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

a reply to: Dem0nc1eaner

is squatters a problem in your area. we had had issues with that in our area recently people come back home from trips to find someone else in there house and all their stuff gone and cops will not do anything saying you have to settle it in civil court.

originally posted by: richapau
a reply to: CornishCeltGuy

Its called inflation.

Urm, yes, obviously, but did you miss the bit where I observed that inflationary rises in house prices has massively outpaced wages?

a reply to: proteus33

Squatting in residential dwellings became a criminal offence some years ago now so that isn't a problem anymore. But it is still a mere civil matter when it comes to commercial properties, so there is still a fair amount of squatting in empty offices/shops/factories etc.

originally posted by: CornishCeltGuy

originally posted by: richapau
a reply to: CornishCeltGuy

Its called inflation.

Urm, yes, obviously, but did you miss the bit where I observed that inflationary rises in house prices has massively outpaced wages?

It isn't just within house prices but in every facet of basic living which also eats away at disposable income and ability to save enough money for a down payment.

originally posted by: InTheLight

originally posted by: CornishCeltGuy

originally posted by: richapau
a reply to: CornishCeltGuy

Its called inflation.

Urm, yes, obviously, but did you miss the bit where I observed that inflationary rises in house prices has massively outpaced wages?

It isn't just within house prices but in every facet of basic living which also eats away at disposable income and ability to save enough money for a down payment.

Agreed, many things are more expensive compared to wages these days and 20 odd years ago. I massively feel for the next generation, especially because inheritances will be eroded through living longer and residential/nursing care costs.

a reply to: CornishCeltGuy

In the strictest legal sense she is homeless, but in reality she has more homes than most people...if you know what I mean.

I abhorthe term homeless, its a media generated derogative.


One day when asked, we will all be able to say planet earth was our home.

originally posted by: CornishCeltGuy

originally posted by: InTheLight

originally posted by: CornishCeltGuy

originally posted by: richapau
a reply to: CornishCeltGuy

Its called inflation.

Urm, yes, obviously, but did you miss the bit where I observed that inflationary rises in house prices has massively outpaced wages?

It isn't just within house prices but in every facet of basic living which also eats away at disposable income and ability to save enough money for a down payment.

Agreed, many things are more expensive compared to wages these days and 20 odd years ago. I massively feel for the next generation, especially because inheritances will be eroded through living longer and residential/nursing care costs.

Good point. The industrial health complex works magic, keeping people clinging to life while draining their assets.
I been watching that happen to my neighbors.

originally posted by: CornishCeltGuy

originally posted by: InTheLight

originally posted by: CornishCeltGuy

originally posted by: richapau
a reply to: CornishCeltGuy

Its called inflation.

Urm, yes, obviously, but did you miss the bit where I observed that inflationary rises in house prices has massively outpaced wages?

It isn't just within house prices but in every facet of basic living which also eats away at disposable income and ability to save enough money for a down payment.

Agreed, many things are more expensive compared to wages these days and 20 odd years ago. I massively feel for the next generation, especially because inheritances will be eroded through living longer and residential/nursing care costs.

Some alterations in one's life can be made to help your children, such as allowing them to purchase a percentage of your home in a co-ownership title. That way they won't require a down payment and they can start building equity from your/their home. If space is an issue, then perhaps building on or up could be the answer because now there is an extra paycheck and this and some other expenses can now be split between more people thereby freeing up more money for everyone.

As for inheritances, my mother has split her estate up ten ways to include all grandchildren, great-grandchildren and her children, and we (her children) agreed to this because we wanted to give all the children a leg up. As for me and my husband leaving an inheritance for our children, it will be substantial because we are teaming up with my sis and her husband to convert a large house into two separate living spaces (multi-family) that way we can help each other out when we become infirm (along with getting professional medical assistance to come to our home), so we can live as independent as possible and in dignity and retain our hard-earned wealth. Plus, we are renovating the home in such a way that it will only increase in value. Real estate is still the best way to build wealth, in my opinion.

originally posted by: CornishCeltGuy
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.

Houses are 10x the salary in the US too. Most try to buy at 5x salary, and in my opinion you shouldn't pay over 1x salary... of course people who do that have trouble finding homes.

The difference is we finance people on those 10x salary loans.

I'm currently visiting San Francisco for a week, and on my Uber ride from the airport to the hotel yesterday I had an interesting conversation with my driver. His daughter and son in law work in the tech sector here, they have a combined income of $400,000. They're still unable to buy a home. In fact, they can't even afford a car because in addition to the price of the car, the registration, and the insurance there's hidden costs like gas and parking. Parking in this city runs nearly $1000 a month, just for a parking spot at your home, and another $500 per month while you're out and about. That's $18,000 a year on top of all the other expenses just to have a car. No one can do it.

originally posted by: intrptr
I abhorthe term homeless, its a media generated derogative.


One day when asked, we will all be able to say planet earth was our home.

I hear ya! Even when I was rough sleeping, the abandoned tourist leisure centre was still my home. If I was in a tent it would be my home as well...so yep I get ya with the 'homeless' label.

a reply to: InTheLight

Real estate is a very poor way to build wealth. Your home is not an investment, while you can fix a home up you're never going to be able to sell it for much above the market rate in the neighborhood.

The best way for the average person to build wealth (basically anyone who isn't a professional investor) is a mix of index funds and bonds while not diverting additional income to lifestyle inflation.

If you really want to help your family, you shouldn't leave anything to your kids either. Leave it to your grandkids and have professionals manage the money when you're gone. If you skip a generation the value of the money will increase much more.

a reply to: InTheLight
Oh yes of course we all have to adapt, but I'm getting the feeling that it is the same in your world that it's more difficult for your kids than it was when you were their age?
20 odd years ago 3X average wage mortgage got a decent house, these days just a bedsit/studio apartment.

originally posted by: Aazadan
Houses are 10x the salary in the US too. Most try to buy at 5x salary, and in my opinion you shouldn't pay over 1x salary... of course people who do that have trouble finding homes.

In 1990's Britain nobody even dreamed of borrowing any more than 3X salary, that was the gig back then and got you a nice house even on average wages.
It is more difficult for young people in my world, massively.

a reply to: CornishCeltGuy

They condition us to thinking we are failures if we don't play along. Every kid is taught about trolls in school. The ones that come out from 'under bridges' and demand (beg) money or eat your kids...

During my outdoor phases every local crime was blamed on the 'homeless', every pogrom to clean up 'homelessness' was really an attack on the poor.

The poor don't produce for the state.

What_a_crime.

originally posted by: Aazadan
a reply to: InTheLight

Real estate is a very poor way to build wealth. Your home is not an investment, while you can fix a home up you're never going to be able to sell it for much above the market rate in the neighborhood.

In the UK it is, prices only ever go up, even if you let a property go downhill. Congested island with green belt land local authority refuses building permission on.

The best way for the average person to build wealth (basically anyone who isn't a professional investor) is a mix of index funds and bonds while not diverting additional income to lifestyle inflation.

I agree in the main, but like everything, it depends...

If you really want to help your family, you shouldn't leave anything to your kids either. Leave it to your grandkids and have professionals manage the money when you're gone. If you skip a generation the value of the money will increase much more.

My son will have the lot and it's up to him to make it work or sniff it all up his nose. I won't care, I'll be dead.

a reply to: intrptr

Really good local authority and charitable services in my area now for people without a roof over their head, so good that we get 'refugees' from other parts of the UK. I don't mind, I'm happy my community cares more than others.

a reply to: Aazadan

Well here in Canada every member of my family has increased their wealth through real estate investment. So, I don't know from whence you hail that the opposite is true.

a reply to: CornishCeltGuy

Things might be better there than here. I lived 'outdoors' here for extended periods. There isn't much help for poor dispossessed, dedisenfranchized, disabled people here.

They used to chase us out from under bridges, dismantle our 'nests', threaten with arrest, etc.

In LA they have 'ecoside' programs against people living outdoors... how the money is spent in LA to help the homeless...

youtube search

originally posted by: InTheLight
a reply to: Aazadan

Well here in Canada every member of my family has increased their wealth through real estate investment. So, I don't know from whence you hail that the opposite is true.

Same in the UK, land and property has never decreased in value.
I'm a bit surprised with Canada though, your nation is so huge and under populated compared to mine.

originally posted by: InTheLight
a reply to: Aazadan

Well here in Canada every member of my family has increased their wealth through real estate investment. So, I don't know from whence you hail that the opposite is true.

Thats why they call it "Real" Estate.

Land is valuable, developers know this, thats why they are burying up as much as possible, building apartments on it and renting them out...