Friday, Jan 15, 2010

Please help explain this!

BBC News: Home alone: Buying without the Bank of Mum and Dad

Can somebody please explain why it is "impossible" to get together a deposit when earning as decent a salary as these people are? I earn less, am younger, and still have managed to save more than enough for a reasonable deposit. They don't seem to have kids, so is it huge rent, or the expense of running a car?

Posted by kate @ 12:56 PM (751 views) Add Comment

6 Comments

1. drewster said...

Ok let's do the maths.

Assume their incomes are split £28,000 / £20,000.
After tax monthly incomes are £1,770 / £1,310.
Total combined monthly income: £3,080
Rent for a 2-bedroom house in Crewe: £450 (it's a very affordable town! source: Rightmove)
Council tax: £120 / month
Gas / 'leccy: £100 / month (those older houses aren't well-insulated)
Monthly supermarket bill: £200 (food and cleaning products etc.)
One nearly-new small car driven 15,000 miles / year: £400 / month (includes depreciation; source: AA)
One monthly bus pass: £50 (source: D&G bus, the main local operator in Crewe)

Total monthly income: £3,080
Total monthly bills: £1,320
Amount left over: £1,760

If they put their minds to it, they could save up that £25,000 deposit within 15 months.
Surely the BBC could have found a couple more deserving of sympathy?

Friday, January 15, 2010 03:52PM Report Comment
 

2. Daveyk1975 said...

We earn a similar amount and save all the money we have left over (about £1700 a month), and we have a young child. It's called cutting back a little. We still have a comfortable life. Saving up for when the market goes pop again.

Friday, January 15, 2010 05:51PM Report Comment
 

3. rumble said...

Yeah, ridiculous individuals. How many restaurants, pubs, dvds, holidays, shoes.... per year? They don't seem to be aware of the difference between saving and windfall. Probably given the wrong idea by all the benefits dished out.

Friday, January 15, 2010 07:45PM Report Comment
 

4. This comment has been removed as it was found to be in breach of our Blog Policies.

 

5. paul said...

These are crocodile tears to forward the view that easy credit needs to return. Simples!

Friday, January 15, 2010 10:14PM Report Comment
 

6. quiet guy said...

Is that £48K net or gross? Either way it does seem a bit odd for them to consider asking the council for a property.

"We tried getting onto a council waiting list but it's difficult because, quite rightly, we're not a priority."

Saturday, January 16, 2010 12:27AM Report Comment
 

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