BBC One Show - Covered modern day slavery of young 'professionals'.

[Arrr Sez I]

If a mortgage is cheaper per month than rent then how do people save? How does somebody taking home £900 a month save for a deposit? Not everybody can stay at home with mum and dad.

 

I've got a house already. Paid off. I don't care if it goes up in value. It makes no difference at all to me. I'm more worried about my daughters and sons.

 

As for the increase in buyers it is caused by schemes such as help to buy, which is possibly the most epicly idiotic economic policy for a long time.

 

Again, you're dwelling on the £12k single person on a low wage. You can probably earn that amount of money on the checkout in Tesco. Nobody says it's going to be easy for them. It's not. Personally, I wouldn't buy a house if I was on such a small wage. I'd work the low paying job whilst going to night school or something. I'd better my prospects, increase my potential earning power. If I was a girl I sure as hell wouldn't have a freaking baby while in this position yet thousands do. Those who make colossal mistakes at a young age that will negatively effect their future financial life then moan that landlords have artificially inflated the housing market. It's nonsense. Life isn't fun if you don't earn much money. The point is not to whine but to get in the game by improving yourself. It can be done as a single person on a low salary but lets be real, as mentioned before, people rarely buy property alone, they meet someone they want to share a life with and CHOOSE to buy together because they LOVE each other NOT because they can't afford to buy alone. So in reality, a normal everyday low paid couple with a joint salary of £24k can definitely afford a house.

 

Paying off a mortgage and owning a property unencumbered is such a ridiculously bad school boy error. This would explain why you don't care if house prices go up or down. You obviously have no idea how property investment works. All the money in your property is dead, not working for you, your house is not an asset, it's costing you money, it's a liability. People pay off their mortgages through fear and lack of financial education. If your house is worth even just £150k, and it's all paid off, you have £150k doing absolutely nothing. I could cry for you. Think how much you've lost out by not having some of that money working for you over the last decade, think what you could turn that money into over the next 20 years if invested in property using leverage via the banks money. And surprise surprise, you worry about your daughters and sons. Lets hope they don't learn about property investment from you.

 

The help to buy scheme is wonderful for first time buyers, it's wonderful for home owners as prices are going to significantly increase. Yes there will be a crash at some point but considering we all know it will all end in tears, it's easy to plan for and profit from it is it not. The problem we have in this country is that the majority of kids are leaving school at 16 and 18 without a bloody clue. Schools don't teach even the basic financial education regarding, debt, finance and investment and until they do, there will always be moaners and whiners.

[I1L2T3]

Again, you're dwelling on the £12k single person on a low wage. You can probably earn that amount of money on the checkout in Tesco. Nobody says it's going to be easy for them. It's not. Personally, I wouldn't buy a house if I was on such a small wage. I'd work the low paying job whilst going to night school or something. I'd better my prospects, increase my potential earning power. If I was a girl I sure as hell wouldn't have a freaking baby while in this position yet thousands do. Those who make colossal mistakes at a young age that will negatively effect their future financial life then moan that landlords have artificially inflated the housing market. It's nonsense. Life isn't fun if you don't earn much money. The point is not to whine but to get in the game by improving yourself. It can be done as a single person on a low salary but lets be real, as mentioned before, people rarely buy property alone, they meet someone they want to share a life with and CHOOSE to buy together because they LOVE each other NOT because they can't afford to buy alone. So in reality, a normal everyday low paid couple with a joint salary of £24k can definitely afford a house.

 

Paying off a mortgage and owning a property unencumbered is such a ridiculously bad school boy error. This would explain why you don't care if house prices go up or down. You obviously have no idea how property investment works. All the money in your property is dead, not working for you, your house is not an asset, it's costing you money, it's a liability. People pay off their mortgages through fear and lack of financial education. If your house is worth even just £150k, and it's all paid off, you have £150k doing absolutely nothing. I could cry for you. Think how much you've lost out by not having some of that money working for you over the last decade, think what you could turn that money into over the next 20 years if invested in property using leverage via the banks money. And surprise surprise, you worry about your daughters and sons. Lets hope they don't learn about property investment from you.

 

The help to buy scheme is wonderful for first time buyers, it's wonderful for home owners as prices are going to significantly increase. Yes there will be a crash at some point but considering we all know it will all end in tears, it's easy to plan for and profit from it is it not. The problem we have in this country is that the majority of kids are leaving school at 16 and 18 without a bloody clue. Schools don't teach even the basic financial education regarding, debt, finance and investment and until they do, there will always be moaners and whiners.

 

I want to dwell on it because you brought it up.

 

I want to demonstrate the idiocy of your argument.

 

I'm glad I paid off my mortgage. I love living here. My kids love it here. We have no debts and no financial worries. It's our family home, not an investment. That was the ways things were when I first bought. And that's the way I like it.

 

I invest in other things anyway. I've seen what happened to relatives who invested in property in Spain - life savings lost

[Arrr Sez I]

I want to dwell on it because you brought it up.

 

I want to demonstrate the idiocy of your argument.

 

I'm glad I paid off my mortgage. I love living here. My kids love it here. We have no debts and no financial worries. It's our family home, not an investment. That was the ways things were when I first bought. And that's the way I like it.

 

I invest in other things anyway. I've seen what happened to relatives who invested in property in Spain - life savings lost

 

I'm glad you love living there. I'm glad your kids love living there. Having no debt for you means no financial worries because you're fearful of risk due to your lack of property investment education. Your residential home may not be an investment in your eyes, but tying up the money so it's just lying there, dormant, dead is hardly the wisest of decisions. The UK housing market isn't Spain. No helping some people. Over the next 20 years you're going to miss out on a fortune. Of course it's not for me to tell you what to do with your money and in all cases you should consult with "professional" advisors but when you know someone is missing out on opportunity, as a fellow human being I feel obliged to point it out to you. Good luck.

[I1L2T3]

I'm glad you love living there. I'm glad your kids love living there. Having no debt for you means no financial worries because you're fearful of risk due to your lack of property investment education. Your residential home may not be an investment in your eyes, but tying up the money so it's just lying there, dormant, dead is hardly the wisest of decisions. The UK housing market isn't Spain. No helping some people. Over the next 20 years you're going to miss out on a fortune. Of course it's not for me to tell you what to do with your money and in all cases you should consult with "professional" advisors but when you know someone is missing out on opportunity, as a fellow human being I feel obliged to point it out to you. Good luck.

 

I think most people if you gave them the choice would prefer to own their home outright. The bit you're missing is not having to pay a mortgage frees up a lot of money to invest in other things.

 

Wholly owning assets is the foundation for financial health and stability. Risking the capital in a home, and therefore the roof over your head in a bubble environment, is not for everybody.

 

Your strategy depends on being able to spot the top of the bubble and get out. Good luck!

[Arrr Sez I]

I think most people if you gave them the choice would prefer to own their home outright. The bit you're missing is not having to pay a mortgage frees up a lot of money to invest in other things.

 

Wholly owning assets is the foundation for financial health and stability. Risking the capital in a home, and therefore the roof over your head in a bubble environment, is not for everybody.

 

Your strategy depends on being able to spot the top of the bubble and get out. Good luck!

 

The only reason people don't invest in anything is fear and lack of knowledge in that particular investment vehicle. You are right, most people do prefer to own their homes outright because they lack the knowledge to take advantage of the HUGE profits from leveraging the banks money over time. As a landlord, property investment is a long game, for me it's a FOREVER game, I will NEVER sell an investment property. When you never sell, there is no downside. When I die, my children will inherit the portfolio and carry on my good work. But this isn't a property investment thread.

[Owethemnowt]

PRS ? AST?

 

What's that?

 

I can't tell a prs from my asts.

[I1L2T3]

The only reason people don't invest in anything is fear and lack of knowledge in that particular investment vehicle. You are right, most people do prefer to own their homes outright because they lack the knowledge to take advantage of the HUGE profits from leveraging the banks money over time. As a landlord, property investment is a long game, for me it's a FOREVER game, I will NEVER sell an investment property. When you never sell, there is no downside. When I die, my children will inherit the portfolio and carry on my good work. But this isn't a property investment thread.

 

I do invest in other things

[nightrider]

Of course they can get on the property ladder. What part of that don't YOU understand. Look on rightmove. Anyone with a mediocre job can buy a house.

 

I don't think thats true - a significant fraction of the population are in London and the SE, and I don't believe its possible for someone on an average wage to buy a house even in a crappy area. It might well be possible in Sheffield, but then prices are very cheap here relative to other parts of the country.

 

---------- Post added 19-08-2013 at 10:24 ----------

 

People are always rattling on about 'affordable housing' but what is that really?

 

If a brick in an expensive house costs 40p, what does a brick in an 'affordable' house cost?

 

How do you make the house more 'affordable'? Skimp on insulation? Use inferior materials? Make the rooms even smaller?

 

British building standards don't compare favourably with those of some other countries already. Do you really want to reduce them? - Or do you expect the people who work building the houses to work for nothing?

 

If you cram 30 houses onto a piece of land big enough for 10, that will bring down the land cost per house - but what will it be like to live there? (And no doubt Mr Pickles will want you to have a wheelie bin cupboard built in.) - (Perhaps you could sub-let that?)

 

is the price of a house really just reflecting the raw material costs? Or are there other things that are pushing prices up (e.g. land prices)?

[chem1st]

People are always rattling on about 'affordable housing' but what is that really?

 

If a brick in an expensive house costs 40p, what does a brick in an 'affordable' house cost?

 

How do you make the house more 'affordable'? Skimp on insulation? Use inferior materials? Make the rooms even smaller?

 

British building standards don't compare favourably with those of some other countries already. Do you really want to reduce them? - Or do you expect the people who work building the houses to work for nothing?

 

If you cram 30 houses onto a piece of land big enough for 10, that will bring down the land cost per house - but what will it be like to live there? (And no doubt Mr Pickles will want you to have a wheelie bin cupboard built in.) - (Perhaps you could sub-let that?)

 

The cost of bricks is not of much concern when one looks at UK house prices.

 

The cost of artificially scarce land with planning permission is.

 

When a plot of land that can be bought for £400, jumps in value to £26000+ due to the addition of planning permission, you can see where the problem lies.

[Rupert_Baehr]

The cost of bricks is not of much concern when one looks at UK house prices.

 

The cost of artificially scarce land with planning permission is.

 

When a plot of land that can be bought for £400, jumps in value to £26000+ due to the addition of planning permission, you can see where the problem lies.

 

'Artificially scarce land'? - I wasn't aware that anybody was making any more land.

 

If people build all over the land, what happens to the rain which would have fallen on that land and which now falls on roofs and roads?

 

Where do you grow your food?

 

What do you do for 'scenery' and places to walk/enjoy yourself?

 

Would you really want to live in a place where there is no countryside?

 

OK, knock £25400 off the price of a decent house. Does that make it 'affordable'?

 

I asked you to define 'affordable' housing. You came back with a bleat about the cost of land.

 

Please define an affordable house and say how you would make one.