I really feel for the young or even not so young people, the price of houses has gone way out of reasonable reach and I feel almost guilty having been able to buy ours having first bought back in 1993 before prices went stupid.
To counter claims that it was as hard back then as now and how us oldies all struggled just as much, well heres the maths. So I bought my first property in 93 and paid £36k for a 70s 3 bed end of terrace. Mortgage deposit £1800 (not insurmountable) multiples wise I had to be earning around £8500 so not too bad.
Fast forward to 2018 and if the house had only gone up by rate of inflation it would now cost £52K odd with deposit of £2500, multiples of £12875 so all still pretty affordable for the average bloke.
Except this isnt whats happened, the self same house is now £220k so deposit reqd is £11K and earning multiples needed is a whacking great £52K.
So these kids have it very hard now IMO and I feel for them greatly, dont know what the answer is to this
edit
oops it appears the online calculator I used was wrong and the £52K should actually be £70K but the principle still applies I think
To counter claims that it was as hard back then as now and how us oldies all struggled just as much, well heres the maths. So I bought my first property in 93 and paid £36k for a 70s 3 bed end of terrace. Mortgage deposit £1800 (not insurmountable) multiples wise I had to be earning around £8500 so not too bad.
Fast forward to 2018 and if the house had only gone up by rate of inflation it would now cost £52K odd with deposit of £2500, multiples of £12875 so all still pretty affordable for the average bloke.
Except this isnt whats happened, the self same house is now £220k so deposit reqd is £11K and earning multiples needed is a whacking great £52K.
So these kids have it very hard now IMO and I feel for them greatly, dont know what the answer is to this
edit
oops it appears the online calculator I used was wrong and the £52K should actually be £70K but the principle still applies I think
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