Soldato
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- 14 Apr 2014
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- 2,602
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- East Sussex
New BTL mortgages from the high street banks appear to need a 20% deposit typically at the mo.
And boomers wonder why millennials are bitter towards them..
- Thread starter Scam
- Start date
Soldato
- Joined
- 14 Apr 2014
- Posts
- 2,602
- Location
- East Sussex
We're going to keep getting that being said in here as well I think - many members have purchased despite being in the "impossible" situation described here. It's why the thread is so circular!
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And what about the "have nots" who are saying the same thing?
You can do both you know.
I feel extremely bitter about the situation young folk have now. I'm 39, well and truly on the housing ladder, and nice and settled. I'm one of the lucky ones, but I'm already worried what the future holds for my kids.
I know many people who will never have the luck and opportunity I have had. Saying "do something about it" relies on the utterly stupid assumption that everyone has equal access to the same opportunities, and start from the same level.
More people today have less opportunity than those 20 years ago (and further back). That's a well-trodden fact at this point.
I think it's fairly hard to argue against statistical trends.
"Work harder, etc," falls short when the statistics show more and more people, older and older people, getting on the housing ladder later and later in their lives.
More and more people renting. Rents going up and up. Rents as a % of income going up and up.
Anxiety about housing going up and up.
It's hard to wave away such trends by saying, "Work harder."
"Work harder, etc," falls short when the statistics show more and more people, older and older people, getting on the housing ladder later and later in their lives.
More and more people renting. Rents going up and up. Rents as a % of income going up and up.
Anxiety about housing going up and up.
It's hard to wave away such trends by saying, "Work harder."
Simple supply and demand unfortunately. I can't see it ever being affordable unless the population stops increasing at such an unsustainable rate or the government gets huge new cities built sharpish.
Rent caps may help but I don't know what the impact would be. It's a depressing prospect thinking you could be renting for the rest of your life with no certainty over your outgoings.
Rent caps may help but I don't know what the impact would be. It's a depressing prospect thinking you could be renting for the rest of your life with no certainty over your outgoings.
It isn't purely supply and demand.
Housing has become an investment. It's bought by people (including foreign investors who don't even reside here at all) for the sole purpose of speculating to make money.
Similarly, there's a lot of housing in Cornwall that's empty 6+ months of the year.
The simple fact is that while other countries view housing as an essential for life (and a right), this country views housing as an investment vehicle. An income stream.
Spot on. And wont change as the people with the skin in the game have too much to lose now.
- Joined
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Whilst I entirely agree with your argument that "Housing has become an investment" I am not altogether convinced that there is much of a market for housing in jobs starved Cornwall - YET - working from home may well change that, although without lowering the prices significantly
I heard on the radio this morning that the Government is finally waking up to the fact that Great Britain is being "sold off" to shady foreign investors - c.f. ARM.
Whilst I entirely agree with your argument that "Housing has become an investment" I am not altogether convinced that there is much of a market for housing in jobs starved Cornwall - YET - working from home may well change that, although without lowering the prices significantly
I heard on the radio this morning that the Government is finally waking up to the fact that Great Britain is being "sold off" to shady foreign investors - c.f. ARM.
Affordable housing is in massively short supply in Cornwall, same as other rural areas in the country. The the house value to wages ratio is 9.3. Local people on rural wages of up to £25k per annum are priced out of the market when houses are bought up as second homes/holiday homes for £300-£400k.
https://www.insidehousing.co.uk/ins...rnwall-how-to-tackle-the-housing-crisis-61298
It has a double whammy as they are then empty half of the year and the people using them bring the food and drink with them so they don't even add anything to the local economy so shops and pubs close.
I see it happening my my village. Almost half the village is now second homes/holiday houses and when I moved in 20 years ago only about 3 properties were. The post office and village shop and one of the pubs has closed in those 20 years and the village is slowly dying as a community.
Honestly, if I hadn't already been on the housing ladder, there is very little I could to buy in my village now. My house cost me £95k in 2000 and is worth between £500k and £600k today. Ridiculous.
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Fair point. There is still a crazy amount of demand though. Look at the huge amount of houses being rented as HMOs now.
I posted it some time back, but we really need to get aggressive with exponential taxation on additional homes. Outright banning foreign investment in residential property would be a start as many other countries do.
Must say I really wouldn't want to be at square one right now, I've worked my nuts off to the point of exhaustion and have a few months left on my mortgage now. It's meant years of no new car, very few treats in the way of new gadgets, no proper holidays etc etc. It's been pretty miserable but I'll be glad to be mortgage-free.
Fair point. There is still a crazy amount of demand though. Look at the huge amount of houses being rented as HMOs now.
I posted it some time back, but we really need to get aggressive with exponential taxation on additional homes. Outright banning foreign investment in residential property would be a start as many other countries do.
Must say I really wouldn't want to be at square one right now, I've worked my nuts off to the point of exhaustion and have a few months left on my mortgage now. It's meant years of no new car, very few treats in the way of new gadgets, no proper holidays etc etc. It's been pretty miserable but I'll be glad to be mortgage-free.
Congrats man!
I'm at the beginning myself, dreaming of that kind of stability
Did the same, had nothing when I joined the forum, then mortgage free 2012, every penny diverted into overpaying, done in under a decade sold in Yorkshire, bought for cash down here, boom job done.Fair point. There is still a crazy amount of demand though. Look at the huge amount of houses being rented as HMOs now.
I posted it some time back, but we really need to get aggressive with exponential taxation on additional homes. Outright banning foreign investment in residential property would be a start as many other countries do.
Must say I really wouldn't want to be at square one right now, I've worked my nuts off to the point of exhaustion and have a few months left on my mortgage now. It's meant years of no new car, very few treats in the way of new gadgets, no proper holidays etc etc. It's been pretty miserable but I'll be glad to be mortgage-free.
That is "supply and demand".
It doesnt matter what the reason is for people wanting to buy property, they are still the "demand".
It's a really daunting feeling, eh? I remember it well and being terrified/overwhelmed by the financial commitment. Best of luck
Yep it'll be about 10 years for me from buying to paying off. I'd worked really hard for several years beforehand so had a decent deposit.
Like I say, it's been harsh and damned miserable at times - I'm sure many people would not enjoy making so many sacrifices and don't blame them. Anyways I'll soon have it paid off and will be able to survive for 4-5 years without working if I really wanted to assuming I can live frugally.
Hoping to move away and make a career change once I have that paid and a few other things sorted. Maybe even working part-time. I think I'll stick out the current job as long as I can bear it up until I feel ready to sell (waiting on Crossrail to start running methinks which may work out well whatever state the market is in).
I'm getting more aware of my own mortality and possibly dropping dead on short notice as I get a bit older and don't want it all to be for nothing!
I suppose even dodgy Russian mafia types using London housing stock to launder their money is "demand"?
(This is a real thing).e: Question: Would a reasonable person be happy if 50% of the "demand" for UK housing stock was from foreign investors, looking to take money out of the UK in the form of rent?
It's a really daunting feeling, eh? I remember it well and being terrified/overwhelmed by the financial commitment. Best of luck
Thanks
Do you all think any eventual effort to resolve this (like the progressive taxation) will actually lower prices, or is there a possibility of a compromise solution to just 'freeze' it until wages catch up?
I'm thinking there would never be the political will for the former
Thanks
Do you all think any eventual effort to resolve this (like the progressive taxation) will actually lower prices, or is there a possibility of a compromise solution to just 'freeze' it until wages catch up?
I'm thinking there would never be the political will for the former
I think one of the posters above hit the nail on the head where they said those in power/with money are the ones with a lot of skin in the game. Turkeys won't vote for Christmas.
It's infuriating - I really don't think it's good having the value of property constantly going up in such a ridiculous fashion. Mainly because it means percentage wise, if you want to "upgrade" then the gap between what you have now and what you want to move to just gets bigger and less affordable. I really don't know how my nephews and nieces will ever afford their own homes.
It's easy for people to say, "live in a house share" or "buy with a friend" but some people need their own space and living with someone else is their definition of hell. I've been lucky to have 2 decent lodgers who were no trouble at all but given the choice I like to live alone.