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Jonathan Adcock, 33, on how he saved to buy a house – and how his finances have changed since he became a parent

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Peak Guardian reader. Paid quarter of a mil for a place in a bad part of town. That university education went far. Thinks his parents didn’t have the same travel opportunities??

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"I don’t agree with the view that things were easier for my parents’ generation. They may have benefited from free university tuition and affordable house prices but they never had the travel opportunities that we had."

A bit like bread becoming very expensive, but caviar being more widely available if you've got any money left after spending it on bread.

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Says they spent 4 years saving hard but also taking foreign holidays and going out to bars and gigs. And saved 7 grand a year at the same time while spending 11 grand a year on rent, and the rest. I'm not sure that completely adds up.

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He’s only had a £10,000 pay rise after 9 years experience as an engineer in the aerospace industry.  His pay should have doubled, I know he’s down to 4 day week but it still sounds low.

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What is the point of the article? Is it simply because they found a millennial with a contrary view?...it's nonsense and and he can't do basic arithmetic if he thinks previous generations didn't get a better deal.

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This guy illustrates well why current prices are unsustainable. Say his household is earning at the 70th percentile (dual above average salary) for his local area and he has bought a property at the 30th percentile (2 bed in crap part of town). Okay, so his sale goes through. Then a household at the 80th percentile buys a property at the 40th percentile, 90th percentile by income buys 50th percentile property, top percentile buys 60th percentile property. Who buys the top 40% of properties? A: nobody until they fall significantly in price, and if you could buy a nice 3 bed for the same price as a crap 2 bed you'd obviously choose the former so the latter falls in price too.

I guess he hasn't figured out that in previous decades a dual above average income household like his would be living in at least a 3 bed in a nicer part of town. He's not so shafted that he can't buy at all, he's just getting poor bang for his buck.

I'd feel uncomfortable to be running his cashflow -  two above average incomes and only able to save £3.6k a year between them (minus property maintenance and car repairs/depreciation as he states in the article). Basically head just above water and no buffer for if anything goes wrong e.g. unemployment, interest rate rise (generally or due to falling prices pumping up the LTV on the mortgage), significant rise in another factor of the cost of living.

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Sixty seven thousand pounds between them, for working just four days per week each, and they can just about afford a two-bed terrace house in a shitty part of town and have the privilege of shelling out hundred and hundreds to ship their offspring off to someone else.

Back when things were sensible a teacher's salary, like his wife has, would have bought a three bed semi in a nice part of town. No childcare needed.

Yet he does't agree things were easier for his parent's generation.

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With everything apart from the attitude to housing, which he is patently wrong about, I don't think they are doing too badly.

They've definitely got their heads screwed on with the work life balance. Both dropping a day is very sensible.

As far as £35k for a four day week, assuming he's not doing compressed hours it's equivalent to around 44k for a five day week. He's the quintessential average engineer on that sort of income - not everyone is earning 60-80k by that age. It's give or take the same income I had at his age (pro ratad for three days), and that wasn't *that* long ago. 

Hell, there's plenty of 40+ year olds still earning at his level here in Cambridge. Some people just aren't aggressive about their careers. Maybe he'll get aggressive later - I doubt it because what drove me to break out of the average WAS the fire that things were definitely not fair, I was worth more and that I wanted a proper slice of the pie. 

The article is a bit of fluff. They are managing Ok. But yeah, he's a fool if he thinks this housing situation should be the new normal. Two reasonableish salaries, £250k for a crappy two bed? Nah, and I don't think most of the readership would agree either these days.

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It doesn't say where he is in the article, but given he works for Airbus I'm assuming Chester/North East Wales. However, round there £250k for a 2 bed in a 'scruffier part of town' seems a lot, a quick glance on rightmove shows a lot of 3 bed semis under £200k if you're willing to live with it not being the nicest area. 

In general, you wouldn't expect a teacher and engineer to have a scruffy two bed though which does reinforce the point about prices being silly.

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46 minutes ago, longgone said:

arn`t dyson leaving the uk ??

Yup, was going to say the same. I don't know if they are leaving the 'design and engineering' element in the UK though and off-shoring the manufacturing as well as moving the registered 'head office'?

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2 minutes ago, Ghostly said:

Yup, was going to say the same. I don't know if they are leaving the 'design and engineering' element in the UK though and off-shoring the manufacturing as well as moving the registered 'head office'?

either way the guy needs to save more 😄

Secure careers are a thing of the past. 

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14 hours ago, Si1 said:

Brizzle.

It has some nice areas but has had a totally unsupported boom as the failed in London ,try Brizzle type roll in.

Hes spent 250k to live in a tiny sh1thole, probably bordered by a bunch of Somalis (brizzle chocka with somalis) on benefits.

Outside of the nice bits brizzle is a sh1thole. And there are zilch well paying jobs.

 

 

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1 hour ago, Tulip_mania said:

It doesn't say where he is in the article, but given he works for Airbus I'm assuming Chester/North East Wales. However, round there £250k for a 2 bed in a 'scruffier part of town' seems a lot, a quick glance on rightmove shows a lot of 3 bed semis under £200k if you're willing to live with it not being the nicest area. 

In general, you wouldn't expect a teacher and engineer to have a scruffy two bed though which does reinforce the point about prices being silly.

Dyson, Bristol.

So either  Bristol (not good) or somewhere like Gloucester.

 

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2 hours ago, Tulip_mania said:

It doesn't say where he is in the article, but given he works for Airbus I'm assuming Chester/North East Wales. However, round there £250k for a 2 bed in a 'scruffier part of town' seems a lot, a quick glance on rightmove shows a lot of 3 bed semis under £200k if you're willing to live with it not being the nicest area. 

In general, you wouldn't expect a teacher and engineer to have a scruffy two bed though which does reinforce the point about prices being silly.

Exactly I was amazed it did not say where he lived - not even a region or a county. Seems others have found out here anyway,

A couple on nearly £70k could afford a nice house in  reasonably nice area in the north east - in London they would struggle now to buy a one bed flat in Dagenham! Its just a meaningless article. And despite earning £70k they can only afford to put by £300 a month for emergencies (like a boiler repair - which would cost six months of that saving. Rather sad indictment really.

Shouldn't a qualified engineer and his teacher wife warrant something better than a small house in a rough part of town. What hope for those without professional jobs.

Is he that desperate for self promotion anyway he has to do a piece for the Guardian about his earnings and housing.

Edited by MARTINX9

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2 hours ago, spyguy said:

Theres the Airbus site Filton.

Despite his scheme Airbus did not offer him a job.

 

He was there for 9 years.

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24 minutes ago, Si1 said:

He was there for 9 years.

Finish Uni at 21 22.

Work at airbus for 9 years - 30/31.

Sad. 40 years ago, they be well into middle class, nice house.

Instead hes living in a smallhouse in the sh1thole part of town.

Still Gordy did it for the kids....

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Comments section predictably full of 70somethings relaying their heroic tales of buying a cheap terraced house as a FTB, young people expect too much these days, you start out at the bottom and work your way up etc. Difference is they probably FTB'd into that kind of house as early 20somethings on below average wages then as they went from junior staff to experienced their wages increased and they moved into an average or above average house.

This guy and his wife already spent their 20s making do on housing by renting and camping out at their parents' house. They were already experienced middle workers when they FTB'd in their 30s and are probably not that far from peak earnings. On average, for people in their situation, this is it.

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I know Bristol market reasonably well.

Households with a combined income of about £60K are essentially the driving force of Bristol market and the surrounding area. Generally new engineering graduates start with around £27K. And all of them borrow as much as they can; as soon as they can, which is around £200K to £250k mortgage. This is why Bristol market went nuts in the last 5 years. Any half decent house went for £250K minimum; and for HTB, that's £300K.

However, for a 2 bed for £240K, I reckon the guy bought at the peak price. It's now about £200 to £220K in OK part of Bristol.

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  • 294 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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