I visited a place in the West of Ireland and it was priced at 175.000€. I went on the Property register to see what was the original price and the owners bought it for 50,000€. Mind you they haven't changed a single thing in the apartment in the last decade. The location has fishing jobs only, there are no transportations and the nearest town is more than 30 minutes away.The media here (Australia) does lots of Millennials v Boomers stuff (which I dislike immensely) but it is interesting comparing:
OK Boomers, who had it easier?
It’s a battle for the ages – with Baby Boomers and Millennials pitted against each other.www.news.com.au
Wages not increasing while property prices have (by a lot) sucks.
See this is an interesting conversation! Agree completely, beyond an emergency fund I’m seeing increasingly less point in amassing cash savings beyond that and mid term stuff (eg if you were saving for a kitchen or something). So we’re splitting it between overpaying the mortgage (and hopefully finishing it in a decade, if neither of us have a breakdown in the mean while), investments, and then crypto. Crypto is risky and I know a hot topic lots of ppl disagree on but I can’t see how you can get any remarkable returns on anything anymore, it’s potentially the only equaliser for the generation(s) that missed out on the insane property boom.is paying a mortgage should be wary. Although we don’t get any decent returns on our savings, we still save like mad, simply because we want to be used to not living on that money if interest rates were to suddenly rise and increase the cost of our mortgage.
I wholeheartedly agree and support the current legislation that means when taking out your mortgage, you need to be able to afford it if the rate rises by approximately 7%. However if people’s circumstances have changed or they have committed their income to other means since being granted the mortgage that is irrelevant.I can’t see interest rates rising significantly anytime soon, although I’m far from an expert. Uncertain economy and low inflation means there is little impetus for a rise in interest.
However, saying that, I think anyone who is paying a mortgage should be wary. Although we don’t get any decent returns on our savings, we still save like mad, simply because we want to be used to not living on that money if interest rates were to suddenly rise and increase the cost of our mortgage. We are very fortunate to be able to do so.
I worry a tiny bit for anyone who’s stretched themselves for a mortgage while interest rates are low, as we’re moving into such uncertain times now. I don’t think anything will change, but like I said, I’m far from an expert and the type to always err on the side of caution when it comes to finances.
Interesting! Crypto terrifies me!See this is an interesting conversation! Agree completely, beyond an emergency fund I’m seeing increasingly less point in amassing cash savings beyond an emergency fund and mid term stuff (eg if you were saving for a kitchen or something). So we’re splitting it between overpaying the mortgage (and hopefully finishing it in a decade, if neither of us have a breakdown in the mean while), investments, and then crypto. Crypto is risky and I know a hot topic lots of ppl disagree on but I can’t see how you can get any remarkable returns on anything anymore, it’s potentially the only equaliser for the generation(s) that missed out on the insane property boom.
Then with baby - we’re contributing steadily to max out her NS&I but everything outside of that is going into crypto. So something that’s very safe then something utterly chaotic
Yes, absolutely!I wholeheartedly agree and support the current legislation that means when taking out your mortgage, you need to be able to afford it if the rate rises by approximately 7%. However if people’s circumstances have changed or they have committed their income to other means since being granted the mortgage that is irrelevant.
I doubt the interest rates will increase much if at all because of the economy tanking. We’re on 2.1% and I expect it to drop slightly when we remortgage.
I’m a huge saver and am looking to pay off the max 10% each year and possibly move to a savings mortgage to eventually pay it off but I haven’t looked into it much yet as we have a year to go until we need to.
It scared me too at first and you unfortunately really do have to read and listen to a lot of content but that’s the only real barrier to entry tbh, and be careful as there’s scammy shit out there too. The most useful thing I found was a Reddit post about market caps which calculated the reasonable max each coin could reach, although tbh I just stick to the same few and pray. I should be more active at buying & selling, we do stake ours, but I’ll get into that when I’m back off mat leave and can mess around on a computer for hours on end again. We only put money in it that we wouldn’t be gutted to lose, obviously it’d be shit to lose anything but not catastrophic to our quality of life? Worryingly it’s probably most like to gambling for us. Minimum buy ins are so low too (I think £25 using Binance?) that you can just play about with it until you start feeling confident enough to put more in. Obvs if you’re at all that way inclined!Interesting! Crypto terrifies me!
Unfortunately with our mortgage terms we cannot overpay it yet, but equally it is low fixed interest while we can’t overpay it, so I suppose I am over-cautious in saving extra in lieu.
We’re currently looking for a good IFA to see what we can do instead of just endlessly saving for low return. It’s all quite intimidating for me, coming from such a modest financial background. I suspect that’s what makes me overly cautious, too, but I don’t think that’s a bad thing.
This is the worrying thing really. I know a lot of people jumping into buying houses as soon as they can with new partners when they are jobs that I know pay far less than mine. Either they have the secret "help" which no one likes to speak about on social media or they are not prepared for interest rate rises at all.Interesting! Crypto terrifies me!
Unfortunately with our mortgage terms we cannot overpay it yet, but equally it is low fixed interest while we can’t overpay it, so I suppose I am over-cautious in saving extra in lieu.
We’re currently looking for a good IFA to see what we can do instead of just endlessly saving for low return. It’s all quite intimidating for me, coming from such a modest financial background. I suspect that’s what makes me overly cautious, too, but I don’t think that’s a bad thing.
Yes, absolutely!
I do feel like it it a vicious cycle for some though. They stretch to afford a mortgage because house prices are so high, and then they may well end up totally fucked if interest increases?! Hopefully anyone who is stretching has locked in their low interest rate to help protect them.
Yes, I see this sometimes too. It’s like our society & media has elevated the idea of home ownership to be the ultimate goal, when in reality, a fair percentage of people right now would probably be better off focusing on pensions and emergency funds first. (Although I’m aware it’s probably very easy for me to say that as a home owner)This is the worrying thing really. I know a lot of people jumping into buying houses as soon as they can with new partners when they are jobs that I know pay far less than mine. Either they have the secret "help" which no one likes to speak about on social media or they are not prepared for interest rate rises at all.
And the people that stretched themselves to make use of the stamp duty holiday. I only know 2 people that moved during that time but 1 has lost hair because she was so stressed her app wouldn’t go through before the deadline (that was then extended) cos she couldn’t afford it otherwise, the other has moved into a dive and can’t afford to drop a day (20% pay cut) so god knows how they’ll fix it up? Both me and my husband have been seriously unwell at points in our lives so unpredictable shit really does happen, you just can’t guarantee being at 100% of your current earnings for decades.Also, I certainly hope the “just work harder and spend less” crowd are well prepared for potential interest rate rises too…
Yeah it's the social media flex lifestyle. A lot of people making them Instagram acounts for renovations of their houses and pictures of plants and freshly painted walls. House owning and showing it off is very aspirational.Yes, I see this sometimes too. It’s like our society & media has elevated the idea of home ownership to be the ultimate goal, when in reality, a fair percentage of people right now would probably be better off focusing on pensions and emergency funds first. (Although I’m aware it’s probably very easy for me to say that as a home owner)
Also, I certainly hope the “just work harder and spend less” crowd are well prepared for potential interest rate rises too…
I'm much the same.A lot of is for show too. We could easily move, make £100k on our house and buy something quite special. But I enjoy our current disposable income, I like our home and our area (we had to move 20 miles to buy) but the likes of my cousin, he’s just had a £35k increase (madness!!) and she’s moved up a band in the NHS. They are late 20s and looking to buy a £900k house, I can’t believe for one second they can actually afford it but like their parents that doesn’t really matter. Even if I could afford that, that debt, maintenance and possible interest rise, no thank you!
They maybe forced to rise with inflation running very high. When the us starts to raise others maybe forced into it.I doubt the interest rates will increase much if at all because of the economy tanking.
Congrats on the pay rise! But I'm sorry about the mortgagePay rise is approved of this month, doubt it will be enough to get a mortgage though. Maybe not even nans inheritance will help/
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