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Just under half, 49%, of millennials (ages 23 to 38) say social media influenced them to spend money on experiences, according to Schwab’s 2019 Modern Wealth survey. And 48% say they’ve overspent when sharing experiences with friends, whether it’s dining out or going on a group vacation.
Social media sites increasingly have a huge impact on how we spend, says Farnoosh Torabi, personal finance author.
“We all spend time, so much time, on social media,” Torabi tells CNBC Make It. “We tend to overspend because we see all the lifestyles on Instagram and Facebook.”Full/source article There was also an article yesterday about how young people are exposed to products on social media and are spending as a result. This would not have happened a generation ago. Now we have websites that have cookies and "learn" about a consumer's habits and target them with offerings.I have randomly purchased something I wasn't even looking for because it popped up on my social media feed!Thanks to the web and mobile, you can shop anytime, anywhere, 24/7, on the go. It's very tempting to spend when you can store your debit or credit card details and just pay by clicking one button or use PayPal.If you are not very disciplined, its hard to resist - I am speaking from experience!!There was also an article in the Telegraph this week saying that the number of young people going into bankruptcy has risen 10 fold in the past three years. Under-25s now make up 6.5pc of all personal insolvencies, up from 1pc three years ago, according to accountancy firm RSM based on data from the Insolvency Service. The article puts this down to easy access to credit.If young people adopt a spending lifestyle, then they won't be able to save for a deposit for a home or get a good enough credit rating to quality for mortgage finance, so the private rented sector will continue to be vital imho and Section 24 will have to go!SEE ALSO - This is the reason why S24 is here to stayUP NEXT - 9 reasons why Section 24 will be reversedDON'T MISS - 9 irrefutable reasons why property is still a viable investment + Landlord SurvivalNOW WATCH:
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
And just came across this article:More than one in five (21%) Brits believe that they need to own a house or flat before the consider themselves to be adults, Nottingham Building Society has revealed.
About a third (33%) said they don’t feel like a ‘proper adult’ because of not being good at managing money and 33% said it’s because of having no savings.Full/source article I think all of the above shows the desperate need for financial education in schools!
Agreed Vanessa - but I also think people are hard wired genetically to be either spenders or savers.
Another related article published today:
Landlords will ‘flee the market’ if taxes aren’t reducedYou could be forgiven for thinking that this is a message addressed to the UK government, no, it’s a stark warning issued this week to the government of the Irish Republic.
The Republic has been way ahead of the UK government, years in fact, in introducing restrictive legislation, higher taxes, strict regulations and a form of rent control in the Irish rental market. Result: not surprisingly, landlords have been leaving like rats from a sinking ship, and tenants are struggling to find suitable accommodation.
A group representing Irish auctioneers are now so concerned that they are warning the Irish government that its combination of high taxes and over-regulation in the Irish rental market are the cause of landlords leaving.
The Institute of Professional Auctioneers and Valuers (Ipav) has been citing figures produced by the Irish Residential Tenancies Board that show that there were over 1,700 fewer landlords in Ireland recorded in 2018 than there were three years ago.Full/source article
general operations director, site owner and moderator - propertytribes.com
This does not surprise me at all
I am having to evict a tenant couple of this age bracket who simply cannot control their spending; they owe me hundreds of pounds and by the time I get possession they will owe me thousands
And this is the generation that will receive UC straight into their bank accounts (not mine)
The financial ignorance and unwillingness to take responsibility in our society seems to be increasing.
I sincerely hope I am wrong in this. I hope that my experience is very unusual
I am not sure how abolishing or reducing the impact of S.24 will help make tenants more responsible, but it will be needed as an incentive to LLs- no doubt about that
Perhaps letting to the older generations is the way to go for LLs??
Thanks for commenting Denise. I didn't mean that reducing S24 will make tenants more responsible. I was suggesting that it was unlikely they would be able to save money to buy a house, and therefore would have to rent instead. However, by the same reasoning, young tenants (under 25's) may struggle to pay their rent as well.I think your comment also highlights how robust tenant referencing has never been more important and that, when taking on young tenants, its prudent to have rent guarantee insurance and a guarantor in place.It's also interesting to note that there is a big increase in "silver" renters!Another relevant article from today:The number of tenants entering the market across England and Wales has risen by 9.2% from last month and 23.1% from last year, estate agent haart’s National Housing Market Monitor for July has found.
The average rent is down 0.4% on the month, and by 4% on the year, and now sits at £1,239 pcm across England and Wales.
Paul Smith, chief executive of haart,said: “Nationally, there are 23% more tenants looking to rent properties annually, but rental supply is down by 19% over the same period.
“This is particularly acute in London, where supply is down by 37%. As a result, rents have risen by 7% on the year in the capital.
“We are now at risk of pricing young Londoners out of renting, as well as owning a home. I urge Boris to relax taxation against landlords to encourage investment in housing stock again.”Full/source article
Yes, I agree. The agent has apologised for not putting RGI in place for me, they are paying my legal costs of eviction to compensate. They took a large deposit. It's hard to find a suitable guarantor for people who are immigrants to the UK
In my case there has been no problem for some years but now the woman has discovered that she is eligible for council property since she has her child from Poland with her; she is playing the game of 'evict me LL so that I can get a council place'
I suppose I could stop letting to EU nationals but I find them very honest, hard-working and clean. In my areas (London zones 2-3) I have been very happy with EU nationals for many years. Always in work and paying on time.
However am now reviewing that policy
Your tenant may well come to regret the decision to get evicted as she could well end up in a B&B where some people have languished for 6/7 yrs despite the max 6 weeks rule.
As a new Council tenant she may also be offered a short fixed term let of 2 to 5 yrs - with a 12 month probation at outset (to ensure rent is paid).
Eviction for rent arrears may also be treated as making oneself "intentionally homeless" which allows LA to avoid any responsibility to house her.
In any event in London she will end up bidding on CBL against thousands of other poor applicants and could wait years before being allocated a suitable property - and if her child is say adolescent/teenage the child would soon cease to be a dependent minor - which would lose her the priority she gets as a lone parent. She could easily become one of the tens of thousands of poorer households being exported away from London/SE due to LHA cap.
I agree. Funnily enough, in the downstairs maisonette (I own and rent both) a few years ago, after a bruising experience with a tenant who engineered an eviction from me, as I stood on the doorstep with the court bailiff tenant said, "Denise, I was very happy living here". For some people the grass is always greener. As a single man he is probably sleeping in his car now
Sometimes you cannot help people
Denise - when one thinks about the welfare state in general - today's young adults are the grandchildren of the young adult cohort who first benefitted from the system as we know it - so there will be many who have been "imprinted" with the view that there is always a financial safety net - which may persuade some that they have no real need to be prudent.Only after a spell on benefits might they come to see things differently - eg with capped/largely frozen LHA forcing many poorer households to vacate London/SE.
I am sure you are correct. Although not always the case with EU nationals, I have found that some who were brought up in communist regimes do have similar expectations of state provisions. And many of those want to be completely independent of the state. Of course tenants from Eire, Germany and France etc do not fall into that category.
It has to be case by case, but freedom of movement has made it harder to ask for a guarantor that I would be able to pursue in case of non-payment of rents.
Anyone have any suggestions on how to know that you have a reliable guarantor from an EU national? I mean reliable to me, not to them. I don't speak their languages