GDPR Cookie Consent by SimpleServe Privacy Script Under 40s 'cut out of owning homes' - AAD Consumer Forum

Announcement

Collapse
No announcement yet.

Under 40s 'cut out of owning homes'

Collapse
X
Collapse
 
  • Page of 1
  • Filter
  • Time
  • Show
Clear All
new posts
Previous template Next
  • #1

    Under 40s 'cut out of owning homes'

    House prices: Renting to overtake home ownership among young, says PwC



    More than half of the under 40s will be renting homes from private landlords in the UK in 10 years' time, accountancy firm PwC has predicted.


    It suggests house prices will rise at an average of 5% a year, pricing the typical home at £360,000 by 2020.


    Here -----> http://www.bbc.co.uk/news/business-33621047
    I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

    If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.
    Tags: accountancy, bbc, bills, business, firm, free, home, home ownership, homes, house, house prices, landlords, legal, money, mortgage, mortgages, paper, pension, prices, private, properties, property, purchase, pwc, rate, rise, salaries, size, working, young
  • #2
    Re: Under 40s 'cut out of owning homes'

    Interesting. Does anyone else think it will be like the U.S. where mortgages are handed down generations opposed to the current normal 25 year plans?
    When Gold isn't enough, there is SA Gold! New to the forum and find the UE route a bit scary? Take a look at my diary here and judge for yourself. I am now saving the money each month that was making little difference to the balance and not a bit of difference to my credit file as a result of finding AAD.


    I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

    If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

    Comment

    • #3
      Re: Under 40s 'cut out of owning homes'

      No I don't think so. No room for that in our legal system
      I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

      If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

      Comment

      • #4
        Re: Under 40s 'cut out of owning homes'

        Originally posted by SXGuy View Post
        No I don't think so. No room for that in our legal system
        The reason i say that is properties are getting more expensive and its getting harder and harder to get on the ladder so if more people are left property (even if not mortgage free) - its got to be another way.
        I often see ads in the paper for houses advertised at 200K with titles such as "ideal first time buy" and i think who on earth (on my level) could afford that as a first time purchase! Basic maths say:
        10K deposit
        2 people on 30K salaries with no outstanding debt
        £1000 a month for the mortgage

        and then (assuming its a couple), woman has a baby. then what?!

        Edit: and then what about all the people who have privately rented? I mean they could afford it when working, but will their pension(s) cover it. When you own your home, you just have the bills once the mortgage is paid.
        Last edited by SA Gold; 23 July 2015, 21:07.
        When Gold isn't enough, there is SA Gold! New to the forum and find the UE route a bit scary? Take a look at my diary here and judge for yourself. I am now saving the money each month that was making little difference to the balance and not a bit of difference to my credit file as a result of finding AAD.


        I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

        If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

        Comment

        • #5
          Re: Under 40s 'cut out of owning homes'

          Technically no. Well maybe. Affordability has changed in the last 5 years so you could be right now. However as an example 5 years ago myself and my wife got a mortgage for 180k with a total income of 45k and a deposit of 20k. Repayments are fixed at around 850 a month over 30 years. Obviously changes slightly each time the fixed term is set again but you get the idea. It's not so much the deposit or income. It's now about how much money you have after expenses. That's what's changed unfortunately. But in regards to mortgaged property being handed down I can't see it working. Firstly the mortgage agreement is between 1 or 2 people based on whether they meet the lending criteria. The lender would never agree to hand down a mortgage to a child of the original purchase since they have not been assessed and there's no guarantee they would have or would be approved. Even down to the mortgage rate and term, plus their income etc. It's just not possible. And even if the mortgage lender agreed the child could continue repayments it would effectively be a new mortgage agreement and a whole new set of affordability checks. Which technically is already possible if for instance a mortgaged house is left in trust I should imagine. What people are doing now and you will see a lot more of, is parents who are mortgage free taking out a buy to let on the value of their home, and renting it back to their kids. Because in our messed up situation we all now face, it's easier to get a rental tenancy for 1200 a month than it is to get a mortgage for the same amount or even less.
          I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

          If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

          Comment

          Previous template Next
          Working...
          X