Sunday, May 07, 2006
Britons paper wealth?
Times: Britons are getting wealthier
The average disposable wealth available to households in Britain has topped £40,000 for the first time, according to new estimates published today. This consists mainly of savings, shareholdings and accessible housing equity, net of mortgages and other debt.
Posted by Uncle Chris @ 10:37 AM (243 views) Add Comment
4 Comments
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1. Paul said...
"accessible housing equity, net of mortgages and other debt".
That's not "wealth", that's debt!
Like me borrowing a million pounds and trumpeting "look I'm a milliona~~ire!".
2. Paul said...
"accessible housing equity, net of mortgages and other debt".
That's not "wealth", that's debt!
Like me borrowing a million pounds and trumpeting "look I'm a milliona~~ire!".
3. Paolo88888 said...
Paul,
I don't think you have read the article correctly. "... savings, shareholdings and accessible housing equity, net of mortgages and other debt. In the case of housing equity, the assumption is that 80% is accessible". By my reading, an example might be someone who owns a house worth £200k, £10k shares, £3k cash, a mortgage balance of £130k and £5k balace on their credit card. Then their disposable wealth would be 200 * 0.8 + 10 + 3 - 130 - 5 = £38k. Borrowing a million pounds would not change this, because they would then have £1M more cash but £1M more other debt.
4. Sebastian said...
Borrowing against your house is still debt no matter how much you think it is worth.