What Is A Good Income

[vman7]

What would be considered a good household income (monthly) after tax to be able to live a very comfortable lifestyle in northern ireland?

does anyone know what the averages are? is £3000- £3500 a month after tax any good?

Edited March 2, 2011 by vman7

[GloomMonger]

Depends how much you need to pay on rent/mortgage.

[tinbin]

What would be considered a good household income (monthly) after tax to be able to live a very comfortable lifestyle in northern ireland?

does anyone know what the averages are? is £3000- £3500 a month after tax any good?

It depends on how you look at it.

£3000-£3500 income into a household would be excellent and above average. This would equate to about an approx sole Gross annual income of £55k (how many people in Northern Ireland earn this salary??) or two annual incomes(i.e Husband & wife) of approx Gross £26000.

The affordability debate rages on this foum at times particularly in regards to mortgage mutipliers and so on ...

My view on the housing market is that FTBers are still outpriced in terms of affordability and this is what hurts the housing market the most. Therefore I will tailor my response relating this to FTbers. My view on the age group for FTBers should be anyone really in 20-30 zone for a healthy housing market chain.This age group are not earning the 'so called average wages' that are quoted on this site and most can only get onto the market with the help of a 30 year mortgage and the Bank of Mum & Dad, despite what figures are manipulated from reports.

If they were earning the income that you have quoted then I would imagine that it would be a good income and they are very fortunate... but most are not.

Even based on the above income, after deductions for MTG's, Rates & associated housing bills/costs, Insurance, Car, Travel, Petrol, Shopping, Sky TV, Broadband, mobiles and so on ... not to mention Childcare costs. You would find very little change at the end of the month!!

Fun & games ahead for all

[pajd]

I think the average wage is 23k before tax (i might be wrong though)

£3000- £3500 a month after tax is very good for NI

[2buyornot2buy]

Yep have to agree 3500 after tax is a very good figure. Even better if this is after student loan contributions which would work out at about 120 each a month.

[888]

What would be considered a good household income (monthly) after tax to be able to live a very comfortable lifestyle in northern ireland?

does anyone know what the averages are? is £3000- £3500 a month after tax any good?

This is a good calculator.

http://www.ifs.org.uk/wheredoyoufitin/

Should bring you to within the top 5%. But as someone else said before if you own a £200K mortage on top then it is meaningless.

[Belfast Boy]

I think the average wage is 23k before tax (i might be wrong though)

£3000- £3500 a month after tax is very good for NI

£23K is correct.

A household net income of £3000-£3500 is more than double the average net income. As said above - depending on debts - it would be a very comfortable income.

Why do you ask?

Edited March 2, 2011 by Belfast Boy

[vman7]

Belfast Boy im asking out of curiosity to see where we fit in. my partner and I are both 26 and are looking at buying our first home ( although i am going to rent for the next year to save a deposit and i think prices have a bit to go still).

What percent of a household salary would be recommended to spend each month on a martgage? if we bring in £3500 would £1200 be too much?

[Rare Bear]

Belfast Boy im asking out of curiosity to see where we fit in. my partner and I are both 26 and are looking at buying our first home ( although i am going to rent for the next year to save a deposit and i think prices have a bit to go still).

What percent of a household salary would be recommended to spend each month on a martgage? if we bring in £3500 would £1200 be too much?

If you think £1200, or indeed any particular amount, is doable you need to ask yourself how high interest rates will go. Then figure out how much borrowing your £1200 or whatever will service. Interest rates at the moment are unusually low, they have only one way to go, inflation is building so the only question is how much higher and how soon.

[Misanthrope]

Belfast Boy im asking out of curiosity to see where we fit in. my partner and I are both 26 and are looking at buying our first home ( although i am going to rent for the next year to save a deposit and i think prices have a bit to go still).

What percent of a household salary would be recommended to spend each month on a martgage? if we bring in £3500 would £1200 be too much?

So, you're able to make £3.5k net/month, but can't do your own budget forecasts. Are you serious?

[Belfast Boy]

So, you're able to make £3.5k net/month, but can't do your own budget forecasts. Are you serious?

... these are unprecedented economic times.

Many of the people on this forum believe that we have artificial costs of borrowing and government support being used to keep house prices artificially high. Where else can you get honest open impartial advice on the current economic situation and it's likely effect on personal finances... banks, estates agents, financial advisers, parents, friends, siblings?

Edit to add: most people don't realize that the current economic situation is artificial. Those people who do know... well, it is not really in their interest to tell you as they are usually trying to sell you something.

Edited March 2, 2011 by Belfast Boy

[R + R]

it seems some experts think houses in amerik are near the bottom

http://online.wsj.com/article/SB10001424052748703796504576168822497423738.html?mod=googlenews_wsj

did you get that household income/house price ratio?

rock on!

[vman7]

Anaemic Gremlin - its always good to hear other peoples opinions, does this not compute with you???

i am also a young guy who is concerned with his finances ( not that many of us about in northern ireland!). plus this is a combined income as i mentioned before!!

I have been trawling the web but cant seem to find household icome averages for northern ireland!

[Misanthrope]

Anaemic Gremlin - its always good to hear other peoples opinions, does this not compute with you???

i am also a young guy who is concerned with his finances ( not that many of us about in northern ireland!). plus this is a combined income as i mentioned before!!

I have been trawling the web but cant seem to find household icome averages for northern ireland!

What the hell have your life choices; responsibilties and affordability calculations (now and in the future) got to do with comparing against other people's earnings?

I'm struggling to understand your obsession with other income levels. Those won't pay your mortgage (or rent).

[Ride_on]

What the hell have your life choices; responsibilties and affordability calculations (now and in the future) got to do with comparing against other people's earnings?

I'm struggling to understand your obsession with other income levels. Those won't pay your mortgage (or rent).

Its a fair comment, the OP thinks that if everyone else is struggling then it is OK to borrow up to your neck. Many here go on salary multiples against mortgages that have been shown to be sustainable in the long term. Typically in the past 3.5xsalary has been a maximum mortgage considered sensible. I paid much less than this in 1991 with double digit inflation.

The banks don't really consider your ability to repay any more, so its up to you to decide what is comfortable. Many of us here chose not to play the banks game while prices are so high. Renting is considerably cheaper for a higher standard of living if you rent a 4 bed house for example.

[DotBomb]

I think its a fair enough question. The answer comes down to security of income and whether you plan to have kids. Is your wife going to look after them till their say 12-13 and can mind themselves? Whats the income split? 50/50 or do you earn more? I had a boss in england who paid 3grand a month in child care, and his wife went to work.

IMO if you plan on not having kids, 1200 over say 20years with secure jobs is probably ok. If your planning kids, IMO thats a little high. You need to budget for either your wife to not be earning or giving up significant % to child care for a good few years. Or maybe you have grandparents who are able and live close, which is worth lots and lots.

Personally when we started having children, i made sure i was close to mortgage free, and am now.

cheers

[Reraise]

I can empathise with the OP, I'm around the same age and ask the same questions. Your income is definitely a good one for NI and especially for our age group. I bought a house a year ago and the mortgage costs about 1/4 of my net monthly pay. It has worked out alright and I've been able to do some redecorating etc. 1200 out of 3500 sounds OK but maybe a bit on the high side for a dual income mortgage. It depends how you budget in other areas of your life e.g. motoring, going out, holidays, food, bills etc. Your money will go further if you can get good at budgeting. This is something I have yet to master. Based on my experience, I'd say keep the mortgage as small as possible so you have more money for other things.

[Shotoflight]

I can empathise with the OP, I'm around the same age and ask the same questions. Your income is definitely a good one for NI and especially for our age group. I bought a house a year ago and the mortgage costs about 1/4 of my net monthly pay. It has worked out alright and I've been able to do some redecorating etc. 1200 out of 3500 sounds OK but maybe a bit on the high side for a dual income mortgage. It depends how you budget in other areas of your life e.g. motoring, going out, holidays, food, bills etc. Your money will go further if you can get good at budgeting. This is something I have yet to master. Based on my experience, I'd say keep the mortgage as small as possible so you have more money for other things.

Factor in Rates and possible water charges, future interest rate rises, house insurance, maintenance and potential upgrade if necessary, as well as sky high heating oil costs, leccy, a tv licence, broadband and telecoms (with Sky HD for the sport) and food/fags/booze and a few quid for the odd punt. Petrol/diesel, car tax, insurance (dearer for the lady ) and servicing/MOT I would also advise unemployment, sickness and mortgage insurance. You would be advised to have private pension provision and a cushion of savings for emergencies. You will need to pay a mortg fee, stamp duty, legals, and valuation fees. The house may come with management fees depending on where it is. If you buy now your house will lose its value in the months and years to come (my opinion).

As a potential high earner be aware of child benefit, childcare voucher and tax credit cuts. You will likely not receive the state pension till you are 68 and your (i assume) female partner will be in a similar position. If either of you are in the public sector be aware of pay freezes, no career prospects, greater pension contributions and less benefits alongside the possibility of losing your job. Your National Insurance contributions will increase by 1% in April. There is a budget on 18 March which is likely to hurt the working man and woman. VAT is likely to remain at 20% for the forseeable future.

Confidence that you will both be in secure employment for at least the next 25 yrs (and remain together as partners/spouses) should feature in your considerations. Holidays are dear, children are expensive - holidays with children outside school term are prohibitively expensive. As are pets.

You have a nice comfortable income, perhaps well deserved and through honest graft to get where you are. Think carefully about what you want to do with it over the next 25 yrs - timing will be crucial.

The above is my view through experience - you are right to consider the opinions of others but no one can tell the future. The ball is very much in your court.

If you still want a house - seek out Belfast VIs opinion which may counterbalance the above (or any Estate Agent for that matter).

Not sure if this is what you're looking for but, the clue is in the name - HPC.

Good Luck.

[Reraise]

Factor in Rates and possible water charges, future interest rate rises, house insurance, maintenance and potential upgrade if necessary, as well as sky high heating oil costs, leccy, a tv licence, broadband and telecoms (with Sky HD for the sport) and food/fags/booze and a few quid for the odd punt. Petrol/diesel, car tax, insurance (dearer for the lady ) and servicing/MOT I would also advise unemployment, sickness and mortgage insurance. You would be advised to have private pension provision and a cushion of savings for emergencies. You will need to pay a mortg fee, stamp duty, legals, and valuation fees. The house may come with management fees depending on where it is. If you buy now your house will lose its value in the months and years to come (my opinion).

As a potential high earner be aware of child benefit, childcare voucher and tax credit cuts. You will likely not receive the state pension till you are 68 and your (i assume) female partner will be in a similar position. If either of you are in the public sector be aware of pay freezes, no career prospects, greater pension contributions and less benefits alongside the possibility of losing your job. Your National Insurance contributions will increase by 1% in April. There is a budget on 18 March which is likely to hurt the working man and woman. VAT is likely to remain at 20% for the forseeable future.

Confidence that you will both be in secure employment for at least the next 25 yrs (and remain together as partners/spouses) should feature in your considerations. Holidays are dear, children are expensive - holidays with children outside school term are prohibitively expensive. As are pets.

You have a nice comfortable income, perhaps well deserved and through honest graft to get where you are. Think carefully about what you want to do with it over the next 25 yrs - timing will be crucial.

The above is my view through experience - you are right to consider the opinions of others but no one can tell the future. The ball is very much in your court.

If you still want a house - seek out Belfast VIs opinion which may counterbalance the above (or any Estate Agent for that matter).

Not sure if this is what you're looking for but, the clue is in the name - HPC.

Good Luck.

Lots of those things will apply whether you buy or rent although you make lots of good points. The original question was not "is now a good time to buy?" but "how much is a reasonable amount to spend on a mortgage?"

[Shotoflight]

Lots of those things will apply whether you buy or rent although you make lots of good points. The original question was not "is now a good time to buy?" but "how much is a reasonable amount to spend on a mortgage?"

True, but the original question was not about renting either. I think it is pertinent to take stock of the current environment since, obviously, the mortgage hasn't been taken yet and so, due to high house prices and economic risk thought should be given as to what you want/need and how much this will cost now and also at some other point in time.

How does 25% sound, go for it now, and forget about the rest?

Better still, ask a bank.

Edited March 2, 2011 by Shotoflight

[Misanthrope]

Lots of those things will apply whether you buy or rent although you make lots of good points. The original question was not "is now a good time to buy?" but "how much is a reasonable amount to spend on a mortgage?"

Categorically INCORRECT. The original question asks how much do you need to earn (in NI) to have a "comfortable living".

The concept of a "comfortable living" is highly subjective. Define that to suit your own pretensions and precarious aspirations.

Thank you, Shotoflight, for putting the reality to a hoodwinked youth.

[_SUNDANCE]

I find it hard to believe that a couple earning over £3,000 a month net would not be aware that they have incomings greater than the vast majority of people in Northern Ireland.

Not sure what relevance the average income is when you are obviously well above it.

[Shotoflight]

I find it hard to believe that a couple earning over £3,000 a month net would not be aware that they have incomings greater than the vast majority of people in Northern Ireland.

Not sure what relevance the average income is when you are obviously well above it.

or would feel the need to post on a site like this for info on living comfortably and mortgage income ratios!

[vman7]

sundance hence why i asked is this a good wage or not!!! i also asked if there is somehwere to find average household wages in NI to see if i am there or not. I cant believe people on this forum are having a go at me for asking a simple question of whether it is a good enough salry to be living a nice lifestyle and what the average % of salary do people spend on a mortgage.

As i mentioned before i am a young guy seeking advice from people much more experienced than i am but clearly i have come to the wrong place

[Reraise]

Anaemic gremlin, this was the point of the thread:

Belfast Boy im asking out of curiosity to see where we fit in. my partner and I are both 26 and are looking at buying our first home ( although i am going to rent for the next year to save a deposit and i think prices have a bit to go still).

What percent of a household salary would be recommended to spend each month on a martgage? if we bring in £3500 would £1200 be too much?

You live up to your name btw. For the record, my aspirations are to live in a nice house, drive a nice car, go on nice holidays and generally have a nice life.

Shotoflight is right, asking the bank is probably the best bet. Gone are the days of lending more than people can afford to repay. I can understand OP's line of reasoning though "I earn decent money, is this all I can afford? Are my earrnings not above average? etc etc"