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mk1mini

£100K Isn't A Decent Salary For A Family In London

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An interesting thread from a forum that I read everynow and then:

http://www.nappyvalleynet.com/mums/viewtopic.php?f=46&t=30802

It just shows which way the £ is heading...

£100k is absolutely fine for families who bought their house 10+ years ago, they'd live a very good lifestyle on that amount.

For renters and those who have bought more recently, it certainly wouldn't buy a luxury lifestyle, but it would be possible,

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Nothing to do with the £, I think.

I know a couple in London who bring in £145k gross. They have a cramped 2 bed apartment, and moved into her parents' 5 bed house to raise their two toddlers. They receive and pay rent. Still finding it tight.

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Nothing to do with the £, I think.

I know a couple in London who bring in £145k gross. They have a cramped 2 bed apartment, and moved into her parents' 5 bed house to raise their two toddlers. They receive and pay rent. Still finding it tight.

I don't totally understand that. Does the rent they get in cover the mortgage on the flat?

£145k must yield at least £7k per month, so even if they are paying £2k per month to her parents for renting rooms, they would have £5k+ left to play with and I just can't see how that can be 'tight' for anyone.

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I don't totally understand that. Does the rent they get in cover the mortgage on the flat?

£145k must yield at least £7k per month, so even if they are paying £2k per month to her parents for renting rooms, they would have £5k+ left to play with and I just can't see how that can be 'tight' for anyone.

By the looks of it, the nanny is 3k. Put something away for a pension (10% ~ 1200), possibly something on school fees, plus all the normal commuting, food, something for the holiday fund, the odd mini break etc... and I don't imagine you have a lot left.

Edited by Squeeky

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I don't totally understand that. Does the rent they get in cover the mortgage on the flat?

£145k must yield at least £7k per month, so even if they are paying £2k per month to her parents for renting rooms, they would have £5k+ left to play with and I just can't see how that can be 'tight' for anyone.

5k a month won't pay two lots of school fees, though I imagine it would be enough for childcare. Also, 2k a month is not enough to rent a family house in a good location.

Maybe they had to get by on one income for a bit? Or they are the annoying kind who save for retirement? Or they paid to have the babies in a private hospital, thus wiping out a year+ worth of disposable income?

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I don't totally understand that. Does the rent they get in cover the mortgage on the flat?

£145k must yield at least £7k per month, so even if they are paying £2k per month to her parents for renting rooms, they would have £5k+ left to play with and I just can't see how that can be 'tight' for anyone.

I don't know the figures.

They found out they can't get the kids into the local state school. She's a bit credit-cardy, he worries about retirement.

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Aye, so add another 700 a month for credit card minimum payments...220 for a bit of council tax, 100 for basic bills, 100 for the telly landline and internet, 100 for the mobiles.

250 each for the cars - (not including purchase price), so another 500. 150 each for a travel card, so another 300. That's 2grand before rent at 2500. Call it £4,500 before food and clothing. Say 700 a month on food, drink and toiletries etc takes us to £5,200. Add on a tenner each for lunch for the adults, taking us to £5,600.

Childcare at 1000 each, knocks us up to £7,600, with a coffee and a paper each on the way to work adds another £140, pocket money for the kids at a tenner a week adds another 100, and days out for the little ones at 100 quid twice a month, family gym membership for 75, hairdressing at 30 and a clothes allowance of 25 quid a month each sends us up to well over £8k a month.

That's before incidentals - buying tellys, furniture, trips to france, holidays, school books, charitable donations, evenings out, breakdowns or cracked windows, fines, new suits, the boat etc... and doesn't even really represent a 'Wealthy' lifestyle

That £8k a month needs a single salary over £160k to take home - or both parents earning around £75k

Edited by RichB

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DUM suckers.

It is the HIGH SALARIES that mean even the POOR need 100K just to live. Entitlement says that BECAUSE of this high cost of living, they need these high salaries...to some extent this is absolutely true, but which came first....heres a clue...it wasnt the high living costs.

you could write exactly the same article about China 10 years ago...look Wing...Mr Bloo needs £20,000 a year just to live in an area like yours..Mr WIng whistles...wow, we could never live there, 20K is huge compared to what I get.

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Nothing to do with the £, I think.

I know a couple in London who bring in £145k gross. They have a cramped 2 bed apartment, and moved into her parents' 5 bed house to raise their two toddlers. They receive and pay rent. Still finding it tight.

Funny that! If you earn 50K or more you are, according to HMRC, in the top 10% of earners in the uk.

£100k pa in the 'sticks' is a fine income. The only fly in the ointment is the price of houses.

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Funny that! If you earn 50K or more you are, according to HMRC, in the top 10% of earners in the uk.

£100k pa in the 'sticks' is a fine income. The only fly in the ointment is the price of houses.

The average (median) salsry is not that much more than the UK median.

London's a monster. When it blows it'll eat everyone!

Seriously - last crash (95ish) London went pretty cheap - 2.5 salary/hous price.

Its beyond expensive at the moment - I doubt many places outside prime are selling.

All one big bonfire, soaked in petrol.

Ohh, most of London is pretty unlivable. Thats why all these mumsnetter type crowd around Richmond.

Oh2 - London is full of nutters too - proper ones.

Oh3 - and cockernees.

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Nothing to do with the £, I think.

I know a couple in London who bring in £145k gross. They have a cramped 2 bed apartment, and moved into her parents' 5 bed house to raise their two toddlers. They receive and pay rent. Still finding it tight.

Are they hoping for HPC to trade up? If they're now renting out their 2 bed apartment whilst living with her parents, might be a good time to STR.

These high incomes are fine, but if and when foreign buying money dries up (not happened yet despite higher stamp duty on £2M+ and attempts to make it higher still on housing bought by companies) or looks to cash-out, not sure how

And what about story after story about job losses and bonus cuts in the City?

November 2012 (Telegraph): London's financial sector will lay off 13,000 staff in 2013 after a weak year for dealmaking, a study forecast today, slashing employment in one of the UK's key economic motors to its lowest level since the early 1990s.
November 2012: In a separate report today, the Cebr forecasts that City bonuses for Christmas and New Year will be slashed to a total pot of £1.6billion, compared with £11.6billion six years ago.

Too many oldies still holding property who need to downsize, or stacks of equity, and those trying to rent it out after inherited, and those just holding on refusing to sell despite their circumstances . That's more common than I ever realised before, as HPC Needle also has suggested. People expecting their circumstances to turn for the better, holding out for 2 or 3 years, spending at a rate they were before despite changed financial circumstances, until it all catches up with them.

Law reforms on PI and litigation with the Jackson reforms that came into effect on 1st April, which could affect many a law firm's instructions and fees. Maximum weekly benefit ceiling rules just kicking in. It doesn't look too far away from all cracking up to me.

Prime London Rents Cool - prices down 12% in some areas

Edited by Venger

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Aye, so add another 700 a month for credit card minimum payments...220 for a bit of council tax, 100 for basic bills, 100 for the telly landline and internet, 100 for the mobiles.

250 each for the cars - (not including purchase price), so another 500. 150 each for a travel card, so another 300. That's 2grand before rent at 2500. Call it £4,500 before food and clothing. Say 700 a month on food, drink and toiletries etc takes us to £5,200. Add on a tenner each for lunch for the adults, taking us to £5,600.

Childcare at 1000 each, knocks us up to £7,600, with a coffee and a paper each on the way to work adds another £140, pocket money for the kids at a tenner a week adds another 100, and days out for the little ones at 100 quid twice a month, family gym membership for 75, hairdressing at 30 and a clothes allowance of 25 quid a month each sends us up to well over £8k a month.

That's before incidentals - buying tellys, furniture, trips to france, holidays, school books, charitable donations, evenings out, breakdowns or cracked windows, fines, new suits, the boat etc... and doesn't even really represent a 'Wealthy' lifestyle

That £8k a month needs a single salary over £160k to take home - or both parents earning around £75k

Part of the issue here is the wall people hit between £100k and £115k, where the withdrawal of the personal allowance means they pay 40% on the £8105 that was originally tax free. This is why there was this Telegraph article of pay £4750 into your pension one off and get £5k extra a year for life - basically you can pay a lot less tax if you earn in this band and you reduce your taxable income by paying more into your pension.

Basically the scheme as presently set up clobbers people earning between £100k and £120k as you fork out almost another £3200 in tax over what you would otherwise have paid at 40% on the £15k. It would be fairer and simpler iif the new 45% rate started at £100k and they got rid of the ridiculous loss of the personal allowance.

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As for your question, it is all relative. If you want to drive an X5, jet to the caraiban for Xmas, live in a semi detach in the catchment of an outstanding school

<Lancastrian house price-based sarcasm> Ooh a semi - how simply, terribly aspirational. Who do they think they are - millionaires? </Lancastrian house price-based sarcasm>

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It's all gone very quiet about miliband's mansion tax. I reckon realisation its on the way could be the event that starts the unwinding of the great wall of london money. It will be as welcome as a turd in a hot tub in "prime" london.

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We are family with kids, im the only breadwinner. We burn 3K a month. (You need to earn 50K a year before tax).

If i switched to repayment mortgage it would go up to 4K a month, (i would need to earn 70K)

If we had 2 new posh cars instead of the old second hand ones we have it would go up another 1K a month (90K)

Dont know how much child care costs.. would probably cost well over 1,000 a month for 3 kids. (100k+).

That lots would require an income 100K before tax. And my mortgage is only 200K. God knows how people with a 400K repayment mortgage, new cars and and child care manage. Private school fees for 3 kids would easily bankrupt us as theres no inheritance or rich grand parents to pay for it.

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I've been offered jobs on 100-150K in London in the past year. Not interested - cost of living is simply too high unless you already own a property.

And I know that sounds stupid and greedy, but when you can live elsewhere in the world and save 25-50% of your income and still have a nice, middle class lifestyle in a nice area, London becomes very unattractive when I would really struggle to put away even 10% for a rainy day on that salary.

London is now for the super rich, those who bought 10+years ago, and the young/poor who can slum it for a while without minding too much

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I've been offered jobs on 100-150K in London in the past year. Not interested - cost of living is simply too high unless you already own a property.

And I know that sounds stupid and greedy, but when you can live elsewhere in the world and save 25-50% of your income and still have a nice, middle class lifestyle in a nice area, London becomes very unattractive when I would really struggle to put away even 10% for a rainy day on that salary.

London is now for the super rich, those who bought 10+years ago, and the young/poor who can slum it for a while without minding too much

Yep. Anecdotely, I've been encoutering quitely desperate companies for a good few years.

They set-up a Lodnon office. Try and recruit reasonably skills level - think degree + 10 years i.e. someone in 30s, now popping kids.

Nothing!

People of that age + skill have left or never arrived.

You have pretty unskilled (or wrongly skilled- think arts grads) people pre-kids who have 'gone to London' cos they assumed they'd get a job.

They did but the rent swallows the money. These always leave London by 35 to have kids. These used to have a big what if the bought low and sold high.

The current generation will not as they are mainly renters.

Then you have 25-30% of population on benefits.

Then you have the temporary float - travelling Ozzy accountants to Pakistani fast food workers.

Then you have the uber-rich - or at least will not/do not have to work.

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That is what has always happened, young families move away to commute in....now they are moving further away....London's loss is another's gain. ;)

High house prices are pushing the young skilled workers out.....High rents and salaries mean the cost of goods and services have to cost more.

Land owners are the only ones that can pass cost savings back to their customers because they can afford to, therefore spreading goodwill. ;)

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Funny that! If you earn 50K or more you are, according to HMRC, in the top 10% of earners in the uk.

£100k pa in the 'sticks' is a fine income. The only fly in the ointment is the price of houses.

The other thing is, generally speaking the state schools in the 'sticks' are far less of a lottery than in cities generally.

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Yep. Anecdotely, I've been encoutering quitely desperate companies for a good few years.

They set-up a Lodnon office. Try and recruit reasonably skills level - think degree + 10 years i.e. someone in 30s, now popping kids.

Nothing!

People of that age + skill have left or never arrived.

I'm in that 'band'.. from what I can see, jobs in my line go up to perhaps £70k in central London.

Now, I'm pretty sure that on that salary, a 4 bed house with a garden and a 25 minute commute in reach of good schools would be out of range, even if it had just been set on fire in a feud over crack-dealing rights. (EA speak 'Area has lots of character')

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I'm in that 'band'.. from what I can see, jobs in my line go up to perhaps £70k in central London.

Now, I'm pretty sure that on that salary, a 4 bed house with a garden and a 25 minute commute in reach of good schools would be out of range, even if it had just been set on fire in a feud over crack-dealing rights. (EA speak 'Area has lots of character')

...not being pedantic but why should a four bed be necessary?.......£70k should be enough to purchase a nice two bed with garden.

Or buy a nice four bed elsewhere with better schools and earn £50k or £40k depending where you plan to move to. ;)

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  • 246 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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