I can't see why Gen Y would buy a house these days. Especially if you are a red-pill player.
Of course the ideal situation would be to own a $1m+ house that you own and rent out to someone else, funding your travels in perpetuity with constant monthly passive income.
But that's just not going to be the case unless you win the lottery.
In my last city (Melbourne), the median house price is $567,000 and median household income is $67,700. That's a multiple of 8.4.
In my new city (London), average deposit for first time buyer in London is £64,000 GBP for a £200,000 mortgage. Median household income is £27,800.
As a single man on a single income you will probably have less cash than the combined income of a SWPL couple. Even these high-earning SWPL couples are finding it tough getting a property paid off which should be a cause for alarm.
If you buy you will only be able to afford shitholes on the outer limits of the city. Such an abode will be unsuitable for bringing women back.
You could also get screwed severely on negative equity - prices can't double in price every 10 years forever. The more that people pay on housing, the less consumer society has to spend on everything else. Constant growth over the next decades is an unsustainable model.
A mortgage would stop you from travelling, inhibit you from relocating (would surely make a loss if only holding a property for 5 years) and if you lost your job you could be ruined. The value for money just isn't there anymore like it was for earlier generations. You just don't want to take on that much debt - it's not worth the risk.
Instead I think the better option is to rent where the logistics are good. Save for holidays and invest in shares. Have a long-term vision for your own independent business. The best plan in today's world is to be globally mobile, debt-free, loaded with cash and a high skill set. Live urban, not in the suburbs.
Buy property much later in life, hopefully overseas in a place that has decent property rights. Spend your 20s onwards learning some other languages in preparation for this day.
If you stand a very solid chance of inheriting property from parents when in your 50s it makes even less sense to chase after the home ownership 'dream' now in your 20s. The rules of the game have never been more heavily stacked against this current generation so be smart about how you play the game within such an environment.
Some good analysis I found on the internet while surfing. Note assumption that you will have a partner that is chipping in too (this is a very strong assumption within property articles targeted at First Home Buyers). Of course average RVF forum member is a dirty dog playboy that isn't trying to lock in a house to raise children with his partner.
Of course the ideal situation would be to own a $1m+ house that you own and rent out to someone else, funding your travels in perpetuity with constant monthly passive income.
But that's just not going to be the case unless you win the lottery.
In my last city (Melbourne), the median house price is $567,000 and median household income is $67,700. That's a multiple of 8.4.
In my new city (London), average deposit for first time buyer in London is £64,000 GBP for a £200,000 mortgage. Median household income is £27,800.
As a single man on a single income you will probably have less cash than the combined income of a SWPL couple. Even these high-earning SWPL couples are finding it tough getting a property paid off which should be a cause for alarm.
If you buy you will only be able to afford shitholes on the outer limits of the city. Such an abode will be unsuitable for bringing women back.
You could also get screwed severely on negative equity - prices can't double in price every 10 years forever. The more that people pay on housing, the less consumer society has to spend on everything else. Constant growth over the next decades is an unsustainable model.
A mortgage would stop you from travelling, inhibit you from relocating (would surely make a loss if only holding a property for 5 years) and if you lost your job you could be ruined. The value for money just isn't there anymore like it was for earlier generations. You just don't want to take on that much debt - it's not worth the risk.
Instead I think the better option is to rent where the logistics are good. Save for holidays and invest in shares. Have a long-term vision for your own independent business. The best plan in today's world is to be globally mobile, debt-free, loaded with cash and a high skill set. Live urban, not in the suburbs.
Buy property much later in life, hopefully overseas in a place that has decent property rights. Spend your 20s onwards learning some other languages in preparation for this day.
If you stand a very solid chance of inheriting property from parents when in your 50s it makes even less sense to chase after the home ownership 'dream' now in your 20s. The rules of the game have never been more heavily stacked against this current generation so be smart about how you play the game within such an environment.
Some good analysis I found on the internet while surfing. Note assumption that you will have a partner that is chipping in too (this is a very strong assumption within property articles targeted at First Home Buyers). Of course average RVF forum member is a dirty dog playboy that isn't trying to lock in a house to raise children with his partner.
Quote:Quote:
Forest Gump - 10 September 2013
In the perspective home buyers mind, one may consider the following.
You and your partner save a deposit of say $80,000.00 and forgo all unnecessary spending, holidays, luxury and fancy cars and clothing for the next say 5 years.
Get a loan for say $300,000.00 as a basic first home buyer and get on the property ladder in the hope that sometime in the future your sacrifice of the deposit and living on plain bread and rice will have been worth it and your home will improve with value. (Fairly unlikely in a FH buyers area.
Then live like a pauper in an effort to quickly pay off your mortgage before interest rates escalate where your repayments outstrip your income.
Put off having a baby since you need 2 wages to kill off the mortgage. After a few years of feverently working and paying interest you and your partner realises that life sucks and decide to have kids, so you lose one wage, then struggle to live on the other wage, paying the mortgage and feeding 3 mouths.
Then the boss says that he needs you to work longer hours (for nix) and you comply knowing that you need this job to pay off the mortgage. The boss figures this out and takes advantage of you. Your wife gets annoyed that you are working so many hours and she is stuck at home with the kid.
After a year or 2, the wife wants a holiday to see her family and to spend some time with her husband thats never at home. So the husband puts the holiday on the credit card. Then the car needs replacing and you need to put the garden in around the home so that junior can have somewhere nice to play, and so you refinance the home and get a bigger loan putting you back a few years.
Before you know it, 12 years has passed, you have still have at least another 4 years of servitude to the bank, you’re never at home, you hate your job and your boss, you cannot afford nice clothes. You’re always grumpy, desperate for a holiday and a decent rest…then your kid hits puberty.
You then go to work and envy all the renters that are happily enjoying holidays, nice lifestyles and are telling the boss where to get off when he’s being unreasonable. Then the boss remembers just how compliant you are and walks over to your desk with another 4 hours of unpaid overtime for you to do tonight.
It’s then that you remember its your wedding anniversary.
My Advice is not “Don’t buy now” Rather…”Sell now” ….and take back your life, love your wife, buy her flowers, take your kids on an overseas holiday, and tell your boss to plug his unpaid overtime in someone else’s exhaust. You will feel much better and look much younger and have the confidence to ask for a pay-rise for all the hard work you have done over the past 10 years.
Quote:Quote:
Forest Gump - 10 September 2013
Here is a common ending.
The couple decide to by a house that that cannot afford. The repayments are so high that the man decides to work on Fly-In Fly-Out (FIFO) and earn the big dollars in the mines.
After working FIFO for 2 years, the woman is tired of being alone, seeing her partner for just 1 week in the month where he basically sleeps to recuperate for the previous 3-4 weeks of working 10 hr days.
You can see where this is going….the woman meets a nice guy say a local guy with a local 9-5 job and they both decide to hook up. She falls for him simply coz he’s around and she is lonely. She files for divorce-separation and gets 50% of the house thats almost paid off thanks to FIFO….or should I say Thanks to the stress of a mortgage.
The point is, mortgage stress has an impact on relationships, spending, health, kids behavior, adult behavior and attitude.
I know a young guy that has a house 2 kids and is desperate to pay off his home. He works so much that he’s never at home to see his kids or his misses.
He eats like a pigeon, takes public transport so its a very long commute for him and is so scared of losing his job that he does extra hours just to impress the boss.
I keep telling the guy that he has his focus all wrong.
Last week he was made redundant.