Prospects for the future: Questionable.

[Genuine_Ghost]

I'm worried that I might not be able to secure all of my goals in the environment I live in now. I want to own a property, but I fear I may never be able to, as house prices in this country (England) are stupidly high and rising all the time.

It's been predicted that alot of under 25s won't be able to afford to own a house in the future.

 

I'm at university, so I'll come out with a fair amount of debt. I'm studying Politics, and I'm not sure if that will lead to a job which pays enough to start buying a house.

[Gath]

owning a house is a good thing, but it really isn't the big thing that some people make it out to be.

 

assume you had 150,000 in your bank, and you buy a house with it.

Your house apreciates about 3% a year, but probably has upkeep expenses (including time) of about that, so thats a net 0.

Now include the property tax. Then the utilities. Next the insurance. The occasional major upkeep above and beyond the norm. . . it all adds up.

 

Now say you get an apartment. Put it at 400 a month. Take the 150,000 you had and invest it for an anual return of aroudn 10% which gives you 15000.

Your rent will be 4800 for the year, plus at most 3000 for utilities and a little renters insurance. So now that gives you about 8000 in expenses, leaving oyu a gain of 7000.

 

Sure, all these numbers are just theory and not founded, but they're also pretty reasonable, and this only takes into account the very good scenario where you already *HAVE* the money for a house and aren't borrowing it at 8% interest. If you add that in, then you've got an additional 12,000 in interest the first year alone to pay, which alone is more than twice your rent.

 

Now, I'm not saying its a bad thing to buy a house. But I am saying its not neccessarily the best thing for a single guy on his own.

[CaptainPlanet]

I'm worried that I might not be able to secure all of my goals in the environment I live in now. I want to own a property, but I fear I may never be able to, as house prices in this country (England) are stupidly high and rising all the time.

It's been predicted that alot of under 25s won't be able to afford to own a house in the future.

 

I'm at university, so I'll come out with a fair amount of debt. I'm studying Politics, and I'm not sure if that will lead to a job which pays enough to start buying a house.

 

To be frank. I am 24 years old and I don't know what I want, so I am starting another degree if I am accepted into engineering. I'll be 28 when I graduate. My debt will be high and my chaces of affording a house will be low.

 

Basically, the idea of a young family, I burned it in my mind it isn't going to happen. I'll likely end up marrying at the age of about 35 and having kids very late. I refuse to have kids I cannot afford, basically I'll rent.

 

Or if my career never gets off the ground because I have left it all too late or I am too stupid I will horde money, not have a family, gamble drink, and other obsense things until I die.

 

I mean you can worry about it all or you can not worry. I worry everyone worries it is on all our minds, don't worry. Basically housing prices will have to crash there is no two ways about it. Why ? because old people will get too old to work and they'll all want to sell at once.

[CaptainPlanet]

I don't know which major city you're getting a house for 150k. They're few and far between and not in decent areas, yes, if you're raising kids it makes a HUGE difference.

[Genuine_Ghost]

Thanks for the advice. It is tough, but I'm sure I'll manage to pull something off when the time comes around. Also, has anyone else in the UK thought about emigrating? Or think that the financial climate here is better, but harder to get onto?

 

Cheers.

[redrose85]

Prices are skyrocketing here in Canada too. It scares me, because one of my main goals in life is to own a home of my own. Something to call mine, and to decorate, paint, furnish, etc... just how I like it, after years of living in white-walled, ugly apartments. You can't even get a mobile home here for under 100K. I just hope that the market starts to crash when it's my turn to buy. It's one of my Dad's biggest concerns too, that his kids won't be able to own homes of their own, no matter how long we go to college for, or what careers we end up with.

[Genuine_Ghost]

Prices are skyrocketing here in Canada too. It scares me, because one of my main goals in life is to own a home of my own. Something to call mine, and to decorate, paint, furnish, etc... just how I like it, after years of living in white-walled, ugly apartments. You can't even get a mobile home here for under 100K. I just hope that the market starts to crash when it's my turn to buy. It's one of my Dad's biggest concerns too, that his kids won't be able to own homes of their own, no matter how long we go to college for, or what careers we end up with.

 

I've actually looked around at the Canadian market, it does seem alot easier to get on the ladder in, but I suppose that's from an outside perspective.

 

Put it this way, in Britain, you would get this for £280,000:

 

link removed

 

In Canada, for less £££'s, you would get this:

 

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[redrose85]

That's beyond spooky...of all the cities in Canada, you picked the city I live in!

 

 

If it helps comparisons at all, that's similar to the house I grew up in. My parents purchased a large, 10 yr old, 5 bedroom home in suburbia for under 200K only 12 years ago. Homes in my area have almost doubled in price. Still definitely more $$ overseas though.

[Gath]

I don't know which major city you're getting a house for 150k. They're few and far between and not in decent areas, yes, if you're raising kids it makes a HUGE difference.

 

Kansas city, 1.5 million, 5 bedroom in a good area is 200k with a yard (although you also ussually get a HOA. . ./gagh). And since he was british I was assuming 150,000 pounds, which is about 2 for 1 on the dollar.

 

Thats why I said single guy. Family yes, you need more space. But there's no good reason to buy a big house when you're just gunna be by yourself anyway. If all the living space I'm going to reallyl use is in the living room and a single bedroom and kitchen, why get more? Theres' a lot better ways to invest money than the housing market.