Does anyone still think the housing market isn't broken?

[lude1962]

So we've established the baby boomers are sitting pretty, nice house/pension bit of dosh in the bank.
Do they downsize to free up some equity to help the next generation onto the property ladder? An outcome of this being small property prices increase due to demand.

 

[paradigm]

True, but while they're paying that in rent it makes saving a deposit for their own place next to impossible.

Most of the problems are caused by short sightedness though. Unless you move out of your parents house as soon as you hit 18, you should be using those “golden” years of low outgoings living to save for the deposit (or at least make a start) before moving out.

 

[MissChief]

Most of the problems are caused by short sightedness though. Unless you move out of your parents house as soon as you hit 18, you should be using those “golden” years of low outgoings living to save for the deposit (or at least make a start) before moving out.

Try telling an 18 year old that. They want a car and to go out every weekend.

 

[paradigm]

I don't disagree, but at the end of the day, that's not the fault of the baby boomers, the housing market or your "start" in life, it's your own problem.

I genuinely believe that we (as a society) need to ditch enforced religious studies at schools and replace the time with life and financial lessons.

 

[neil_g]

Most of the problems are caused by short sightedness though. Unless you move out of your parents house as soon as you hit 18, you should be using those “golden” years of low outgoings living to save for the deposit (or at least make a start) before moving out.

Great if it can live at home without want to murder your parents. I went back home for a few months due to a temporary issue a few years back and it was horrendous.

Try telling an 18 year old that. They want a car and to go out every weekend.

Quite a lot of tar you have on that brush.

 

[lude1962]

Try telling an 18 year old that. They want a car and to go out every weekend.

Yep, 18yr old minimum wage, a years potential savings gone on the car insurance alone.
Ridiculous low levels of interest doesn't help no return no incentive to save.

 

[Rroff]

Try telling an 18 year old that. They want a car and to go out every weekend.

A car might not even be a luxury in terms of work these days either.

 

[neil_g]

I just love how these conversations always go, how everyone (usually those who are already in a good position) judges others on lifestyle like they know exactly what circumstances people live in.

 

[V F]

I just love how these conversations always go, how everyone (usually those who are already in a good position) judges others on lifestyle like they know exactly what circumstances people live in.

 

[icehot]

Yep, 18yr old minimum wage, a years potential savings gone on the car insurance alone.
Ridiculous low levels of interest doesn't help no return no incentive to save.

The world economy is to blame for that since the 2008 financial crash. Get ready for negative interest, not that it will effect people with low bank balances and actually it may force banks to lend more so maybe we will see 0% deposit mortgages return.

 

[V F]

The world economy is to blame for that since the 2008 financial crash. Get ready for negative interest, not that it will effect people with low bank balances and actually it may force banks to lend more so maybe we will see 0% deposit mortgages return.

Sometimes I’m convinced it is going to be an infinite recession. Here we are nearly 10 years on and nothing has improved.

 

[robj20]

I got on the ladder 16 months ago, I disagree that it’s particularly broken. Also £130-150k *is* affordable, especially at the moment with rates as low as they are.

With a 10% deposit you are talking 500-600/month for that value of property. Most people pay more than that in rent.

Agree for mine 2 years ago, easily affordable. People just want everything and now.
Everyone I know that whines about the price of houses each has a brand new top phone each year, new cars every other year, go pub all the time.
I saved like crazy for 1 year to get my deposit.

 

[Ayahuasca]

Sometimes I’m convinced it is going to be an infinite recession. Here we are nearly 10 years on and nothing has improved.

I think we’re stuck in it for the rest of our lifetime, it would take monumental changes to the current system for any meaningful impact to be made and it could quite easily get even worse.

 

[Kenai]

I got on the ladder 16 months ago, I disagree that it’s particularly broken. Also £130-150k *is* affordable, especially at the moment with rates as low as they are.

With a 10% deposit you are talking 500-600/month for that value of property. Most people pay more than that in rent.

Agree for mine 2 years ago, easily affordable. People just want everything and now.
Everyone I know that whines about the price of houses each has a brand new top phone each year, new cars every other year, go pub all the time.
I saved like crazy for 1 year to get my deposit.

This all ignores the comparison to previous opportunity. It took me until nearly 30, living at home, working a professional job, not driving brand new cars etc. to be able to afford a house similar to what my dad bought at 20 having not even finished school.

It's not impossible but it's huge amounts more difficult than it used to be. I'd hate to think what I'd have been left with if I was unlucky enough to only earn an average wage for the UK.

 

[Vonhelmet]

We only managed it because my wife had been left a bunch of money by a dead relative years ago, which made up the deposit, and my parents were our mortgage lender for a few years and lent is the money at base rate to begin with, gradually climbing to a real rate. We'd just had a child and would have struggled with a real mortgage. Once we got settled a few years in we moved to an actual bank.

We're already saving for our kids to have money for a deposit.

Good luck to those who don't enjoy this privileged position.

 

[LabR@t]

Sometimes I’m convinced it is going to be an infinite recession. Here we are nearly 10 years on and nothing has improved.

This is peak western capitalism, the Ponzi scheme is falling apart.

 

[V F]

This is peak western capitalism, the Ponzi scheme is falling apart.

They wont allow it to fall apart.

 

[LabR@t]

They wont allow it to fall apart.

Ww3 will reset the system, that or a good pandemic.

 

[Vonhelmet]

Ww3 will reset the system, that or a good pandemic.

I can only see a war being over some precious resource, oil or water maybe, by which time we'll already be going full mad max.

 

[LabR@t]

I can only see a war being over some precious resource, oil or water maybe, by which time we'll already be going full mad max.

It's a good method to distract population, investors that the system is borked. Sorry to say it looks more and more likely.