Wednesday, May 09, 2007
"Living standards have never been higher."
Motley Fool: A Treadmill Built For Two
A short summary of where we're at.
Posted by foobar @ 01:37 PM (144 views) Add Comment
4 Comments
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1. cyril said...
I agree with the article but the author's grasp of statistics is a bit shaky: with two working parents, it does indeed double the risk of a breadwinner becoming ill but you only lose half the income. So two workers per household is a more secure arrangement because the mortgage is usually less than half the disposable income. D'Oh!
The problem is that
(a) over the long term house prices are related to household income so two workers per household = twice the house price (all other things being equal) so a single income isn't enough.
(b) there's no one to look after the kids so you end up shelling out a fortune on nursery bills anyway.
A mate of mine has the answer - he has a French au pair who gets £50 a week for looking after the kids, cooking, doing the ironing etc. etc.. Lucky for him he's got a big house.
2. Rimmer said...
Cyril
Apart from recent times who could ever afford to by a house based on a single income? i certainly couldnt and most people i know from the 1970 and 1980s couldnt, its only now that apparently theres a "Right" to be able to afford one, if your a teacher or policeman now and single its a social discrace if you cant afford your own house on a single income "Suddenly"
Tony Blair oh he of family values has done all he can to promote single earner family mortgages ( NOT ), i agree that all house prices now are based predominantly on two incomes and have been for some time.
The answers easy to the family problems, dont have kids let the eastern europeans keep the population numbers up.
3. uncle chris said...
Why have children if you are going to dump them on someone else. It's a shame so many people are going to miss out on watching their kids grow up, and contribute to another generation of latch-key kids. There is an easy answer to not putting yourself on this treadmill ..... RENT. My wife and I had a wee boy 5 weeks ago and thankfully can enjoy the sleepless nights (!). Because we rent we have savings in the bank (interest pays the rent) and no pressure to maintain a super-size mortgage or the house we live in. She can take unpaid leave until next February (or longer) if she wants and I've been able to cut my hours to be at home more often. I don't think we have remarkably well paid jobs, it's just that we refuse to be drawn in by the banks/EAs to fund their dividend payments for the next 50 years.
By renting, we enjoy a comfortable lifestyle and can upgrade homes as our family (hopefully) grows, with no estate agent, solicitor, HIP or massive mortgage arrangement fees .... I just wonder when people will wake up to the fact that home ownership is not all it's cracked up to be - especially these days. Sure we may buy one day, but only when it makes sense ... and it sure doesn't make sense at the moment.
4. paul said...
Wise words from Uncle ... nay, Father Chris.