What's your idea of a good salary?

[vescaegg]

It massively depends on where you live in the country. The South East is eye wateringly expensive in terms of housing which lets face it, is most peoples biggest cost.

I live in a small 3 bed mid terrace which would be £70k in many parts of the country; worth about £320k at the moment.

You need that multiple of wages down here just to afford the same lifestyle as someone elsewhere. Its all relative.

£100k salary in Surrey may buy you a nice 3 bed semi; and sometimes not even close to that....

http://www.rightmove.co.uk/property-for-sale/prope...

It would allow you to live in a mansion elsewhere in the country.

[mug81]

I can honestly say that whatever the multiple of the average wage I've earned- I've spent exponentially more!

Dammit

[gibbon]

jakewright said:

It is relevant. If I am not mistake, one of the points he is making is that money does not go as far as it used to.

I understand the point he/she is trying to make, but his/her examples are, as is often the case, unfit. He is comparing an asset price in present day to earning from a previous period, it makes no sense, it is not a like for like comparison.

I dont actually believe money does not go as far is it used, in fact i believe it goes further, i just think that we expect and demand more. Our quality of life has undoubtedly improved over the generations for the vast majority of people.

The one exception to this is land values, but that isnt exactly rocket science to understand and position accordingly for, growing population combined with finite land and a more global world. Fairly easy to see whats happening there. I also think that rightly or wrongly these increased land costs have never been more affordable, but yes, the bottom line figure for property is higher.

[Chicken Chaser]

Whichever way you look at, the rise in house prices has risen far quicker than wages and we are a long way from catching up. The mortgage my parents took out when they were my age was a much lower multiplication of earnings than what mine is for a similar home.

[jakewright]

Chicken Chaser said:

Whichever way you look at, the rise in house prices has risen far quicker than wages and we are a long way from catching up. The mortgage my parents took out when they were my age was a much lower multiplication of earnings than what mine is for a similar home.

Exactly. I have no idea why he thinks it is any different

[djc206]

jakewright said:

Exactly. I have no idea why he thinks it is any different

It's not is it.

The home I grew up in was worth approx 3x my parents combined income. To buy the same home now it would be at least 5x the combined income of people in the exact same jobs I.e. They wouldn't get the mortgage and would require a much larger deposit which isn't easy.

House prices have outstripped wage growth. The only area in which we youngun's are better off is that interest rates are much lower than they were back then, but that won't last.

[gibbon]

Chicken Chaser said:

Whichever way you look at, the rise in house prices has risen far quicker than wages and we are a long way from catching up. The mortgage my parents took out when they were my age was a much lower multiplication of earnings than what mine is for a similar home.

It is, i agree, but virtually every other aspect of life to maintain the same standard of living is cheaper. So you spend a higher proportion of income on housing as land is a rising commodity. However, our quality of life has improved hugely, but people dont ever look at the whole picture, they look at and cherry pick certain statistics with dubious comparisons to justify a feeling that we are currently hard done by.

However, yes, land value is higher than it once was.

[Jasandjules]

Salary of double your age I think is good enough.

[STW2010]

Jasandjules said:

Salary of double your age I think is good enough.

But not achievable for most people. I think that makes it an exceptional salary.

When thinking about a 'good' salary perhaps we should think about the minimum wage and the living wage. Good is just above those.

In other words, good is above average.

[Pit Pony]

ecs said:

Pit Pony said:

Traditionally a couple (a man and a woman in case you get confused), get married, because they want to have children.

That sounds more like a sob story than an answer to the question.

Not really.

[walsh]

STW2010 said:

Jasandjules said:

Salary of double your age I think is good enough.

But not achievable for most people. I think that makes it an exceptional salary.

When thinking about a 'good' salary perhaps we should think about the minimum wage and the living wage. Good is just above those.

In other words, good is above average.

I have always aimed for this, in excess of double my age in thousands. I am only just getting around that point now.

I do however live in Reigate ( see above 500k + 3 bed terrace)... As mentioned previously, I think I will struggle to get on the property ladder around here. Also, I moved here for the job, which has doubled my income, but has not doubled my disposable cash...

Relative earning etc.

[jakewright]

gibbon said:

It is, i agree, but virtually every other aspect of life to maintain the same standard of living is cheaper. So you spend a higher proportion of income on housing as land is a rising commodity. However, our quality of life has improved hugely, but people dont ever look at the whole picture, they look at and cherry pick certain statistics with dubious comparisons to justify a feeling that we are currently hard done by.

However, yes, land value is higher than it once was.

We are not cherry picking statistics. We are saying house prices have out stripped wage rises which just happens to be one of the biggest factors in living costs.

I know a chap who lives in a 1.5million quid place in London, he is a multi millionaire trader. He neighbours are ex policemen and ex posties who bought the places with their copper and postie wage (at the time).

[vescaegg]

walsh said:

I have always aimed for this, in excess of double my age in thousands. I am only just getting around that point now.

I do however live in Reigate ( see above 500k + 3 bed terrace)... As mentioned previously, I think I will struggle to get on the property ladder around here. Also, I moved here for the job, which has doubled my income, but has not doubled my disposable cash...

Relative earning etc.

Hi neighbour!

[gibbon]

jakewright said:

We are not cherry picking statistics. We are saying house prices have out stripped wage rises which just happens to be one of the biggest factors in living costs.

I know a chap who lives in a 1.5million quid place in London, he is a multi millionaire trader. He neighbours are ex policemen and ex posties who bought the places with their copper and postie wage (at the time).

Sounds very similar to my house and my road. I think we have to take London out the equation though, over the last two generations the cities demographic has changed, its just no long comparable as the actual area has changed, its no longer the same place.

[dtmpower]

gibbon said:

Sounds very similar to my house and my road. I think we have to take London out the equation though, over the last two generations the cities demographic has changed, its just no long comparable as the actual area has changed, its no longer the same place.

[walsh]

vescaegg said:

walsh said:

I have always aimed for this, in excess of double my age in thousands. I am only just getting around that point now.

I do however live in Reigate ( see above 500k + 3 bed terrace)... As mentioned previously, I think I will struggle to get on the property ladder around here. Also, I moved here for the job, which has doubled my income, but has not doubled my disposable cash...

Relative earning etc.

Hi neighbour!

Should do a Reigate Mini-meet, there must be more of us! Probably in tents in priory park due to the house prices.

/Thread derailment.

[okgo]

walsh said:

Should do a Reigate Mini-meet, there must be more of us! Probably in tents in priory park due to the house prices.

/Thread derailment.

I thought it was quite reasonable in Reigate vs other parts of Surrey tbh.

[vescaegg]

okgo said:

I thought it was quite reasonable in Reigate vs other parts of Surrey tbh.

Some parts are ok; I bought in one of them but even since I bought 'my' area has gone insane to the point I'd not be so comfortable purchasing my house now. And I only bought 1 year ago. Others areas are flat out insane.

Redhill remains quite reasonable but isn't quite as nice.....

[Jasandjules]

STW2010 said:

But not achievable for most people. I think that makes it an exceptional salary.

But the question was what is "my" idea of a good salary....

[STW2010]

Jasandjules said:

STW2010 said:

But not achievable for most people. I think that makes it an exceptional salary.

But the question was what is "my" idea of a good salary....

Come on, we all know that on PH people aren't allowed opinions!