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#31 Icey

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Posted 15 June 2019 - 05:32 PM

I'm also lucky enough to own my own house, I've owned new cars, have an iPhone and go abroad on holiday a couple of times a year. So between myself and Cooperman we break the generalisations (him being the not-so-destitute pensioner and me being the home owning millennial), I think that suggests that whatever you've been told/believe about either generation is pretty much junk.
 
But lets look at this housing problem - if only the 'yoof' would stop spending all their money on smashed avo on toast they'd be able to afford a house. This is an irksome generlisation as it ignores the elephant in the room - rampant property price rises with pretty miserable wage growth with a generous helping of rent increases.
 
 
Wages:

yThMZFD.png



Flat to decreasing. By itself that's only part of the problem. Yes, it's tough but as a few have posted above, you can scrimp and save to scrape together a deposit.
 
But couple that with rising rents (sorry, crap image but is from the ONS and covers the last 10 years) and your finances are getting really squeezed, but again not insurmoutable:
 

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Now for the real stinger. House prices. I've only lived in the South so can't comment on the rest of the UK but can cover the East and West. I've grabbed some house prices in locations I've either lived or worked:
 

GfZW77o.png

Just look at those!

Look at the cheapest (£140k). I won't say exactly were it is but it's in a small town in the South West with no real redeeming features other than being within ~1hr of a few bigger towns (albeit via very congested roads with no real options for public transport). It almost quadrupled in value over 10 years, that's a very difficult rise to deal with for a couple on average wages especially considering all of the above.

Now look at the most extreme (£2.1m). I think it's pretty obvious this one is London but it's shows how extreme the problem is for some.

 

If you are saving hard to get on the ladder, the problem you're facing is that someone keeps pulling the ladder up a little every day/week/month. No matter how hard you save the houses you're looking at are likely going up faster than your savings and wages. So for many the simple answer is not to bother. You'll never be able to afford a house so you may as well spend your money on things you can afford and enjoy (cars, phones, holidays etc..).

 

That's not all either, many will also have additional financial stress factors (student loans being the prime example).

 

Hopefully that explains why the 'yoof' are living the way they are - their world isn't like yours. It's changed, the things you (i.e. previous generations) took for granted are gone.

 



#32 mab01uk

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Posted 15 June 2019 - 06:52 PM

I'm also lucky enough to own my own house, I've owned new cars, have an iPhone and go abroad on holiday a couple of times a year. So between myself and Cooperman we break the generalisations (him being the not-so-destitute pensioner and me being the home owning millennial), I think that suggests that whatever you've been told/believe about either generation is pretty much junk.

 

Out of interest and to help advise the 'yoof' members reading this, how did you break the 'generalisations' and become a home owning millennial with new cars, an iPhone and a couple of holidays abroad each year?


Edited by mab01uk, 15 June 2019 - 06:54 PM.


#33 Icey

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Posted 15 June 2019 - 09:02 PM

Out of interest and to help advise the 'yoof' members reading this, how did you break the 'generalisations' and become a home owning millennial with new cars, an iPhone and a couple of holidays abroad each year?


My father died from MND at the age of 54. Otherwise I would be in exactly the position I described (despite being fortunate enough to earn a decent wage and having a healthy savings pot).

 

Edit:

I realise that that answer probably doesn't explain much, let me expand a little. I now earn a decent wage and have enough to take out a mortgage of the size I took out ~9 years ago. The difference now is that the house I bought has increased in value by ~£100k. So despite saving more money now than I ever would have been able to ~10 years ago I would still be struggling to buy the house I have now. I would be treading water - saving money but never enough to out-pace the price rises.

 

Before I bought this house I didn't have new cars (I drove a £300 Peugeot) , or an iPhone (I had a phone my employer paid for) or holidays (I only went on a foreign holiday for the first time at the age of 31, although I'd traveled with work a reasonable amount). God only knows how much worse it would have been if I had dared have a child in my twenties.


Edited by Icey, 16 June 2019 - 09:32 PM.


#34 Broomer

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Posted 16 June 2019 - 12:10 PM

I have NEVER bought or owned a brand new car, always had second hand with no finance, saved for years when young for my first deposit on a small run down property in the mid-1980's, we had no furniture to begin with so we sat on garden chairs and had an old b&w TV, s/h bed/mattress, fridge, cooker, etc most donated as hand me downs from friends, family or cheap from the local free ads newspaper. Then in the John Major era our interest rates went through the roof and we had to work long extra hours to pay the huge monthly rises in our mortgage payments for several years. No holidays for years at home or abroad, any spare money or time was spent improving the place to help climb the property ladder.
Most of the young people I live and work with now have brand new cars (eg. BMW/Mercedes/Audi, etc) on finance soon after passing their test, have several holidays a year to exotic places, have the latest phones, big screen TV, Sky/Netflix/Amazon prime and everything on monthly payments but are not willing to give any of these 'essentials' to life up, while complaining they can't save a deposit or find a ready to move in property with all mod cons that needs no hard diy work doing and that we had it easy...... :lol:


You realise Netflix is £5.99 a month right?

#35 kit352

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Posted 16 June 2019 - 01:25 PM

I dont think netflix has been that cheap for years.

#36 Icey

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Posted 16 June 2019 - 03:56 PM

I dont think netflix has been that cheap for years.

 

No, it's £8.99 a month, just over £100 a year. Or in 'Millennial Maths' that works out to 10.2 organic avocados a month.



#37 Broomer

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Posted 16 June 2019 - 04:54 PM

I dont think netflix has been that cheap for years.

 
No, it's £8.99 a month, just over £100 a year. Or in 'Millennial Maths' that works out to 10.2 organic avocados a month.

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