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Is it important to get on the property ladder at a young age ?

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    I've just been wondering about this

    Some people I know (round 23yrs) have bought their own house and i know a lot of people who are considering it now that they have graduated and got a job.

    I have never thought about it and have no desire to do so for many reasons

    But is it something I would regret or something I should definitely be thinking about now ?

    Have you considered buying a house yet and getting a mortgage?

    What do you think the right age to do so is ??
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    I'd never buy in the UK because you just don't get enough for your money.
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    (Original post by tweety_2479)
    I've just been wondering about this

    Some people I know (round 23yrs) have bought their own house and i know a lot of people who are considering it now that they have graduated and got a job.

    I have never thought about it and have no desire to do so for many reasons

    But is it something I would regret or something I should definitely be thinking about now ?

    Have you considered buying a house yet and getting a mortgage?

    What do you think the right age to do so is ??
    I would advise most people to get on the property ladder as early as possible,as long as its financially viable. Im a big fan of passive income, which property can provide.
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    I'd say it was fairly important for me. I'm currently living at home with my parents and as much as I'd love to move out into a rented flat I just can't bear the thought of helping to pay someone else's mortgage when I could just wait a couple of years and hopefully save a deposit for a place of my own. Don't know how long I'll last though...I like my independence too much!
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    Thanks to my mother chipping in a large amount of money (I already had some savings), when I was 18 I was able to buy a house outright. It was only a small one (2 bed terrace back to back) and it didn't cost a lot as far as houses go, but I'm so glad I got on the property ladder when I did.

    We then went into a 3 bedroomed detached but we had a mortgage on it. When our business went belly-up though, we couldn't afford to pay the mortgage, and we were forced to sell the house to pay off the mortgage.

    With the remaining money we bought the house we currently own. A 3 bedroomed semi. It's a little smaller than our last house, but I would never go back to having a mortgage. I can't bear the thought of not being able to pay the mortgage again. Losing our last house was absolutely devastating tbh.

    Thing is though, if I hadn't gotten onto the property ladder a decade ago, there is no way in hell I would be able to afford to buy one now - likely not even with a mortgage, let alone outright. It pretty much sucks how difficult it is now for young people to buy property. I have no idea whether or not my kids will even be able to afford one with a mortgage when they grow up. I have visions of three thirty-odd-year-olds still living with us!
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    I think a lot of young people overrate this and make bad decisions, often influenced by family and friends. The case for it is usually that renting is 'dead money' and that property is an asset that will increase in value so it's an investment. The first part is true but the second part is uncertain, property can increase or decrease in value, people that bought property in the mid 1990s and early 2000s made huge gains on their property because wages were rising fast and also the willingness of mortgage lenders to lend bigger and bigger multiples of someones income was rising, so that always meant more buyers coming into the market, with more ability to spend big to buy, hence house prices were driven up. Since the financial crisis wages have flatlined and lenders have got very shy about lending, and it is likely to be a similar situation for many many years ahead due to the depth of this crisis. So I would think in terms of buying a house as an asset you should expect it to hold its value or make modest gains over a long period, rather than seeing property as a guaranteed gold mine investment.

    The other argument that renting is dead money is a valid one because even if your house doesn't appreciate in value, at least you own something at the end of it, so I can understand that as a motivation to buy BUT you have to offset that against the removal of flexibility in the labour market, which is a big thing for young people especially graduates. When you are climbing the career ladder you often have to take opportunities to move in different cities and it is much easier if you are renting, and that mobility can end up meaning faster career progression and higher salary growth. I think when you have made a few career moves and got a good solid job with good income in a location where you know you will want to stay in the long run, it's more sensible to buy then. I do know a few graduates at work for instance that miss out on opportunities because they've rushed to buy houses at 23 or 24 and it does restrict them in career terms.

    Obviously if you know you are going to want to be in the location for the long term then that changes it, eg if you want to stay round your family, or if you have a young family/settled relationship etc then you aren't losing anything by tying yourself down.

    But as a general rule I think most young people who are in the early stages of a career, and don't have kids, would be better keeping their flexibility and renting, unless they have a reason why they know they are going to want to stay in a particular area for the long term.
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    I would love to, houses in Ireland are at rock-bottom prices, houses that went for €500,000 plus a few years ago are now under €200,000. Thousands of people in massive negative equity as a result. Absolutely the time to buy, not a viable option at the moment, I am currently unemployed and my boyfriend is still in college. I hope prices stay this low or fall lower for the next few years (which is what is predicted to happen) to give us a chance.
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    i wouldn't buy it i would rent especially in my 20's. i plan on moving where and when the need arises with regard to my career so buying is not feasible.
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    I know people like 22 who already have there own house, usually with a partner though and these aren't graduates in high paying jobs, so I admire that they've managed to do it. But then I know people who have graduated and just want to rent.
    I'm trying to save for a deposit at the moment though, though I doubt i'll be getting my own house for a few years at least not until I return to uni (hopefully).
    I think it is harder to get onto the propety ladder nowadays though, that's why a lot of people rent I suppose.
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    (Original post by MagicNMedicine)
    I think a lot of young people overrate this and make bad decisions, often influenced by family and friends. The case for it is usually that renting is 'dead money' and that property is an asset that will increase in value so it's an investment. The first part is true but the second part is uncertain, property can increase or decrease in value, people that bought property in the mid 1990s and early 2000s made huge gains on their property because wages were rising fast and also the willingness of mortgage lenders to lend bigger and bigger multiples of someones income was rising, so that always meant more buyers coming into the market, with more ability to spend big to buy, hence house prices were driven up. Since the financial crisis wages have flatlined and lenders have got very shy about lending, and it is likely to be a similar situation for many many years ahead due to the depth of this crisis. So I would think in terms of buying a house as an asset you should expect it to hold its value or make modest gains over a long period, rather than seeing property as a guaranteed gold mine investment.

    The other argument that renting is dead money is a valid one because even if your house doesn't appreciate in value, at least you own something at the end of it, so I can understand that as a motivation to buy BUT you have to offset that against the removal of flexibility in the labour market, which is a big thing for young people especially graduates. When you are climbing the career ladder you often have to take opportunities to move in different cities and it is much easier if you are renting, and that mobility can end up meaning faster career progression and higher salary growth. I think when you have made a few career moves and got a good solid job with good income in a location where you know you will want to stay in the long run, it's more sensible to buy then. I do know a few graduates at work for instance that miss out on opportunities because they've rushed to buy houses at 23 or 24 and it does restrict them in career terms.

    Obviously if you know you are going to want to be in the location for the long term then that changes it, eg if you want to stay round your family, or if you have a young family/settled relationship etc then you aren't losing anything by tying yourself down.

    But as a general rule I think most young people who are in the early stages of a career, and don't have kids, would be better keeping their flexibility and renting, unless they have a reason why they know they are going to want to stay in a particular area for the long term.


    I think this is the key really. I like the way you broke it down and analysed the situation!
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    (Original post by MagicNMedicine)
    I think a lot of young people overrate this and make bad decisions, often influenced by family and friends. The case for it is usually that renting is 'dead money' and that property is an asset that will increase in value so it's an investment. The first part is true but the second part is uncertain, property can increase or decrease in value, people that bought property in the mid 1990s and early 2000s made huge gains on their property because wages were rising fast and also the willingness of mortgage lenders to lend bigger and bigger multiples of someones income was rising, so that always meant more buyers coming into the market, with more ability to spend big to buy, hence house prices were driven up. Since the financial crisis wages have flatlined and lenders have got very shy about lending, and it is likely to be a similar situation for many many years ahead due to the depth of this crisis. So I would think in terms of buying a house as an asset you should expect it to hold its value or make modest gains over a long period, rather than seeing property as a guaranteed gold mine investment.

    The other argument that renting is dead money is a valid one because even if your house doesn't appreciate in value, at least you own something at the end of it, so I can understand that as a motivation to buy BUT you have to offset that against the removal of flexibility in the labour market, which is a big thing for young people especially graduates. When you are climbing the career ladder you often have to take opportunities to move in different cities and it is much easier if you are renting, and that mobility can end up meaning faster career progression and higher salary growth. I think when you have made a few career moves and got a good solid job with good income in a location where you know you will want to stay in the long run, it's more sensible to buy then. I do know a few graduates at work for instance that miss out on opportunities because they've rushed to buy houses at 23 or 24 and it does restrict them in career terms.

    Obviously if you know you are going to want to be in the location for the long term then that changes it, eg if you want to stay round your family, or if you have a young family/settled relationship etc then you aren't losing anything by tying yourself down.

    But as a general rule I think most young people who are in the early stages of a career, and don't have kids, would be better keeping their flexibility and renting, unless they have a reason why they know they are going to want to stay in a particular area for the long term.
    I think this is good advice. I own a flat, and I don't regret that decision, but the biggest downside is that it will make moving more awkward if I ever decide to do that.
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    (Original post by Infallible)
    I'd never buy in the UK because you just don't get enough for your money.
    Up north isn't too bad. London is just silly with their prices.
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    if you buy a house, your house can increase in value = more money in your pocket. if you rent, then you have zero chance of getting more money in your pocket. then again, you won't lose any money either. the trend is that house prices will continue to rise.
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    When considering the purchase of a house the interest you pay on it needs to be taken into account along with the general trend of property values. Right now (in my area at least) with a £100k mortgage you're looking at depreciation and interest above what you would expect to pay renting.

    I expect to have to move at some point and as such renting will be my best option for a good while. My sister is currently being driven mad by living at home at 27 saving up for a deposit but I really don't buy into this "property is investment" lark right now.

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