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deano_54321

I Might Never Own My Own House! ......so What!?

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Hi Folks,

Had an interesting chat with some friends down the pub today. Five of us there were, 4 still living with parents, 1 who owns a house, but is struggling (hence us getting his round in!) and has just put his house on the market to go back home to live with his parents. All of us are aged between 25 - 29 years old.

I wont take you through the whole discussion, but our conclusion was this. We believe that the attitude of people our age and below is changing. Its no longer "sad" to be living with parents - why should it be? If it is, the the majority of under 30's are "sad".

3 out of the 5 of us are in Long term relationships, myself being one. I get on very well with my parents, and we have come to the following decision. I am going to pay for an extension on my parents house. This will include converting the Garage into a nice cosy small lounge with cooking facilities for me and my girlfriend. Above this we are goig to extend with an en-suite large bedroom for us. Basically, it will be like our own home, but a part of the single house. Ok, this will increase the price of our house by about £30,000, but at least we're not paying £100,000+ for a Sh*tty 1 bed flat in the middle of a drug ridden dump.

I think ideas like this and the changing attitude of under 30's losing all hope of ever owning their own home therefore not worrying about it any more will cause a MAJOR crash in the coming years. We will then buy our own place when the time seems right.

At work I keep getting the comments from homeowners - "you will never own your own house". Ths used to aggravate me, until I turned round and said "maybe I won't - to be honest I dont care". The first time I said this, I said it as a reaction, but the more I thought about it the more I believed what I had said.

Edited by deano_54321

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Guest Winners and Losers

Hi Folks,

Had an interesting chat with some friends down the pub today. Five of us there were, 4 still living with parents, 1 who owns a house, but is struggling (hence us getting his round in!) and has just put his house on the market to go back home to live with his parents. All of us are aged between 25 - 29 years old.

I wont take you through the whole discussion, but our conclusion was this. We believe that the attitude of people our age and below is changing. Its no longer "sad" to be living with parents - why should it be? If it is, the the majority of under 30's are "sad".

3 out of the 5 of us are in Long term relationships, myself being one. I get on very well with my parents, and we have come to the following decision. I am going to pay for an extension on my parents house. This will include converting the Garage into a nice cosy small lounge with cooking facilities for me and my girlfriend. Above this we are goig to extend with an en-suite large bedroom for us. Basically, it will be like our own home, but a part of the single house. Ok, this will increase the price of our house by about £30,000, but at least we're not paying £100,000+ for a Sh*tty 1 bed flat in the middle of a drug ridden dump.

I think ideas like this and the changing attitude of under 30's losing all hope of ever owning their own home therefore not worrying about it any more will cause a MAJOR crash in the coming years. We will then buy our own place when the time seems right.

At work I keep getting the comments from homeowners - "you will never own your own house". Ths used to aggravate me, until I turned round and said "maybe I won't - to be honest I dont care". The first time I said this, I said it as a reaction, but the more I thought about it the more I believed what I had said.

I agree. The gloss has come off home ownership for many. My brothers, 39 and 25, both still live at home! I think many young people have given up and decided just to live their lives. Why shouldn't they have ipods, expensive 'bikes' etc. They are never going to be able to own a house at this rate. They have decided to live life for now, and that might mean that owning a house or getting into huge debt is not an option in their lives, yet.

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At work I keep getting the comments from homeowners - "you will never own your own house". Ths used to aggravate me, until I turned round and said "maybe I won't - to be honest I dont care". The first time I said this, I said it as a reaction, but the more I thought about it the more I believed what I had said.

The moment you uttered the words "I don't care" you stepped into the Promised Land.

Being happy is about not caring what other people think and just doing your own thing.

BTW I like the garage conversion idea -- very original! The fact that you can do this (i.e. create new housing supply) relatively cheaply proves how overpriced property is.

frugalista

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yes... and everyone else i know is sharing with mates, everyone in there 20s falls into two camps, they are saving there ass off, or over spending, both groups are priced out..... I just found out a collegue at work who is living with his folks is saving 1k a mounth on a lowish salary, because he doesnt drink and doesnt have a car...

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I'm 31 this year and still living at home with my Mum, Stepdad and younger bro (22).

It ain't ideal, but its better than giving money to a buy-to-letter or mortgaging myself to the

hilt.

I'll buy when I'm ready!

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At work I keep getting the comments from homeowners - "you will never own your own house". Ths used to aggravate me, until I turned round and said "maybe I won't - to be honest I dont care". The first time I said this, I said it as a reaction, but the more I thought about it the more I believed what I had said.

You only own the home when your final payment gets cleared. How many so called Home-Owners are out there that will never make that final payment?

TB

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yes... and everyone else i know is sharing with mates, everyone in there 20s falls into two camps, they are saving there ass off, or over spending, both groups are priced out..... I just found out a collegue at work who is living with his folks is saving 1k a mounth on a lowish salary, because he doesnt drink and doesnt have a car...

Thats where I'm tring to get. Once Ive paid for my car I reckon I will be able to save around £700 per month, so i should be laughing. If prices do crash then great, if not I will be using the money I have saved to check out the possibilities of migrating, maybe 6 months in Austrailia. Its a big risk but the rewards could be worth it.

I'm 31 this year and still living at home with my Mum, Stepdad and younger bro (22).

It ain't ideal, but its better than giving money to a buy-to-letter or mortgaging myself to the

hilt.

I'll buy when I'm ready!

Exactly. There is no shame in what you are doing. It is already becoming the "norm". Just think of all that money you have to spend/save/do whatever while bragging homeowners struggle to make ends meat. (That doesnt give me any pleasure by the way, unless that person is slagging me off for deciding to stay with my parents while gloating their house price is increasing!)

BTW I like the garage conversion idea -- very original! The fact that you can do this (i.e. create new housing supply) relatively cheaply proves how overpriced property is.

frugalista

Of course the actual cost of the extention/conversion will be much less than 30K, especially if we can do much of our own labour. The price of the house will obviously increase unrealistically compared to te amount we will pay for the extension because of house prices being overvalued, but this is much lower risk than buying, and of course its one less house sold!

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And in the end if you ever get to own your property it the Council will nick it off you before you die to pay for your place in the old peoples home. Renters don't have that problem - and can always claim housing benefit.

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At work I keep getting the comments from homeowners - "you will never own your own house". Ths used to aggravate me, until I turned round and said "maybe I won't - to be honest I dont care".

My major reason for owning a house was that it would be some kind of pension until I was introduced to other ways to create OAP wealth.

A house is where I live. It's not who I am, or what I am worth. Sure, some DIY is satisfying, and home "owning" has it's plus sides, but so do a lot of other things (like not having to do DIY).

The next home I own (and I really mean "own") I intend to build myself. Ultimate lazy DIY (by proxy through contracted builders). This is the ONLY "dream" home surely? Now exactly where do I want that open fire?

If the opportunity never arises...I don't care. I only care about missing opportunities when they arise.

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And in the end if you ever get to own your property it the Council will nick it off you before you die to pay for your place in the old peoples home. Renters don't have that problem - and can always claim housing benefit.

Nail on the head there

In the end, you die, and dont take that house with you. So what was so important about that house in the first place?

:blink:

If it' to make life secure, nick 50million from the bank, & get put in prison for the next 40 years, your accomodation in bricks and mortar will be assured then :D:lol::lol:

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Might be worth consulting a financial advisor about the best way to structure the house ownership to avoid IHT.

You don't want to pay for the extension and then pay 40% tax on it when you inherit the house...

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Nice post, I really do hope people across the country young people are following your example.

I know a few people who have piled into the BTL bubble, and one of the IMO nastiest, most selfish, boderline evil, things they say when I raise the issue that there will simply be too many retal properties chasing too few tenants, is that if they're buying the flats that means FTBs can't afford to, they have to live somewhere so they'll have to rent off them. It's an attitude that makes the 'I'm alright Jack' yuppies of the 80s seem like charity workers FFS.

What I sincerely hope is that young people will simply refuse to play, won't buy, won't rent. That will cause the crash. Then we can all get back to regarding houses as a "machine for living in" rather than an investment vehicle.

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Nice post, I really do hope people across the country young people are following your example.

I know a few people who have piled into the BTL bubble, and one of the IMO nastiest, most selfish, boderline evil, things they say when I raise the issue that there will simply be too many retal properties chasing too few tenants, is that if they're buying the flats that means FTBs can't afford to, they have to live somewhere so they'll have to rent off them. It's an attitude that makes the 'I'm alright Jack' yuppies of the 80s seem like charity workers FFS.

What I sincerely hope is that young people will simply refuse to play, won't buy, won't rent. That will cause the crash. Then we can all get back to regarding houses as a "machine for living in" rather than an investment vehicle.

Agree with you - and this IMO is the thing that's wrong with the very simplistic "supply and demand" arguments that people use about housing to justify that if there's a "shortage" prices will rise. Supply and demand isn't actually very clearly related to housing issues, whether buying or renting. Most people always have the option, even if they don't like it, to move back in with parents, move in with friends, sub-let from friends, etc. - it just doesn't follow that if FTBs can't buy they will rent instead. In fact, they're MUCH more likely to move back in with parents (or share housing), as it's financially very advantageous - they can save money for a deposit AND save on bills and council tax.

I personally see those people who think in that "I'm alright Jack" way about property as a horrendous social evil - it's the new greediness of the 21st century. Fine to make money on stocks or other investments, but when you do it with housing you do it off real ordinary people, mostly those poorer than you are. Having said that, my BTL landlord is subsidising me at the moment (can't sell, can't rent at an amount that covers the mortgage) so the BTL rose-tinted-goggles are actually working in my favour, even though my landlord is a friend of mine....maybe I should feel guilty about that myself? <_<

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And in the end if you ever get to own your property it the Council will nick it off you before you die to pay for your place in the old peoples home. Renters don't have that problem - and can always claim housing benefit.

And when they stop HB altogether?

They've already made it so its got to be a reasonable rent which may mean you having to pick a much lower standard of accomadation than you like.

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Nice post, I really do hope people across the country young people are following your example.

I know a few people who have piled into the BTL bubble, and one of the IMO nastiest, most selfish, boderline evil, things they say when I raise the issue that there will simply be too many retal properties chasing too few tenants, is that if they're buying the flats that means FTBs can't afford to, they have to live somewhere so they'll have to rent off them. It's an attitude that makes the 'I'm alright Jack' yuppies of the 80s seem like charity workers FFS.

What I sincerely hope is that young people will simply refuse to play, won't buy, won't rent. That will cause the crash. Then we can all get back to regarding houses as a "machine for living in" rather than an investment vehicle.

Amen to that...I hope people who can DO live at home with their parents until this whole thing collapses. Unfortunately for me I cannot do this as I have followed work around for the last ten years and there is no chance of getting work back near my parents...mind you I am not worried...my landlady is making a massive 4.3% return on the rent I pay her; meanwhile I am getting 12-20% return from my NON-PROPERTY investments.

I also agree with the sentiment about the greedy BTL anti-social psychos....it really is the yuppies all over again...knobs. Crash 2006 please.

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I wish I was still living at home... I had to follow my career abroad.

But while I was still in the UK through my degrees and all of my

previous jobs I lived at home with my parents. Most of my close friends

also do. But people I met at University who did not have this choice

for one reason or another where VERY jealous and always resorted to

social bullying and made belittling comments...

"Ah... your not adult enough to move away etc..."

Well, amongst all the advantages of saving money there is one fact that

should not be forgotten.

Our parents will not be here forever. If you have a good relationship

with them why not live with them? Why not extend the house and bring

your wife? Families are precious and they should be enjoyed.

Life should be lived... why give your hard earned cash to a stranger and live in a grotty

pad when you could invest it back in to the family or spend it on a nice

treat for yourself?

Where did this silly attitude of linking "Growing Up / Becoming an Adult"

with "Moving out, paying a stranger half your salary and living in

a s£$t whole" This is a very childish attitude! It almost verges on sulking.

CAS

Edited by coolaftershave

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I know how you feel,

same as most of my friends too

its either stay at home with parents for share with a group of friends

But I like your Idea of the extension,

put some solar panels (PV and Water) up too while your at it

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I am going to pay for an extension on my parents house. This will include converting the Garage into a nice cosy small lounge with cooking facilities for me and my girlfriend. Above this we are goig to extend with an en-suite large bedroom for us. Basically, it will be like our own home, but a part of the single house. Ok, this will increase the price of our house by about £30,000, but at least we're not paying £100,000+ for a Sh*tty 1 bed flat in the middle of a drug ridden dump.

Do your parents know about this?

Do you have other siblings that would make this more complicated?

They do this a lot in Germany, they keep building layers on houses for different generations.

Next to my ex-girlfriend was a house, really 3 layers, 3 flats, with 3 different generations on each level.

This is not uncommon, my ex lived above her grandmother (until she died) and then her brother moved in.

I think ideas like this and the changing attitude of under 30's losing all hope of ever owning their own home therefore not worrying about it any more will cause a MAJOR crash in the coming years. We will then buy our own place when the time seems right.

I agree. I'm 30 and have given up on the idea. I will buy in the future when it is right to buy. It's going to be years so why take up so much time thinking about it in the meantime. I could buy now but choose not to as can see the damage that taking on a large mortgage could do to the rest of my life.

Edited by munimula

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WHY is it ... "better than giving money to a buy-to-letter"?

A) Its cheaper

B] I won't get chucked out if they decide to sell up

C) I don't want to encourage BTLers to buy up additional housing.

Edited by OzzMosiz

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I also agree with the sentiment about the greedy BTL anti-social psychos....it really is the yuppies all over again...knobs. Crash 2006 please.

As I mentioned in another thread that if the late 80's Only Fools and Horses episodes were being filmed now Del Boy would aspire to be a property developer / BTL'er as opposed to a yuppie.

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Yep, I recently moved out of my own 1 bedroom flat and am renting a room off a relative. Still paying alot of rent for the room, but I'm still saving over what I was spending before. Sometimes you have to make sacrifices!

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This is exactly what my parents have proposed for me.

Bulldozing the garage and putting up a new larger "garage" that has "up stairs storage"* as a bonus.

In ten years you brick up the outside, put a front door and windows in the garage and hey presto, apply for "Change of use" and you avoid the need for planning permission.

*Nothing in law that says you can't heat your storage area, or even use it to "store" people :D

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Be happy that you can't get sucked into the debt bubble. It may be frustrating but you will be so much better off in the long run. Rather than looking at poxy flats in a few years time you will be able to afford a real live house for less money than the flat!

I jumped on The Property Ladder in 1987 just as the bottom of the ladder was about to go beyond my reach. I'd have been much better off (and enjoyed 1990 much better!) if I'd missed the boat and rented instead.

Seriously you are the lucky ones.

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id agree with deano.

the under 25s i talk too have no desire at all for this property game.

and why should they.? its never been so off kilter with real earnings and payment potential.

hence more drinking and general not giving a crap.

why should they ?

the older generation has moved the posts so far in their own favour that the young are simply tuning out to the traditional path of life. not many long term plans. not much caring. not prepared to somehow magic up a 35k job in bolton mcdonalds to pay for a 140k steel clad uber flat (again in bolton) for the next 35 years.

better just to doss about.

they were cast aside by gen boomer. so they seem to have decided that better than a life in impossible chains of debt. i dont think they give a rats ass about 'property'.

thats for 30-40 something trendy baldies who beleive people have 'dinner parties' in bolton..

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  • 302 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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