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Are you aware that you are screwed

A 2 bedroom flat in the Greater London area costs around 600k. If you take the mortgage lending multiple of 4, you need to earn 150k to buy it. That is similar to the wage of David Cameron. If you ask for parents for help many of those in that generation will be in denial of this and refuse to help, and laugh referring to the situation in 1960s, 70s and 80s, and how their parents arranged things. You are screwed because of decades of economic policy which was designed to push up house prices because it was popular with voters.

That is why you should focus your attention not on what you consider to be underprivileged groups but on yourself. You will do everything right and be struggling much more than many who do nothing today. And it will only get worse. You have been burdened with your parent and grandparents national debt. You will be paying penance for something that is not of your making and its a very sad situation for people who have the compassion to notice this.

For reference, Zoopla London property realtime averages:

http://www.zoopla.co.uk/home-values/browse/london/

Average UK house price 250k:

http://www.bbc.co.uk/news/business-26239609

You only need to earn 62k, but they are rising at 8% a year:

http://www.bbc.co.uk/news/business-25575964

So by the time you earn 62k, that will no longer be enough and you will have I earn 120k.

You need to fight back because you have been sold down the river.
(edited 10 years ago)

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Reply 1
Avatar for De Chirico
De Chirico
9
Original post by Jupiter2014
A 2 bedroom flat in the Greater London area costs around 600k. If you take the mortgage lending multiple of 4, you need to earn 150k to buy it. That is similar to the wage of David Cameron. If you ask for parents for help many of those in that generation will be in denial of this and refuse to help, and laugh referring to the situation in 1960s, 70s and 80s, and how their parents arranged things. You are screwed because of decades of economic policy which was designed to push up house prices because it was popular with voters.

That is why you should focus your attention not on what you consider to be underprivileged groups but on yourself. You will do everything right and be struggling much more than many who do nothing today. And it will only get worse. You have been burdened with your parent and grandparents national debt. You will be paying penance for something that is not of your making and its a very sad situation for people who have the compassion to notice this.


What is this based on? Very disappointing thread. I came here expecting some kind of prophecy.
Original post by Jupiter2014
A 2 bedroom flat in the Greater London area costs around 600k. If you take the mortgage lending multiple of 4, you need to earn 150k to buy it. That is similar to the wage of David Cameron. If you ask for parents for help many of those in that generation will be in denial of this and refuse to help, and laugh referring to the situation in 1960s, 70s and 80s, and how their parents arranged things. You are screwed because of decades of economic policy which was designed to push up house prices because it was popular with voters.

That is why you should focus your attention not on what you consider to be underprivileged groups but on yourself. You will do everything right and be struggling much more than many who do nothing today. And it will only get worse. You have been burdened with your parent and grandparents national debt. You will be paying penance for something that is not of your making and its a very sad situation for people who have the compassion to notice this.


http://www.needaproperty.com/property/for-sale/Uxbridge-UB8/2-Bedroom-Flat-6167089

Uxbridge picked, as its where I currently live.. its zone 6, and that is probably an awful flat..

But its besides the point, a 2 bedroom flat in 'greater london' does not cost 600,000


(just thought I would adress one point, rather then focus on the the rest of the rubbish in your post..)
Reply 3
Avatar for crayz
crayz
Original post by Jupiter2014
A 2 bedroom flat in the Greater London area costs around 600k. If you take the mortgage lending multiple of 4, you need to earn 150k to buy it. That is similar to the wage of David Cameron. If you ask for parents for help many of those in that generation will be in denial of this and refuse to help, and laugh referring to the situation in 1960s, 70s and 80s, and how their parents arranged things. You are screwed because of decades of economic policy which was designed to push up house prices because it was popular with voters.

That is why you should focus your attention not on what you consider to be underprivileged groups but on yourself. You will do everything right and be struggling much more than many who do nothing today. And it will only get worse. You have been burdened with your parent and grandparents national debt. You will be paying penance for something that is not of your making and its a very sad situation for people who have the compassion to notice this.


You are only screwed if you agree to be screwed. If you decide you won't work or contribute to anything then it is kind of hard to be screwed over.
Don't live in Greater London? My friend's entire detached house cost 300k.
£600,000 for greater london? Nah mate, maybe in central london
Reply 6
Avatar for lovepeace
lovepeace
9
£600000 for a flat thats ridiculous were i live in greater london you can get a 4 bedroom house for under £350000 and i saw one a 4 bedroom house in my area on sale for £290000

Posted from TSR Mobile
Reply 7
Avatar for Shazzarr
Shazzarr
6
How about dont live in london for starters.
In the north western area semi detatched 3-5 bedroomed houses start at about 120k-250k
Terraced houses start from 50k-80k
Renting is about 350-450pcm
And flats cost roughly the same as terraced houses, 60k upwards^^
Personally i think we like cheap stuff up here :biggrin:
(edited 10 years ago)
Reply 8
Avatar for Juichiro
Juichiro
18
Original post by lovepeace
£600000 for a flat thats ridiculous were i live in greater london you can get a 4 bedroom house for under £350000 and i saw one a 4 bedroom house in my area on sale for £290000

Posted from TSR Mobile


whereabouts in london do you live?
Reply 9
Avatar for lovepeace
lovepeace
9
Posted from TSR Mobile
Reply 10
Avatar for lovepeace
lovepeace
9
Original post by Juichiro
whereabouts in london do you live?


North london

Posted from TSR Mobile
well he has a point ,earnings are far from property prices. Although Average London wage is 32k. However 77% of people living in london roughly rent. Further out you go this changes.

In other parts of the country house prices are cheaper but wages are low too.

But yes people are screwed.
No I won't. My dad already has a few propertys and they will be mine in the future anyway so I won't even have to buy a house.
Reply 13
Avatar for crayz
crayz
Original post by Ribbit1234
No I won't. My dad already has a few propertys and they will be mine in the future anyway so I won't even have to buy a house.


You won't have to worry people like you will be the first ones purged during the revolution :wink:
Reply 14
Avatar for Wade-
Wade-
10
Original post by Jupiter2014
A 2 bedroom flat in the Greater London area costs around 600k. If you take the mortgage lending multiple of 4, you need to earn 150k to buy it. That is similar to the wage of David Cameron. If you ask for parents for help many of those in that generation will be in denial of this and refuse to help, and laugh referring to the situation in 1960s, 70s and 80s, and how their parents arranged things. You are screwed because of decades of economic policy which was designed to push up house prices because it was popular with voters.

That is why you should focus your attention not on what you consider to be underprivileged groups but on yourself. You will do everything right and be struggling much more than many who do nothing today. And it will only get worse. You have been burdened with your parent and grandparents national debt. You will be paying penance for something that is not of your making and its a very sad situation for people who have the compassion to notice this.


Not sure where you get your price from but it's very very wrong for an average two bedroom flat


Posted from TSR Mobile
Original post by Ribbit1234
No I won't. My dad already has a few propertys and they will be mine in the future anyway so I won't even have to buy a house.


Well done you :awesome:
Original post by Ribbit1234
No I won't. My dad already has a few propertys and they will be mine in the future anyway so I won't even have to buy a house.


Yes the main problem is when people think that makes them special
Personally I see no point in mortgages. Don't you still have to pay a certain amount monthly, sometimes more than renting. And then you get tied to the mortgage for the rest of your life before the bank repossesses it. Can you even sell the mortgage? Someone pls explain to me how mortgages work.
Original post by Ribbit1234
No I won't. My dad already has a few propertys and they will be mine in the future anyway so I won't even have to buy a house.


Not if we can pass the anti-inheritance laws by then.
Original post by HumanCitizen
Personally I see no point in mortgages. Don't you still have to pay a certain amount monthly, sometimes more than renting. And then you get tied to the mortgage for the rest of your life before the bank repossesses it. Can you even sell the mortgage? Someone pls explain to me how mortgages work.


If you can get a mortgage in many cases it is cheaper than paying rent and over time you are paying it off and will acquire the asset in the end.

So if you are sure you want to stay put, have a steady job etc then it makes sense.

However a lot of young people overrate the value of mortgage vs rent because they underestimate a few things:

1. The cost of ongoing repairs, which is borne by a landlord when you rent but falls entirely to you as an owner-occupier

2. The cost of being unable to easily relocate for work, (this is less of an issue if you own a home in London or within commuter distance to London) if you are in the early part of a career then being able to move around to take advantage of career opportunities helps your earning potential

3. The cost of renting it out to someone else if you don't know what you are doing in terms of DIY. This is related to point 2, because you get people saying things like "well if I move I'll just rent somewhere else and get income from the one I own by renting it out". If you aren't on hand to do the repairs yourself and need to use a letting agency their fees and the fees for repairs can quickly mount up and eat away your rental income

4. Despite what is often portrayed in the media, owning property isn't a one way bet that will always increase in price, you get fast rises and bubbles but then also market corrections. Over time it generally increases in price but I wouldn't rely on it as a form of investment.


In general I think if you know you are going to be staying put and especially if you are in a couple and looking at having kids etc, buying a home makes sense if you can get a mortgage. If you are just trying to "get on the property ladder asap" though thats where people make bad decisions. Renting isn't as bad as some people think.

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