£50k just isn't enough anymore...

[greygoose]

superkartracer said:

Rich! but he still chased me for £10 not so long back.. tight f**ker

That's how he stays rich, you're lucky he didn't charge interest!

[Davi]

GT03ROB said:

Your figures may well be correct however that doesn't make it a sensible thing for most to do which was my point.

it's not so much sensible as what you have to do to get a house in some areas. I'm not talking about exclusive areas either, to which the automatic response is "move to a cheaper area".

[Sway]

I do find house prices to be a funny thing.

Familial income/expenditure even more so.

I live 2 hours away from Victoria station, and yet on 2/3 of the income. We can afford for my o/h to stay at home for a few years to look after the 2 kids whilst they're still very young.

Yet my 3 bed, quite large detached bungalow, 50 yards from the sea, is worth about 240k...

A friend has just bought a 3 bed newish build semi for 180k.

There's good schools (primary, secondary aren't amazing, but aiming to be able to send the nippers to a reasonable public.school a few miles away), excellent doctors surgery, and superb B roads with no speed cameras.

People spend a bag a week to come here for a week's holiday in a caravan, if only they realised they could save shedloads living here permanently!

Oh, good pubs, restaurants and outdoors stuff too.

All you London boys should move down like I did - I'll happily enjoy the house price rises, move to a similar pad to my mate, and be mortgage free.

Hell, I'll even decorate my gaff to your taste if you punt me 300k and ride the lemming wave!

[fido]

Sway said:

I live 2 hours away from Victoria station

So basically that's give or take 4.5/5 hours commuting per day assuming you don't work outside Victoria station? And that's on top of the huge train fare (going by what my friends in Brighton are paying) £4k p.a.? Not saying the quality of life isn't better, but it must be quite a personal strain if you need to go in 5 days a week.

[okgo]

5 hours on the trains every day to live next to a Pontins, you can keep it

[GT03ROB]

Davi said:

GT03ROB said:

Your figures may well be correct however that doesn't make it a sensible thing for most to do which was my point.

it's not so much sensible as what you have to do to get a house in some areas. I'm not talking about exclusive areas either, to which the automatic response is "move to a cheaper area".

...so what would you suggest? For someone on average or a bit above average income to be spending nigh on 40% of their income on a mortgage at current interest rates is financial suicide. Maybe not this year or next year, but in the longer term. With 40% of income gobbled up with base rates a 0.5%, what happens as rates rise back up. I know I'n cautious but I do remember seeing and paying 14-15% mortgage rates.

[Jasandjules]

Let's face it, house prices are stupidly high and people are "forced" to pay out silly money for not much property. It can not continue this way.......... (Yes, I know, look at Japan etc).

[SirTainly]

Geez, used to do up to 6 hours a day on the train for less than 50K, thought times were supposed to be hard in the mother country, clearly not.

Not planning to come back anytime soon.

[Night Runner]

SirTainly said:

Geez, used to do up to 6 hours a day on the train for less than 50K, thought times were supposed to be hard in the mother country, clearly not.

Not planning to come back anytime soon.

What were the working hours? When did you leave home/get back?!

[Davi]

GT03ROB said:

...so what would you suggest? For someone on average or a bit above average income to be spending nigh on 40% of their income on a mortgage at current interest rates is financial suicide. Maybe not this year or next year, but in the longer term. With 40% of income gobbled up with base rates a 0.5%, what happens as rates rise back up. I know I'n cautious but I do remember seeing and paying 14-15% mortgage rates.

let me turn it around... what would you suggest? Live at home with your parents till they die?

[Sway]

okgo said:

5 hours on the trains every day to live next to a Pontins, you can keep it

I don't, I work away 4 days a week, so only travel Monday/Thursday.

No Pontins nearby, there is a caravan park, but that's over a mile away and very self contained.

Fair bit of work around, I've never struggled to earn a decent wage.

Nowhere near Eastbourne either

Not saying it's perfect, or suits everyone, but there's a big difference between a 250k flat and a 250k family home, whilst still being able to earn decent money and being pretty close to London. It'd be pretty damn good for.someone who.can work remotely and go into the london office once or twice a week....

I think the differences are worth plenty more than 400k, but.the other way than the market...

[AyBee]

custardkid said:

Otispunkmeyer said:

This is what irks me about my profession in engineering. Spend 3-4 years ( so double time) getting chartership status.
Essentially something that says you can start to be considered as a proper engineer. Double your salary? You must be joking. Pat on the back I you're lucky. Yet in the world of finance, tax, law... Similar professional qualification nets you, rightfully so, a nice pay rise to recognise the fact you are now a proper professional. It hate that. Silly engineering.

thats why i took my engineering degree and went into Banking.

I graduated with 2 job offers
Seat engineer at Bentley or Analyst at Capital One, analyst job paid 50% more +£5k golden hello.

however i do miss track testing chassis bits on Contiental GTs ... from when i did work there!
Custard

And you're not the only one who's done that move.

[GT03ROB]

Davi said:

let me turn it around... what would you suggest? Live at home with your parents till they die?

There are many options. Renting reduces risk. Having lower expectations about either size or location of house. Save more. Live with parents & save. £50k is still a decent salary.

[alfaman]

AyBee said:

custardkid said:

Otispunkmeyer said:

This is what irks me about my profession in engineering. Spend 3-4 years ( so double time) getting chartership status.
Essentially something that says you can start to be considered as a proper engineer. Double your salary? You must be joking. Pat on the back I you're lucky. Yet in the world of finance, tax, law... Similar professional qualification nets you, rightfully so, a nice pay rise to recognise the fact you are now a proper professional. It hate that. Silly engineering.

thats why i took my engineering degree and went into Banking.

I graduated with 2 job offers
Seat engineer at Bentley or Analyst at Capital One, analyst job paid 50% more +£5k golden hello.

however i do miss track testing chassis bits on Contiental GTs ... from when i did work there!
Custard

And you're not the only one who's done that move.

Engineering is an excellent base for business via MBA....but st for earning very much in Engineering

After a degree, 5 years work and loads of exams and assessments etc I became a Chartered Engineer [Institution of Civil Engineers] at aged 27.

The pay was dreadful and wouldnt have gone up that much if I had stayed post qualifying.

After a 1 year MBA I tripled my earnings package... pretty typical for Engineering 20 or so years ago

[shoestring7]

okgo said:

5 hours on the trains every day to live next to a Pontins, you can keep it

Butlins?

SS7

[Davi]

GT03ROB said:

There are many options. Renting reduces risk. Having lower expectations about either size or location of house. Save more. Live with parents & save. £50k is still a decent salary.

we're not just talking about £50k salaries though - you said in general 40% was madness. Around here, a 1 bed flat will put the average earner to 40% of income, you often can't get any lower in expectations even at 40% which was my point.

[DanL]

alfaman said:

After a degree, 5 years work and loads of exams and assessments etc I became a Chartered Engineer [Institution of Civil Engineers] at aged 27.

The pay was dreadful

I graduated as a civil engineer back in '98! The pay is the reason I didn't go into it as a job... Went into IT instead as a programmer. Hadn't thought about an MBA - did you do yours full time?

My role's changed recently, and an MBA might be a handy thing to have, if it's do-able whilst working...

[oyster]

Are we talking 40% of gross or net income? Single or joint? Fixed rate or variable?

40% of single net income on a fixed rate mortgage isn't so bad at all.

40% of gross joint income on a variable rate is madness.

[theboyfold]

oyster said:

Are we talking 40% of gross or net income? Single or joint? Fixed rate or variable?

40% of single net income on a fixed rate mortgage isn't so bad at all.

40% of gross joint income on a variable rate is madness.

That's the issue with the article, we don't know. Hence the last 14 or so pages of the same questions!

[alfaman]

DanL said:

alfaman said:

After a degree, 5 years work and loads of exams and assessments etc I became a Chartered Engineer [Institution of Civil Engineers] at aged 27.

The pay was dreadful

I graduated as a civil engineer back in '98! The pay is the reason I didn't go into it as a job... Went into IT instead as a programmer. Hadn't thought about an MBA - did you do yours full time?

My role's changed recently, and an MBA might be a handy thing to have, if it's do-able whilst working...

I did a full time MBA at Cranfield - I would NOT recommend doing [a lesser] one while you work : full time MBA from either London business school , Cranfield , Insead .. or one of the other top drawer ones is worth a LOT in terms of job /career prospects [vs an "open university" "MBA" ]


chalk and cheese