Will the plan work to turn generation rent into buy?
Discussion
HustleRussell said:
Great, another person with no real insight attempting to tell us how ‘a vast proportion of the population’ live.
Up until about 3 years ago I was responsible for a team of about 45 19-30 year olds who lived their lives in very small variations of the above.Agreed, the South East can be a very different kettle of fish but for just about everyone North of Luton it is a lack of appetite to own over a lack of capability to afford to own that drives generation rent.
Oakey said:
These threads are always the same; boomers saying they lived in an old boot at the side of the road, ate discarded scraps they found in bins and walked 20 miles to work each day (and it was all uphill by the way, both there and back!) 
Like I said earlier, there were less things to buy, no £1000 phones, no pcp on fancy cars, no netflix, spotify, gym membership was not common, eating out was rarer as less cheaper chains etc. So the "lived experience" was different. You had less choices, perhaps made it easier to make right one plus 30 years ago you weren't bombarded with insta images of influencers buying new audis and holidaying in dubai.
okgo said:
That grand was never going to get anyone anywhere anyway. All of what you've mentioned apart from perhaps holidays are an irrelevance in the grand scheme of saving a deposit.
The majority of 18-25 year olds, perhaps even as far as 30 are paying between £50 and £100 per month for their mobile phone. The latest generation of consoles are by and large exclusively available from scalpers for between £500 and £1000.Those numbers are not irrelevant any time of day. Throw in a car on tick when between a grand and two for a modest Ford hatchback will be relatively inexpensive motoring in comparison and you have demonstrated in far less space why all this irrelevant "insignificant spend" is what is holding Generation Rent back in a lot of the country.
Pegscratch said:
HustleRussell said:
Great, another person with no real insight attempting to tell us how ‘a vast proportion of the population’ live.
Up until about 3 years ago I was responsible for a team of about 45 19-30 year olds who lived their lives in very small variations of the above.Agreed, the South East can be a very different kettle of fish but for just about everyone North of Luton it is a lack of appetite to own over a lack of capability to afford to own that drives generation rent.
You talk about your sample of 45 as if it is significant?
Pegscratch said:
The majority of 18-25 year olds, perhaps even as far as 30 are paying between £50 and £100 per month for their mobile phone. The latest generation of consoles are by and large exclusively available from scalpers for between £500 and £1000.
Those numbers are not irrelevant any time of day. Throw in a car on tick when between a grand and two for a modest Ford hatchback will be relatively inexpensive motoring in comparison and you have demonstrated in far less space why all this irrelevant "insignificant spend" is what is holding Generation Rent back in a lot of the country.
So this is something a lot of people get hung up on, it's a nothingness I feel - everyone needs a phone, consoles come out once a decade.Those numbers are not irrelevant any time of day. Throw in a car on tick when between a grand and two for a modest Ford hatchback will be relatively inexpensive motoring in comparison and you have demonstrated in far less space why all this irrelevant "insignificant spend" is what is holding Generation Rent back in a lot of the country.
Halve those numbers above, even get rid of them totally, what have you got? 2k per year, honestly, its irrelevant in much of the UK. Unless you have numerous things you can totally cut without leaving yourself in state of sheer depression/boredom then it is not what is stopping you buy a house.
okgo said:
That grand was never going to get anyone anywhere anyway. All of what you've mentioned apart from perhaps holidays are an irrelevance in the grand scheme of saving a deposit.
Unless you can save hundreds a month, ideally thousands in the SE, then its mostly not going to happen. And whether or not you buy a new phone or a new xbox will make very little difference to that.
Have you not read the previous posts? £3,000 is more than a 10% deposit on a nice flat with a balcony in Washington, close to Newcastle, and the mortgage is £115 per month.Unless you can save hundreds a month, ideally thousands in the SE, then its mostly not going to happen. And whether or not you buy a new phone or a new xbox will make very little difference to that.
How, given this, can you paint such a negative picture?
Pegscratch said:
The majority of 18-25 year olds, perhaps even as far as 30 are paying between £50 and £100 per month for their mobile phone. The latest generation of consoles are by and large exclusively available from scalpers for between £500 and £1000.
.
Do you have a reliable source for this? .
Crudeoink said:
Pegscratch said:
The majority of 18-25 year olds, perhaps even as far as 30 are paying between £50 and £100 per month for their mobile phone. The latest generation of consoles are by and large exclusively available from scalpers for between £500 and £1000.
.
Do you have a reliable source for this? .
Northernboy said:
Have you not read the previous posts? £3,000 is more than a 10% deposit on a nice flat with a balcony in Washington, close to Newcastle, and the mortgage is £115 per month.
How, given this, can you paint such a negative picture?
Of course, and you could go and buy a house for 200 grand or a flat for about half that 40 minutes on the train from London too, but oddly people don't want to. Now I've never, and will likely never go to Chatham, but why is that?How, given this, can you paint such a negative picture?
Joey Deacon said:
I have a BTL in Hampshire that I have owned for four years and have rented out to the same couple for that time. In the last four years the value of the house has increased by £60K.
So they would have needed to save £1250 a month just to keep up with the value increase alone.
I seriously think if you live in the SE you need to be saving £3K a month for years just to get a deposit together. You can see why for a lot of people this is pie in the sky and they just give up.
This is why it will go mental once the 5% deposit scheme comes in and prices and competition for houses will go insane.
It would only be 20% of that £1250, so £250.So they would have needed to save £1250 a month just to keep up with the value increase alone.
I seriously think if you live in the SE you need to be saving £3K a month for years just to get a deposit together. You can see why for a lot of people this is pie in the sky and they just give up.
This is why it will go mental once the 5% deposit scheme comes in and prices and competition for houses will go insane.
Edited by ARHarh on Tuesday 6th April 11:58
okgo said:
So this is something a lot of people get hung up on, it's a nothingness I feel - everyone needs a phone, consoles come out once a decade.
Halve those numbers above, even get rid of them totally, what have you got? 2k per year, honestly, its irrelevant in much of the UK. Unless you have numerous things you can totally cut without leaving yourself in state of sheer depression/boredom then it is not what is stopping you buy a house.
Throw the "convenient" (expensive) multi-platform subscriptions in (iCloud to back up their photos, Amazon to get stuff they don't really need delivered next day for "free", Spotify to listen to music without those annoying adverts, Sky/Virgin because terrestrial is boring and Now TV is for poor people, the fastest broadband packages "because games take ages to download").Halve those numbers above, even get rid of them totally, what have you got? 2k per year, honestly, its irrelevant in much of the UK. Unless you have numerous things you can totally cut without leaving yourself in state of sheer depression/boredom then it is not what is stopping you buy a house.
There's LOADS of fat in large quantities of people's expenses, which when they sit there arguing how unaffordable stuff is they should quite rightly be ridiculed for.
I sympathise with people in London and the South East who genuinely are trying exceptionally hard to save for ludicrously priced properties. The "plight" of Stacie-Louise and Kade in the Midlands utterly detracts from their problems.
hing at someone explaining how it’s not really so hard, so it’s a fair inference.Crudeoink said:
Pegscratch said:
The majority of 18-25 year olds, perhaps even as far as 30 are paying between £50 and £100 per month for their mobile phone. The latest generation of consoles are by and large exclusively available from scalpers for between £500 and £1000.
.
Do you have a reliable source for this? .
Pegscratch said:
Throw the "convenient" (expensive) multi-platform subscriptions in (iCloud to back up their photos, Amazon to get stuff they don't really need delivered next day for "free", Spotify to listen to music without those annoying adverts, Sky/Virgin because terrestrial is boring and Now TV is for poor people, the fastest broadband packages "because games take ages to download").
There's LOADS of fat in large quantities of people's expenses, which when they sit there arguing how unaffordable stuff is they should quite rightly be ridiculed for.
I sympathise with people in London and the South East who genuinely are trying exceptionally hard to save for ludicrously priced properties. The "plight" of Stacie-Louise and Kade in the Midlands utterly detracts from their problems.
All of what you just listed is probably less than 100 quid a month. I have all of that of course because I'm a millennial.There's LOADS of fat in large quantities of people's expenses, which when they sit there arguing how unaffordable stuff is they should quite rightly be ridiculed for.
I sympathise with people in London and the South East who genuinely are trying exceptionally hard to save for ludicrously priced properties. The "plight" of Stacie-Louise and Kade in the Midlands utterly detracts from their problems.
okgo said:
All of what you just listed is probably less than 100 quid a month. I have all of that of course because I'm a millennial.
Even a modest Sky subscription is half that. Before broadband. And before you explain to me about haggling, do explain to me about how people that are incapable of saving for a deposit manage to negotiate substantial discounts on their TV service.
All I'm seeing/hearing is a lot of people who are upset at having their lifestyles called out.
okgo said:
All of what you just listed is probably less than 100 quid a month. I have all of that of course because I'm a millennial.
Which is fine, no-one’s saying that you shouldn’t have them, or your S3, but then you’ve presumably already bought your own house and aren’t one of those complaining about how difficult it was.It’s the disconnect between the expenditure and the claim that people can’t buy anywhere that’s being commented on.
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