chem1st Posted September 23, 2011 Author Share Posted September 23, 2011 Is there really an expectation of skipping part of the property ladder? If so, has it just come out of the 2000 - 2007 money fest where banks and building societies would give huge amounts to anyone that asked? There is no ladder. My parents were by no means big earners, and on my fathers wage alone they bought a 3bed semi with a garden, after having lived in a 2bed council house for a few years after getting married. They had to wait about a week for a council house. Link to comment Share on other sites More sharing options...
Cyclone Posted September 23, 2011 Share Posted September 23, 2011 I don't understand your point about there being no ladder. It's just an analogy to describe how people often move into more expensive housing as they progress through life. That definitely happens, although not everyone chooses to do it. Link to comment Share on other sites More sharing options...
Cyclone Posted September 23, 2011 Share Posted September 23, 2011 I'm not saying there is specifically in the shed couple case, I'm talking more generally. From personal experience, I have one aquaintance who won't buy a house because, and I quote, they "can't find anything we like for under half a million"!! They were well able to buy a house of a reasonable size in a reasonable area, but just couldn't see this as a reasonable option. Another couple at work had a daughter in her early 20's, with a decent income. The couple were beginning to despair of her a little, as she just wouldn't consider anything less that a 3 bed semi with garage, in a good area, which needed no work doing. She could well afford a house, but didn't want to build up to what she really wanted. Again, if she were to be interviewed for a news piece on TV, she would be quoted as "a young woman, struggling to get onto the property ladder", which is just untrue. Both of these examples wouldn't not have required a bonkers mortgage deal Of course there are many who can't get on the ladder genuinely and cannot afford the private sector, which is why we should have decent social housing for those in need. I've seen the opposite, personally we bought in 2001, before prices went crazy, but we have younger friends and amongst those are 2 couples and a single guy who've all bought in the last 2 to 4 years, and I'm sure they'll all move on to bigger/nicer properties at some point (as we're looking at doing right now). Link to comment Share on other sites More sharing options...
love_rat Posted September 23, 2011 Share Posted September 23, 2011 Its the younger generation wanting something for nothing. When I bought my home, I chose put down a 30% deposit so, my £30,000 home I needed to put down £9000 These kids only need to put down 10%, so if you look at a modest home, say one for £120.000 (unless you want to pay £70,000 and live at parson cross with all the anti-social behaviour), then that person only has to put down £12,000 So with interest rates being 0.5%, the young person only has to pay back £108,000 so as long as they earn £30,000 a year, there isn't a problem Link to comment Share on other sites More sharing options...
truman Posted September 23, 2011 Share Posted September 23, 2011 Its the younger generation wanting something for nothing. When I bought my home, I chose put down a 30% deposit so, my £30,000 home I needed to put down £9000 These kids only need to put down 10%, so if you look at a modest home, say one for £120.000 (unless you want to pay £70,000 and live at parson cross with all the anti-social behaviour), then that person only has to put down £12,000 So with interest rates being 0.5%, the young person only has to pay back £108,000 so as long as they earn £30,000 a year, there isn't a problem Where can you get a 0.5% mortgage? Why haven't you added interest to the 108k? Link to comment Share on other sites More sharing options...
love_rat Posted September 23, 2011 Share Posted September 23, 2011 Where can you get a 0.5% mortgage? Why haven't you added interest to the 108k? Interest rates are 0.5% Are you saying people wanting mortgages don't get 0.5% ? Link to comment Share on other sites More sharing options...
truman Posted September 23, 2011 Share Posted September 23, 2011 Interest rates are 0.5% Are you saying people wanting mortgages don't get 0.5% ? Err yes...that's the Bank of England lending rate..nothing to do really with mortgage rates (well in a roundabout way).. it's the rate at which it will lend to other financial institutions... Link to comment Share on other sites More sharing options...
medusa Posted September 23, 2011 Share Posted September 23, 2011 This couple don't live in a shed- they live in a wooden small house which for which the main house owners do not have planning permission. If they wanted to live in a shed then they shouldn't have paid £14,000 for a shed big enough to have separate rooms. Just because it's made of wood doesn't make it a shed, any more than the 4 bedroom log cabin I used to stay in regularly is a shed! Link to comment Share on other sites More sharing options...
Cyclone Posted September 23, 2011 Share Posted September 23, 2011 Interest rates are 0.5% Are you saying people wanting mortgages don't get 0.5% ? Even if they did, you didn't add any interest to the repayment amount.... Are you sure you really understand how the whole thing works? Link to comment Share on other sites More sharing options...
love_rat Posted September 23, 2011 Share Posted September 23, 2011 Even if they did, you didn't add any interest to the repayment amount.... Are you sure you really understand how the whole thing works? KInd of. In the 90s, you bought a house for £40,000 with interest rates of about 9% In 2011, you get the same kind of house for £200,000, but with the interest rates being lower, its cheaper to get on the housing ladder if you are a worker in your 20s Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.