Bungalows

[Insane]

9 hours ago, The Angry Capitalist said:

I mentioned house prices as a measure of purchasing power. A house valued at £200,000 today but was sold at below £150,000 over 10 years ago is a loss of purchasing power.

Well make your mind up in an earlier post you were saying how much houses had gone up. How many houses have increased in real terms over the last 10 years? 

9 hours ago, The Angry Capitalist said:

You clearly don't understand what I am telling you so I will make a second attempt.

Ditto. What I clearly said was in the past people have gone backwards. Many did during the industrial revolution as their skills became redundant. No different to today. Not everyone is going backwards now but some are. 

I have not read the rest of your post as it will completely irrelevant to what I said.  

[Sackboii]

23 hours ago, jiltedjen said:

and the bitcoin ‘win’ was something like 1/4 of my mortgage,

Presume you paid CGT on it too ?

[The Angry Capitalist]

5 hours ago, Insane said:

Well make your mind up in an earlier post you were saying how much houses had gone up. How many houses have increased in real terms over the last 10 years? 

Ditto. What I clearly said was in the past people have gone backwards. Many did during the industrial revolution as their skills became redundant. No different to today. Not everyone is going backwards now but some are. 

I have not read the rest of your post as it will completely irrelevant to what I said.  

I said that house prices had gone up.

That does not mean purchasing power of the currency has gone up.

No house has increased in real terms over the last 10 years.

All increases are based on cheap credit/debt.

My post answered all your questions and was relevant to what you asked me and responded to.

[Insane]

3 minutes ago, The Angry Capitalist said:

No house has increased in real terms over the last 10 years.

Disagree. 

3 minutes ago, The Angry Capitalist said:

All increases are based on cheap credit/debt.

But they have gone up in real terms whether the money was cheap or not they have gone up. 

5 minutes ago, The Angry Capitalist said:

That does not mean purchasing power of the currency has gone up.

So how much has the purchasing power of the currency dropped compared to a house that has doubled in £ terms?

[The Angry Capitalist]

3 minutes ago, Insane said:

Disagree. 

But they have gone up in real terms whether the money was cheap or not they have gone up. 

So how much has the purchasing power of the currency dropped compared to a house that has doubled in £ terms?

You don't understand do you?

They have not gone up in real terms.

They have gone up in nominal terms.

Let me try and explain it by showing you some data as it is important you understand it as many in this country do not and it is why we have so many problems.

The following website called measuring worth calculates the purchasing power of the currency from any specific 2 years you select to show the difference.

Please be aware that any calculation even by the best statistician and economist in the world will still not be fully accurate as this is a very complex dynamic with much to take into consideration but like all the indexes we use they are a guide.

After choosing 2004 and £25,000 as our amount it calculates that in 2021 that £25,000 is equivalent to £35,000 to £42,000 today.

Please note that they based this on the official figures released by the government in the RPI.

Unofficially they will be much higher for obvious reasons.

Therefore, if you earned £25,000 per year in 2004 and in 2021 was not earning at least £35,000 then you are poorer today than in 2004.

Please be aware that if you are not earning more than at least £42,000 then you are not earning any more than what you earned back in 2004 on that £25,000. 

If you are earning £35,000 today compared to that £25,000 in 2004 then your income has increased in nominal terms and not in real terms.

At best your income has stayed the same.

It takes around £35,000 to £42,000 (officially) to buy the same basket of goods and services in 2021 than it did in 2004.

https://www.measuringworth.com/calculators/ukcompare/relativevalue.php?use2=a%3A5%3A{i%3A0%3Bs%3A3%3A"CPI"%3Bi%3A1%3Bs%3A6%3A"DEFIND"%3Bi%3A2%3Bs%3A4%3A"WAGE"%3Bi%3A3%3Bs%3A5%3A"GDPCP"%3Bi%3A4%3Bs%3A4%3A"GDPC"%3B}&amount=25000&year_source=2004&year_result=2023&button=Submit

To have had an increases in wages in real terms you would probably have to be earning at least £45,000 today compared to 2004 on £25,000.

Got it????

 

[Insane]

11 minutes ago, The Angry Capitalist said:

You don't understand do you?

Yes I do understand but I don't agree with your opinion. Is that OK? 

Let's go back to the start of this discussion I stated that this is not the only time in history where people have gone backwards (not all but some) I stated the industrial revolution as a point in time when that happened. You disagree with me on that which is fine. Let's beg to differ and leave it there.