Do Youngsters Spend too much ?

ryan_w-2

okgo wrote:

Buying a shitbox at the right time was the best decision I've ever made!

£600k isn't going to buy you something you love btw. Unless you love 1 beds.

If that's the case, we continue to rent here and move to Australia with a substantial nest egg in the future.

I'm not giving it the big 'poor me' by any means, I'm just saying that to buy an ok property in London is f-ing hard in todays market, even for good earners / savers trying to do it on their own.

Regardless of our outgoings, saving £3k a month is still a fair amount, so for those that can't even save half of that, what chance do they have?

joey54321

Ryan_W wrote:

I guess you're right, I am choosing not to buy a s**t box just for the sake of owning a house.

Luckily I'm in a position to sit it out, continue to save and hopefully buy a property I love in the next couple of years.

For all of you that had handouts, be thankful, we're not all that lucky.

A shit box house is the best way to get a property that you love, it doesn't just land on your lap.

If you bought a shit box house, it'd be worth more and you would have saved money on rent and had more money to put towards a deposit.

And we're not all that lucky to be paid as well as you obviously are. And I know, I know, it's taken hard work to get that salary (probably) but I bet that's a lot of luck in the equation too.

dodgy

This is almost as good as the raisin diet thread.

fenix

Nobody has to spend 35k on a wedding - they choose to.

Hats off to you for doing the saving for the bikes and the wedding though.

Where's that Alvin bloke - the dude who sorts out peoples finances on BBC ? He'd have it sorted in a day. I liked him.

dinyull

I do think youngsters have pretty high expectations, and running up debt seems to be accepted.

My first car was a 17 year old golf, starter motor needed a good whack with a hammer now and again to get it started. House was bought via auction thanks to an old fella popping his cloggs and needed bringing up to date from the 70's.

Nowadays you see 17 year old's in brand new fiat 500's, lads @ 20 in brand new focus rs's/golf gti's. Seems to be this expectation of buying a new build too, not buying a sh*t hole and putting the work to fix it up yourself.

okgo

Champagne taste on beer budget.

ryan_w-2

Agree, however, I don't fall into that bracket luckily.

My first car was a Citroen AX GTi that I saved up for, cost me £850 and I loved it. Due to owning sh*t cars (all I could afford), I'm now a competent amateur mechanic and can happily swap an engine out a car, change a clutch, rewire a loom etc.

Maybe that's why I'm treating myself in later life, I had f**k all growing up and my mother worked her ass off to keep us in clean clothes and fed.

Don't be so quick to judge...

pblakeney

Ryan_W wrote:

As for the wedding in Maui, it's over half the price of a wedding over here and I'm paying for my mum for her 60th, so costing a little extra.

So. These £40k UK weddings. Do youngsters spend too much on them? :twisted:
Look on the bright side. You could buy a £600k pad just before the market moves to Frankfurt.

steve91

Think for a reasonable wedding, my partner and I are looking at 10k, but the house comes first at the moment!

We're saving what we can. She's putting away about £1500 a month, and I'm topping it up to £2000, but at the budget we're looking at, we're competing with cash buyers looking to rent them out, and it means we just can't get a foothold at the moment.

As for the thread title, I used to do the wild nights out and holidays. I had the nice cars, nice motorbikes and nice things because it all seemed so cheap because of easy finance. I think at one stage I had 3 motorbikes and 2 cars on some kind of finance, and it took a couple of hard years savings to sort it out. I'll never finance anything like that again!

pblakeney

I missed a whole page! :shock: :oops:

Ryan_W wrote:

...Maybe that's why I'm treating myself in later life.....

Later in life? At 29? Hahahahahahahahha...

ryan_w-2

Im 33 this year you doughnut.

Rags to semi-riches but can't buy a house. Go figure.

pblakeney

Ryan_W wrote:

Im 33 this year you doughnut.

Rags to semi-riches but can't buy a house. Go figure.

33! Mwahahahaahahaha.
Plenty of houses. Plenty of money. It's your choice. Just don't bleat about it.

surrey_commuter

Ryan_W wrote:

Im 33 this year you doughnut.

Rags to semi-riches but can't buy a house. Go figure.

But you can buy a house just not the size and in the area you want.

In the 90's people moved south down the northern line not because they wanted to but because they could afford to buy there.

As suggested the best thing you can do is spot an up and coming area (that will outperform the overall market) and buy the largest doer upper you can afford. In a couple of years time you could have £200k equity in it.

You don't want to make the sacrifices to do that which is fine but you should not assume that everybody else buying has done it with the help of mummy and daddy.

dinyull

Ryan_W wrote:

Im 33 this year you doughnut.

Rags to semi-riches but choose not to buy a house. Go figure.

FTFY

dinyull

Even if you bought a house your not willing to live in and rent it out, in 5 years time you'd be quids in selling up. Even more so in London.

joey54321

Ryan, I know you probably think it's funny winding up a bunch of people on a forum about how you 'can't buy a house', but the reality is there are lots of people who genuinely can't afford a house, and for many people it's a real problem. It gets ignored too easily because of examples like yours. Where people choose not to buy a house but complain about it anyway, it makes the problem seem smaller and less of an issue. The assumption being (as per this thread) that all young people have too high expectations and are bad with money and that they could buy a house if they tried, which is only true in a small number of cases.

Stevo_666

There's a new fangled thing called 'commuting' that seems to be quite popular with a lot of people in the south east of England.

daniel_b

Leave this thread for a few days, and it turns into an all time classic!

okgo

The reality of it, which probably isn't apparent to folks outside London is that "well over 6 figures" is not 'semi riches' its actually two a touch above average London salaries (I think the average in London is about 50 grand these days). It stands to reason that buying a house in probably the most expensive borough of London would be difficult. Of course, at 600k we are not talking about a house, we're talking about a flat, and that is fairly easily do-able as many have pointed out if you changed a few things, but to buy a house would be difficult if you had not been on the ladder with something else prior/inherited etc.

rick_chasey

okgo wrote:

The reality of it, which probably isn't apparent to folks outside London is that "well over 6 figures" is not 'semi riches' its actually two a touch above average London salaries (I think the average in London is about 50 grand these days). It stands to reason that buying a house in probably the most expensive borough of London would be difficult. Of course, at 600k we are not talking about a house, we're talking about a flat, and that is fairly easily do-able as many have pointed out if you changed a few things, but to buy a house would be difficult if you had not been on the ladder with something else prior/inherited etc.

Not quite but i get your point.



FWIW I earn above average and Ryan plans to save more than I earn a month.

okgo

Rick Chasey wrote:

okgo wrote:

The reality of it, which probably isn't apparent to folks outside London is that "well over 6 figures" is not 'semi riches' its actually two a touch above average London salaries (I think the average in London is about 50 grand these days). It stands to reason that buying a house in probably the most expensive borough of London would be difficult. Of course, at 600k we are not talking about a house, we're talking about a flat, and that is fairly easily do-able as many have pointed out if you changed a few things, but to buy a house would be difficult if you had not been on the ladder with something else prior/inherited etc.

Not quite but i get your point.



FWIW I earn above average and Ryan plans to save more than I earn a month.

What sector is that?

http://metro.co.uk/2015/11/18/how-does- ... y-5511194/

I was looking at this.

rick_chasey

Inner London, as opposed to the City of London....

okgo

Rick Chasey wrote:

Inner London, as opposed to the City of London....

Yeh but that's people working in Wimbldeon and stuff. If you work in proper central, then I think my numbers are close to the mark.

The numbers I posted stack up with people I work with in their early twenties in perhaps their 2nd job.

rick_chasey

Fair enough.

I read the City as almost exclusively FS, and FS pay is out of kilter with other industries.

https://www.google.co.uk/maps/place/Cit ... -0.0909852

ryan_w-2

As stated guys, I'm not crying about my state of affairs nor trying to be a 'look at me' dickhead.

I am merely stating that a young couple who are saving well, still can't get on the ladder to buy a small property in a nice area in SW London due to the tumour that is property inflation in London.

I've been looking at properties around the £400k mark this morning and will talk to the Mrs this weekend about buying a fixer-upper and continuing to rent where we are.

Working in construction, I have zero issues with buying a dilapidated property in need of some love, as long as the structure is sound. Would be good for the Mrs to project manage it too while she's not at work.

Stevo_666

Ryan_W wrote:

As stated guys, I'm not crying about my state of affairs nor trying to be a 'look at me' dickhead.

I am merely stating that a young couple who are saving well, still can't get on the ladder to buy a small property in a nice area in SW London due to the tumour that is property inflation in London.

I've been looking at properties around the £400k mark this morning and will talk to the Mrs this weekend about buying a fixer-upper and continuing to rent where we are.

Working in construction, I have zero issues with buying a dilapidated property in need of some love, as long as the structure is sound. Would be good for the Mrs to project manage it too while she's not at work.

The message is pretty simple - if you want something a decent size/not a total crap heap to live in, look further out of town. You're looking to buy in one of the most expensive parts of the the whole country.

The idea of living further out to get affordability isn't new by any means.

whatleytom

Rick Chasey wrote:

Fair enough.

I read the City as almost exclusively FS, and FS pay is out of kilter with other industries.

https://www.google.co.uk/maps/place/Cit ... -0.0909852

They certainly do. Bit of a pain if you ever want to move out of FS to an equivalent position.

fenix

Dude - you've spent 20 grand on bikes in a year ! I don't think you're saving that well ?

angry_bird

But you're not saving well, that's the point. £20k on bikes £20k on a wedding... how is that different really to extravagances like eating out all the time, daily coffees on the way to work etc?

The issue isn't that you can't afford it really, it's that you either can't manage your money or would rather live a more extravagant lifestyle than own your own home.

weezyswiss

Angry Bird wrote:

£20k on bikes

Obviously a Cat 1 rider and so bikes are MUCH more important that the home in a nice area. (Yes that's sarcasm).

Great thread, but too much money, not enough sense and bleating (and subsequently claiming not to be) shows a childish self entitled attitude to life.

The solution has been identified earlier. Does not want to live in a house not happy with, but savings are not coming along, and interest rates are low. So, buy that croophole flat, lick of paint and rent it out. You get the rent to pay the mortgage and the capital investment increases (unless a crash) and then when it is enough to buy that lovely million pound+ house in the centre of London sell up croophole for the deposit.

Renting is dead money!

But TBH stupid attitude and priorities. Obviously getting on the property ladder is not important to the troll, but holidays and stupid money spanked on bikes is.