How many of you still live with your parents 30+?

FoxEye · 1 Dec 2015 at 21:58

Hedge said:
I seem to remember you had 40 grand cash but lived in your Mothers basement (maybe the basement bit is wrong).

Your post mentioned the stigma involved and you made a point about rent paying for someone elses house. Well you need to see that renting is like buying a product or paying for a service.

Think of it like a £400pm Netflix subscription, but instead of getting movies, you get the freedom to walk around in your underpants and bring girls you meet on internet dating websites back to see your new Thundercats duvet set.

However if I was to live where I do now (a nice area, all things considered), I'd be paying about 75% of my gross income to a landlord. I'd need government help just to eat and survive.

That would also be extremely stressful.

I'm not sure that is a price worth paying for the luxury of walking around in my underpants

Hedge · 1 Dec 2015 at 22:02

FoxEye said:
However if I was to live where I do now (a nice area, all things considered), I'd be paying about 75% of my gross income to a landlord. I'd need government help just to eat and survive.

75%?

You either earn a pittance, or prices to rent are astronomical where you live.

sdfuk · 1 Dec 2015 at 22:03

LiamC said:
Im 25 and still live at home as does my little brother (23). We both have loads of disposable income but blow it all on our cars / beers / nights out

Don't blame you mate. Enjoy it before you get tied down with a family and kids!

Rroff · 1 Dec 2015 at 22:08

Hedge said:
75%?

You either earn a pittance, or prices to rent are astronomical where you live.

Some places have really rocketed in price - a certain amount of redevelopment/new businesses/new transport links has resulted in the house prices (and rent) in the area I live rising at twice the national average give or take. Unfortunately with housing being somewhat a necessity it isn't getting the reset from normal supply and demand that other commodities would :S

sdfuk · 1 Dec 2015 at 22:11

I feel sorry for people trying to buy a house these days. My first house (3 bed semi) cost £65k and my income was about £20k around 20 years ago. The same house now costs £250k...ridiculous. So, now someone would need to earn approx £60k to keep the mortgage/salary ratio the same. God know what my kids will do, I expect they will all be living with us for ages........just as long as the know that their play room will one day turn into my cinema room, then I'm fine with it!!

Overlag · 1 Dec 2015 at 22:44

Hedge said:
75%?

You either earn a pittance, or prices to rent are astronomical where you live.

£6.70 min wage, if you manage to bag 2-3 part time jobs to make up 45-50hours you'd still only be taking home about £1000 after tax. Most 1 bedroom flats around here cost £600-750. So his 75% comment isn't that far off.

My example highlights two problem:

1: Limited house/flat building in certain areas, pushing the prices through the roof.
2: Cheap labour pushing wages down.

Buffman · 1 Dec 2015 at 22:56

FoxEye said:
Yes, it's so much better to pay all your money to a stranger (landlord), have no disposable income, and no security in your dwelling (you can get kicked out with 2 weeks notice in some cases...)

That sounds like bliss.

(Meanwhile your landlord uses your rent to buy his son and daughter their own houses, so they don't have to pay rent like the plebs...)

I feel sorry for people who would cripple themselves financially for the sake of avoiding some social stigma/embarrassment. If they had a choice in the matter.

so hows that 5 year plan to 50k going? most people need to move to progress in career.

also lol at 75% cash on rent when you previously said you earn 27k. strong.

living with parents is fine, but not possible for all.

MatteH Oxford · 2 Dec 2015 at 02:27

balky12 said:
They now have 5 years to save £62,500 to pay off the 20% loan otherwise interest will be paid on that as well.

It's £50k as they had a 5% (£12.5k) deposit towards the £250k? The mortgage is £187,500

Rroff · 2 Dec 2015 at 02:38

The Craig said:
so hows that 5 year plan to 50k going? most people need to move to progress in career.

also lol at 75% cash on rent when you previously said you earn 27k. strong.

living with parents is fine, but not possible for all.

I believe it came up in another thread that he isn't in that job any more.

Around here a not a total dump in a not totally nasty area 1 bed would set you back atleast 55% of your income on a min wage "full time" job - more like 60-65% if you wanted somewhere within reasonable distance of the main employers in the area (otherwise you'd probably be making up the difference in transport costs).

Ixon · 2 Dec 2015 at 06:24

Back in my Mum & Dad days late 60's early 70's anybody over the age of 20 that was still living with their parents back then where considered strange.

These days people still live with their parents well into the late 20's and nobody bats an eyelid, but once you get into your 30's & beyond and still live at home then it's still kinda thrown upon by some.

a lot of independent women in their 30's won't date a bloke in their 30's 40's that still live at home as they consider them mummies boys, regardless of their circumstances.

I personally think in the next 20 or 30 years people living at home well into their 40's would probably be the norm due to house prices, low wages ect.

byeo · 2 Dec 2015 at 06:55

Ixon said:
Back in my Mum & Dad days late 60's early 70's anybody over the age of 20 that was still living with their parents back then where considered strange.

These days people still live with their parents well into the late 20's and nobody bats an eyelid, but once you get into your 30's & beyond and still live at home then it's still kinda thrown upon by some.

a lot of independent women in their 30's won't date a bloke in their 30's 40's that still live at home as they consider them mummies boys, regardless of their circumstances.

I personally think in the next 20 or 30 years people living at home well into their 40's would probably be the norm due to house prices, low wages ect.

Mummies boys don't need anyone else other than their mum so it's not an issue.

Freakbro · 2 Dec 2015 at 07:10

MatteH Oxford said:
It's £50k as they had a 5% (£12.5k) deposit towards the £250k? The mortgage is £187,500

Ok, so they managed to save ~£6.5k a year while living at home, scrimping and restricting their social life, now they have 5 years to pay off £50k before they pay interest on that part as well. And they now have all the running expenses of a 4 bed house (Why did they need a 4 bed detached as their first house?)

I hope everything works out for them, but it does seem a precarious financial position to be in imo, especially as he earns average wage and she was on an apprentice wage (granted that will see a boost to their income when she comes off that)

It would be good to see how they are doing in 5 years time, and whether the house purchase was worth another 5 years of scrimping and no social life.

Let's hope for their sake the interest rate doesn't rise too much in the next 5 years.....though personally for my situation, I would love to see it rise significantly as these low rates are killing me.

Things change I've changed · 2 Dec 2015 at 07:35

My much younger brother is staying at home saving a large junk of change while my mother does everything for him, there is a part of me that is quite envious as I got chucked out at 16 which destroyed my plans to save for a house, that being said though I learn't a lot from the experiences that followed and I also value my independence, nothing like having your own front door key even if it is rented!

SonniLombardi · 2 Dec 2015 at 08:41

Moved out at 16 myself.

jonneymendoza · 2 Dec 2015 at 08:43

SonniLombardi said:
Moved out at 16 myself.

Lol your not legal to

MaX_PoWah · 2 Dec 2015 at 09:07

I stated my situation earlier but my sister and her boyfriend well..

They have managed to secure a mortgage on a 240k little house in Bristol (via help to buy 20% deposit thing) and I don't know what to think. They only just managed to secure it because he has bad debt in his past and my sister isn't earning a lot. On top of that persimmon want extra money for things you would expect to be included which means that they are having to fork out 30% deposit now and pay the rest on completion because they can't borrow anymore...

When it was touch and go on if they would get a mortgage I said to my dad that in reality they should move to a cheaper area but then they argue there commuting costs would go up.

They have borrowed money from various places just to get the 14k deposit together. It all seems quite unsustainable and I don't know how they can judge where they will be in 5 years with the scheme or if interest rates go up.

cheesyboy · 2 Dec 2015 at 09:13

MaX_PoWah said:
I stated my situation earlier but my sister and her boyfriend well..

They have managed to secure a mortgage on a 240k little house in Bristol (via help to buy 20% deposit thing) and I don't know what to think. They only just managed to secure it because he has bad debt in his past and my sister isn't earning a lot. On top of that persimmon want extra money for things you would expect to be included.

When it was touch and go on if they would get a mortgage I said to my dad that in reality they should move to a cheaper area but then they argue there commuting costs would go up.

They have borrowed money from various places just to get the 14k deposit together. It all seems quite unsustainable and I don't know how they can judge where they will be in 5 years with the scheme or if interest rates go up.

£240k is a lot for a first house in Bristol. My old 3-bed Victorian terrace would be worth about £200k now, and it's in a middling-decent area (Fishponds). It was great (still miss living there).

If they're buying in Clifton or Redland or somewhere, then they'll pay a lot more. Presumably they're not, though, since it's a new home. If it's in Bradley Stoke or similar massive development, then they're paying a lot to live in such a hellish, soulless maze

(I laugh, but it really is awful)

MatteH Oxford · 2 Dec 2015 at 09:30

Freakbro said:
Ok, so they managed to save ~£6.5k a year while living at home, scrimping and restricting their social life, now they have 5 years to pay off £50k before they pay interest on that part as well. And they now have all the running expenses of a 4 bed house (Why did they need a 4 bed detached as their first house?)

I understand perfectly, I was only pointing out the difference in loan amounts. I was extremely lucky to be able to buy in the 1990s. I couldn't do that if I was in the same job and starting out now, even with my current (much better paid) occupation either.

I think it is just a propaganda piece from an Estate agency.

MatteH Oxford · 2 Dec 2015 at 09:45

MaX_PoWah said:
I stated my situation earlier but my sister and her boyfriend well..

They have borrowed money from various places just to get the 14k deposit together. It all seems quite unsustainable and I don't know how they can judge where they will be in 5 years with the scheme or if interest rates go up.

A few people in the thread regarding how old people were when they bought their first house has a few confessions regarding dodgy financial practices by some a few years back in order for them to be able to buy. They have been extremely lucky so far by the looks of it, but look at the huge amount of financial shenanigans by the Government that have supported the housing market, directly, indirectly or coincidently so far:

Help to buy
Funding for lending
Bank bailouts
Special liquidity scheme
Quantitative easing
Rate cut from 5.75% to 0.5%, nearly 1/12th of what they were - a huge drop
Probably a lot more than I've put here

A lot of areas have only just about recovered in price from the 2008-9 crash, save a few places like London and the S.E. What can be realistically done from here on by the Government, without it having even more dire consequences for the "real" economy outside of buying and selling houses to one another?

I'm rather scared to be honest, I read the other day that 80% of net mortgage lending was Buy to let borrowing. Given the massive tax changes coming over the next few years, this sector looks like it will pretty much collapse.

Maybe finally the UK will have its real property crash?

Freakbro · 2 Dec 2015 at 09:58

MatteH Oxford said:
I understand perfectly, I was only pointing out the difference in loan amounts. I was extremely lucky to be able to buy in the 1990s. I couldn't do that if I was in the same job and starting out now, even with my current (much better paid) occupation either.

I think it is just a propaganda piece from an Estate agency.

Yeah, it's definitely not indicative of normal young 20 y/o's and tbh not one I would advocate for the reasons we both have said in this and the other thread

MatteH Oxford said:
Maybe finally the UK will have its real property crash?

It probably does need it, but I imagine they will fight tooth and nail to keep it propped up