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Household Income

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

Friday afternoon and I'm wondering why I'm priced out. Is it because there are lots of people out there with more money than me?

Did a quick search on the internet and came across the above site. To summarise if you enter detail of your household income they'll tell you where you stand verses the rest of the UK.

The results astonished me. Being a priced out FTB I thought I would be nearer the bottom but no, I'm apparently better off than 89% of the population!

Now I live in the south east which partly explains this, and I don't have any children which is apparently a factor as well (the model adjusts for this) but even so! If I'm rich and can't afford a house then how can anybody?

Lets have a quick poll then, where do you fit in? I've set up the poll in 20% bands although the website deals in deciles, I'm sure you can cope with this.

PS. Does anybody have any links to this sort of data in a regional format?

Edit: Now that I'm rich can I be known as Lord Young Goat? :D

Edited by Young Goat

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I'm surprised too - better off than 92% - we're Dinkies though, but only on average wages & council tax £1460. They don't mention anything about other fairly important things like 'Rent' or 'Debt' so a bit misleading isn't it??

Edited by Badger

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

Friday afternoon and I'm wondering why I'm priced out. Is it because there are lots of people out there with more money than me?

Did a quick search on the internet and came across the above site. To summarise if you enter detail of your household income they'll tell you where you stand verses the rest of the UK.

The results astonished me. Being a priced out FTB I thought I would be nearer the bottom but no, I'm apparently better off than 89% of the population!

Now I live in the south east which partly explains this, and I don't have any children which is apparently a factor as well (the model adjusts for this) but even so! If I'm rich and can't afford a house then how can anybody?

Lets have a quick poll then, where do you fit in? I've set up the poll in 20% bands although the website deals in deciles, I'm sure you can cope with this.

PS. Does anybody have any links to this sort of data in a regional format?

Edit: Now that I'm rich can I be known as Lord Young Goat? :D

Apparently, for me, 'Your income is so high that you lie beyond the far right hand side of the chart.' and 'you are among the richest 1% in the population'.

This in plain English means that I can therefore just about afford a 2 bed flat in a fairly nice area of London, or a 3 bed terrace in one of the 'poorer' areas! :blink:

Edited by SHERWICK

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you have a higher income than around 99% of the population - equivalent to about 56.3 million individuals.

But I can't afford to buy a decent house. Odd, isn't it?

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Guest Winners and Losers

OMG! 98% - See ya, I'm going shopping. Shoes, glorious shoes... :D

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This calculation is deeply flawed - the only form of deduction from income it calculates is council tax, which can vary hugely from county to county. It should take into account many more outgoings - such as rent, mortgage repayments, transport, debt repayments, ownership of other assets etc..

As I don't pay any council tax (managed to get my landlord to pay it in a nifty bit of negotiating) it says I'm in the top 3% - which sitting here in my torn trainers is absolute crap, my wage is just above the national average.

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I'm surprised too - better off than 92% - we're Dinkies though, but only on average wages & council tax £1460. They don't mention anything about other fairly important things like 'Rent' or 'Debt' so a bit misleading isn't it??

Top 75% .... doesn't feel like it!

It also doesn't take into account that

1300-odd pm to keep a single person

does not equate to 2600 to for 2.

<_<

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Another pointless website!!!!

What's with this "EVERYBODY IS RICH" attitude?

I think this government willl go down in history as the Government that sold its citizens down the river!!!

In 2-3 years time there will be people calling for GB's and TB's heads!!!

I still dont rule out RIOTS :unsure:

TB

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I'm surprised too - better off than 92% - we're Dinkies though, but only on average wages & council tax £1460. They don't mention anything about other fairly important things like 'Rent' or 'Debt' so a bit misleading isn't it??

I'm only on fairly average money myself, that's the bit that surprised me. What's clear is that although the average income is about £26,000 this figure is dragged up by a relatively small number of high earners. The average (median) guy is actually earning much less than this.

Rent and debt is of course important but actually for HPC purposes it isn't. What determines affordability is your income so if people in the top 20% are priced out how can houses be affordable?

It seems to me that the only people who can buy are those either in the top 5% or those who bought pre-boom who are able to trade up a bit.

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Heh, top 85%! Woo, does that mean I should increase my mortgage and trade up the ladder already, only had my 2 bedroom house 6 months.

LOL nice website...

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This calculation is deeply flawed - the only form of deduction from income it calculates is council tax, which can vary hugely from county to county. It should take into account many more outgoings - such as rent, mortgage repayments, transport, debt repayments, ownership of other assets etc..

Flawed yes, but the point is your ability to afford a house depends upon your gross income before deductions, so how can you be simultaneously in the top 20% and priced out?

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Flawed yes, but the point is your ability to afford a house depends upon your gross income before deductions, so how can you be simultaneously in the top 20% and priced out?

Point 1 - The calculation doesn't calculate 'gross income before deductions' it calculates 'gross income after council tax deductions'. This is not the same thing - and your relative position in these results will alter depending on a variety of individual circumstances (like not paying any council tax for example).

Point 2 - I see where your coming from here, my answer would be - it doesn't take into account my willingness to take on risk (i.e. how much I am prepared to streach myself to buy a house or whether I will do IO) or any other assets i might have that would help my initial purchase. In short - the reason why house prices are overvalued in relation to incomes is that i) there's far too much liquidity floating around and people are taking on too much risk and ii) people are using other forms of wealth (MEW, parents, lump sums) to leverage themselves onto the ladder).

So this backs up your basic point - still crap website tho'

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Am I deluded - what the hell am I doing posting on this internet site?

I'm so money and I didn't even know it :)

I'm not going to sleep tonight - need to remember to get up in the morning, pop down to the Nationwide and secure one of their lovely mortgages. By tomorrow afternoon will have had an offer accepted on a lovely property and on Sunday I will be ambling around Ikea eyeing up their fixtures and fittings...that reminds me it's been sometime since I have had any meatballs!!

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apparently I'm supposed to be in the richest 1%...which is ********!!

I earn above avereage salary but I've nailed my expenses courtesy of the inland revenue.

the only problem being risk......I'm lucky enough to have a long-term contract at the moment but if the funding for the project gets pulled then I'm out.

employees tend not to realise that the reward we self-employed get is danger money!!!...it's basically a risk premium for the flexibility you give your customer.

....the sensible ones squirrel away a bit for a rainy day,but graft like mad to ensure that day never comes.

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Am I deluded - what the hell am I doing posting on this internet site?

I'm so money and I didn't even know it :)

I'm not going to sleep tonight - need to remember to get up in the morning, pop down to the Nationwide and secure one of their lovely mortgages. By tomorrow afternoon will have had an offer accepted on a lovely property and on Sunday I will be ambling around Ikea eyeing up their fixtures and fittings...that reminds me it's been sometime since I have had any meatballs!!

Ikea? You can do better than that surely with your income.

I'm top 1% as well, so how come I'm currently selling my possessions on ebay to make ends meet? :huh:

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Point 1 - The calculation doesn't calculate 'gross income before deductions' it calculates 'gross income after council tax deductions'. This is not the same thing - and your relative position in these results will alter depending on a variety of individual circumstances (like not paying any council tax for example).

Err... .actually its NET income .... ie take home pay... after tax.

Guess some of you might want to rerun that.

Additionally you have to remember that its INCOME not disposable income after all expenses, just after all fixed tax (but not tv tax). What you choose to spend it on will of course determine whether you have holes in your tatty trainers or a nice pair of brogues!

Edited by RichB

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Err... .actually its NET income .... ie take home pay... after tax.

Guess some of you might want to rerun that

Oh yeah - have now slipped down to top 14%, which is still a bunch of crap

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I'm still top 1% on net income if I'm allowed to claim for typical monthly growth on savings investments as income.

I paid my mortgage off early (in my 30s) which helps my net income as nearly every penny I get (after tax :angry: ) is disposable.

Edit:

Just realised their version of net income is 'just' after tax. I had deducted all my standing orders etc to get true net monthly disposable income. Therefore I'm well into the top 1%.

Edited by Without_a_Paddle

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Apparently, for me, 'Your income is so high that you lie beyond the far right hand side of the chart.' and 'you are among the richest 1% in the population'.

This in plain English means that I can therefore just about afford a 2 bed flat in a fairly nice area of London, or a 3 bed terrace in one of the 'poorer' areas! :blink:

I got the same but can't figure out how I could afford a 2 bed flat in a 'fairly nice' area of London. :(

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  • 301 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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