PJ87
Journeyman Pro
Worryingly I saw an advert other day for a holiday home (caravan in clacton) for £65k .: don’t get me wrong I saw “dirt cheap†ones for 15k but that was one fancy one.
Let's tax pensioners
- Thread starter Hobbit
- Start date
Worryingly I saw an advert other day for a holiday home (caravan in clacton) for £65k .: don’t get me wrong I saw “dirt cheap†ones for 15k but that was one fancy one.
And 2 people on an average salary are eligible for a mortgage and will pay out circa £1800 a month in mortgage repayments.
If you were able to poll the under 30's on here, there may not be many, I wonder how many of them will be holidaying abroad this year but then say they can't afford to buy a house... priorities?
PJ87
Journeyman Pro
If you go on holiday out of school time.. say a couple could go away for £1000 on holiday
Yet £1800 a month would be 21600 a year alone in rent without deposit
That £1000 on holiday would take 21 years to equal one year of mortgage payments
fundy
Ryder Cup Winner
Blue in Munich
Crocked Professional Yeti Impersonator
So how does that work then? Downsizing round here will only make estate agents and solicitors rich. The only way to make a decent wedge is to move well away from your mates, your golf club, your hobbies & your work in my case. So I get more money which I then spend on petrol or train fares to get back to the area I used to live in, wasting time travelling in the process. Doesn't sound like a huge bonus to me.
You may be missing my point. Fundy highlights it in one of the posts. The current generation appear to want the latest model iPhone, iPad, MacBook, new car, holdayS abroad every year, designer gear etc yet moan that they can't afford to buy a house. Add the cost of all the luxuries together + the combined mortgage buying power and a house is affordable. Surely the priority is the house first?
There's an accounting term used in business, specifically by banks, to ascertain a company's value. Its called Economic Value Added(EVA). EVA determines whether or not a company is a good risk, and what it can afford to pay back.
Mortgage lenders apply a very similar mechanism to determine whether or not to lend to applicants. If their net salary is £2k a month but they have car loans, phone contracts etc etc etc, the level of mortgage they are willing to lend drops off pound for pound against the current spend.
How many oldies do you see with a phone thats several generations old, or a practical car rather than a fancy flying machine? Many of the current generation seem to think they have to have the latest everything - nowt wrong with ambition, but placing those things before buying a house...
It's quiet because there are no jobs there! 1 job for every 2 people of working age in Cleveland, with those under 25 7x more likely to be unemployed than those in their 50s and 60s. Putting such an extreme example out there really can't prove any point you were trying to make.
Completely agree with this post though!
There is a certain irony that we now live in a world where such info is at everyone's fingertips, so those that do have the latest everything and complain they can't got a mortgage only really have themselves to blame.
But I genuinely don't think that's a fair representation of the generation as a whole. Its the loud 5% you see showing off on social media that the Daily Mail/Express love to pick holes in, plus the 5% entitled liberals that think the world is really against them that you hear about in the media that most of the older generation seem to think represent us all, not the 90% of the rest of us that are weighing up lifestyle decisions and scrapping around for a deposit for a property before we start a family.
An unemployed person in Surrey is in exactly the same position as the unemployed person in Cleveland. Neither can buy a house. The point I was making is that houses are affordable to those earning a salary. Hogan confirmed that they're also affordable to a couple on an average wage in Farnham, i.e. the multiple of the salaries, using the Halifax's own website, shows that mortgages are available.
Strangely enough, if you go back 40 years, those unemployed in Cleveland when employment was high still couldn't afford a house.
Cherry13
Head Pro
I’ve just looked at the numbers on my banks calculator and best I can see is £2300pm based on a 10% mortgage, which is over 50k.
This is all based on current interest rates, any one on an avg salary would be mental to touch that bearing in mind interest rates are very likely to rise over the lifetime of that mortgage.
You're right. Clumsy generalising isn't fair. I know enough in the younger generation that have bought their own place. I guess that also highlights how stupid the suggestion is that the older generation should be taxed more to fund the youngster who can't be bothered saving.
SocketRocket
Ryder Cup Winner
This current sport of berating old people is disgusting. Many of the people doing it suggest they are socialists as well, what kind of socialism is it that blames the ills of the young on their parents and grandparents. These older people have just lived a life and in most cases worked damn hard, no one has given them anything and in the vast majority of cases they have worked for the best part of 50 years and grown up in what people now would call abject poverty. Don't dare blame them for the state of the housing market, I would challenge anyone who was selling a house/car/ any possession not to look for a fair market price.
I expect someone to now reply with a Monty Python 'If they could see us now' but this divisive claptrap I keep reading makes me want to vomit.
I expect someone to now reply with a Monty Python 'If they could see us now' but this divisive claptrap I keep reading makes me want to vomit.
Cherry13
Head Pro
I blame the parents...
PJ87
Journeyman Pro
These ideas thrown together of giving young people money to help them out are all sidestepping the entire real issue though
Successive governments have failed to get a grip or control the housing market. Instead building the entire economy on a bubble.
Prime example 4 years ago I bought my house for £300k roll the clock forward and it’s now worth 450k.. 150k in 4 years the house has earned just sitting there. My wife would take 6 years to earn that yet the house we live in only took 4
Housing is rising out of control whilst wages are stagnating. Squeezing people from both ends.. one day it’s just going to all pop
Cherry13
Head Pro
What generation are we talking about? I get confused by it all? Is it millennial? Because that covers 37 (1981) - 21 (1996) Seems a pretty large span of time to throw generalisations about.
Also the changes in that time are perhaps some of the most profound in history, the internet, social media, global commerce etc etc.
I actually have a brother who was born in 81, and one born in 96. They are both adept with social media, and the older one exploits it very successfully for career purposes. One was at school when the iPhone came along, the other was living in Morocco (learning his trade before anyone assumes he was having a gap year...) but yet they both get lumped into the same ‘lazy’ generalisation only want the best but don’t want to pay blah blah blah. It’s lazy, petty, and borderline offensive to be honest, and I may have said it in jest above but it typically comes from the generation that raised these people.
No he didn't - he said they were unaffordable unless you worked on a London salary. The problem isn't typically affordability of a mortgage (which is typically cheaper than renting), but funding the deposit. It would take a couple earning £80k between them about 4 years to save for a paltry 10% deposit, likely buying in their early 30s with a 35 year mortgage.
House prices 30 years ago were 3-5x average salary - they are now 8-10x as property inflation has vastly outstripped wage inflation. Many young peoples lives are completely on hold until they get on the ladder, which is taking far longer than previous generations.
FWIW, IMHO this proposal from the think tank is awful - I'm not advocating that, just offering an alternative view to what you're going to get on a forum populated by golfers. There's far better ways the govt could intervene in the market in a positive way.
I don't think anyone other than extreme socialists would seriously push for Robin Hood style intervention.
The problem is that now, your generation and the one above aren't moving on from the homes you bought for family, thereby propping up the market and preventing todays young families for buying their 2nd home, which in turn has a knock on for the availability and therefore price of entry level property.
Take the small section of housing I live between. When I moved in 4 years ago, the immediate 12 houses around me had us, 3 families and 8 retired (with 7 singletons and 1 couple). All 7 had been there 20 years plus, with 5 having been there since they were built in 1957. Theyve raised a family, seen their children raise families and are still in the same house, not able to get up stairs unassisted and using 1 bedroom, 1 reception room and 1 bathroom. These are 3 bed semi detached houses! It's not up to these people to move out simply to help out younger generations, far from it - but the govt should be offering serious incentives to encourage them to move to more suitable housing for their current needs and thereby stimulate the market with some much needed liquidity.
SocketRocket
Ryder Cup Winner
Do you suggest they sell these houses for less than the market value?
Nope. I suggest the government creates incentives to encourage them to move to a more suitable property for their requirements and needs at this stage in life.
Do you think it is ethical that these people continue to live in a property they arent making maximum use of whilst often running it down in the process? With families not able to move into those properties as they themselves did due to lack of supply in the market driving up prices to an unaffordable level? Kids sharing bedrooms while granny lives on her own with 2 spare rooms?
PJ87
Journeyman Pro
Got to agree here.. my Grandad parents are in their 80s in a massive 5 bed room detached house just the 2 of them.. unfortunately they can’t sell us for private reasons they had to equality realise in the 90s so the bank own like most of the house think of the 750k it’s worth my Grandad would end up with 120k which wouldn’t buy a box round our way.. all that for a mere £30k lump sum
Disgusting really
