scoobynutta555

There were people who were racking up debts of 5k a year at my uni, 15 years ago, with no fees to pay. These were also generally the students who pissed away their money and dropped out after a couple of years, and some of them had grants . There is no excuse whatsoever for graduates to rack up masses of debt not attributable to fees.

davegtt

Exactly, most of the debts Ive seen Students taking on are to buy a car and go out friday and saturday nights instead of a part time job.

Funny how you presuming back in my day... Im 26 and providing an unbiased angle on the debate. Not my fault if you want to ignore the point. Wonder what the house price ratio to earnings was say 20/30/40 and 50 years ago.

stilover

Not true. After the first year, students have to find their own accommodation. How do they pay for that? Parents ? Yes, if the parents pay, but what if their parents can't pay, what then? Student loans perhaps? meaning debt.
They could get part time work of course, yes, work most nights in a pub/club etc getting enough money together to pay the rent. What happens to course work? It suffers through lack of commitment and tiredness.
Being debt free after leaving Uni, is very rare. A friend of mine did 5 years at Uni on a Architectural course. The guy was very committed to his course work, and very rarely went out just to get p1ssed, yet he left with over £15k in debt. Why? Rent, Food, course necessities etc. On his same course was a lad who daddy payed for everything. Sent him £2k cheques every month. Obviously he left Uni with no debt. To his credit though, he did pay for nights out for my mate.

Even those students who do leave debt free, having to buy your first home at £150k, on a wage of £18-22k say, is impossible.

Also look at inheritance tax. Many people now will probably have to sell the house their parents have left them, just to pay the tax.

davegtt

Whats wrong with going to a local university and living with your parents? thats the choice people make if they want to go onto further education, ok in some situations you may have to travel for particular courses but generally you should get to a Uni within a reasonable distance to yourself.

Inheritance tax, didnt think you got charged tax if your keeping the property, only if you sold it would you be liable for tax no? So why would people NEED to sell up just to pay the tax?

Again, only London and surrounding areas do you have to buy your first home of £150k You should pick something up cheaper than that.

InvisibleMan

blah blah blah oh poor students. theyll get good salaries quicker & soon enough so i wish theyd stop whinging....

Petem95

You get taxed 40% of the value of the estate, on anything over £285k. So say your parents died and left an estate worth £495k, you'd get a nice tax bill of £82,000 to pay.....

Its not just London and the surrounding areas where you need to be spending at least £150k to get pretty much anything, its most of the South. Static caravan things are fetching £100k around here FFS! (SW)

fitzscoob

You might just get a 1 bed flat in the South East for £150k.

Of course you can always go cheaper if required, but it depends on how you expect to live.

lozgti

Nooooo! kids don't leave home anymore! We are becoming a third world country.We will soon end up with your children marrying and living at the parents and then having kids.

Mind you,thats how a lot of families got on the property ladder.They don't mind living one whole family to a bedroom.Nightmare

davegtt

Plenty of flats for £70k upwards within 40miles of London... Dont know what your all moaning at

MikeCardiff

iTrader: (2)

The problem that still faces FTB's though is that house prices have risen a lot more than wages have, meaning that for many of them they are looking at mortgages that would be 5 or 6 times their salary to buy somewhere that isnt a slum.

It doesnt matter how much their house goes up in value over the next 10 or 20 years, they have to pay high mortgage repayments NOW, because they had to borrow so much in the first place.

Also consider at the moment that interest rates are at their lowest they have been for years - if people have to stretch to afford the repayments now, what are they going to do in a few years if the interest rate goes up 2 or 3 %, which isnt out of the question.

scoobynutta555

Why is it a necessaty to own your own property, why not rent one? Works for the majority of people in other countries, Germany being a prime example. Most of you lot don't own your own cars, what's the diff

J4CKO

iTrader: (1)

Is this because PSL owns them all ?

davyboy

Any chance we can make the "housing crash is coming" thread a sticky?

Webby?

dsmith

Thats the problem - expections above earnings. We've been told by the ***** government that everythings so rosy so many times people believe them - then refuse to believe they may have to compromise their own perception of what they should be able to afford.

davyboy

FTB's are greedy.

They always want a 2 bed house.....no need. Get a one bed, job done, welcome to the property ladder.

Petem95

Yeah its a disgrace isnt it, I mean if 3 of them chipped together they could get a 1bed ex-council flat and just stick a bed in the kitchen and one in the bathroom. I mean they just expect it all these days all dont they?.....

davyboy

They want the cars, the holidays.....boo hoo, my heart bleeds for them.

Nexuas

Being 26 and having been on the property ladder since th age of 21, I have very little sympathy for the people who claim they can not afford to buy a house when they are still living at home with their parents. However they can afford to buy a new car and go out drinking all the time.

On £25K a year you COULD save £10K A YEAR in three years you have £30K and that is a heafty deposit in anybodies book, also with the discipline you will have learnt in your money control shelling out £800 a month in a mortgage is not going to come as too much of a shock. It all depends on how much you want it, and what you are willing to give up to get it. And if you are showing this sort of comitment to saving to move out I am sure your parents would let you live almost rent free as I am sure it is in thier intrest to get rid of their kids...

Although my mother was moaning on the phone the other week how all her three kids have left home (We are all in our 20's) when other parents she knows still have their kids at home, she saw this as being a bad mother as we all wanted to get out, I pointed it out that because they were good parents we learnt how to work for a living and buy our own things without using "unnecessary credit"

OK I have not had a "Holiday" in the last 3 years, I drive an MY98 sport, but I have over 50% equity in a £220K house... It all depends on what you see as being important.

scoobynutta555

Nice one Nexuas. I bet you don't owe a penny to IM for your classic either.

To sum up the attitude of many these days all you have to do is watch an Alvin Hall programme with his 'jam today' guests.

Nexuas

Nope I saved up and brought the car outright... It has been my only real extravagance, well till I brought a steam train just before christmas, oh and my digital camera, oh and the tools for my workshop, Oh and...

But then I don't smoke and I don't drink, haven't brought a DVD or a CD in years... so don't "waste" money?

InvisibleMan

i agree, i did the same & with a much lower salary. so it can be done with discipline. ok so maybe prices have gone up more comparied to salaries but i think thats just an excuse. kids seem to have more than in my day(jeez how old am i ) and are more demanding. want want want

had this problem when trying to sell my 2bed flat but was too small for them . ive worked hard for it so your gonna have to pay for it, i aint givin it away

J4CKO

iTrader: (1)

I am glad I am immune to all this, might have a crap old Saab but having no mortgage is a nice feeling.

Ditto on the holiday front, have only been on ones covered by either the in laws or my mum and dad

Petem95

Any FTB's still buying now are fools IMO. Unless they HAVE to buy, they should wait.

The Fed have just raised interest rates to 5% - most economies are raising rates, and UK rates look set to follow suit. Bankruptcies have just hit a new record, and the governor of the Bank of England has just put out a warning stating that "House prices are overvalued and consumer bankruptcies risk becoming a large social problem"

House prices are notoriously difficult to predict, but a boom has never not been followed by a bust. I dont see things being any different this time - it'll be interesting to dig up old posts on here when the crash does finally come, and some users will be eating humble pie

kingofturds

iTrader: (1)

A lot of people saying there will be no crash,have recently bought a house or have remortgaged up to their eye ***** to buy new cars,holidays. Have just seen my mate at work give up on his 140k mortgage after splitting up with his gf.

Iwan

Not only that but if oil prices continue to rise (or stay at current levels) the BoE will have to start raising interest rates to keep inflation down. IIRC the inflation target is 2% and it's already around 2.25% and rising. The BoE would rather not raise them until its unavoidable as they know it will screw up exports, among other things, but at some point it will be necessary. Then the $hit will hit the fan for a lot of people.

dpb

One of the few countries in europe where home ownership is encouraged at ll costs - and look where its left us...

davyboy

Why would they eat humble pie.....in almost all cases they will be better off than you

InvisibleMan

as with everything, its a waiting game. ffs get a life. dont waste it waiting...

davegtt

LOL OK then, You predict a crash all you want, and when it happens 5 years down the line you can how clever you was Ive been listening to PSLewis tell me there will be a crash around the corner for at least 5 years now, if I had believed him I would have missed the boat and even if we see a crash in the future the prices wouldnt come down to what theyre were 5 years back anyway

Foot_Tapper

May not be a crash imminent yet, and maybe rates won't rise much.
But if labour lose the next Gen Election, when is it ? 3 yrs time ?
I reckon a crash could be on the cards.