Home purchase is so much harder for young people than it was 20 years ago

a reply to: lakenheath24
Haha I like your old man already!
Mate of mine is multi million rich and phoned me in the week from a golfing holiday in Italy, wanted to get his daughter a specific present but it was twice the price there so he got me to order one online, then wrap it and stash it in his garage for when he got back. Watch the pennies and the pounds take care of themselves lol

except they have to live in London

[/shudders]
You couldn't pay me enough to live in that #hole

Dude, London is a country unto itself. Most of those fools wouldn't give a damn bout anything outside the M25! LOL

The old man is a conundrum...he just dropped 60k on an RV and is already complaining about the taxes because he had to take it out of his 401k, This despite the fact that he cancelled cable, cuz he figured out that a lot of TV stations can still be got on an aerial. When I go to visit, I have to got to the local library because he doesnt have internet. Yet he brags what his 401k has made this year. He is mental.


I like London, but its like Vegas....one day is enuff, and I want to get back to a normal place.

a reply to: lakenheath24

Haha yes!
I feel for anyone born within the M25 though, the beautiful environment my child grew up in I'd wish for all children.
...and I totally get your dad, like my mate, didn't get born into money, made it himself, know's what being skint is.

a reply to: CornishCeltGuy

Hells yeah. My papa was a coal miner...came home after 12 hours in the mine to have to hitch up the mule and plough fields, milk cows and yadda yadda. Mama made her own clothes, and had the best veggie patch in eastern Kentucky.
I loved em both dearly and like to think i took a bit of them with me, but they were TOUGH1 (mama and pape= grandparents btw) Dude, i aint gonna lie, I couldnt do that mess today! My mama told me stories like, she didn't see actual money until she was 21, as they always owed the company store each month.


Tell ya what, thanks for helping me dredge up old memories!!!!! We only THINK its bad today...go back to the turn of the 20th century.


Oh, and the old man left school in year 8 to earn some money. He got a job at Honda when they came to Ohio as a facilities engineer. Lied on the application form about school, but when he retired, he got given a top of the line Acura for all the suggestion points he had earned over the years.....good man he, but damned if he ain't a bit of a stranger to me sometimes.

a reply to: lakenheath24

Cool stories man, nice one
Interesting as well, in this thread about how it's harder to gain property ownership for the new generations, when previous generations maybe didn't even think of it as an aspiration. Almost makes me think UK society is moving backwards to 'Lord of the manor' days. The Landlords are the new Lords of the manor?

a reply to: CornishCeltGuy

It's harder, however, if you move out of Mexifornia, home prices are reasonable low. Maybe if people want to buy, they should move out of New York and Ca. Instead of trying to outbid each other. There are a lot of inventory in other states and more job opportunities as well. CA is pretty overpopulated and corporations are all moving to Texas.

Eventually, we'd like to buy a house, but not in the near-term. Renting's treated us well, and we're got a hell of a pad for a grand a month -- house w/ about 2100 usable sq ft on both floors & in the partially finished basement on a half acre with a detached 2-stall garage in a damn nice MC neighborhood, can't complain here about rent versus surrounding mortgages & taxes.
But it's those mortgages & taxes that are having us wait out this local real estate bubble before we even consider buying. If we were going to buy, we damn sure should have done it right when we got in the state, neighboring houses when we moved in were up for sale around $80k on average, give or take $10k - $20k in either direction.

Houses are selling for 3 - 4 times that right now, and they aren't on the market for more than a few days before they sell. The neighbors across the street just listed & sold their within 5 days, & moved out. They said when they bought it, they paid just $65k 6 years ago for the same size house & lot as ours, but sold it for over $250k. Nice profit windfall for sellers, but unrealistic AF for normal MC buyers.

The bat guano insane W MI real estate bubble will burst eventually, but not any time soon. It's a very appealing area for people flooding in from other states (a lot of fellow Floridians running up here, a LOT of them) There's a lot of good-paying work, especially compared to other states (look, I know you local folks think it ain't so, but it's a job wonderland here, trust us out-of-staters on this, we marvel for a reason)
It's super cheap aside from the highly competitive rental/real estate markets -- fresh groceries here run 2-3 times cheaper than back in FL And once you get the hang of winter heating and learn to mitigate the cost, even utilities are cheaper here. My highest winter gas & electric bills this year combined were less than my peak summer cooling bills in FL were. Freakin' unreal...
Car insurance might kill ya (very high here) but overall, the CoL in MI is substantially better then down south is. That and ample work is what keeps drawing them north, and that "exodus" is what's got the housing market in such high demand. Eventually, it'll simmer down, and eventually, houses will drop back down to more reasonable prices.

a reply to: Farlander

Home values going up here. I bought in 2012 for $119k and sold for $180k 6 months ago.

originally posted by: amfirst1
a reply to: CornishCeltGuy

It's harder, however, if you move out of Mexifornia, home prices are reasonable low. Maybe if people want to buy, they should move out of New York and Ca. Instead of trying to outbid each other. There are a lot of inventory in other states and more job opportunities as well. CA is pretty overpopulated and corporations are all moving to Texas.

Housing is high across most of the country, it has nothing to do with California and everything to do with the fact that cities are expensive. Seattle is tied with San Francisco for the highest cost of living. New York City and Los Angeles are about equal. Washington DC is very high. Rural areas and even suburbs tend to cost less, but they have a time cost attached. When your commute jumps from 30 minutes to 90 minutes each way, you've turned a 9 hour day into a 12 hour day. That's effectively 33% more hours worked in order to pocket those savings and it works out to a wash (if not even favoring the city dweller).

a reply to: lakenheath24

It took me a lot of years to get where I am, and I still aint financially independent. It is not an easy thing to achieve for most people.

Depends on what you will settle for. Most people are too dependent on the system. Their whole life is spent struggling to be 'approved'. Then they get peeved when it spits them out for the slightest misstep.

I have just bought my first property at the grand old age of 34 i was living in rented 2 bed flat before and that was more expensive rent than the mortgage is on this 4 bed new build i live in now...

I have just had a daughter and i think in 20 years how much of a deposit is she gonna need to get on the ladder, i think my mum bought her house for around 15k 25 years ago thats less then my deposit now

Mental

originally posted by: lakenheath24
Dude, London is a country unto itself. Most of those fools wouldn't give a damn bout anything outside the M25! LOL

The old man is a conundrum...he just dropped 60k on an RV and is already complaining about the taxes because he had to take it out of his 401k, This despite the fact that he cancelled cable, cuz he figured out that a lot of TV stations can still be got on an aerial. When I go to visit, I have to got to the local library because he doesnt have internet. Yet he brags what his 401k has made this year. He is mental.


I like London, but its like Vegas....one day is enuff, and I want to get back to a normal place.

It's the same all over the country, simply because you can commute to London from anywhere. Lots of people want to live in a city like Oxford or Cambridge, Brighton or Reading, but since these cities are about a hour away from London, the residents there have to compete against London financial workers. They want the salaries of London, but the safety of traditional England. This extends all the way to the Isle of Wight because it's possible to get from Ryde to London in just under two hours. Also, there are those who commute in for the week, live in a bedsit and then return home on Friday. Even in Brighton, the council was having to implement a lottery system to get places in the local schools because the middle-class professionals from London were snapping up homes in the catchment areas of the good schools. Just to add more pressure, there are also green belt policies around all our cities.

Even at the other end of the country it is the same. I grew up in Aberdeen and until there was the oil boom, the housing market was stable. New suburbs like Hilton and Torry had been built for those who had their homes blown up in World War II. These suburbs were designed to be "a home for life" with homes large enough for a whole family and rooms that could be repurposed. More or less the same as the Victorian homes in the West End of the city. All these post-war homes and Victorian homes featured large gardens, which were meant to grow your own vegetables.

Come the Oil boom, and there was an incredible housing shortage due to all the oil workers rushing into the city with salaries double that of graduates like teachers and lecturers. They wanted to live close to the nightclubs and strip joints. Meanwhile the teachers just wanted to start families. This led to strike action, and some pay scale agreements. But the demand was so high that those large family townhomes were converted luxury flats for singles. Then years later they have a shortage of family homes so everyone now has to commute in by car from places like Dyce and Banchory. Then the Anderson shelters meant for school emergencies get converted into sheltered car parks for teachers.

a reply to: CornishCeltGuy

I think it is different region to region here in the US. I think in the bigger cities that the wages would more closely resemble an equality on what the housing market would command.
I live in a rather rural area and although there are pockets of super high priced homes on the golf course or lake or whatever the majority of home prices here seem reasonable to the wages. Credit plays a huge part in what one can get. We have HUD homes and homes through the housing authority going up all over the place with first time buyers assistance programs and such. My sister in law, years ago, bought a brick 5 bed/2 bath home on about an acre of land with a half finished basement walk out through one of those programs years ago.
I rent out of choice (some may find it a stupid one, meh) because for my life, it works. I may bug out at any moment and want to be able to do so when the time is appropriate and without any ties or reasons to return.
My rent is cheap so all of the extra goes into savings and quite frankly, I'm pretty stingy with it.

originally posted by: andy06shake
a reply to: CornishCeltGuy

Blame the 120% mortgages that were doing the rounds back when the arse fell out of the property market.

Even trying to rent private accommodation these days is a nightmare never mind buying a home. Some agents/renters want deposits that are twice the first month's rent and even require guarantors in some instances.

Its honestly cheaper to live at a campsite. This gen will be in debt for life.

a reply to: intrptr

It's not that, I just want to get my florida house sold(mortgage is paid off), and buy a property here in the UK and be mortgage free. You'd be surprised how little you need once that is paid off and the kids are gone!

a reply to: stormcell

Ahh yes, the commuters. They have caused property prices to go up in any town with a railway station! Ely used to be cheap. Not now. We have a place in France near Angouleme and the neighbors used to fly into London city airport and get to work quicker than it took them when they lived just outside the M25.

My daughter bought in Enfield in the hopes her baby will get into jesus school. Thing is, jesus seems to think he needs around 10,000 pounds for the privilege. LOL

originally posted by: lakenheath24
a reply to: intrptr

It's not that, I just want to get my florida house sold(mortgage is paid off), and buy a property here in the UK and be mortgage free. You'd be surprised how little you need once that is paid off and the kids are gone!

You'd be surprised how little you need living along tracks and under passes.

No workadaygrind, mortgage, rent, utilities, car payments.

Only things necessary are a warm dry place to sleep and a full belly.

Thats what I meant by being conditioned to the system. The fear we feel in the pit of our stomach if we become deprived of its 'benefits'.

No walls and doors with locks on them to protect us, no light switches on the wall, no hot running water, fridge, oven, tv or soft comfy bed.

Most people would freak at the prospect.

a reply to: TNMockingbird

It sounds like the promised land where you are!
Credit score is important here in the UK as well, but when a house is 10 times annual salary, the best score in the world won't secure that mortgage.
A parking space was sold in my street recently for £35,000, to give perspective that's nearly 2.5X the annual national minimum wage for someone aged 25+.
My son earns good money and has bright prospects, but he knows it's gonna take years before he gets into the same position when I was his age.
It's definitely more difficult for young folk these days compared to mine.

a reply to: CornishCeltGuy

Its called inflation.

a reply to: intrptr

I spent half a year sleeping rough, homeless, many years ago. I wouldn't advise it as a life choice in the northern hemisphere.
A friend of mine on the other hand lives in her van, and has done for years. She showers at friends homes on an ad-hoc rota basis in exchange for fantastic home chef cooking services or just a bottle of wine or some beers. I actually envy her life compared to mine in my stone and slate box which doesn't move anywhere.
In the strictest legal sense she is homeless, but in reality she has more homes than most people...if you know what I mean.