Will the plan work to turn generation rent into buy?

Will the plan work to turn generation rent into buy?

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anonymous-user

Original Poster:

53 months

Monday 5th April 2021
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What are your thoughts PH?

83HP

361 posts

179 months

Monday 5th April 2021
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Sure, load them full of debt with a 95% LTV mortgage and keep the ponzi scheme going

W124Bob

1,744 posts

174 months

Monday 5th April 2021
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My son(27) bought his first property just before Christmas, half share with a mate (but not his ex flatmate)on a £125K 70's 3 bed semi. Sick of living, and working in a small space and paying out about £500 a month for no return. To find his new home he's had to look further away at Winsford rather than be just a walk round the corner from us. He now has 50% of his own place with a garage a spare bedroom and a room to call his office and to put the icing on the cake his housemate and family are all in the building trade! He says he's financially paying out about the same but landed a new job a few weeks ago on a about £2k more straight away, a once a month trip into the new office near Derby as opposed to a couple of days a week in Altrincham.

garagewidow

1,502 posts

169 months

Monday 5th April 2021
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Buying a house is one part,people tend to forget or just don't realise how much it costs to keep it going,bills,repairs unforseen emergencies etc unless it's a newbuild,but i've seen some shoddy work there too.

It needs to get back to 3-4x a single average wage or 2x as a couple before we can have anything like a housed nation with any stability.

Rents are astronomical for young people,basically paying a mortgage for someone else while trying to save for a deposit.

C70R

17,596 posts

103 months

Monday 5th April 2021
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garagewidow said:
Rents are astronomical for young people,basically paying a mortgage for someone else while trying to save for a deposit.
This is the only point that matters.

Most young people are demonstrating the ability to afford a mortgage via their rent, but are getting stiffed by banks asking them to have £30k+ in savings (which takes a long time!) before they can buy.

ZedLeg

12,278 posts

107 months

Monday 5th April 2021
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C70R said:
garagewidow said:
Rents are astronomical for young people,basically paying a mortgage for someone else while trying to save for a deposit.
This is the only point that matters.

Most young people are demonstrating the ability to afford a mortgage via their rent, but are getting stiffed by banks asking them to have £30k+ in savings (which takes a long time!) before they can buy.
100% correct, not necessarily just young people as well. A lot of us older millenials have got stuck in the cycle as well. I've been renting since I was 18, worked my way from a minimum wage mcjob to a decently paid job but my rent and bills have grown inline with what I earn. I don't struggle to pay my bills but I don't put much away and what does get put away often get's taken up with unforeseen circumstances. For example we just moved as our previous landlord was selling our flat. Moving took a deep dig out of my savings and my rent has gone up by £200 for a comparable place to where I was living.

It's incredibly hard for young people today to contemplate buying without help.

rover 623gsi

5,230 posts

160 months

Monday 5th April 2021
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my son's pays £600 a month for a house share - that's almost as much as my monthly mortgage

it's fking mental

ant1973

5,693 posts

204 months

Monday 5th April 2021
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If they are not prepared to end zirp, 100% mortgages and the like are the least they can do for generation rent. Indeed such a move is essential to sustain what is a dysfunctional market. It's not ideal but given that I could buy my first property for X2 earnings, we owe it those currently screwed and priced out.

Chainsaw Rebuild

1,997 posts

101 months

Monday 5th April 2021
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Will a combination of immigrants/migrants going home post brexit, COVID deaths and an aging population see more properties become available and thus prices drop a bit? I’m no expert, just wondered.

Northernboy

12,642 posts

256 months

Monday 5th April 2021
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rover 623gsi said:
my son's pays £600 a month for a house share - that's almost as much as my monthly mortgage

it's fking mental
Is it in the same sort of house on the same street, or in a more expensive part of town?

A500leroy

5,085 posts

117 months

Monday 5th April 2021
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If we REALLY want it levelling out, we need to introduce a national wage no matter what job your doing, ie doctor £16p/h,Nurse £16p/h, shelf stacker £16 p/h, That way everyone has the same income, everyone has roughly the same outgoings for necessities and we become this great level nation the g/ment want us to be.

ZedLeg

12,278 posts

107 months

Monday 5th April 2021
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A500leroy said:
If we REALLY want it levelling out, we need to introduce a national wage no matter what job your doing, ie doctor £16p/h,Nurse £16p/h, shelf stacker £16 p/h, That way everyone has the same income, everyone has roughly the same outgoings for necessities and we become this great level nation the g/ment want us to be.
I don't think even the most ardent socialist would expect us to see a society where everyone was happy to get paid exactly the same laugh

survivalist

5,614 posts

189 months

Monday 5th April 2021
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A500leroy said:
If we REALLY want it levelling out, we need to introduce a national wage no matter what job your doing, ie doctor £16p/h,Nurse £16p/h, shelf stacker £16 p/h, That way everyone has the same income, everyone has roughly the same outgoings for necessities and we become this great level nation the g/ment want us to be.
Even then it’s not that simple. Almost anyone can stack shelves with almost zero training, becoming a doctor is a bit more involved.

amgmcqueen

3,343 posts

149 months

Monday 5th April 2021
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Chainsaw Rebuild said:
Will a combination of immigrants/migrants going home post brexit, COVID deaths and an aging population see more properties become available and thus prices drop a bit? I’m no expert, just wondered.
Immigration to the UK post Brexit, has gone up not down.

clockworks

5,295 posts

144 months

Monday 5th April 2021
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I bought my first house, a new build in Milton Keynes, from the Milton Keynes Development Corporation. MKDC was acting as the local council, as well as co-ordinating all the development, and attracting industry to the area.

It was small end of terrace, one reception, one double bedroom, a single and a box room. Only partial central heating (downstairs only), and just one bathroom. Very small, even by today's new build standards, but it had a reasonable garden, an off-road parking space, and room to build a garage.

I was taking home around £900 a month as a computer engineer at the time, 1984. The house cost £27k, and I bought 30% at the start, paying rent on the rest at the standard MKDC rate.
The beauty of the shared ownership schemes at the time was that the cost per share was fixed (no inflation increases), so over time each share would get cheaper relative to wages. No deposit needed either, as long as you were already renting an MKDC property, which I was, having relocated with my employer. Within about 4 years I had bought the whole house. A couple of years later I had had a garage built, and added a rear extension, remortgaging each time. Ended up with a £42k mortgage, sold it after 14 years for £65k, and moved to Cornwall.

There was a similar local authority scheme running in my local town in Cornwall about 20 years ago. The Council had taken over a surplus Navy housing development which had fallen into disrepair. The houses were gutted and refurbished, proper pitched roofs added, and they were offered to anyone born locally who qualified for a council house as shared ownership. They were being sold for around £30k, with a very low deposit. At the time, this was about two thirds of the cost of a similar house in the area.

From what I can make out, the council recovered all their costs, a virtually derelict estate got a new lease of life, and several dozen families got off the council waiting list and onto the property ladder.

I'm not sure if the shared ownership schemes nowadays are still operated in a similar "not for profit" way?

rover 623gsi

5,230 posts

160 months

Monday 5th April 2021
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Northernboy said:
rover 623gsi said:
my son's pays £600 a month for a house share - that's almost as much as my monthly mortgage

it's fking mental
Is it in the same sort of house on the same street, or in a more expensive part of town?
same sort of house - 3 bed semi but i'm in the suburbs whereas he's nearer the city centre. Probably about the same sort of value approx £250,000

Drawweight

2,863 posts

115 months

Monday 5th April 2021
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I bought my first house after I separated from my ex ( we lived in a council house) I sold my car and put down 5% which was all I could afford.

The big thing back in the day was I could comfortably afford that on my self employed milkman wage. If the same thing happened now I’d be completely screwed. Not only could I not afford the deposit even at 3x or 4x my wage I’d never be able to buy anything.

I remember going to see the mortgage advisor at the bank (who I happened to have been to school with) He basically asked 2 questions 1. How much do I earn? 2. How much do you REALLY earn? I suspect things might be harder now.

I’ve got 2 daughters who are fortunate enough to be in their own houses. One got the deposit from her father in law and the other used a government scheme where they got the house at a reduced price. Without those helping hands even though they and their partners work it would be almost impossible to save enough for a deposit.

I think some kind of government scheme similar to that my daughter used is the only way some youngsters can get on the ladder these days unless they live with their parents while saving up.

ARHarh

3,706 posts

106 months

Monday 5th April 2021
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A500leroy said:
If we REALLY want it levelling out, we need to introduce a national wage no matter what job your doing, ie doctor £16p/h,Nurse £16p/h, shelf stacker £16 p/h, That way everyone has the same income, everyone has roughly the same outgoings for necessities and we become this great level nation the g/ment want us to be.
Then there would be no incentive to do anything more with your life than stack shelfs. We would have some well stacked shelfs though. Or if it really was a national wage would I get that on benefits? If so sign me up?

BoRED S2upid

19,644 posts

239 months

Monday 5th April 2021
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Why is renting seen as such a bad thing for a generation? They rent cars, phones, houses even clothes can be rented. It’s just a different way of living.

DickP

1,118 posts

149 months

Monday 5th April 2021
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BoRED S2upid said:
Why is renting seen as such a bad thing for a generation? They rent cars, phones, houses even clothes can be rented. It’s just a different way of living.
I think it's because a house is an asset which will retain a value relative to the market, and is arguably one of the better places for money these days?