Buying your house is a big thing for lots of people, it is a huge commitment and there is no guarantee on anything that happens in life.
House prices change, some go up, some, unfortunately, go down. It’s the same with interest rates and salaries. There are so many factors that are hard to have any guarantee for the future.
When we brought our house 10 years ago we thought to get a mortgage for £160,000 was huge, now though the rising costs where we live mean the average mortgage needed is more in the region of £240,000 and it is only going to keep rising. Putting more pressure on the younger generation who are trying to make that next step.
Looking back at when our parents brought you can see the rising prices over the years, here is a handy tool that calculates how much your house has gone up over the years and it makes pretty scary reading if you compare the rise in our property to that of our parents.
With the reality of rising costs and no end in sight for some of it, we are facing the harsh reality that some of our dreams may have to wait until we are a little older.
I know that when our parents got their homes, the salaries reflected the cost of the homes however I can’t help but feel today’s market is now starting to out price salaries for many young people.
For us, we have the problem of being on the ladder but not being able to move from the step we are on.
Don’t get me wrong I love our home, however, we are stuck where we are unable to move as the housing market around us has risen to a point we are unable to move on. Our parents have been able over the years to sell up and move up (or down depending on their life circumstances) however with the rising prices now, those on the ladder are tending to stay on the ladder or being forced to move away from the areas they want to live in as they simply can’t afford to do so.
I dread to think what it may be like by the time Kayleigh and Ethan look to buy their first home.
The cost of deposits these days are the same as the cost of my in-laws first home, it is unrealistic for many to even get the deposit together whilst trying to live a life at the same time. It is easy to see now why so many children are delaying moving out of their parents’ house whilst they are trying to save for their own home.
I don’t know what the answer is for the growing housing market crisis and, to be honest, I don’t even know where we are going to be with our home in the next 5 years, the simple option is for us to make this housework for us and keep chipping away at the mortgage to give us the equity to move.
However, life is not always that straightforward!