Exactly, simpler, cheaper times. The problem with preaching to those not 'on the ladder' to cut back on frivolities and scrimp and save for a deposit is that modern life makes it extremely tough to do so; there is a social (media) pressure to be keeping up with those who are much more spendthrift and careless with their money - the always out partying, on holiday, latest iDevice, car on PCP generation. If you try and cut back to try and save any meaningful amount as a deposit, you can end up sitting at home with few friends and little enjoyment in life.
Boomerang Generation
- Thread starter chris.tarry85
- Start date
Exactly, simpler, cheaper times. The problem with preaching to those not 'on the ladder' to cut back on frivolities and scrimp and save for a deposit is that modern life makes it extremely tough to do so; there is a social (media) pressure to be keeping up with those who are much more spendthrift and careless with their money - the always out partying, on holiday, latest iDevice, car on PCP generation. If you try and cut back to try and save any meaningful amount as a deposit, you can end up sitting at home with few friends and little enjoyment in life.
You are missing a very big part of the picture.
On top of all that. Population has grown significant ly since the 1960's and at the same time the rate for extended households has fallen.
Back in the 60's it was perfectly normal to have in-laws/grand parents living in the same home.
In my childhood, everybody I knew had grandparents living with them. One household even had a great-grand mother living there.
No need for expensive social care and nursing home back then. Families looked after one another rather than relying on the state.
And housing was used far more efficiently.
Of course a combination of growing population and a shift to single living is going to put massive pressure on the availability of housing.
Soldato
- Joined
- 22 Nov 2007
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- 4,226
That is absolutely mental.
Soldato
London house prices are mental. My old house in E18 was purchased for £71K in 1994 and sold for £715K last September.
The 3 bed detached house in NE Herts I grew up in cost my dad £6K in 1969 and is worth around £450K now. Still a huge increase but not 100% in 25 years...
Using that calculator for the 4 bed detached house my parents bought in 1992 @ 119K (in a suburb or Cambridge) reveals that today's inflation-affected price is 248K; instead another house in the same cul-de-sac sold recently for 800K. No way wages have kept pace with that...
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Caporegime
We bought our own house when I was 23 so only 10 years ago in the peak of recession where 25% deposit was the norm. We put down 36k deposit and will be mortgage free by 40. At the time we both worked average jobs but did lots of overtime/nights. Everyone around you is in flash cars and the latest mobile phones but are then gobsmacked when they come to your home for a BBQ and ask how you can afford this. I guess people just have different priorities. I am now an area manager on a decent wage but still see people on higher salaries a lot worse off than me because they blow it on booze and fags.
Soldato
Except no one wins because the trade up cost is higher too.
My nan rented off the council in the same house for over 60 years. She couldnt even afford to right to buy it for what was probably a couple grand in the 80's or whenever that scheme came in. She died in 02, but a few years ago her house was on the market for £150k.
Yeah but depends what you are selling up for.
What everybody forgets in these sorts of discussion is that the price of housing isnt determined by the availability of the houses. It is determined by the availability of Money.
If we went back to the days when it was not generally possible to get a mortgage on anything other than new builds (And this really wasn't that long ago) then the price of housing would plummet to the point where most people would be able to exchange contracts for the price of an envelope full of cash. (Which is how it was done)
If we went back to the days when it was not generally possible to get a mortgage on anything other than new builds (And this really wasn't that long ago) then the price of housing would plummet to the point where most people would be able to exchange contracts for the price of an envelope full of cash. (Which is how it was done)
Soldato
Sounds like an utter **** to be honest
Don't forget 'They should move to a rat hole like I did and be miserable online because they don't know anyone within 50 miles.'
I don't think it is either - the housing market doesn't behave exactly like or as tied as other commodity markets to supply and demand in quite the same way or it would have gone through quite a crash by now. End of the day people need a roof over their heads so the choice of going without isn't possible to exercise in quite the same way.
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"Four Yorkshiremen"?
The other thing about the housing market is (With the exception of new builds of course) it is a swap market. (There is probabally an economic term for this)
IE it is not like a factory turning out I-pads.
For each person to buy a house somebody else needs to sell one, and probably buy another one for themselves.
In some cases many parties might be involved (The chain scenario)
This also makes things very difficult,
Stamp duty is a big bind too. In my case it really is making the difference between being able to move and not.
Permabanned
Stamp Duty stops people downsizing. All those old people hogging the family homes aren't doing it for no reason.
Soldato
Agreed. There's this, deterring older people from downsizing, and the near complete lack of housing that's aimed at the retired generation. Single floor housing with fewer bedrooms but still good living space. Few bungalows of this specification are built these days, as there's so much more profit in adding another one or two floors.
Soldato
Sounds better than 'Rather than do anything to change my situation I'll take the lifestyle choice to live with my parents for the rest of my life and be miserable online and moan about how hard things are'
