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In 1997, first-time buyers had to save for three years to afford the deposit on a house. Now the same household would need to put money aside for 20 years

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It's from the times but you can probably find the same report elsewhere. It talks about low to middle income but I'd say in London it's even worse. Impossible for any 'high earners'  too unless you are gifted equity. These stats would be even worse if it wasn't for huge BOMAD support. 

http://www.thetimes.co.uk/article/49ea808e-f895-11e6-bc87-4df02d30656d

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That was the plan after all, more and more debt for everyone to make bankers rich.

We should repay public and private debt, make the inflation target 0% by backing our money with gold, then close down all banks.

The ones who cannot come up with people deposits will go to prison for 100 years.

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In 92 it took me 7 months to save a 15% deposit on my own (prices were up 10% by 97 here from 92),working in a factory,not three years.

You need a £6k (10%) deposit up here in the north to buy a 3 bed house,£13k deposit for a decent semi.My daughter and her partner saved it in 8 months (22 year old nurse at the time).In three years they have paid off 45% now.They will of fully paid off in another three.

These problems are mainly southern problems.Governments for decades have failed to invest in the north and instead concentrated the jobs in the south.With immigration on top that has proved a disaster for young people there.

My auntie who lives down south (Bedford) has made more on her house having never worked more than part time than i earned working in 25 years.However her daughters cant buy,and she cant help as no savings and is going to equity release the house for an income.Every time i went down she harped on about how much her house had gone up in value,its my pension etc.Now she harps on about not having grandchildren and how unfair it is.The connection seems to be lost on her.

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In 95 I bought a house for cash,

in 97 I moved and bought a house for cash

in 99 I moved and bought a house with a large mortgage and kept my previous house and rented it out for 6 months.   The price jumped 10K in a year and the poor sods who lived there couldnt afford to buy it when I put it on the market.  I felt pretty bad for them, but really didnt want that weight round my neck. Sold up and paid off the large mortgage.

2005: Move to a bigger house. paid cash.

2007: Sold up, rented.

I'd now struggle to buy the home I bought in 95/97 for cash and the one in 99/05, forget it.  If I was starting out now even earning what I earn now, it would take me decades to pay off, even if I could afford to buy them in the first place.

 

Either money is worthless or houses prices are in a bubble.

I can still afford everything bar a house.

That says 1 thing to me....

Edited by TheCountOfNowhere

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43 minutes ago, TheCountOfNowhere said:

Either money is worthless or houses prices are in a bubble.

Not either, but both - money is worthless and house prices are in a bubble.

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42 minutes ago, TheCountOfNowhere said:

In 95 I bought a house for cash,

in 97 I moved and bought a house for cash

in 99 I moved and bought a house with a large mortgage and kept my previous house and rented it out for 6 months.   The price jumped 10K in a year and the poor sods who lived there couldnt afford to buy it when I put it on the market.  I felt pretty bad for them, but really didnt want that weight round my neck. Sold up and paid off the large mortgage.

2005: Move to a bigger house. paid cash.

2007: Sold up, rented.

I'd now struggle to buy the home I bought in 95/97 for cash and the one in 99/05, forget it.  If I was starting out now even earning what I earn now, it would take me decades to pay off, even if I could afford to buy them in the first place.

 

Either money is worthless or houses prices are in a bubble.

I can still afford everything bar a house.

That says 1 thing to me....

If you cashed in at the top of the biggest real terms rise in the housing market ever, presumably to someone who borrowed from a bank, why are you so outraged daily by house prices & banks? 

 

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If it's projected to take 20 years of saving (or even about 5-10) people should really consider rethinking their strategy. If you do not believe you can predict movements but just take a wise, informed and risk-neutral approach (see for example "wish I could afford one") you might consider a balanced portfolio which includes a significant weighting to equities rather than a savings account. In recent years of lacklustre performance this would probably nearly halve the saving time, but when equities rise the reductions in saving time could be much more significant. It's only when you are close to considering buying that risk aversion makes it sensible to switch to cash.

Also people might comfort themselves by noting as prices fall, the absolute deposit required falls and so the time taken to save for it decreases rapidly.

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2 minutes ago, Little Frank said:

If you cashed in at the top of the biggest real terms rise in the housing market ever, presumably to someone who borrowed from a bank, why are you so outraged daily by house prices & banks? 

 

Concern for others would explain it.

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16 minutes ago, Little Frank said:

If you cashed in at the top of the biggest real terms rise in the housing market ever, presumably to someone who borrowed from a bank, why are you so outraged daily by house prices & banks? 

 

He should have ploughed all his massive profits into BtL...

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24 minutes ago, Little Frank said:

If you cashed in at the top of the biggest real terms rise in the housing market ever, presumably to someone who borrowed from a bank, why are you so outraged daily by house prices & banks? 

 

I have children, do you ?

I'd be long gone now if it werent for them.  Couldnt give a toss about my life/financials/housing situation, but I sure as hell care about theirs.

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10 minutes ago, sPinwheel said:

He should have ploughed all his massive profits into BtL...

2007 showed BTL up for the mistake it was, there were plenty of "experts" at the time showing it was never going to pay off as a pension/

10 years on ( well 3 since the FLS started ) and now the BTL loosers are paying fortunes for house and bidding up their own "wealth".

Anyone can lever up on any investment if they know how.

Living off the backs of people does not sit well with me.

 

Edited by TheCountOfNowhere

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4 minutes ago, Nabby81 said:

Let's be honest no one is going save 20 years to buy so its either your gifted cash from BOMAD or your renting forever 

 

That's pretty much the thought I had.

Plenty young people will have bought using the tory "help" schemes, only to find now that they are trapped in a house that realistically no one will want to, or could buy at the price they paid.

Nothing points to this current situation being stable and sustainable, therefore we should all be expecting a massive fall this year.

 

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19 minutes ago, Nabby81 said:

Let's be honest no one is going save 20 years to buy so its either your gifted cash from BOMAD or your renting forever 

 

You aren't going to save in cash for 20 years, so what do you do instead? You save in equities and it might take 10 years at constant house prices (obviously less as house prices fall).

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7 minutes ago, Muddlehead said:

You aren't going to save in cash for 20 years, so what do you do instead? You save in equities and it might take 10 years at constant house prices (obviously less as house prices fall).

The bubble wont last 20 weeks never mind 20 years.

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Fair enough but most people will have several weeks or months of viewings, following by several months of conveyancing. With a bit of bad luck chains fall through several times and you're back to the drawing board.

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51 minutes ago, TheCountOfNowhere said:

Nothing points to this current situation being stable and sustainable, therefore we should all be expecting a massive fall this year.

Unfortunately, the same could have been said a year ago. Or a year before that.

The crash is long overdue, but I believe some people are jumping the gun claiming that '2017 will be the year'. Why would it be?

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2 hours ago, TheCountOfNowhere said:

In 95 I bought a house for cash,

in 97 I moved and bought a house for cash

in 99 I moved and bought a house with a large mortgage and kept my previous house and rented it out for 6 months.   The price jumped 10K in a year and the poor sods who lived there couldnt afford to buy it when I put it on the market.  I felt pretty bad for them, but really didnt want that weight round my neck. Sold up and paid off the large mortgage.

2005: Move to a bigger house. paid cash.

2007: Sold up, rented.

I'd now struggle to buy the home I bought in 95/97 for cash and the one in 99/05, forget it.  If I was starting out now even earning what I earn now, it would take me decades to pay off, even if I could afford to buy them in the first place.

 

Either money is worthless or houses prices are in a bubble.

I can still afford everything bar a house.

That says 1 thing to me....

Yes it does say one thing, you're a hypocrite...

rented it out for 6 months.   The price jumped 10K in a year and the poor sods who lived there couldnt afford to buy it when I put it on the market

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4 minutes ago, fandanman said:

Yes it does say one thing, you're a hypocrite...

Is it easier to persuade people not to be hypocrites or to change the system? Actually both are difficult :(

 

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1 hour ago, TheCountOfNowhere said:

2007 showed BTL up for the mistake it was, there were plenty of "experts" at the time showing it was never going to pay off as a pension/

10 years on ( well 3 since the FLS started ) and now the BTL loosers are paying fortunes for house and bidding up their own "wealth".

Anyone can lever up on any investment if they know how.

Living off the backs of people does not sit well with me.

 

 

I thought you said you sold up at the top of the bubble.

Where do you imagine your windfall tax free gains came from? 

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6 minutes ago, Little Frank said:

 

I thought you said you sold up at the top of the bubble.

 

Sure did 

 

homepage.png

 

I know where my tax free unearned gains came from thank you very much.

My tax free unearned gains are 1/20 of my earned/taxed gains.

I'd (we'd) be happy if those unearned/untaxed gains had never occurred.

 

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8 minutes ago, TheCountOfNowhere said:

Sure did 

 

homepage.png

 

I know where my tax free unearned gains came from thank you very much.

My tax free unearned gains are 1/20 of my earned/taxed gains.

I'd (we'd) be happy if those unearned/untaxed gains had never occurred.

 

 

So you cashed in your tax free property windfall mad-gainz (to paraphrase Venger) but you're now railing against property prices because of the impact on your children? (who will presumably anyway inherit your property windfall mad-gains in due course)

Not exactly an FTB struggling to save for a deposit then? 

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25 minutes ago, TheCountOfNowhere said:

Sure did 

 

homepage.png

 

I know where my tax free unearned gains came from thank you very much.

My tax free unearned gains are 1/20 of my earned/taxed gains.

I'd (we'd) be happy if those unearned/untaxed gains had never occurred.

 

Did a FTB buy your old place?

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