chem1st Posted June 30, 2013 Share Posted June 30, 2013 http://blogs.spectator.co.uk/coffeehouse/2013/06/why-dont-young-people-buy-homes-perhaps-they-spy-a-bubble/ As the Nationwide graph (right) shows, losses have been acute in Wales, Yorkshire and the North West. In Northern Ireland, prices have actually halved since the crash (pdf). This will have affected attitudes towards the very notion of homeownership: the young will have seen their friends and family badly burned by the idea of a property ladder. The losses suggested in the Nationwide graph are bad enough, but you can add another ten percentage points for the effect of inflation. It’s not hard to understand why teenagers growing up in houses that have lost a quarter of their value will be more suspicious of the idea of house ownership as a no-brainer financial investment. It’s nice to own your own place. But how much borrowed money would you risk in pursuit of that goal? How sure can you be that another crash is not just around the corner? And what happens, even up north, when rates head back to the 5pc norm? MORI has been publishing fascinating research into the attitudes of Generation Y, the under-31s. They are the least likely to recommend that a young couple buys a house. And why? This question does not involve affordability (homes are, anyway, as affordable as they were ten years ago outside London). They seem unconvinced that it represents a sound long-term investment. If prices collapse that the “indentured servitude” that SocGen talks about will become real: negative equity is a very hard master. Here’s the MORI research, showing the generational changes in attitude:- Most young people would not recommend that a young couple, newly married, both working in steady jobs buy a home. Finally, a generation has woke up. They are full aware that there is no 'property ladder'. And although there might have been due to government subsidy, the ladder has led to a very high platform that is incapable of supporting it's own weight, let alone the over-inflated UK property market. Rents are too high, property prices are too high. And what goes up, must come down. You wouldn't go down the pub at 'happy hour' if prices were doubled. You shouldn't pay well over the odds for a house. Especially if you need a mortgage. Mortgages are mental in today's society. Why the hell would you want decades of debt, when unemployment is rising amongst the younger generations and very few new entrants to the labour market have any form of job/income security. The phrase “property ladder” dropped out of use in Japan after 1991 (here’s why). In Germany and France, most people rent. Politicians there have no incentive to fake prosperity by blowing a property bubble. Merryn Somerset Webb argued in a recent cover story that Osborne is doing just this. We’re living in freak economic circumstances where banks lend money at negative real interest rates, which is every bit as crazy as those 110pc mortgages given out in the bubble years. It's common knowledge among the young. "Don't buy a house". Thank God for that, the younger generations aren't mental, there is hope for the future. Maybe they can build a better society to replace the ****** up mess of one we have now. Link to comment Share on other sites More sharing options...
AFireInside Posted June 30, 2013 Share Posted June 30, 2013 I recently bought a house and I’m happy with that. I could pay into someone else's pocket and get nothing at the end, or may into the banks pocket and have a house at the end. I moved into my house 7 months ago, and my mortgage payments are less than the rent I was paying previously, in a rented accommodation which values in at 20k less than the house I bought. I acknowledge that if some repairs came up on the house this would even out the odds, but I bought a house I knew I would be able to afford easily, and keeping up the payments (17,400 & 20K Salery, 25/31YO). It is a risk, if you can't keep up with payments you can lose it all, but since when you’re renting you have nothing to lose in the first place... doesn't really seem that bad. Even if my house price drops by 50%, I still have more than people renting. Also, I’m looking at the population by tenure status 2013 from Eurostat, which does not line up with that article. Mine says for example, in Germany and France, most people are home owners. In fact the only country below 50% is Switzerland, unfortunately the article does not list the source of information (I am really hoping it was not the Daily Mail....), so I can not make an objective view into which one I believe more reliable. Link to comment Share on other sites More sharing options...
discodown Posted June 30, 2013 Share Posted June 30, 2013 But if you don't buy a house and theres not enough social housing then you'd have to put money in the pockets of evil, parasitic private landlords. Where are people supposed to live? What a terrible conundrum... Link to comment Share on other sites More sharing options...
Harleyman Posted June 30, 2013 Share Posted June 30, 2013 http://blogs.spectator.co.uk/coffeehouse/2013/06/why-dont-young-people-buy-homes-perhaps-they-spy-a-bubble/ Most young people would not recommend that a young couple, newly married, both working in steady jobs buy a home.. That doesn't say much for the intelligence of most young people then Anybody short of a complete dolt knows that owning property is one of the best bets in todays economy Link to comment Share on other sites More sharing options...
deaf andy Posted June 30, 2013 Share Posted June 30, 2013 That doesn't say much for the intelligence of most young people then Anybody short of a complete dolt knows that owning property is one of the best bets in todays economy owning property is easy. paying for it is the tricky bit. even if you're lucky enough to have a 'steady' job, in 'today's economy' nobody* can be sure they will still have a job in 25 days time, never mind years. *unless you're an mp, a lord, or your daddy was rich. Link to comment Share on other sites More sharing options...
Harleyman Posted June 30, 2013 Share Posted June 30, 2013 owning property is easy. paying for it is the tricky bit. even if you're lucky enough to have a 'steady' job, in 'today's economy' nobody* can be sure they will still have a job in 25 days time, never mind years. *unless you're an mp, a lord, or your daddy was rich. Most people anywhere have that problem at the beginning. It's just a matter of managing the budget, cutting out the unecessary waste and making the necessary sacrifices for the first years. Later on meeting the payments gradually becomes much easier. That's my experience anyway Link to comment Share on other sites More sharing options...
Rupert_Baehr Posted June 30, 2013 Share Posted June 30, 2013 That doesn't say much for the intelligence of most young people then Anybody short of a complete dolt knows that owning property is one of the best bets in todays economy I think it depends on where you live and how long you expect to be in the property. Nowadays, most people throw their hands up in horror if somebody suggests getting an 'interest repayment only' mortgage. When I had such mortgages, the Insurance policies backing them could be relied upon to cover the principal and - unlike regular repayment mortgages - they were transferrable. When I moved house, I bought a top-up policy to cover the difference in price and moved the mortgage with me. Eventually, when the policies matured, they paid off the mortgage I had at that time. If you're not well-established in a career or are likely to move (for promotion, advancement or whatever) then owning a house can be - unless you live in a place there they can be rented easily and safely - a marked disadvantage. I wonder how many people have refused jobs because they couldn't afford to move? Link to comment Share on other sites More sharing options...
Itinerary Posted June 30, 2013 Share Posted June 30, 2013 Populations are increasing and they are not making any more land. The laws of supply and demand dictate that in the long term prices can only go up despite some attempting to talk them down. Grab yourself a piece of the action!!! Link to comment Share on other sites More sharing options...
eastbank Posted June 30, 2013 Share Posted June 30, 2013 http://blogs.spectator.co.uk/coffeehouse/2013/06/why-dont-young-people-buy-homes-perhaps-they-spy-a-bubble/ Most young people would not recommend that a young couple, newly married, both working in steady jobs buy a home. Finally, a generation has woke up. They are full aware that there is no 'property ladder'. And although there might have been due to government subsidy, the ladder has led to a very high platform that is incapable of supporting it's own weight, let alone the over-inflated UK property market. Rents are too high, property prices are too high. And what goes up, must come down. You wouldn't go down the pub at 'happy hour' if prices were doubled. You shouldn't pay well over the odds for a house. Especially if you need a mortgage. Mortgages are mental in today's society. Why the hell would you want decades of debt, when unemployment is rising amongst the younger generations and very few new entrants to the labour market have any form of job/income security. It's common knowledge among the young. "Don't buy a house". Thank God for that, the younger generations aren't mental, there is hope for the future. Maybe they can build a better society to replace the ****** up mess of one we have now. yes don't buy a house..rent one for £600 a month...nice little earner... Link to comment Share on other sites More sharing options...
maxmaximus Posted June 30, 2013 Share Posted June 30, 2013 Why the hell would you want decades of debt, Because the debt will one day come to an end and the remainder of your life is free from high housing costs, renting is like insurance, its debt for life and goes up each year. Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.