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ralphmalph

What Are People Saving For

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http://www.telegraph.co.uk/finance/personalfinance/8064116/Parents-leave-inheritance-of-42000.html

The headline is a bit naff but the stats in the survey are interesting.

The average savings account to be used for house purchase is 77K. Now if this was FTB's that would be worrying but I imagine it is sell to renters and people looking at buying a bigger house etc.

But it does illustrate that some people if they want to buy a house have the cash to do so.

Also people have only 21K in pensions savings so the old "my house is my pension" still seems to be a strong view.

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I save because there is genuinely nothing i want to buy. Its a byproduct of that. Not impressed by all this Iphone crud, never understood 'fashion', hate most new music, all new cars are ugly.

Not a very good consumer, am i?

Invent a spaceship for £25k and ill buy that.

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The article is one of the most weird I've ever seen.

An avg of 77K set aside for a house 'deposit'? I thought I was pretty rare in my saving, it seems I'm the norm. Damn. I can only presume those that have that much are surely then just like me, and hoping to buy outright once values revert to (we hope) to historical averages.

As for the 9K set aside for alcohol - who the hell saves up to buy drink? Surely that's just discretionary spending as and when you want it?

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Very interesting comment made about the article:

"IF that is the case, this will be the last generation to recieve money as beneficiaries of Wills.

Since the last three Governments have raped the Pensions, Savings systems such as Life Assurance and Endowments, it is more likey that people after 2040 will be Inheriting their parents liabilities not assets.

Even now we are talking about Mortgages of Life, i,e, 40 years, and young people are finding it difficult to build a deposit for a home when our Government have taxed them from here to Kingdom Come, both savings and income through indirect taxation.

They can barely afford to live on their own, let alone marry and afford children. In any case the way things are going we are not going to have any jobs left in this Country if the Government (of whichever colour) keep making it so expensive to employ people in Britain. No wonder work is going off-shore. I am certainly looking to work and immigrate abroad, since there is nothing left now; just poverty for those are retiring from 2025 onwards.

Most people without family ties are already leaving Britain, and the way things are going finding a native Britain afte 2040 will be a rarity; what were immigrants, will infact be natives.

Worrying isn't it. Then again I am talking about Fred Bloggs, not the Politicians and senior Civil Servants ( a misnomer since they are neither Serviants, nor Civil ! ) who will have indexed linked pensions; from the money they have raped from those who actually tried to save but were taxed out of existance.

I never thought I would say this, but I hate this Country and what it has become; and oh how so accurate George Orwell was; just 20 years out."

Strong stuff indeed!

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The individuals that compiled this are clearly living on magic mushrooms. There's little to inherit and even less to save. This is set to become exponentially worse over time (Consider current and forward economic climate).

Another desperate lunge from another desperate bunch of lost souls.

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I used to think that only movies and TV were for those with ADHD but it looks like journalism has joined the trend as well. The beginning of that article is as jolting as that Transformers movie I watched with my son.

Anyway what happened to all of those surveys that showed that the average amount of savings was a few thousand and the median was zero.

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For years I was saving for a house in the UK. Now it is for independence. Renting is fine and, as soon as I have saved enough, it could be for anywhere in the world where I feel 'left alone'.

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I'm probably going to rent forever, I don't have any ambition whatsoever to take on an eye-watering debt just so I can follow the farm animals.

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http://www.telegraph...e-of-42000.html

The headline is a bit naff but the stats in the survey are interesting.

The average savings account to be used for house purchase is 77K. Now if this was FTB's that would be worrying but I imagine it is sell to renters and people looking at buying a bigger house etc.

But it does illustrate that some people if they want to buy a house have the cash to do so.

Also people have only 21K in pensions savings so the old "my house is my pension" still seems to be a strong view.

If its STRers I can easily believe it.

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Can anyone give more details of what they mean? Is it that they've done a survey and those that said they DO have a house saving fund that the average was £77k?

That's a deposit of almost half a UK national house price average?

I'm no expert and am a lurker around here but that's gotta be a strong reason why this HPC won't be anything significant. The average that people have in cash to throw in the market is huge.

This scares the crap out of possible first time buyers like me. I thought no one was saving?! What happened to all the debt?

Or is it the case that only a minority of the population have one of these funds labelled as such which is why it seems so big to me?

I'm 28 and saved £30k+ and £77k will take forever.

Edited by cica

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Can anyone give more details of what they mean? Is it that they've done a survey and those that said they DO have a house saving fund that the average was £77k?

That's a deposit of almost half a UK national house price average?

I'm no expert and am a lurker around here but that's gotta be a strong reason why this HPC won't be anything significant. The average that people have in cash to throw in the market is huge.

This scares the crap out of possible first time buyers like me. I thought no one was saving?! What happened to all the debt?

Or is it the case that only a minority of the population have one of these funds labelled as such which is why it seems so big to me?

I'm 28 and saved £30k+ and £77k will take forever.

I can only presume this sample of 2000 savers at Skipton was handpicked. They probably picked people with a lot of cash in their account and asked them what they were saving for.

I don't for a second believe that most people have this - certainly anecdotaly, out of say 20 people I know, I can only imagine 2 (I am one of them) could describe themselves as being in that position. And we are the two who are atypical - just spend nothing normally. Of the others, maybe 6 have houses, and only 1 I imagine has anything like 80K of actual equity in their home. You've done well - I'm talking a similar age group (27-32)

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I'm no expert and am a lurker around here but that's gotta be a strong reason why this HPC won't be anything significant. The average that people have in cash to throw in the market is huge.

I'm 28 and saved £30k+ and £77k will take forever.

Why do you take the article at face value given your own situation?

There's more articles saying that most people don't have more than a £1000 in the bank account than they're are like this. Indeed, look at the thread just below this one on HPC....

http://www.housepricecrash.co.uk/forum/index.php?showtopic=152776

The article is basically utter, utter drivel, Skipton spinning their survey to try to get some column inches.

I'd bet everything I had that the average level of savings in the country is closer to £770 than it is £77,000.

Edited by Kyoto

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Can anyone give more details of what they mean? Is it that they've done a survey and those that said they DO have a house saving fund that the average was £77k?

That's a deposit of almost half a UK national house price average?

I'm no expert and am a lurker around here but that's gotta be a strong reason why this HPC won't be anything significant. The average that people have in cash to throw in the market is huge.

This scares the crap out of possible first time buyers like me. I thought no one was saving?! What happened to all the debt?

Or is it the case that only a minority of the population have one of these funds labelled as such which is why it seems so big to me?

I'm 28 and saved £30k+ and £77k will take forever.

awooga

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I can only presume this sample of 2000 savers at Skipton was handpicked. They probably picked people with a lot of cash in their account and asked them what they were saving for.

Exactly, if there were a tonne of people out there with 77k in the bank we wouldn't be in record personal debt as a country and there would have been sufficient funds in banks to avoid the credit crunch.

Article is total sh1te. I hardly know anyone who has savings, let alone a pension. Some have bought houses with massive mortgages in the last few years and I fear they are about to be royally shafted, because in reality there will be no one with 77k in savings queuing up to buy their house if they need to sell it in a hurry.

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Exactly, if there were a tonne of people out there with 77k in the bank we wouldn't be in record personal debt as a country and there would have been sufficient funds in banks to avoid the credit crunch.

Article is total sh1te. I hardly know anyone who has savings, let alone a pension. Some have bought houses with massive mortgages in the last few years and I fear they are about to be royally shafted, because in reality there will be no one with 77k in savings queuing up to buy their house if they need to sell it in a hurry.

They can have 77K in the banks and 1 mill mortgage.

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They can have 77K in the banks and 1 mill mortgage.

Could do, but how many people do you know with 1 million quid houses? And if this is the case they're going to need that 77k to cover the lost equity/increased interest rate payments when time comes. Don't think they'll be out buying more houses.

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Seems perfectly credible to me.

£77k is an average, and encompasses FTBs with less, but also those who have sold a house and have much more. And of course there's a strong correlation between serious saving and house buying: indeed, for most of us £77k cash would seem ridiculous if you weren't saving for a house.

I have somewhat more than that right now. But that's seasonal: towards the end of the tax year it'll be much less as it goes into tax-reducing investments. Until the year I blow it on a house deposit.

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Why do you take the article at face value given your own situation?

I'd bet everything I had that the average level of savings in the country is closer to £770 than it is £77,000.

Absolutely agree. I would like to see how this nonsense figure was arrived at.

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Why do you take the article at face value given your own situation?

There's more articles saying that most people don't have more than a £1000 in the bank account than they're are like this. Indeed, look at the thread just below this one on HPC....

http://www.housepric...howtopic=152776

The article is basically utter, utter drivel, Skipton spinning their survey to try to get some column inches.

I'd bet everything I had that the average level of savings in the country is closer to £770 than it is £77,000.

and when the Northern Rock failed, i beleive the figure of those who would lose more than 35K ( the compo limit) was about 1 or 2%.

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To answer the thread title, I don't know any more.

When i think how hard it was to save some money and how little difference it would make to a crushing mortgage, it sort of leaves me numb

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  • 244 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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