£50k just isn't enough anymore...
Discussion
Pommygranite said:
Has anyone thought that perhaps the house was:
1. Bought a few years ago when it cost less than £600k; and/or
2. Said family might have been in different jobs on more money than their current ones; and/or
3. They had received or come into money via say an inheritance meaning that they might well have a small mortgage.
Everyones presuming they paid £600k for the house with a £600k mortgage.
I have a friend with a £800k house and a £40k family income (gross). He has no mortgage as his very successful father gave them the money when he retired. Not everyone buys their house with their own hard-earned...
Ooh, only about 10 people so far in the thread. 1. Bought a few years ago when it cost less than £600k; and/or
2. Said family might have been in different jobs on more money than their current ones; and/or
3. They had received or come into money via say an inheritance meaning that they might well have a small mortgage.
Everyones presuming they paid £600k for the house with a £600k mortgage.
I have a friend with a £800k house and a £40k family income (gross). He has no mortgage as his very successful father gave them the money when he retired. Not everyone buys their house with their own hard-earned...
Edited by HurryUpAndWait on Thursday 14th July 00:26
Edited by HurryUpAndWait on Thursday 14th July 00:27
groak said:
"...About 40 per cent of the Sewells’ income goes on their mortgage, which leaves a reduced sum for them to live on every month — and virtually nothing for any of life’s luxuries......"
Not much more to say, is there?
Nope...as I said before 40% on mortgage is frankly madness. I suppose I should not be surprised by some peoples overwhelming stupidity when it comes to money matters & personal finance. Not much more to say, is there?
GT03ROB said:
Nope...as I said before 40% on mortgage is frankly madness. I suppose I should not be surprised by some peoples overwhelming stupidity when it comes to money matters & personal finance.
And I can only assume that, because the mortgage hits their bank account so hard each month, they buy other 'luxuries' (to go with the nice house - appearances matter..) on the never never - thus giving the illusion they're richer than they really are. I think this is the problem - some must have the 'bling' (cars/designer furniture/clothes/electrical equipment etc) to go with shiney new overpriced abode.chris watton said:
But the couple linked in the article by the OP clearly arn't on a million a year (I would think that's a whole different ball game...), they're on £50k, where 40% on a mortgage is a lot.
I suppose ther is another way of looking at it. Their mortgage repayment is probably only around 20%, the other 20% is repaying the debt they ran up to pay for horses, 3 foreign holidays a year, socialising, etc.. Still daft as brushes though, the pair of them. 
anonymous said:
[redacted]
But 9 times out of 10 that number that's 'left over' is always relative isn't it? It's so often the case that the lifestyle has to match the house. The thing that amazes me with the mortgage payments is I thought they should have come down. There must be a lot of people who are on base rate at the moment so the minimum payment should be quite low...
chris watton said:
And I can only assume that, because the mortgage hits their bank account so hard each month, they buy other 'luxuries' (to go with the nice house - appearances matter..) on the never never - thus giving the illusion they're richer than they really are. I think this is the problem - some must have the 'bling' (cars/designer furniture/clothes/electrical equipment etc) to go with shiney new overpriced abode.
It's the type of 'bling' cars that amazes me though.I lose count of the amount of S5s I see around. These are £50k cars. How can so many people afford them?
(I suspect few can afford them without massive loans that they then struggle to pay off).
greggy50 said:
She has been trying for month's has no means of transport and part-time jobs are very hard to come by at the moment. However seems to not but much as effort into finding one as I did I don't think she understands the fact if she does not get a job before university she will not be going or having a very s
t time when she is at university itself with no money to go out. At least with the fact I have a job I have a vague hope of paying my parents back my dad was going to take early retirement but has said he just simply cannot afford it now because of university cost's. His dad retired at 65 and died only 18 months later and he is a bit down at the moment faced with the fact he is going to have to work for another 5 years.
She might well get a job at uni... ours are always happy to have bar staff, lifeguards for the pools, people to work in the union shops or cafes around campus (if there is a campus) etc things like that. It also takes things like travelling arrangements out of the equation.t time when she is at university itself with no money to go out. At least with the fact I have a job I have a vague hope of paying my parents back my dad was going to take early retirement but has said he just simply cannot afford it now because of university cost's. His dad retired at 65 and died only 18 months later and he is a bit down at the moment faced with the fact he is going to have to work for another 5 years. oyster said:
It's the type of 'bling' cars that amazes me though.
I lose count of the amount of S5s I see around. These are £50k cars. How can so many people afford them?
(I suspect few can afford them without massive loans that they then struggle to pay off).
Me too.I lose count of the amount of S5s I see around. These are £50k cars. How can so many people afford them?
(I suspect few can afford them without massive loans that they then struggle to pay off).
I know what I earn and what other people in the local area are likely to be able to make - self employeds aside - and am frankly staggered by the metal being bought by so many.
There was a thread in the business section though, apropos of Audi, where a £40+k motor was being leased for about £7k p.a. which is 'cheap' (assuming you paid cash, list, this would barely cover depreciation) way of getting into a depreciating asset and sufficiently low key in outlay to lull peolpe into beleiving they can 'afford' it.
Of course the best way with cars, if your funds and useage allow, is to try and buy quality, cash with discount and not change too often.
GT03ROB said:
..very true & I could think of a lot of other situations when it may be fine....however, for 95% of the population for 95% of the time it still remains madness....
I would suggest that for the majority of people in the south, their mortgage / rent equates to a similar %age of income. Certainly from my time in employment in the mortgage industry it's so.I do find it quite amusing though that so many on here berate the mail for wailing out half truths and making spurious links or feeble correlations, then do exactly the same or worse! f
k me some of you lot really do spout some utter bks!Digga said:
Me too.
I know what I earn and what other people in the local area are likely to be able to make - self employeds aside - and am frankly staggered by the metal being bought by so many.
There was a thread in the business section though, apropos of Audi, where a £40+k motor was being leased for about £7k p.a. which is 'cheap' (assuming you paid cash, list, this would barely cover depreciation) way of getting into a depreciating asset and sufficiently low key in outlay to lull peolpe into beleiving they can 'afford' it.
Of course the best way with cars, if your funds and useage allow, is to try and buy quality, cash with discount and not change too often.
Finance. Has to be. (though on here maybe not)I know what I earn and what other people in the local area are likely to be able to make - self employeds aside - and am frankly staggered by the metal being bought by so many.
There was a thread in the business section though, apropos of Audi, where a £40+k motor was being leased for about £7k p.a. which is 'cheap' (assuming you paid cash, list, this would barely cover depreciation) way of getting into a depreciating asset and sufficiently low key in outlay to lull peolpe into beleiving they can 'afford' it.
Of course the best way with cars, if your funds and useage allow, is to try and buy quality, cash with discount and not change too often.
Or company car.
Davi said:
I would suggest that for the majority of people in the south, their mortgage / rent equates to a similar %age of income. Certainly from my time in employment in the mortgage industry it's so.
That's very surprising. I'd have thought the opposite. Whereas SE wages might for many be higher by, say, even 50% in some cases, accommodation costs are double. Certainly looking at rents London v Glasgow double is probably understating it (talking about 'average' property here). Davi said:
GT03ROB said:
..very true & I could think of a lot of other situations when it may be fine....however, for 95% of the population for 95% of the time it still remains madness....
I would suggest that for the majority of people in the south, their mortgage / rent equates to a similar %age of income. Certainly from my time in employment in the mortgage industry it's so.I do find it quite amusing though that so many on here berate the mail for wailing out half truths and making spurious links or feeble correlations, then do exactly the same or worse! f
k me some of you lot really do spout some utter bks!Gassing Station | News, Politics & Economics | Top of Page | What's New | My Stuff