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bird101

£90k A Year, And Cant Afford A Cupboard

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I've just spent the evening with a couple who are renting at the moment. Between them they earn £90k a year, (pretty good for the provinces) and have £30k in deposit savings. They spent last week looking at local property (Cambridge) to see what was available for their budget of ideally £220k but would go up to £300k for the right property. The answer was, naff all. Tiny terraced houses with no parking in unsalubrious parts of town, or crumby semis in the outlying villages. The only place that appealed was a place in Mildenhall, about 25 miles away, for £250k, and that needed a lot of work and would have meant a hefty commute. They ended their search feeling quite down about the whole thing.

Up until now I thought my wife and I simply werent earning enough, we're on £65k combined with a £20k deposit, but my friend's experience hammers it home - if people in their position cant afford to buy, this is a bubble of cataclysmic proportions, and when it crashes, which it must, we're going to hit a depression.

We've been holding off starting a family until we had a home of our own, but last month we decided that things are going to get a lot worse before they get better, and if we wait until we're homeowners of a sanely-priced property, we'll be well into our forties before we have kids - and we're not going to let the house-price bubble wreck our future any more than it has done to-date.

I found an inetersting article about global property prices on The Economist website - there are a lot of parallels in the US with the lead-up to the 1929 stock market crash, and they're long-term predictions are very gloomy

http://www.economist.com/opinion/displayst...tory_id=4079027

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We've been holding off starting a family until we had a home of our own, but last month we decided that things are going to get a lot worse before they get better, and if we wait until we're homeowners of a sanely-priced property, we'll be well into our forties before we have kids - and we're not going to let the house-price bubble wreck our future any more than it has done to-date.

Genuine question: why not have kids while renting?

frugalista

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I've just spent the evening with a couple who are renting at the moment. Between them they earn £90k a year, (pretty good for the provinces) and have £30k in deposit savings. They spent last week looking at local property (Cambridge) to see what was available for their budget of ideally £220k but would go up to £300k for the right property. The answer was, naff all. Tiny terraced houses with no parking in unsalubrious parts of town, or crumby semis in the outlying villages. The only place that appealed was a place in Mildenhall, about 25 miles away, for £250k, and that needed a lot of work and would have meant a hefty commute. They ended their search feeling quite down about the whole thing.

Up until now I thought my wife and I simply werent earning enough, we're on £65k combined with a £20k deposit, but my friend's experience hammers it home - if people in their position cant afford to buy, this is a bubble of cataclysmic proportions, and when it crashes, which it must, we're going to hit a depression.

We've been holding off starting a family until we had a home of our own, but last month we decided that things are going to get a lot worse before they get better, and if we wait until we're homeowners of a sanely-priced property, we'll be well into our forties before we have kids - and we're not going to let the house-price bubble wreck our future any more than it has done to-date.

I found an inetersting article about global property prices on The Economist website - there are a lot of parallels in the US with the lead-up to the 1929 stock market crash, and they're long-term predictions are very gloomy

http://www.economist.com/opinion/displayst...tory_id=4079027

I know... I have a mate... who does IT contract for around the 100k mark..

Now its rare.. he is that good... the smug **** :) great lad..

Actually he could afford a house.. after all he earns loads..

but he did say he was amazed how expensive it was

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Genuine question: why not have kids while renting?

frugalista

I think people have been brainwashed to such an extent that they equate the natural nesting instinct with owning a home. There is no problem with renting and raising a family. People need to get out of the notion that security equates to having your own home.

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Guest muttley

I think people have been brainwashed to such an extent that they equate the natural nesting instinct with owning a home. There is no problem with renting and raising a family. People need to get out of the notion that security equates to having your own home.

There are good times and bad times to buy a house.If you think that now is a good time then you should buy what you can afford.Otherwise you should wait.

Did I just say anything controversial?

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I think people have been brainwashed to such an extent that they equate the natural nesting instinct with owning a home. There is no problem with renting and raising a family. People need to get out of the notion that security equates to having your own home.

I agree - forget pensions - like in China or in India, children are your only real pension to look after you when you work till you drop paying £26,000 to the government worker's retirement.

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Genuine question: why not have kids while renting?

frugalista

My 6yo said this the other day "I like moving house". I said "Daddy doesn't". Kids adapt to a lot of things, and the last time we moved within London we moved to a house still in zone for his school. While he likes the idea of "when we have our own house" he's fine with the current situation.

Billy Shears

I've just spent the evening with a couple who are renting at the moment. Between them they earn £90k a year, (pretty good for the provinces) and have £30k in deposit savings. They spent last week looking at local property (Cambridge) to see what was available for their budget of ideally £220k but would go up to £300k for the right property. The answer was, naff all. Tiny terraced houses with no parking in unsalubrious parts of town, or crumby semis in the outlying villages. The only place that appealed was a place in Mildenhall, about 25 miles away, for £250k, and that needed a lot of work and would have meant a hefty commute. They ended their search feeling quite down about the whole thing.

I think this is something people forget when they talk about "affordability". If house prices in "poorer" areas appreciate, then there comes the time when only rich people can buy these houses. But rich people will expect to buy in a better part of town. And where do people with below average income, a majority of the population buy? Hence even if the population is growing, if everything is tarted up with designer taps, and marketed for rich people, then are there enough rich people to buy them? And would the rich people wan't to live in an industrial run down red light area?

Billy Shears

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Guest Winners and Losers

Genuine question: why not have kids while renting?

frugalista

My house in Oz is rented out to a family with two young kids. There is a grammar school, a catholic school and a brand new state school - all within walking distance (10mins). The house has a pool. As far as I am concerned, I am happy for them to stay there for the next five years. I hope they don't move. Suits everyone I guess.

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I think people have been brainwashed to such an extent that they equate the natural nesting instinct with owning a home. There is no problem with renting and raising a family. People need to get out of the notion that security equates to having your own home.

And why do people think they instantly have more security when they've bought ? They don't, it's just another illusory lie.

The house simply isn't "owned" in any way until each and every payment of the entire mortgage is paid back.

When you're looking at 25 years of great uncertainty in the global economy due to factors like energy prices and Interest Rates then taking out a mortgage now is like playing with fire.

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Up until now I thought my wife and I simply werent earning enough, we're on £65k combined with a £20k deposit, but my friend's experience hammers it home - if people in their position cant afford to buy, this is a bubble of cataclysmic proportions, and when it crashes, which it must, we're going to hit a depression.

Earning 65k jointly and yet only having saved £20k (Over how long?) means you're spending far too much.

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It's all about where you live. If I had a £30K deposit and a £220K borrowing capacity I could live like a king... Of couse wages to make that possible don't exist here! You're lucky to get £20K round here.

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Guest Cletus VanDamme

Billy Shears

I think this is something people forget when they talk about "affordability". If house prices in "poorer" areas appreciate, then there comes the time when only rich people can buy these houses. But rich people will expect to buy in a better part of town. And where do people with below average income, a majority of the population buy? Hence even if the population is growing, if everything is tarted up with designer taps, and marketed for rich people, then are there enough rich people to buy them? And would the rich people wan't to live in an industrial run down red light area?

Billy Shears

I've always wondered this. There's a new luxury development going up in a really crummy area that I know well:

http://www.lanesproperty.co.uk/lanesnewhom...osmopolitan.asp

It's on a busy stretch of the A10 between two high-density council estates. Prices start at 135K for a studio!

There's two answers to your question:

1/ These sort of developments help to gentrify an area, so that it becomes desirable for the 'rich'

2/ Our relaxed attitude towards debt means that anyone can take on a huge burden and feel 'rich', so the dream can be sold to mr and mrs average

The alternative, of course, is that when you see places like this going up in these sorts of areas, you know that sanity has long since departed.

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I've just spent the evening with a couple who are renting at the moment. Between them they earn £90k a year, (pretty good for the provinces) and have £30k in deposit savings. They spent last week looking at local property (Cambridge) to see what was available for their budget of ideally £220k but would go up to £300k for the right property. The answer was, naff all. Tiny terraced houses with no parking in unsalubrious parts of town, or crumby semis in the outlying villages. The only place that appealed was a place in Mildenhall, about 25 miles away, for £250k, and that needed a lot of work and would have meant a hefty commute. They ended their search feeling quite down about the whole thing.[/url]

I sugget they need to get a map out and consider cheaper areas. I searched a wide the place before deciding on a location. I have just bought a 3 bed terraced house in outer London, huge garden, quiet street, decent schools nearby, quality fitted kitchen, near Tube for under 250K. It is pretty much our perfect place and achieved with a mortgage not much more than the rent for than the rather grubby little one bed flat I had been in.

It *is* possible. Just broaden your horizons.

Also bear in mind that homebuyers may not divulge every detail of what they are doing at a dinner party. I was still telling people 'we just can't find anything' even after we had put an offer in because I didn't want to jinx anything or tempt fate!

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I have just bought a 3 bed terraced house in outer London, huge garden, quiet street, decent schools nearby, quality fitted kitchen, near Tube for under 250K.

Would you just read that again?? Lop off 100K and it would make more sense!

It *is* possible. Just broaden your horizons.

The fact that you feel you've got a bargain just shows how far you've been affected by the spin! For most, it isn't possible, and nor would they want it to be at those prices. :o

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Guest Cletus VanDamme

Would you just read that again?? Lop off 100K and it would make more sense!

The fact that you feel you've got a bargain just shows how far you've been affected by the spin! For most, it isn't possible, and nor would they want it to be at those prices. :o

Not a bargain, just realistic. The times when you could buy a house in any part of London for 150K are gone forever. My parents paid £5K for their place in the 60s. It's meaningless, you can't go backwards.

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Exactly. I don't feel like I've got a 'bargain' as such, but I do think I have got as near to a realistic price for a very decent house as I'm likely to find, that is within reach of a London Tube station (and isn't in a ghetto).

Sometimes it does seem like a comparative bargain to other London areas, but I know it's certainly not cheap.

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Exactly. I don't feel like I've got a 'bargain' as such, but I do think I have got as near to a realistic price for a very decent house as I'm likely to find, that is within reach of a London Tube station (and isn't in a ghetto).

Sometimes it does seem like a comparative bargain to other London areas, but I know it's certainly not cheap.

can you tell us which area of London this is in for the sake of clarity? I don't think that would compromise your anonymity at all. :)

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Genuine question: why not have kids while renting?

frugalista

You get the kids settled into school, next thing the landlord says that they are selling the property so you have to move, new school, upheaval of moving, maybe during important exams for your kids?

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Not a bargain, just realistic. The times when you could buy a house in any part of London for 150K are gone forever. My parents paid £5K for their place in the 60s. It's meaningless, you can't go backwards.

But my point is how affected people are by the psychology of it all. There isn't anything realistic about the prices but people are accepting them. When they realise that the emperor has no clothes, who knows where prices may go. And when it comes to house price cycles, you can go backwards... prices do not only go up.

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Guest Cletus VanDamme

But my point is how affected people are by the psychology of it all. There isn't anything realistic about the prices but people are accepting them. When they realise that the emperor has no clothes, who knows where prices may go. And when it comes to house price cycles, you can go backwards... prices do not only go up.

Well, I guess we are used to accepting a lot of things in terms of how much things cost. Council tax: 1200 per year thank you, yes I know you only live in a 1-bed flat, still it's band D. Utility bills: 1000 per year, but I only have the heating on for 2 hours per day. Travel to work: that's 3000 per year to you sir. Oh, you actually want a seat do you, well we have first class for you starting from 5000, but only after 9am ... etc

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The rubbish spouted on this site... my God.

The "headline" is absolute twaddle.

Yes, prices are high, yes, they may be better off renting, yes, they may not be able to afford exactly what they want, but the facts are that should they choose to they could afford a perfectly acceptable property that would last them through having 3 kids right though to their 70s when they are probably ready to downsize.

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The rubbish spouted on this site... my God.

The "headline" is absolute twaddle.

Yes, prices are high, yes, they may be better off renting, yes, they may not be able to afford exactly what they want, but the facts are that should they choose to they could afford a perfectly acceptable property that would last them through having 3 kids right though to their 70s when they are probably ready to downsize.

In Orkney?

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Guest Fiddlesticks

The rubbish spouted on this site... my God.

The "headline" is absolute twaddle.

Yes, prices are high, yes, they may be better off renting, yes, they may not be able to afford exactly what they want, but the facts are that should they choose to they could afford a perfectly acceptable property that would last them through having 3 kids right though to their 70s when they are probably ready to downsize.

I have to agree with Father Fred on this one. £300k around Cambridge easily buys a comfortable family home.

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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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