Mortgage Rate Rises

413x said:
Tbh I think the main benefit is that even though it wasn't easy then, house price growth has put your generation in a sweet spot.
Of course you'd never have predicted then, that would happen. Otherwise everyone would have been piling into property.

So I agree it was tough back then. But I very much doubt we will get the same benefit through property price multipliers in 10-20 years.

Of course we could, but it would screw the next gen even more
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Agree. The main benefit has been for those that could buy it that the price inflation has been bonkers. Although as is often discussed, its basically paper wealth unless you can downsize or move somewhere cheaper etc.

For me personally I have unfortunately dipped in and out of ownership and hence whilst I have benefitted from some of that growth, far less than I would have, had I not split up with that gf I bought that first house with and moved back to my parents about 18 months later
(to save again for a deposit and start over). I've done similar 3 times unfortunately, (ie left the ownership model twice)
 
Mercenary Keyboard Warrior said:
Agree. The main benefit has been for those that could buy it that the price inflation has been bonkers. Although as is often discussed, its basically paper wealth unless you can downsize or move somewhere cheaper etc.

For me personally I have unfortunately dipped in and out of ownership and hence whilst I have benefitted from some of that growth, far less than I would have, had I not split up with that gf I bought that first house with and moved back to my parents about 18 months later
(to save again for a deposit and start over). I've done similar 3 times unfortunately, (ie left the ownership model twice)
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Simailr. I could have bought a flat in Peterborough in 2017 probably. But I was convinced I'd only be there "another year".
Another year turned into another year. Then I was so old (32)i wanted to skip that "1st house" because I was close enough to a nice house.

So mistakes (let's call it life) held me back. And I could have reaped more of the rewards of the stellar growth.


But past is the past.


I'm uncomfortable with 200k of house debt. Having seen what interest rates can do. But I'm grateful I got the house in 2020 and not 2023!
 
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413x said:
Definitely.
Owning is going out the window.
Even software, you can't buy a adobe photoshop. You have to subcribe. (I stopped at that point)

Now concepts like multi generational mortgages get thrown around. The FTB won't own thier home. But thier kids might.

We are slipping quite quickly to "subscribe" true rather than own.
Some is good. I prefer subscription to Netflix vs buying dvds. But others? Like renting your car? No. Never owning your home? No.
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That is the idea, push subscribe into every part of your life. Work and end up with nothing, the perfect capitalist dream. While a few owe everything.

Now push for a global system, make everyone compet against each other. Then we have the hippies left wokes what ever you like to call them, I just call them the elite dumb terminal that push out all this liberal equality crap, inform that your life will be better etc.. yet no one is happy and anxiety is increasing .
 
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413x said:
Simailr. I could have bought a flat in Peterborough in 2017 probably. But I was convinced I'd only be there "another year".
Another year turned into another year. Then I was so old (32)i wanted to skip that "1st house" because I was close enough to a nice house.

So mistakes (let's call it life) held me back. And I could have reaped more of the rewards of the stellar growth.


But past is the past.


I'm uncomfortable with 200k of house debt. Having seen what interest rates can do. But I'm grateful I got the house in 2020 and not 2023!
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Actually funny you mention life, I was going to say something similar.

I wonder if thats far more of an influence now than it was.
It was I believe far more normal to settle down faster than it is now.
Whether that is a symptom or a cause of people generally doing things later I don't know, but it feels like relationships are far less stable now than when I was in my 20s.
 
413x said:
I'm uncomfortable with 200k of house debt. Having seen what interest rates can do. But I'm grateful I got the house in 2020 and not 2023!
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Yeah, thankfully a house no better than mine (much worse in fact) listed at 875 the other day. That's made me feel slightly better, TBC what it sells for --- but the neighbors had the sweet spot at £720k 18 months before I bought mine.
Mercenary Keyboard Warrior said:
Actually funny you mention life, I was going to say something similar.

I wonder if thats far more of an influence now than it was.
It was I believe far more normal to settle down faster than it is now.
Whether that is a symptom or a cause of people generally doing things later I don't know, but it feels like relationships are far less stable now than when I was in my 20s.
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100% - the lad who owned my house before me bought it when he was age 19! And then snuffed it 69/70.

I think back then with life expectancy so low, you cracked on with things. Even my relatively modern boss had his girls at age 23. They're now fully cooked and hes at peak income with least expense.

What our generation have done is landed in the middle, but arguably had a lot more lived experience.

We all know the couple that got together at high school, got their first house at 21 and are now banking equity in triple figures... I must prefer my journey to date tho, thanks :D
 
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Mercenary Keyboard Warrior said:
Actually funny you mention life, I was going to say something similar.

I wonder if thats far more of an influence now than it was.
It was I believe far more normal to settle down faster than it is now.
Whether that is a symptom or a cause of people generally doing things later I don't know, but it feels like relationships are far less stable now than when I was in my 20s.
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For sure. In past people were didn't have the large dating pools/candy shop they do now.
I guess you got to know your local group and made your choice. Kids earlier, everything earlier.
That's a huge pressure for my sister, that time. She's early 30s and like me got a relationship then got a house. Difference for her is she wants kids. But that biological clock hasn't moved like Other life aspects. So she won't have time to be more flush with cash before kids come along. Even though she bought at covid peak (no choice) at least she has a 5 year at 2.5pc. I told her to get 5!

If you are settled down early , that's a big life distraction to work towards "a house" rather than frittering money away.
 
dLockers said:
Yeah, thankfully a house no better than mine (much worse in fact) listed at 875 the other day. That's made me feel slightly better, TBC what it sells for --- but the neighbors had the sweet spot at £720k 18 months before I bought mine.

100% - the lad who owned my house before me bought it when he was age 19! And then snuffed it 69/70.

I think back then with life expectancy so low, you cracked on with things. Even my relatively modern boss had his girls at age 23. They're now fully cooked and hes at peak income with least expense.

What our generation have done is landed in the middle, but arguably had a lot more lived experience.

We all know the couple that got together at high school, got their first house at 21 and are now banking equity in triple figures... I must prefer my journey to date tho, thanks :D
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Ha yes! I the lucky ones I know were either
-together early and focused on financial stability.
-inheritance early.

I envy them a tad as they are far less indebted than us!

Could be worse.. My school year were.. Slim pickings. Many fog beats available!
 
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dLockers said:
You have your values in an odd place; I get it (mortgage free = freedom) but did you not enjoy your early years? I wouldn't have traded any of it.
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Unfortunately not. My 20s were terrible. I was shy, I wasn't outgoing. I wasn't myself.
I'd go as far too say as I wasted an entire decade.

Socially, hobbies, romantically, career.

Not terrible, more.. A waste!
I'm unrecognisable to the person I was then.
 
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Mira's and using your wife Mira's helped a lot. They always forget to bring that up. Do it right back then and pay hardly any interest. Then factor in wage growth, this became super easy to service your debt.
Now they are say don't ask for a wage rise, no wage rise harder to pay off your debt and not being able to take advantage of fix rate and wage inflation.
 
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413x said:
Unfortunately not. My 20s were terrible. I was shy, I wasn't outgoing. I wasn't myself.
I'd go as far too say as I wasted an entire decade.

Socially, hobbies, romantically, career.

Not terrible, more.. A waste!
I'm unrecognisable to the person I was then.
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Everyone has their own journey - be glad you didn't keep that up and sorted yourself out.
 
Raymond Lin said:
Whoa....that's a lot of savings!
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Not as dramatic as it sounds, but its a shift in focus from having multiple houses to owning one outright.

If the housing market crashes then I fancy a dabble in renovation projects, feel more comfortable doing this without a mortgage on the main house.
 
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Mercenary Keyboard Warrior said:
Your 10 years ahead of schedule in that case.
Assuming start work at 18 and retirement is 68 years thats 50 years of work, so mid point is 18+25 = 43, not 33!
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The earnings curve typically isn't linear though, it accelerates a lot in 20s and 30s but then starts to plateau (average earnings for people in their 50s is lower than in their 40s for example).
Median salary for people age 30-39 is higher than the overall median. In other words you hit the mid-point of earnings long before you hit the midpoint of working age, so the 'schedule' isn't linear.
 
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413x said:
the lucky ones I know were either
-together early and focused on financial stability.
-inheritance early.
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I think it is a bit of a stretch to call early inheritance "lucky", although if the inheritance comes from someone you aren't close to I guess it could be. I lost my mother before I was a teenager, and my sister, grandparents and father in law by my mid-20s. The money from that (which wasn't huge amounts, most of it went elsewhere) helped with housing but I don't think we'd have done much fundamentally different without it, it wasn't like we've ever bought a home we couldn't have afforded anyway. Grandparents were a good age so that's to be expected but I'd rather we didn't have the money if it meant my kids could have grown up knowing my sister, mother and my wife's dad.
 
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HangTime said:
I think it is a bit of a stretch to call early inheritance "lucky", although if the inheritance comes from someone you aren't close to I guess it could be. I lost my mother before I was a teenager, and my sister, grandparents and father in law by my mid-20s. The money from that (which wasn't huge amounts, most of it went elsewhere) helped with housing but I don't think we'd have done much fundamentally different without it, it wasn't like we've ever bought a home we couldn't have afforded anyway. Grandparents were a good age so that's to be expected but I'd rather we didn't have the money if it meant my kids could have grown up to knowing an Auntie, a Grandma etc.
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Oh yeah of course the lord of the person is far worse than getting some cash. I'm talking coming from a purely financial aspect. Or, like you say, a relative you neve knew.
 
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