Home Ownership

[Lord Bracknell]

The threads about Margaret Thatcher have got me thinking about what I think is one of the most devastating legacies of her period in power - the disappearance of affordable housing.

I know it was a long time ago, but when I first got into home ownership, it was a three bedroomed house at a price that could be fully funded from a mortgage of three times a teacher's salary and no inheritance from any dead relatives. I was in my twenties.

How about today? How are people in their twenties getting into home ownership? If at all?

 

[A Melbourne Albion Supporter]

I think here in Oz it is just as bad.

The average house price if you don't want to live in a shit hole like Croydon which is more than 20kms from the city is around $600k.

I really feel for the average wage earner who has to pay $300k for house 40 kms from the city with poor train and bus service.

Pre 1999 housing was fairly affordable. Then came the GST (aka VAT) and a grant to supposedly offset the GST.

This saw housing prices sky rocket from 2000 to now.

As an example a friend bought a 2 bedroom unit in late 1999 for $160k (a good price probably a little cheaper as it was a deceased estate). So based on a 20% deposit that is a decent mortage to handle.

Fast forward to say the end of 2004, this same unit with some renovation would now sell for high $300's. For the average person to afford this, they would need to save $60k for a deposit (more than most yearly wages) then on top of that you would need about 30k to cover fees, etc. That is almost $100k before you begin paying off your $240k mortage.

 

[Stumpy Tim]

Bought my first house at 24, second at 25, and third at 28. Sold the first one & had an offer accepted on the second

 

[A Melbourne Albion Supporter]

Well done mate. Have you bought anything in Sydney?

Whenever i think Melbourne is bad i just think of Sydeny and a 2 bedroom fibro shack in liverpool for $450k

 

[Stumpy Tim]

Yep - got a 2 bedroom place on the border of the city & Surry Hills. Cost $470k last February (i.e. 13 months ago). 100 square metres, with a gym & pool on-site. Bit of a bargain I think

 

[A Melbourne Albion Supporter]

A bargain I'd say

I have something similar it sounds like here in inner Melbourne, (Kew), no pool or gym though $283k bought in July 04

 

[Stumpy Tim]

Melbourne is definitely cheaper than Sydney! I bought mine Feb 05 & the market has been pretty stagnant since I moved to Sydney in May 03.

 

[Goring Gull]

Before i moved up North and bought my first house i lived in Lewes, the chance of any first time buyer being able to afford anything reasonable i.e 2 bedroom house with garden even on a decent wage of 25k it was impossible.

So how anyone on teh average of 16k a year could buy anything in Brightin, Hove, Lewes Worthing come to think of it anywhere in south i'll never know.

I've made 40 to 50k in the 2 and a half years i've been up North. Even up here first time buyers are struggling now.

 

[Dick Knights Mumm]

I really don't know Lord B. It is a major concern. They are going to need bloomin good jobs to afford anything, and then how they will be able to afford to start a family ........................ I do not expect them to live close to us - that's for sure. Unless they are actually living with us.

I do not see a solution - except for a sea-change in current thinking about house purchase.

 

[dwayne]

I'm not going to post in this

 

[dougdeep]

Selling off the council houses was a bad step. Unless you bought yours for £21,000 like I did of course.

 

[sir danny cullip]

I'm not going to post in this

O please do!

 

[Chicken Run]

So even house price rises are Thatchers fault, grow up LB or be more detailed in your assesment

 

[Chicken Run]

And by the way house prices have risen far more during the current administration than hers, as I said be more detailed and stop sounding like my dad during the war

 

[Goring Gull]

So even house price rises are Thatchers fault, grow up LB or be more detailed in your assesment

It's not directly Thatchers fault but if all the council houses hadn't been sold off then there would be far more available to people who couldn't afford a non council house. In my opinion this would make council estates far better places as you'd have a cross section of people living there than in some cases now a predominantly council area where you can still find one is full of all the dregs of society and the area just gets worse.

 

[Chicken Run]

A cross section would probably describe Bevendean in the mid ninties, when there was a mix of council and private ownership, the estate you describe is more like Durrington

 

[Goring Gull]

A cross section would probably describe Bevendean in the mid ninties, when there was a mix of council and private ownership, the estate you describe is more like Durrington

West Durrington by tescos Per chance - I remember as a kid when that was all fields

 

[Goring Gull]

On a serious note i'm glad i haven't got kids that be about the age to move out a or want to buy a house at the moment. God knows what will happen when my lad who is nearly two wants to buy a house most places will probably be a million quid a pop.

My sister has just flogge her two bed flat in Sothampton and has bought a house in Oxford where she is now working - fcuk me Oxford is not cheap!

 

[caz99]

We are just in the process of buying our first place, A two bedroom flat and its been a struggle. We werent really ready to purchase yet but if we dont bite the bullet now we are going to be stuck at home forever. We were going to carry on saving but we would just be playing catch up all the time. We thought it just best to try and get on the ladder now.

I cant see house prices going down with the economy the way that it is at the moment.. The other things that schocked us were things like stamp duty, land fees etc all the things you dont think about.

The stamp duty threshold in this area is ridculous where can you find a decent property for less than £120.000 in the southeast. its silly really.

We are also getting married next June and then I want lots of little children but as our wages have not increased in line with house prices we will just have to keep saving.

 

[Beach Hut]

There is an issue compounded by the fact that when young people should be in a position to buy they have a huge debt to pay off for futhering their education and going to university.

By having a debt of around £20K - £30K this delays the process of getting onto the property ladder, getting married and starting a family.