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The House Prices-To-Salaries Map Which Shows Why You May Never Get A Mortgage

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http://www.theguardian.com/money/ng-interactive/2014/may/23/-sp-see-how-house-prices-have-risen

Concern has been growing over rising house prices, with the business secretary, Vince Cable, and Bank of England governor, Mark Carney, among the latest to express fears that recent increases may be a risk to the economy.

This map, based on data from the department for communities and local government, shows how English house prices have risen since 1997 relative to earnings. At the beginning of the period the average house in most areas could be bought with six years' average earnings. By the latest figures, the multiple was 10 times or more in large areas of the country

Don't worry you can just rent forever if you can't afford to buy. Luckily rents aren't linked to house prices.

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I urge everyone on here who has a Twitter account to tweet this map as it is a powerful illustration of the crazy housing market.

Remember ofcourse that these are mean average salaries which are biased up by the few high earners. The median salaries picture would look even worse.

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I urge everyone on here who has a Twitter account to tweet this map as it is a powerful illustration of the crazy housing market.

Remember ofcourse that these are mean average salaries which are biased up by the few high earners. The median salaries picture would look even worse.

The blurb says "average" but when you mouseover the areas the pop-up says "median" salary

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http://www.theguardian.com/money/ng-interactive/2014/may/23/-sp-see-how-house-prices-have-risen

Don't worry you can just rent forever if you can't afford to buy. Luckily rents aren't linked to house prices.

Makes me so sick.

I wish there was a definition of an average house (3 bed semi?) which could be used consistently in stats. The Haliwide stats seem to be based on the average price of all properties sold, which are distorted for instance if only £1m+ places are selling that month.

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What exactly is the definitely of an average house? I suspect it isn't a house and is a now actually 2 bed flat. Its a bit like how they reduce the size of mars bars every year. Theres no way an average house in Brighton is only 8x average wage.

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Makes me so sick.

I wish there was a definition of an average house (3 bed semi?) which could be used consistently in stats. The Haliwide stats seem to be based on the average price of all properties sold, which are distorted for instance if only £1m+ places are selling that month.

A couple of years ago I dug through some ONS housing stock statistics and worked out that the median number of bedrooms is 3. There are actually few flats in the UK, less than 10% of the housing stock, so the median property definitely isn't a flat. The median UK property probably is a 3 bedroom semi.

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What exactly is the definitely of an average house? I suspect it isn't a house and is a now actually 2 bed flat. Its a bit like how they reduce the size of mars bars every year. Theres no way an average house in Brighton is only 8x average wage.

If you are a youngish worker in the southeast of England you probably have quite a distorted view of what the housing stock is really like in your area. There are plenty of houses, it's just not people like you who live in them.

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I've said this before on other threads.

Surely the title should read

The House Prices-To-Salaries Map Which Shows Why You May Never Sell Your House

If the price is more than someone in the top decile earning can afford, who the f-ck are you going to sell to?

Don't say investor as very few people in the UK have the actual cash to buy a house.

Edited by spyguy

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If the price is more than someone in the top decile earning can afford, who the f-ck are you going to sell to?

Boomers playing swapsy with equity that has become inflated and was not actually paid for in the first place. Lifespans are being rolled out, wealth accumulated over decades....it's a wealth game now not an income game. We are entering Victorian style property ownership based on wealth and inheritance...the socialist dream as played out by Blair and the Milibot and the former, in particular, helps himself to multiple units.

Only a long spell in a nursing home can prevent the wealth being recycled, so in most cases it never has to be paid for.

Edited by crashmonitor

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The blurb says "average" but when you mouseover the areas the pop-up says "median" salary

Average does not mean arithmetic mean exlusively, average is the family name for mean, mode, median, or any other type of average that you can devise, for example numerical approximations

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Boomers playing swapsy with equity that has become inflated and was not actually paid for in the first place. Lifespans are being rolled out, wealth accumulated over decades....it's a wealth game now not an income game. We are entering Victorian style property ownership based on wealth and inheritance...the socialist dream as played out by Blair and the Milibot and the former, in particular, helps himself to multiple units.

Only a long spell in a nursing home can prevent the wealth being recycled, so in most cases it never has to be paid for.

Thence it's recycled into the private owner of the care home, who uses it to buy a mansion which he leaves to his kids. Ergo wealth is concentrated further.

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Thence it's recycled into the private owner of the care home, who uses it to buy a mansion which he leaves to his kids. Ergo wealth is concentrated further.

Indeed wealth is very difficult to destroy. We have had resets such as world wars and busts allowed to run their course in the past that gave the next generation a chance. Resets are no longer tolerated. I'm guessing that the 100,000 housing units currently built each year are not even started to be covered by wealth accumulation.

A friend of mine's dad is buying him a £280,000 pound house......he's just a retired boomer school teacher now in his eighties putting longevtiy and wealth accumulation into operation. Why do we need income to buy houses anymore. It is all about family connections not income. By the way the son is unemployed in his fifties and has always been unemployed.

Edited by crashmonitor

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I've said this before on other threads.

Surely the title should read

The House Prices-To-Salaries Map Which Shows Why You May Never Sell Your House

If the price is more than someone in the top decile earning can afford, who the f-ck are you going to sell to?

Don't say investor as very few people in the UK have the actual cash to buy a house.

+ 1

Or rather, shows 'why you have to drop the asking price for your house if you ever hope to sell it'

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Indeed wealth is very difficult to destroy. We have had resets such as world wars and busts allowed to run their course in the past that gave the next generation a chance. Resets are no longer tolerated. I'm guessing that the 100,000 housing units currently built each year are not even started to be covered by wealth accumulation.

A friend of mine's dad is buying him a £280,000 pound house......he's just a retired boomer school teacher now in his eighties putting longevtiy and wealth accumulation into operation. Why do we need income to buy houses anymore. It is all about family connections not income. By the way the son is unemployed in his fifties and has always been unemployed.

I'm seeing the same thing over and over again.

At first it was BOMAD helping out with minimal deposits. But a kind of dinner party chatter led inflation seems to be sweeping through my circle of friends, and it's becoming more usual now to pony up the full purchase price. I've repeatedly argued that even though I accept the sentiment (who doesn't want to help their kids?), now isn't a great time to be sinking money into property. This line of debate produces all the counter arguments you'd expect, but there is one argument that made me pause and think. A few times I've heard from parents who have accumulated reasonably large sums and are asking themselves how they can pass this wealth through to their children without it being frittered away, and they're arguing that doing it via a property that their children actually occupy will be a method of curtailing their spendthrift instincts!

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Indeed wealth is very difficult to destroy. We have had resets such as world wars and busts allowed to run their course in the past that gave the next generation a chance. Resets are no longer tolerated. I'm guessing that the 100,000 housing units currently built each year are not even started to be covered by wealth accumulation.

A friend of mine's dad is buying him a £280,000 pound house......he's just a retired boomer school teacher now in his eighties putting longevtiy and wealth accumulation into operation. Why do we need income to buy houses anymore. It is all about family connections not income. By the way the son is unemployed in his fifties and has always been unemployed.

The Exponential Wealth Curve is rocketing away northwards. People already with wealth can accumulate and earn more income from it faster than a worker, from a standing start, can ever earn.

I'm surrounded by friends like the one you mentioned. Guy at work, got married at 27, wifes parents bought them outright a flat in West London. Aged 32, they moved to Oxford to buy a house, but kept the flat in London. Had 2 kids. She doesn't work at all. He told me last week they're moving to a £600k house in Buckinghamshire for a bit more room. He's 35 and earns 45k a year. There's no maths to work out, salary multiples or affordability, because everything is parent funded. Another mate has done pretty much nothing workwise, now doing a fashion course, late 30's, Dad pays for everything, she will inherit more money by not working than someone who had the drive to suceed in their career.

Back in the room... if I go the extra mile at work this year, I could get an extra 2k on my annual bonus. I used to go for it, but looking at effort v's reward, it's laughably not worth it. Horribly negative but realistic.

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The Exponential Wealth Curve is rocketing away northwards. People already with wealth can accumulate and earn more income from it faster than a worker, from a standing start, can ever earn.

I'm surrounded by friends like the one you mentioned. Guy at work, got married at 27, wifes parents bought them outright a flat in West London. Aged 32, they moved to Oxford to buy a house, but kept the flat in London. Had 2 kids. She doesn't work at all. He told me last week they're moving to a £600k house in Buckinghamshire for a bit more room. He's 35 and earns 45k a year. There's no maths to work out, salary multiples or affordability, because everything is parent funded. Another mate has done pretty much nothing workwise, now doing a fashion course, late 30's, Dad pays for everything, she will inherit more money by not working than someone who had the drive to suceed in their career.

Back in the room... if I go the extra mile at work this year, I could get an extra 2k on my annual bonus. I used to go for it, but looking at effort v's reward, it's laughably not worth it. Horribly negative but realistic.

What we need is a massive hpc, to level things out, to see who is really standing (liquid - and not massively leveraged), and allow fresh entry to others to gain wealth. Also to wipe clean a lot of the greedy entitlement and excess so many people now have.

King Solomon warned, “An inheritance quickly gained at the beginning will not be blessed at the end.” Heirs given money typically have a strong inclination toward spending the money on possessions, pleasures, or other purposes without lasting significance.
---
..says Rogerson, who vividly recalls how his dad's passions for yachting and flying led to a personal fleet of a dozen boats and small aircraft. Those purchases began to shrink the family pot, but the bottom really fell out, he says, after a massive real-estate project in the mid-80s collapsed.
In the end, Rogerson's father was forced to sell off the family's belongings in a liquidation auction—the death knell for an inheritance that might have made him a man of leisure. "We didn't talk about money or even get together as a family," says Rogerson of his Boston Brahmin relations. "Now there's nothing left."
---
Legacy Lost: The Dwindling Family Inheritance
Posted on March 22, 2013 by Randy Fisher
Ninety percent of family inheritance is often lost within just three generations, according to the Wall Street Journal (Lost Inheritance). By the end of the second generation — to be clear, that’s after your children have passed away — you can expect 70% to be gone.

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I urge everyone on here who has a Twitter account to tweet this map as it is a powerful illustration of the crazy housing market.

Good idea ... done!!

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