Housing bubble.

I’m proposing that perhaps a crash wouldn’t be the worst thing in the world for me personally

and you think a house price crash would only affect house prices? no other economic impact at all…

As more and more young people reach voting age then I’d expect government policy to gradually swing in their favour.

Got news for you – young people have been reaching voting age for centuries now… only this time more older people are still surviving longer. Older people are more likely to vote, so government policy will always favour the older generation.

Why would i want to live in england ?

It’s not being selfish, it’s capitalising on a good oppportunity for myself.

Isn’t that not the definition of being selfish? 😀

Yes. That is fantastic I’m glad you have managed to break the mould. Where abouts in England do you live out of curiosity?

The hypothetical leafy suburbs of Reading, or at least it will be in the next few years when the whole “south of the M4” development plan comes into being, looks like we’ll be Lower Earley Mk2 by 2020, having moved out of the even more expensive Wokingham.

as is TINAS i think

Clinging on by the skin of my teeth, turning 30’s the new 21 right? I may just go hide in a cave an pretend growing up isn’t happening.

I’m glad you have managed to break the mould.

Erm… That is the mould. Those of us who bought in the 80s and 90s lived on beans & charity shop clothes so we could buy a flat in a crappy area. No car, no mobile, few nights out, trying to get a promotion / pay rise before interest rates went up again. Once we’d done that and saved a bit, then we could be selective about where to buy second time around. Your first property is little more than a deposit savings scheme.

Certainly sounds like the entitlement is strong in this one.

On the other side of the coin, why do the older generation feel ‘entitled’ to a good pension, ‘entitled’ to good care in old age, and ‘entitled’ to have their property maintain it’s value?

And who’s expected to fund this? The young – the workers, those people that are struggling to rent, let alone buy.

You can stuff your entitlement up your a*se, housing, whether rented or bought is a basic social need, not an entitlement!!!!

And I own a house that’s already 60% paid off. Still doesn’t change my view on how tough it is out there for the young at the moment.

It’s not being selfish, it’s capitalising on a good opportunity for myself.

Well the last crash was caused by the banking crisis – fancy going through that again? Maybe we will soon.

Be careful what you wish for.

Molgrips

Trouble is that we already buy and dispose of more electronics/food random stuff than previous generations. I have a disposable income that proportionally dwarfs that of my parents after a similar time in the workplace.

We have more and we want more. Wanting a crash so that we can have a nicer house is just part of the mindset.

While I agree that prices in some areas are crazy. Salaries in some areas are also equally bonkers. The decades of mismanagement of the housing supply cannot be undone by a simple crash. I remember people with negative equity in the 80s and it wasn’t fun for them. Mind you the word is a different place now, with money flowing freely from all over the place and little restriction on who can own UK assets.

If you say that UK growth is driven by the housing market (which sadly it is on paper anyway) a crash could have severe consequences. The economy either needs to be transitioned to something else or a slow managed stagnation needs to occur.

I have a disposable income that proportionally dwarfs that of my parents after a similar time in the workplace.

I don’t and most people I know are living in smaller homes than our parents, the advances we have over our parents generation are mainly technological not societal.

My mother was a teacher and my father worked in a factory, they were able to buy a big 4 bed semi and raise 4 kids, and my mother gave up work for a few years. That would be impossible now.

We aren’t talking about saving a “bit of money” to buy a house here.

We’re talking hundreds of thousands of pounds. With the mortgage lending rates capped at 4 times salary and needing large deposits to secure property it is a crisis, not a misjudgement on my part.

Another thing to consider is where you buy – sure I could go and buy a house in Scarborough and it would cost me less than half of the deposit I need – likewise I could probably buy a shoebox where I currently live with what I have saved and a small mortgage.

However a shitty little one bed flat with a bathroom in the living room isn’t sufficient for my needs and moving half way around the country won’t suffice. I need to live near London because that’s where I make my money, I have absolutely no option. If I did, I would have **** off to another country years ago.

It enrages me when I get called selfish for wanting to further my own cause, I’m all for looking after others but what help can I be if I don’t look after myself?

why do the older generation feel ‘entitled’ to a good pension,

ill bite , im still young but i can see that many older people have been **** by the system.

they have paid all their working life into a system thats geared to give them the absolute minimum if anything back because the government spent it all.

it was never designed for the young to be paying for the oldies pension…. but its gone that way because just like many adults today the goverment spends more than it earns…..

On the other side of the coin, why do the older generation feel ‘entitled’ to a good pension, ‘entitled’ to good care in old age, and ‘entitled’ to have their property maintain it’s value?

And who’s expected to fund this? The young – the workers, those people that are struggling to rent, let alone buy.
Most of that is because they were told they were paying contributions through their working lives to get it. Doesn’t mean they will though, but then they’re probably used to not getting what they thought as many are the generation that were missold endowment policies and came through negative equity.

We’re talking hundreds of thousands of pounds. With the mortgage lending rates capped at 4 times salary and needing large deposits to secure property it is a crisis, not a misjudgement on my part.

Where exactly do you live (or want to live).

what is your generation ? the 20 somethings ? Im in that generation – as is TINAS i think…. we both just worked hard/saved hard/spent less.

As did I, the difference being I never grew up, lived or worked in the SE. I paid £97.5k for my house, what would that buy you down there?

I do get the entitlement thing though, nobody needs to own a house but on the flipside rentals need to be cheap enough to allow those who can’t afford to buy a decent secure tenency.

they have paid all their working life into a system thats geared to give them the absolute minimum if anything back because the government spent it all.

Unfortunately they mostly didn’t pay in anything like enough because the government didn’t react to the increasing life expectancy.

Where exactly do you live (or want to live).

In the place that I was born and grew up, where every single person I know on this planet lives and where my job is based.

Surrey.

As did I, the difference being I never grew up, lived or worked in the SE. I paid £97.5k for my house, what would that buy you down there?

I do get the entitlement thing though, nobody needs to own a house but on the flipside rentals need to be cheap enough to allow those who can’t afford to buy a decent secure tenency.

I am not stretching the truth AT ALL when I say that 97.5k would literally get you nothing.

The rent on a one bedroom studio is around £900 a month. I’m currently paying £1500 for a 3 bed bungalow (it’s probably equivalent to a one and a half bed house).

likewise I could probably buy a shoebox where I currently live with what I have saved and a small mortgage.

and you’d be on the ladder.

or you could just keep being angry about it while everyone else gets on with life.

and you’d be on the ladder.

or you could just keep being angry about it while everyone else gets on with life.

But what good would it be if I can’t live there?

And you are right, I am angry, but don’t for a second think I’m not “getting on with life”. I work just like everyone else in this country does to try and improve my situation.

MSP

Maybe its just me but we had naff all when growing up. Money went on bills and food. There were no mobile phones or sky TV to spend your money on but that wouldn’t have been an option.

I can only speak from my experiences but most people I know across the board can still have some electronics and some kind of holiday (even within the UK) and don’t have to worry about being able to buy enough food for the week (well not after 7 years in the workplace).

In the place that I was born and grew up, where every single person I know on this planet lives and where my job is based.

Surrey.

So suck it up, and get on with saving for a deposit.

I’ve managed it.

“every single person I know on this planet” has presumably managed it.

You don’t need to move into a £400k+ house as your first home. That’s the house most people buy when they’re 30something with 2 kids and a career. Although it is nice. Although having had to spend the last 6 months of holiday time and weekends renovating it is taking it’s toll.

Well the last crash was caused by the banking crisis –

And what caused the banking crisis?

😉

So suck it up, and get on with saving for a deposit.

I’ve managed it.

“every single person I know on this planet” has presumably managed it.

You don’t need to move into a £400k+ house as your first home.

I’m doing exactly as you suggested because the government sure as hell aren’t doing enough to help remedy the situation.

I’m not looking for a £400k first house, I’m just looking for a first house point blank. A 2 bed house around here is like £300k, not chump change by any stretch of the imagination and I would imagine far more than the prior generation had to come up with to get on the property ladder.

and you’d be on the ladder.

You call it a ladder, the way the housing market currently is, it seems more of a snake. It traps you into a life, it removes your freedom and choices, and its getting worse. Got a bullying boss, well tough shit you have to sit their and take it and hope your next job isn’t equally as shit, because you gave up your choices you are trapped.

So suck it up, and get on with saving for a deposit.

I’ve managed it.

Biggest and most heinous logical fallacy of the Right: I managed it, so you should be able to.

Sorry but mobile phones, a car, a laptop, a fast internet connection etc are basic essentials now if you want to stand any chance of holding down a decent job.

Years ago they weren’t of course, most people were lucky enough to live near where they worked, the job they had was pretty much for life, they did their 9-5, their partner stayed at home and looked after the kids and yet still they could afford to buy a decent house on a single salary.

Now, unless you’re incredibly well paid, or you have a nice lump sum from your parents, you’d struggle to buy almost anything on a single salary in most parts of the UK, and that’s despite interest rates being at an all time low!

Biggest and most heinous logical fallacy of the Right: I managed it, so you should be able to.

I’m special, my mum says so.

The fact that I don’t know any homeless people (or of the top of my head, any of my peergroup still renting) would back up my assertion that the situation isn’t impossible. and as he points out, everyone else he knows lives in surrey too, so obviously it’s achievable.

A 2 bed house around here is like £300k, not chump change by any stretch of the imagination.

So take the 2 bed flat mentioned on the last page for £220k. Still not chump change, but the mortgage will be about the same or less than the Studio flat rent.

I need to live near London because that’s where I make my money, I have absolutely no option.

Not taking the piss, but do you geniunely have absolutely no transferable skills to gain you employment outside of London, whatsoever?

Obviously you might not make as much money, however housing prices may be exponentially less than your drop in salary if you moved somewhere else – personally, i’d love one of those big old terraced villas in the west end of Glasgow, however folk with more money than me have bought them all, so I stay 25 miles away in a slightly (ok, much) smaller house.

Any massive crash in housing prices would see many people who are struggling as things stand in serious trouble & i’d bet it would be investment firms that would pick up the glut of “cheap” houses on the market as the rent from those would make a better return than the interest rates at the banks…

it was never designed for the young to be paying for the oldies pension..

I thought that was exactly the point of it. You don’t pay in and then get it back, you pay in now for the people who are claiming now. And in 30 year’s you’re paid with the money that’s going in at that time. It’s not a big savings account with your name on it.

I’m sure I saw a stat that when the state pension started there were 20 working people ‘paying’ for each pensioner, there are now 4. That’s the problem. Life expectancy in the 50’s was about 65 for a man. He’d typically retire, live for a couple of years of retirement and then die. Nowadays we retire at about the same age and expect to have 15 years of travelling and socialising before going off to spend another 5 years in a home.

So take the 2 bed flat mentioned on the last page for £220k. Still not chump change, but the mortgage will be about the same or less than the Studio flat rent.

If he can get approved for the mortgage and save up the £25-50K deposit that will be required to get the loan at a decent rate? The days of self cert (liar loans), interest only loans etc for first time buyers are well and truly over. Seems the banks prefer to lend money to the BTL brigade these days.

We aren’t talking about saving a “bit of money” to buy a house here.

We’re talking hundreds of thousands of pounds.
You can get a mortgage with a deposit of 5%. If you don’t have £15k, then you don’t have (as you claim) “real” money.

Considering your attitude; I have zero sympathy whatsoever. You come across as moany, entitled and selfish. If my kids grow up with that kind of outlook, I’ll consider myself to be a shit parent.

Not taking the piss, but do you geniunely have absolutely no transferable skills to gain you employment outside of London, whatsoever?

Any massive crash in housing prices would see many people who are struggling as things stand in serious trouble & i’d bet it would be investment firms that would pick up the glut of “cheap” houses on the market as the rent from those would make a better return than the interest rates at the banks…

I work in Software Development so yes my skills are transferable to many a place. Prospect wise – I would be looking at a 50% pay cut I would imagine for doing exactly the same work.

Seeing as I’m here, and I have a job, it would seem stupid to uproot and move somewhere else. Especially considering everyone I know lives near here as are all of my professional contacts.

I would imagine you are correct in regards to investment firms picking up the glut of cheap houses – however I only need the one.

Considering your attitude; I have zero sympathy whatsoever. You come across as moany, entitled and selfish. If my kids grow up with that kind of outlook, I’ll consider myself to be a shit parent.

Haha I’m alright Jack!

You can get a mortgage with a deposit of 5%. If you don’t have £15k, then you don’t have (as you claim) “real” money.
Considering your attitude; I have zero sympathy whatsoever. You come across as moany, entitled and selfish. If my kids grow up with that kind of outlook, I’ll consider myself to be a shit parent.

Your comment plays more on the way you view the younger generation than it does on my attitude.

I genuinely honestly hope your kids don’t end up with the same outlook as me – no comment on your parenting but I hope they have a much much easier time trying to establish themselves in life.

agent007 – Member

Sorry but mobile phones, a car, a laptop, a fast internet connection etc are basic essentials now if you want to stand any chance of holding down a decent job.

I had an argument in my office about this… Work give you a laptop so you can work from anywhere. I am not expected to provide my own hardware for this and they do not want me to due to issues with using personal software licenses for corporate work.
I do have an internet connection but I work from an office and rarely need to work from home. Should I be required to work from home and require a certain level of internet I would expect work to chip in.
If my work require me to be in contact at all times then they provide the phone and the contract. They put software on it which allows them to track the phone and monitor its use. If they do not provide this equipment they do not get the service.

It has become expected that people will be contactable at all times and pay out of their own pocket for the privilege. Mind you I did work around 35 hours of unpaid overtime last week so for all my bluster I am still just as bad as everyone else…

Haha I’m alright Jack!

😯 Really? Lets pick through some quotes shall we?

I say get **** to the lot of them, build the houses so I might actually have a chance!

A crash would turf these people out and allow me to jump in honestly with my actual money.

It’s an extremely sad state of affairs where one would wish life changing consequences on others for ones own benefit, but alas this is the state of affairs

Given the option between someone else doing well and myself, I choose me.

Wow it looks like we have the Daily Mail commenting on this thread with the out of context quoting going on here.

That’s how a Ponzi scheme works. Not a good thing, btw.

Wow it looks like we have the Daily Mail commenting on this thread

The youth section perhaps.

I hope they have a much much easier time trying to establish themselves in life.

Whilst I’d love it to be easy, and have enough disposable income to buy a nice 5-series touring and an Ibis Ripley to put on the roofrack (thule of course, not halfords own brand, this is the South East after all) and have lived out my 20’s in a batchelor pad. It’s not. Since moving here I’ve never lived alone, owned a car which is now 10 years old and spent a grand total of £2400 on new bikes in 8 years. It’s a sacrifice, but 8 years on I have a house (and with the GF in a similar situation we’ve managed to get quite a bit more than a shoe box).

No one get’s it handed to them on a plate, unless you think Made in Chelsea is a documentary.