Fade and Die
Medal Winner
My colleague who is 30 last year has taken out a £400K, 35 year mortgage to be able to get the house he wants. I find that terrifying!
Random Irritations
- Thread starter Blue in Munich
- Start date
My colleague who is 30 last year has taken out a £400K, 35 year mortgage to be able to get the house he wants. I find that terrifying!
Orikoru
Tour Winner
Bloody Brexit innit?
harpo_72
Journeyman Pro
Not sure it is ... I think it’s large non tax paying corporations making rules they are not entitled to but can enforce
Slab
Occasional Tour Caddy
Could go into any one of five threads but, tour golf related random irritation re covid-19
Why have the PGA not banned spitting?
(with the pandemic it’s been made a £1k fine to spit outdoors here, can't think of any reason the tour wouldn't have considered this)
Why have the PGA not banned spitting?
(with the pandemic it’s been made a £1k fine to spit outdoors here, can't think of any reason the tour wouldn't have considered this)
That seems harsh. In the past I have bought from Amazon in Germany and France for delivery to the UK as they had the item significantly cheaper or simply in stock. I must have been lucky. I'm not sure why they don't allow it and just alter the freight aspect.
chrisd
Major Champion
I cant remember my salary back in 1975 but a great chunk of it went on the mortgage, the interest rate changed regularly as it was always set at about 2% above base rate and was as much as 15% and (probably) 10% as the low point. I know that when it went to 15% about 70% went on the mortgage. The upside though was that with inflation being around 10% wages, for me anyway, were being reviewed up to 4 times a year.
It seems to me that a lot of people have a lot more disposable income these days and that wages are generally higher and peoples lifestyles are generally much better these days as well as consumer goods being much cheaper by comparison.
Orikoru
Tour Winner
Work is quiet, I just wrapped up pretty much what I had to do this week - except that somebody has scheduled a phone call with me for 3 o'clock this afternoon. *twiddles thumbs*
Bunkermagnet
Journeyman Pro
I think the real point is your last bit. Since the 80’s the British consumer has demanded cheaper products so they can have it now, with no concern for longevity. Is it any wonder that the offspring of people of those times (and later) follow that mantra and take it further With everything?
harpo_72
Journeyman Pro
I think that’s the rub, a big percentage of your take home goes on your mortgage, it gets easier as you get pay rises, or interest rates drop. But I haven’t seen rental ever being cheaper than a mortgage ... so perhaps it’s the inability to get a deposit. I am sure if my son said to me Dad can I have a deposit I would say yes as long as you aren’t frittering it on cars , girls/ boys and booze! But he is only 7 at the moment so I have time to save up!
D
Deleted member 21258
Guest
I would add, that in comparison to the 70 or 80s or even the 90s when interest briefly hit 15ish percentage(IIRC when we bought almost my whole salary paid the mortgage almost), a lot more households now have two earners, along with widgets being cheaper in relation to earnings.
You could not buy the same property with one 'equivalent' earner in todays terms.
The other thing to bare in mind, is that the debt leverage is far greater than in the 70, 80 or even the 90s(when I bought). With lowish wage inflation this is not a good thing and the chances of someone borrowing in the last ten years, paying off their mortgage early or seeing that debt inflated away, is much reduced. Todays world is that you are a debt slave for your life, even if you live cheaply and just have a mortgage.
Purely in debt levels and leverage, there is no comparison today verus the 70s/80s/early-mid 90s, I would take those debt ratios every day of the week (but with the technology of today
).I consider myself very lucky to have bought in the early 90s, it enable us to borrow at peak interest rates that dropped fairly fast, higher wages inflation, much cheap property prices and debt ratios and fairly stable job market by the mid 90s. Glad I wasn't born say 10-20 years later from that point, as my life would have been massively different with regards to levels of debt and living with them for my life and the freedom that no debt gives.
harpo_72
Journeyman Pro
I go to the German site for electrical stuff, Sweden doesn’t have an Amazon from what I can tell. There usually isn’t a price deficit of note, the other example was a putter which was walked up by £20 between uk and Germany on Amazon. Golfbidder sold at the uk price plus small conversion fee, but it was the Swedish golfbidder site ( stock still the same , language isn’t ?)
PJ87
Journeyman Pro
A few people I know have close to that , I'm lucky mines "only" 290.. which included additional 60 for extension last year.
When you speak to generation above they do find it scary to think but all my generation see is a 4 bed house in our area in the rental market is what 1500 pcm? Zoopla says £1800 for mine but take that with a pinch. I have 28 years left ATM, I fixed for 10 years last year to see out brexit and pay £1300 including overpayment. So long as my mortgage stays around that figure over the 18 years after that , with me being 33 and planning to retire in 27 years I should be able to clear it.. and it would have been cheaper than renting.
My best mate moved in with her bf during lockdown so they could see each other, he has a flat he owns with his ex. Now lockdown is easing it's got to be sold and split between them. Their both doing the sensible thing and moving back to parents for up to a year to save for a bigger deposit to get back on the ladder , the house prices their looking at for further out was what I paid for mine 6 years ago. Which just shows how crazy the market is even now
harpo_72
Journeyman Pro
Mortgages are the biggest mill stone you can have, but they are not the worst.
If you can hang in there and play a good game you will have a pension scheme. People who rent will not, they are making someone else richer.
I sat in meetings where futurists said people did not want to own stuff, they wanted experiences.
That was a lie, if I can sell you something that you never own, my profits are enormous. So look at PCP deals and hire purchase deals, credit and interest rates... it’s all easy money for someone else and your lining that pocket.
I think it explains car prices, I was not aware of how big the mark up was until I worked for one. I knew about the perfume houses paying more for the packaging than the perfume that was in the bottle. But I thought I was looking at 50-60% mark up on cars .. nah it’s way bigger than that.. it’s at least 5 x ... then there are the credit deals at 5+% Apr .. do you still want to own the latest and greatest ?? Especially when it is designed to die or look out of fashion? The point is car prices escalated up because people think they can afford it .. what you can afford is what you have in stone cold cash. On paper you may have something but when you convert it to cash it’s real value will be found out.
Going to be an interesting couple of years ahead of us .. I like the stay at home work from home thing it’s positive. But there are going to be some people up the proverbial river without a paddle and possibly the boat will be repossessed as well.
If you can hang in there and play a good game you will have a pension scheme. People who rent will not, they are making someone else richer.
I sat in meetings where futurists said people did not want to own stuff, they wanted experiences.
That was a lie, if I can sell you something that you never own, my profits are enormous. So look at PCP deals and hire purchase deals, credit and interest rates... it’s all easy money for someone else and your lining that pocket.
I think it explains car prices, I was not aware of how big the mark up was until I worked for one. I knew about the perfume houses paying more for the packaging than the perfume that was in the bottle. But I thought I was looking at 50-60% mark up on cars .. nah it’s way bigger than that.. it’s at least 5 x ... then there are the credit deals at 5+% Apr .. do you still want to own the latest and greatest ?? Especially when it is designed to die or look out of fashion? The point is car prices escalated up because people think they can afford it .. what you can afford is what you have in stone cold cash. On paper you may have something but when you convert it to cash it’s real value will be found out.
Going to be an interesting couple of years ahead of us .. I like the stay at home work from home thing it’s positive. But there are going to be some people up the proverbial river without a paddle and possibly the boat will be repossessed as well.
Bazz
Q-School Graduate
When we got our mortgage just as I turned 30 we were paying 812pm, when the product finished our payments went down to 610pm, we were so used to paying 812 we just overpaid and now have a rather nice surplus of overpayments, so could take a mortgage holiday if we wanted/needed to.
We've decided to move and the wife has found the perfect one...but is crying because our house hasn't sold and the seller won't accept an offer until we've got a buyer.
Ours has been on a week but that's to long according to her ?
We've decided to move and the wife has found the perfect one...but is crying because our house hasn't sold and the seller won't accept an offer until we've got a buyer.
Ours has been on a week but that's to long according to her ?
SteveW86
Head Pro
As a 34 year old, I have about 55% equity in my £350k home. Got a bit lucky making £50k in 3 years in previous house, but I wouldnt have ever rented as its just burning money. I really feel for those who arent in a position to purchase a property as paying high rental rates whilst saving for a deposit must be hard.
PhilTheFragger
Provider of Entertainment for the Golfing Gods 🙄
When my parents bought their first house in 1964 a 3 bed Semi in High Wycombe cost £3500
Dad was earning £1000 a year and put down a deposit of £400
So that’s 3 1/2 times His sole salary / value
Fast forward 55 years and that same house changed hands last year for £350,000
Average salary around here say £50,000 joint, so that’s now 7 times JOINT salaries/ value
That’s a huge difference,
Most deposits for first time buyers come from the bank of mum & dad or from an inheritance
In the above example a £35000 deposit would leave a mortgage of £315,000 plus stamp duty and legals
The mortgage repayment would be around £1550 per month over 25 years
Yeah the youngsters of today really have it easy don’t they ?
Dad was earning £1000 a year and put down a deposit of £400
So that’s 3 1/2 times His sole salary / value
Fast forward 55 years and that same house changed hands last year for £350,000
Average salary around here say £50,000 joint, so that’s now 7 times JOINT salaries/ value
That’s a huge difference,
Most deposits for first time buyers come from the bank of mum & dad or from an inheritance
In the above example a £35000 deposit would leave a mortgage of £315,000 plus stamp duty and legals
The mortgage repayment would be around £1550 per month over 25 years
Yeah the youngsters of today really have it easy don’t they ?
chellie
Tour Winner
Went with that option today. Kept my feet dry.
fundy
Ryder Cup Winner
One of our fav neighbours putting their house on the market especially as we were/are close to doing so and even moreso because theyve gone on a bit cheaper than we were planning too
especially as we were/are close to doing so and even moreso because theyve gone on a bit cheaper than we were planning too Jamesbrown
Head Pro
I’m glad I live north. 350k for a semi!? I paid half that for a detached, drive, garage and conservatory. You southerners have it hard!
harpo_72
Journeyman Pro
Any where on the main line into London is expensive. I have never worked for anyone near London that pays London rates.. they force a commute.
I was talking to a bloke about some work and he said the office was in London, so I asked what he was paying... the quality of life would not have been met even if he doubled it. Best to stay north...
Doesn‘t help when Alan Sugar suggests that working from home is not good for business either. Forcing people into pointless offices has to change .. showcase offices in London should be taxed, totally unnecessary. The environmental cost of having people commuting is also huge.
