Nice House vs nice Car? Which takes priority?
Discussion
AndStilliRise said:
I suspect not. The people I know who earn 6-digits, not one lives in a flat-share, why would you?
Because lifestyle choice. I know a large number of people on >£100k wages (Law and Banking, mostly), and some do still "flatshare". Some are clearing up debts, some are blowing £3k+/mth up the wall on going out and partying - why wouldn't you, if that's what you wanted? There aren't many times in your life that you will realistically be clearing £4k after all outgoings (conceivable with a decent rental and bills), and London isn't short on places to spend it.
C70R said:
AndStilliRise said:
I suspect not. The people I know who earn 6-digits, not one lives in a flat-share, why would you?
Because lifestyle choice. I know a large number of people on >£100k wages (Law and Banking, mostly), and some do still "flatshare". Some are clearing up debts, some are blowing £3k+/mth up the wall on going out and partying - why wouldn't you, if that's what you wanted? There aren't many times in your life that you will realistically be clearing £4k after all outgoings (conceivable with a decent rental and bills), and London isn't short on places to spend it.
Edited by Frio3535 on Wednesday 22 February 16:14
okgo said:
NickCQ said:
Just ran the numbers on the above. £100k salary gets you a £450k mortgage at least and you get around £5-5.5k pm net depending on pension contributions. Should look to save at least £2-3k of that, pay around £1,000 to live in a flat share all-in and live comfortably on the remaining £1-2k. So you save £25k p.a. and after two to three years you have at least £60-70k, depending on how much investment growth you got in your low-cost index tracking ISA. Then you buy the flat. After another two to three years you have £60-70k in cash again and you buy an Evora. Or a bigger flat.
How many people earning 100k want to live in flatshares?
. Those who bought them rented out rooms to mates still saving. A few still flat shared into their 30s but I think by then the novelty would be wearing off regardless of the huge savings for most.
One thing that staggers me though is just how many 20 somethings are out several times a week fine dining. There's a real cultural change as many just seem to not be interested in buying a flat as it would just use up the money they need for maintaining their high spend lifestyles.
DonkeyApple said:
One thing that staggers me though is just how many 20 somethings are out several times a week fine dining. There's a real cultural change as many just seem to not be interested in buying a flat as it would just use up the money they need for maintaining their high spend lifestyles.
I slightly disagree with your last point. It's not that my generation (mid-20s) aren't interested in buying a flat, it's that most have never bothered to research whether it would be possible and assume it isn't. I think they are scared off by a combination of newspaper headlines about 'spiraling' property prices and not realising that, at least with interest rates where they are now, a mortgage can be 'affordable' (and I know how problematic that word is!) at relatively high income multiples by historical standards (4.5-5x not 3.5x).DonkeyApple said:
I guess it depends on age. In our 20s we all did it so that we could accumulate good deposits as rapidly as possible. Few people bothered with cars as they weren't needed and the local was a Sam Smiths so cheap to get pissed. . Those who bought them rented out rooms to mates still saving.
A few still flat shared into their 30s but I think by then the novelty would be wearing off regardless of the huge savings for most.
One thing that staggers me though is just how many 20 somethings are out several times a week fine dining. There's a real cultural change as many just seem to not be interested in buying a flat as it would just use up the money they need for maintaining their high spend lifestyles.
I've noticed the same thing and a sea change from 10 - 15 years when I was a 20 something. Our receptionist earns receptionist money but smashes back prosecco and cocktails whenever she is out and in high end bars. Said bars, and nice restaurants, full of 20 somethings wining and dining at the top end and the desire to spend disproportionate amounts on food and drink seems to be different from only a few years ago. In my 20s all the money I earned went on houses, cars and holidays. I p1ssed it up like Ollie Reed but wasn't interested in top end bars or restaurants. Our office junior drinks £5 a pint peroni. I don't think I tasted a five quid lager until I was about 30 and had cash to burn.. Those who bought them rented out rooms to mates still saving. A few still flat shared into their 30s but I think by then the novelty would be wearing off regardless of the huge savings for most.
One thing that staggers me though is just how many 20 somethings are out several times a week fine dining. There's a real cultural change as many just seem to not be interested in buying a flat as it would just use up the money they need for maintaining their high spend lifestyles.
Shnozz said:
I've noticed the same thing and a sea change from 10 - 15 years when I was a 20 something. Our receptionist earns receptionist money but smashes back prosecco and cocktails whenever she is out and in high end bars. Said bars, and nice restaurants, full of 20 somethings wining and dining at the top end and the desire to spend disproportionate amounts on food and drink seems to be different from only a few years ago. In my 20s all the money I earned went on houses, cars and holidays. I p1ssed it up like Ollie Reed but wasn't interested in top end bars or restaurants. Our office junior drinks £5 a pint peroni. I don't think I tasted a five quid lager until I was about 30 and had cash to burn.
All lager is £5 in London now anyway.As per above, most people don't even contemplate it being an option to buy.
okgo said:
All lager is £5 in London now anyway.
As per above, most people don't even contemplate it being an option to buy.
That it may well be, but this thread didn't seem to be solely the preserve of Londoners. Broaden the picture and the same thing still stands however. There are cheap drinks and expensive drinks. There are cheap bars and expensive bars. There are cheap restaurants and expensive restaurants. In my 20's, even when my salary picked up, my tastes were cheap and I not only wanted to use the money on other things, I wouldn't have contemplated spanking £200 on dinner when I could have £20, a full belly, and £180 to spend on other sheet. I am not saying I was always sensible and saved cash, simply that I acquired the more expensive tastes over time and as lifestyle grew that way. I didn't start my first job and suddenly move from Fosters to Dom P.As per above, most people don't even contemplate it being an option to buy.
NickCQ said:
DonkeyApple said:
One thing that staggers me though is just how many 20 somethings are out several times a week fine dining. There's a real cultural change as many just seem to not be interested in buying a flat as it would just use up the money they need for maintaining their high spend lifestyles.
I slightly disagree with your last point. It's not that my generation (mid-20s) aren't interested in buying a flat, it's that most have never bothered to research whether it would be possible and assume it isn't. I think they are scared off by a combination of newspaper headlines about 'spiraling' property prices and not realising that, at least with interest rates where they are now, a mortgage can be 'affordable' (and I know how problematic that word is!) at relatively high income multiples by historical standards (4.5-5x not 3.5x).okgo said:
All lager is £5 in London now anyway.
As per above, most people don't even contemplate it being an option to buy.
Not in a Sam Smiths or in many actual pubs. But, yes, most bars are over £5 now. That's a lot of rental yield per pint to the pension funds, which is fine if you have a pension. As per above, most people don't even contemplate it being an option to buy.
n17ves said:
Own a one bedroom apartment in a Northern city and drive a Cayman GT4
Shnozz said:
I think trowelhead is on the money. As I say, I had in ingrained in me to buy property and whilst it wasn't a poor decision, the amount I moved during my 20's particularly meant a lot wasted on SDLT and other moving fees. It's also left me the wrong side of the yield equation with a big(ish) house in a lovely but rural backwater that rents for peanuts and needs a relatively high upkeep. I wish I had collected a couple of small easy places that returned a nice yield instead and hadn't been so focused on living in the place I bought. Buying property is, IMHO, a wise decision but it doesn't always make sense to buy where you live. Do the sums first.
Yep, we did at one point buy a place we intended to live in for a while, after realising it would have costed at least 10k in SDLT, Estate agent fees, early repayment fees decided to rent it out instead. I think for Londoners especially, buying some rental property up north and using to offset rent costs in the capital makes a lot of sense.
Manchester house price growth even outstripped London last year.
https://www.hometrack.com/uk/insight/uk-cities-hou...
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