Jump to content
House Price Crash Forum
PeanutButter

Instead of houses

Recommended Posts

For a long while now I've suspected that priced-out workers are just blowing their disposable income because no matter what they save it's a drop in the ocean. 

Can you really save for a deposit by ditching coffee and avocado toast? I tried to find out

Quote

 

I see his point – but I realise, with a sinking feeling, that it is far from the approach I have been taking. After rent, heating, electricity, groceries, internet, mobile phone and public transport costs, I am left with a bit over £1,000 each month. Of that, I save about £100 every month. The rest goes on, mostly, coffee, food, alcohol and travel.

Convinced by damning house‑price-to-income ratios – 7.6 in England and Wales; more than 14 in London – that my own home is out of reach, I have resigned myself to spending for the now. In such a grossly inflated property market, any question of reducing expenditure cannot help but seem by-the-by.

 

How reliant is our economy on young workers not bothering to save?

Their main investments seem to be brunch, pugs, personal trainers, holidays, botox, yoga detox, alcohol, drugs, coffee, ubers, and iphones. 

BTW this woman got MAULED for being this honest. 

Edited by PeanutButter

Share this post


Link to post
Share on other sites

For me, the key paragraph of this article was this one:

Quote

House prices have grown faster than rents and incomes, moving far beyond what is considered affordable, especially for twentysomethings. The only people my age I know who have bought a house have done so outside London, as part of a couple, with help from their parents or all three.

The first point is spot on - house prices now are vastly unaffordable compared to 20 years ago.

The second point is kind of dubious: "outside London" is in fact the norm for people, despite the fact that the media barely seem to notice that the rest of the country exists.  And actually "as part of a couple" is historically fairly normal, albeit in the past that's party due to living together pre-marriage being frowned upon.  Only the BoMaD is new in the last 20 years (and the only reason the BoMaD has any money is from their own over-inflated houses and over-generous final salary pensions, so even that is just a symptom).

 

Share this post


Link to post
Share on other sites
1 hour ago, PeanutButter said:

How reliant is our economy on young workers not bothering to save?

Their main investments seem to be brunch, pugs, personal trainers, holidays, botox, yoga detox, alcohol, drugs, coffee, ubers, and iphones. 

BTW this woman got MAULED for being this honest. 

Kills the pain of saving.....when saving means running backwards.;)

Share this post


Link to post
Share on other sites

In a very long, typewritten letter, a reader told me my fecklessness brought shame on my parents and my editor and warned that, if not addressed, it would cause tension with my future husband and our hypothetical children, culminating, potentially, in my alcoholism

nice to see the snowflake still has hope. 

Share this post


Link to post
Share on other sites
34 minutes ago, longgone said:

In a very long, typewritten letter, a reader told me my fecklessness brought shame on my parents and my editor and warned that, if not addressed, it would cause tension with my future husband and our hypothetical children, culminating, potentially, in my alcoholism

nice to see the snowflake still has hope. 

Is it wrong that i want to read this letter in full?

Share this post


Link to post
Share on other sites
3 hours ago, scottbeard said:

For me, the key paragraph of this article was this one:

The first point is spot on - house prices now are vastly unaffordable compared to 20 years ago.

 

 

Very true I worked out that the difference between what prices in my road cost pcm for a 90% mortgage today compared to 20 years ago +inflation is £1k!  The cost of the 10% deposit is of course even worse.  No amount of budgeting will get most people £1 k extra per month.  (Ignoring the deposit going from £10k to £40k).

Share this post


Link to post
Share on other sites

The UK cannot have it both ways, if people don't spend and live like monks in order to afford the worse ex crack dens 100 miles from there original home town then the economy will tank, and besides "avocados and coffee reduction", has it become that bad?

The problem with the UK is the level of income in this now non capitalist country you need to earn before you afford to buy, I cannot tell you what that is, but it is well above slightly above average wages it once was. You now have more chance of getting housing in central London being a single thick mother of 3 fatherless kids than a wage earner of £50,000. Lambeth and Southwark were always flawed areas in the past, but at least milkmen and plumbers once lived there, now you have to be gentrified or a gangsta moll

Share this post


Link to post
Share on other sites
14 minutes ago, localhero1983 said:

The UK cannot have it both ways, if people don't spend and live like monks in order to afford the worse ex crack dens 100 miles from there original home town then the economy will tank, and besides "avocados and coffee reduction", has it become that bad?

The problem with the UK is the level of income in this now non capitalist country you need to earn before you afford to buy, I cannot tell you what that is, but it is well above slightly above average wages it once was. You now have more chance of getting housing in central London being a single thick mother of 3 fatherless kids than a wage earner of £50,000. Lambeth and Southwark were always flawed areas in the past, but at least milkmen and plumbers once lived there, now you have to be gentrified or a gangsta moll

Very true. 

Share this post


Link to post
Share on other sites
On 18/12/2018 at 21:28, localhero1983 said:

The UK cannot have it both ways, if people don't spend and live like monks in order to afford the worse ex crack dens 100 miles from there original home town then the economy will tank,

Do you understand that people save money in order to spend it later? All income is eventually spent, saving just defers it.

Share this post


Link to post
Share on other sites
9 hours ago, Uncle_Kenny said:

Do you understand that people save money in order to spend it later? All income is eventually spent, saving just defers it.

You don't have to try and convince me, there is hardly anything I need in this world and when I do put my buys off and use cash that I always have a available to say get  a Galaxy Samsung 6 , it gave me as much joy in advanced technology as the most up to date Galaxy 9  that someone was buying to keep up with the Jones.

My point we as a nation could not have the whole country sitting it out saving, though many should, because it would tank the economy. I don't get taken in my sales marketing, Xmas and birthday gift pressures and David Beckham slik adverts cannot convince me his own brand of whiskey or aftershave is better than the un marketed stuff I use at a 1/3 of the price

Share this post


Link to post
Share on other sites
8 minutes ago, localhero1983 said:

You don't have to try and convince me, there is hardly anything I need in this world and when I do put my buys off and use cash that I always have a available to say get  a Galaxy Samsung 6 , it gave me as much joy in advanced technology as the most up to date Galaxy 9  that someone was buying to keep up with the Jones.

My point we as a nation could not have the whole country sitting it out saving, though many should, because it would tank the economy. I don't get taken in my sales marketing, Xmas and birthday gift pressures and David Beckham slik adverts cannot convince me his own brand of whiskey or aftershave is better than the un marketed stuff I use at a 1/3 of the price

You are solvent most people are in debt

 

Share this post


Link to post
Share on other sites
1 minute ago, prozac said:

You are solvent most people are in debt

 

Yep, and they should at the very least be saving, but the fact is, rightly or wrongly, they be encouraged to spend from all the forces out there that know that a non spending British nation will bring us down

Share this post


Link to post
Share on other sites
1 minute ago, localhero1983 said:

Yep, and they should at the very least be saving, but the fact is, rightly or wrongly, they be encouraged to spend from all the forces out there that know that a non spending British nation will bring us down

You need to save 10% of your income most people have credit card debt 

Share this post


Link to post
Share on other sites
15 minutes ago, localhero1983 said:

You don't have to try and convince me, there is hardly anything I need in this world and when I do put my buys off and use cash that I always have a available to say get  a Galaxy Samsung 6 , it gave me as much joy in advanced technology as the most up to date Galaxy 9  that someone was buying to keep up with the Jones.

I'm hoping that at some point the obsession with the latest technology and gadgets will fade away when people start to realise that they're mostly gimmicks with little more than novelty value and not actually the path to some wonderful future.

Share this post


Link to post
Share on other sites
8 minutes ago, Riedquat said:

I'm hoping that at some point the obsession with the latest technology and gadgets will fade away when people start to realise that they're mostly gimmicks with little more than novelty value and not actually the path to some wonderful future.

I think it is fading not for that reason but because the level of improvement is declining, i.e. there is less and less reason to buy the latest model.

Share this post


Link to post
Share on other sites
3 minutes ago, iamnumerate said:

I think it is fading not for that reason but because the level of improvement is declining, i.e. there is less and less reason to buy the latest model.

There's certainly an element of that, although I don't know whether the rate of change is decreasing or whether that's simply because a lot of things have hit the point where they do whatever people want to do so any further change is pointless (mind you that's not stopped people going for the latest up to now).

Share this post


Link to post
Share on other sites
22 minutes ago, Riedquat said:

I'm hoping that at some point the obsession with the latest technology and gadgets will fade away when people start to realise that they're mostly gimmicks with little more than novelty value and not actually the path to some wonderful future.

It just amazes me that people are so easily taken in by marketing,  the greed of people like the Beckhams who are part of an empire that preys on vulnerable insecure people and takes cash they really do not need anymore. Xmas in some ways I find so amusing, 100's of silly perfume/scent TV adds selling products using cheap materials with huge mark ups, a Lidl aftershave recently came out near top of a poll of best aftershave at a fraction of the marketed products.

And the God of them all COCA COLA I seriously wonder now, not that I have drank fizzy drinks in 15 years, if it really is the best fizzy drink out there or just so well ingrained into peoples heads. That's why I love Lidl and Aldi so much, no marketed products that are brilliant, just shows how much we are paying for marketing, if only other high street products used the same idea

Share this post


Link to post
Share on other sites
1 hour ago, localhero1983 said:

It just amazes me that people are so easily taken in by marketing,  the greed of people like the Beckhams who are part of an empire that preys on vulnerable insecure people and takes cash they really do not need anymore. Xmas in some ways I find so amusing, 100's of silly perfume/scent TV adds selling products using cheap materials with huge mark ups, a Lidl aftershave recently came out near top of a poll of best aftershave at a fraction of the marketed products.

And the God of them all COCA COLA I seriously wonder now, not that I have drank fizzy drinks in 15 years, if it really is the best fizzy drink out there or just so well ingrained into peoples heads. That's why I love Lidl and Aldi so much, no marketed products that are brilliant, just shows how much we are paying for marketing, if only other high street products used the same idea

Samsung and Apple are the worst offenders. I have a xiaomi phone winging its way from China to me. £117

No duty no vat to pay and can sell the old phone for more than I paid for it. 

I never buy anything unless I can sell it again and get my money back or make a profit.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 297 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.