Next Stop Recession?

[midlifecrisis]

Maybe some Americans could do with losing a few pounds... Just saying.

 

[CatmanV2]

Nice to see the lead article on the news this morning about the fall in fuel prices....

C

 

[bigbob]

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You can nationalise anything and sell at sub market prices as much as you want as long as the public pay more in tax on aggregate to fund it.

I’m more worried about Italy bouncing out of the euro in the next five years. That’s the biggest risk to Euroland IMHO.

 

[fphil]

You can nationalise anything and sell at sub market prices as much as you want as long as the public pay more in tax on aggregate to fund it.

You can nationalise anything, recapitalize it and zero its debt as long as the public pay more in tax now or later on aggregate to fund it.

 

[Sam McGoo]

That is true in some cases Geoff but the way the silly house prices have gone in this country some low earners could sacrifice all their treats and still not have enough money for a deposit on a house.

But if their priorities were right and they saved that money, they'd be better positioned when the inevitable price correction happens.
It seems that its just not a priority to many people anymore.....but they'll still moan about it.

 

[Felonious Crud]

But if their priorities were right and they saved that money, they'd be better positioned when the inevitable price correction happens.
It seems that its just not a priority to many people anymore.....but they'll still moan about it.

I can imagine that, for some people, buying a house is such an unattainable notion that even trying to save enough for a deposit is pointless, so they don't bother and spend their limited disposable on 'fun' stuff instead. I mean, what's a tenner a month on Netflix compared to trying to find a 50k deposit?

 

[Sam McGoo]

I can imagine that, for some people, buying a house is such an unattainable notion that even trying to save enough for a deposit is pointless, so they don't bother and spend their limited disposable on 'fun' stuff instead. I mean, what's a tenner a month on Netflix compared to trying to find a 50k deposit?

Yeah you're right, I get that. There will always be those for which buying a house seems unattainable, especially where we are in the property cycle. But there are plenty that 'could' if they tried hard enough and were willing to make sacrifices.

It just seems strange to me, the amount of people I know that moan about stuff like that and are having to rent, but are happy paying £100+ a month on Sky, netflix, spotify etc.. £500 a month on a car, and are eating and drinking out a few times every week.
Maybe it's just me, but I just don't understand the priorities of today's generations. (BTW I'm not that old either lol)

 

[Nibby]

they'd be better positioned when the inevitable price correction happens.

To come down to a realistic price is something I’ve not seen happen in 35 years, prior to that they were more reasonable but you run the risk of a hike in interest rates overnight.

 

[Simon1963]

I can imagine that, for some people, buying a house is such an unattainable notion that even trying to save enough for a deposit is pointless, so they don't bother and spend their limited disposable on 'fun' stuff instead. I mean, what's a tenner a month on Netflix compared to trying to find a 50k deposit?

There’s also the trap of renting. I see people, my daughter included, renting because a deposit for a house is off the scale and once rent is paid there’s little money left to save. For example my son pays £600 per month mortgage for his place yet the exact same house next door pay £1200 per month in rent.

 

[MarkMas]

This is exactly where so many people go wrong. Times are hard but they can’t give up the material sh*t they don’t need.

People were slagging off Kirstie Allsopp for saying that people can’t afford a deposit for a house as they can’t give up Netflix, coffee and gym memberships.
But she’s spot on.

When people can’t pay their bills and go bankrupt they’ll claim it’s the governments fault but will still be watching the latest Netflix series!

Yes, absolutely. If they gave up those luxuries they would have a deposit in only about 40 years. What is wrong with young people these days?

Netflix Premium (monthly rate £15.99) Annual: £192
Gold's Gym (monthly rate £27.99 Annual: £336
Starbucks Latte Venti (every workday £2.85) Annual: £713
Total annual savings: £1,240

Average London House: £523,666
10% Deposit: £52,367

Years to get deposit: 42.2

​

 

[MarkMas]

I bought my first flat in London in 1988 for £90,000; my salary as a 30-year-old mid-level executive was £24,000pa. An identical flat is currently for sale for £650,000, my 30-year-old son's salary as a mid-level civil servant is £45,000. Don't give me BS about 'not wasting money on coffee'.

 

[Scaf]

There’s also the trap of renting. I see people, my daughter included, renting because a deposit for a house is off the scale and once rent is paid there’s little money left to save. For example my son pays £600 per month mortgage for his place yet the exact same house next door pay £1200 per month in rent.

I encouraged my kids to stay living a home and save for a deposit rather than rent, knowing that once they started renting saving a deposit would be almost impossible.

 

[GeoffCapes]

Yes, absolutely. If they gave up those luxuries they would have a deposit in only about 40 years. What is wrong with young people these days?

Netflix Premium (monthly rate £15.99) Annual: £192
Gold's Gym (monthly rate £27.99 Annual: £336
Starbucks Latte Venti (every workday £2.85) Annual: £713
Total annual savings: £1,240

Average London House: £523,666
10% Deposit: £52,367

Years to get deposit: 42.2

​

I think Ms Allsop was making the point that you have to make sacrifices to save for a deposit. As you have quite rightly pointed out, Netflix and gym memberships and coffee won't let you save enough.

However, the same people spend 100 quid on Sky and Spotify and 500 quid on car finance each month, eat out a couple of times a week or get takeaways. Add that to the mix.

And it's about 5 years to save.

 

[MarkMas]

I encouraged my kids to stay living a home and save for a deposit rather than rent, knowing that once they started renting saving a deposit would be almost impossible.

So you didn't charge them a commercial rent at home, then?

I told my kids they could stay at home, and the rent would start a £50 per month and go up by £50 every month until they were gone.
But as it turned out, one went to London (via Birmingham) and the other to Edinburgh so it wasn't an issue.

 

[MarkMas]

I think Ms Allsop was making the point that you have to make sacrifices to save for a deposit. As you have quite rightly pointed out, Netflix and gym memberships and coffee won't let you save enough.

However, the same people spend 100 quid on Sky and Spotify and 500 quid on car finance each month, eat out a couple of times a week or get takeaways. Add that to the mix.

And it's about 5 years to save.

Yeah but saving for a £2,000 deposit (as I did) is a bit different from saving for a £50,000 deposit.

 

[GeoffCapes]

Yeah but saving for a £2,000 deposit (as I did) is a bit different from saving for a £50,000 deposit.

Very true. But wages would hopefully have increased in that time.....
I guess it all depends on what sacrifices you want to make to get your own home.

 

[Scaf]

So you didn't charge them a commercial rent at home, then?

We charged them a nominal £50 p/w providing they could demonstrate they were saving.

 

[FIFTY]

Very true. But wages would hopefully have increased in that time.....
I guess it all depends on what sacrifices you want to make to get your own home.

Salaries have not increased exponentially like house prices.

You can make all the sacrifices you want but if you are not backed by a wealthy family it costs a considerable amount to pull yourself up by your boots so by the time you are earning you have a lot of debt, netflix and a mobile phone contract ain't going to make that much of a dent.

My wife and I paid off our student loans fairly recently. I understand we are in a 4% minority who manage to do so... I think that stat will get worse as the tuition fees have gone up since we went to uni 15+ years ago. My niece is considering going to university now and I explained to her it's likely a choice between a house or an education so make sure it counts for something, I hope that won't be the case for her though!

 

[Felonious Crud]

Yeah you're right, I get that. There will always be those for which buying a house seems unattainable, especially where we are in the property cycle. But there are plenty that 'could' if they tried hard enough and were willing to make sacrifices.

It just seems strange to me, the amount of people I know that moan about stuff like that and are having to rent, but are happy paying £100+ a month on Sky, netflix, spotify etc.. £500 a month on a car, and are eating and drinking out a few times every week.
Maybe it's just me, but I just don't understand the priorities of today's generations. (BTW I'm not that old either lol)

Yeah, I agree with you there. Prioritisation is not a widely spread talent, it seems.

 

[MaserMM]

Millennial Entitlement.