A house, a house, my kingdom for a house (well its close enough)
Posted on 05. May, 2005 by Cashzilla in housing
In today’s current climate, how is a first time buyer (FTB) meant to get onto the housing ladder. Recent reports have shown that the average FTB is looking for a mortgage of over £135k and earns £38,533 with couples having a second income of £22,485.
Quite frankly I find these figures astonishing! I left college a few years ago and have had several jobs in retail and financial institutions, which make up a large proportion of the British employment sector, and yet the percentage of people I know earning over £20k is extremely small compared with the number of FTB’s I know. It seems to be the norm that to get on the property ladder you have to exaggerate your income and so saddle yourself with huge long-term debts to add onto anything you may have if you went to college. The cost of housing is just rediculous.
I am glad the increase in house prices is supposedly slowing down, but it needs to either go in reverse or workers wages in the lower paid industries, needs to significantly increase before most of us stand a chance of owning our own houses without being financially crippled up until our retirement, when we will have even less money due to not having a state pension anymore.
Ahh, grumble, grumble, rant, grumble.
Related personalfinanosaurus posts:
My name is not Mike
May 16th, 2005
Fool’s Gold
An old pal from uni came to visit me this weekend. Although he has yet to really find his direction in life – I find him still contemplating get-rich-quick-property schemes that he was planning in his final year at university. He still pines for bargain properties that he saw on the market and wanted to acquire with the help of a friend’s family income, but couldn’t buy because of university commitments.
I want to state now that in principle there is nothing wrong with this, it’s just that:
1. I wish so many of my friends would stop fantasising over buying rundown property and doing it up. Damn Property Ladder!
2. I wish they planned on doing so through saving up their own earnings, rather than relying on parental deposits
My current flatmate also rhapsodises about the allure of property, and has combed the internet for all available advice on how to make money. I admire this determination (especially in the second year of a degree), though think the property market is over-simplified and internet schemes can be dubious and over-rated.
I can think of several friends (all mid to late twenties), who have stretched themselves to buy property and I’d question whether they have been really happy doing so. They don’t have the money to travel, paying the mortgage is always an issue and when financial matters become really serious, they lack the flexibility to move or change, because of the mortgage.
I get worried about not being able to afford property and it is a significant influence in driving forward a career, but in a year’s time, if I decide to work abroad or save up for a snow-boarding holiday (which I have always wanted to do, but have never been able to afford) – then I will do so. My grandfather, who is 92 years old and very abstemious with money, insists on walking, cycling and bus-ing everywhere to save money. He’s a fighter and I admire that, but he has also out-lived two wives and spends his golden years feeling lonely and worrying about his finances. He could afford to travel first class around the UK and to Europe, but he insists on keeping costs low wherever possible. If he was younger, this philosophy should be admired, but at 92, I am wondering how old he had to be, before he feels he can live a little.
There are two friends of mine who are taking sabbaticals from their corporate jobs to move to Canada. Whilst they were fortunate to land jobs with a rather apathetic corporate company, they have always been sufficiently energetic to launch summer festivals in their back garden, they both play in different bands; they go to gigs (including Snow Patrol several times) and have been quite clear that although bills need to be paid and savings are useful, the agenda is ‘a good time’. The apathetic corporate employer has given them a certain amount of financial freedom, but whilst the company flounders for a direction, they do not. I am certain that because of this attitude, they will always be successful.
The two friends above though are exceptional exceptions – many of my friends are still looking for a way to get rich quick, thanks to shows like ‘Location, Location, Location’, Big Brother and The Apprentice etc. Whilst these shows involved originality and hard work, these qualities no longer seem to be fashionable and we dream about becoming rich, without any interest in how to get there.
I am so Dougie Houser.