I am hearing a lot about this subject not least because I am one apparently!! All born after 1946 have apparently made a fortune with the cheap houses they bought now worth millions. So I thought I would have a look at current prices and costs for a mortgage taking into account where I lived when I first got a property and whats available right now.
- My first house was in Fartown Huddersfield and I paid £3,000. It was a simple 2 up 2 down terrace house with a rear yard and small front garden sandwiched between 2 other roads. Today the similar houses around it go for £85,000—so that wouldn’t make me a millionaire.
- Having looked on one of the premier websites I have also found near me houses for as low as £60,000 to buy right now plus some flats for £15,000 guide price.
- A mortgage for the £85,000 would be around £460 a month, very similar to the rent for a council house.
- All this with interest rates of 4 or 5%. Can you imagine a mortgage of 15%? Well not only did I imagine it I actually had to endure it along with all the other ‘Baby Boomers’
So I would argue that we are no different, it’s just that young adults now looking for a property want immediately what their parents spent a long time building up to. So I suggest buying at the bottom end, as I did, do it up, live there a while, then move up. Don’t go buying that super dooper car your parents have also got, and live within your means. In 10 or 15 years you will be in a far better position.