy lazy journalism In best Blue Peter tradition here`s one prepared 10 days earlier

http://firstrung.co.uk/articles.asp?pageid...1138&cat=44-0-0

Hi,

Lazy VI spinning as well. What next for these straw clutchers? I'll have a go on behalf of Miles Shipside and Fionna at the Nationwide ;

'People flock for riverside London appartments so they can watch whales swimming up the Thames, along their natural migratory paths. The desirability of this natural splendour has city executives and arab sheiks clambering to the banks of the Thames with knock on affects for surrounding boroughs, Henk Potts added. Tourism officials have also noticed a surge of foreign travellers coming to witness the spectacle each year. 'Why go to Baja Calafornia or the Norweigian Fjords when you can get a better view and a better Cafe Latte by the Thames?', an expert added.'

Cue obligatory advertisment photo of a twenties or thirties glamour couple relaxing be the coffee table in their new build appartment, patio doors open, looking at the view across the water with porpoises pirowetting into the air and great blue whales blowing jets of water into the sky.

I did like this one from the BBC about binge drinking and house prices last year;

http://news.bbc.co.uk/1/hi/magazine/4306226.stm

Boomer

Edited January 21, 2006 by boom_and_bust

[Realistbear]

Hi,

Lazy VI spinning as well. What next for these straw clutchers? I'll have a go on behlf of Fionna at the Nationwide ;

'People flock for riverside London appartments so they can watch whales swimming up the Thames, along their natural migratory paths. The desirability of this natural splendour has city executives and arab sheiks clambering to the banks of the Thames with knock on affects for surrounding boroughs, Henk Potts added'

I did like this one from the BBC about binge drinking and house prices last year;

http://news.bbc.co.uk/1/hi/magazine/4306226.stm

Boomer

Good article! Yes there is a correlation between "wealth" and unhappiness. Program on Tele last night said that in almost every instance of a large win on the lottery unhappiness followed shortly thereafter. High house prices have led to higher divorce rates, higher alcoholism, higher rate of debt induced suicide, longer hours at work, higher rates of depression and anxiety. The only benefit it seems is that EAs and VIs have lined their pockets with a little more cash at other's expense.

Edited January 21, 2006 by Realistbear

[New Darker Law]

@ Boom and Bust

That's about the size of it!

NDL

[boom_and_bust]

Hi,

Yep, if you are struggling for debt as a working couple, you will be REALLY struggling with debt as a single. Single life is usually more expensive. And if you are in a bad relationship, logic can go out of the window and you can make some very irrational decisions come house sales time viz-a-viz price. I've seen friends do it, get to the point where it is just a case of "Can't live like this anymore, can't carry on, blah, bah, blah". At which point, cue the couch at boomer's home for a few nights til' they patch it up. This article is about as sea worthy as a sieve. Very, very lazy article.

Boomer

Edited January 21, 2006 by boom_and_bust

[Surrey cash buyer]

This article is on the front page of the actual newspaper. I was amazed to see it there. Is there really no other more important new this weekend?

It's no more than blatant hyping up the market.

[Take me to the cleaners]

This article is on the front page of the actual newspaper. I was amazed to see it there. Is there really no other more important new this weekend?

Hows the whale doing?

[FreeFall]

Hows the whale doing?

It's taken out a IO mortgage on a nice riverside apartment and is currently languishing in the spa bath after having had a nice cuppa tea....

Buy now you fools, can't you see that if a whale can do it then everybody should?

Edited January 21, 2006 by FreeFall

[New Darker Law]

I've heard stories from colleagues recently regarding friends of theirs who have split up but are both still living in the marital home.

These social commentators say things like "It's weird. I don't understand why they do it."

I just keep my mouth shut and think "It's 'cause they can't afford to get out.......STUPID!!"

It's not just married couples in this boat either. The rise of this two-income economy will cause great resentment when it sinks in for the masses.

NDL

[Fudge]

Friend of mine split up with his wife, sold their house eventually and both now rent newish two bed apartments.

Another friend got his house up for sale and plan to move back in with his parents as they got a bit carried away with the credits cards.

Was looking in an estate agents window yesterday, and a couple next to me started rowing "of course we can afford it she said" running after him, poor sod, felt sorry for him.

My wife is now into buying those little lilliput houses and looking at dolls houses on Ebay.

[Karen]

And maybe the stress of a 400K mortgage leads to divorce.

The idea that the HPC would start at the top and work it's way down should not be a surprise, nor should the idea financial stress leads to divorce.

[adamUK]

That article is such utter crap it's unbelievable.

Firstly, the sad fact that most divorces cost a small fortune in legal fees so both sides end up being much poorer as a result.

Then the second part is that a 4 bedroom house doesn't cost double what a 2 bed house does unless you are leaving a good area to live in a sink estate so the divorcees find it tough going... and anyway, wouldn't they rent places whilst the whole proceeding is going though?

This is exactly the situation a drinking buddy is going through right now. He's extremely bitter about how (financially) worse off now he is. Still, she's now living really far away and his supposed mate who's been shagging her behind his back is nowhere in sight. :angry: :angry: :angry:

Utter tosh.. It's going to be filed in the bin.

[miro2021]

"He said the large numbers of people splitting up could be caused by high levels of consumer debt.

"As my aunt always used to say, 'when poverty comes through the door, love flies out of the window'.""

So, to get this straight...they divorce because of high levels of debt, realise the "equity" in their house, then go and buy two smaller ones. And keep the debts?"

No - the debt and stress caused by the debt lead to arguments, exposing the worst sides of each spouse and if they can't recognise what is causing their relationship problems and address this, the relationship eventually breaks down irrevokably (even if the debts were to be suddenly removed the damage is done) - then they split, no directly because of the debt, but indirectly because of the problems the debt exposes.

Nope. It is most often HIM that keeps the debt. While SHE gets the house... and the kids.

Assuming, of course, she isnt working, and he makes enough money to survive with the debt on his back.

Now before I get jumped on- there are exceptions. I know an exceptional woman who had a better job than her husband. So when they split, she kept the house, took out a larger mortgage, and paid him out to get lost. But you wont find that happening very often in the opposite direction.

Partly because women are paid less and have fewer opportunities to suceed and earn high salaries/bonuses (you have heard of the glass ceiling haven't you?) And she didn't pay him to 'get lost' she paid him his share of the equity they built up as a partnership (marriage is a partnership)