Goat Posted April 21, 2006 Share Posted April 21, 2006 (edited) 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? Edited April 21, 2006 by Young Goat Quote Link to comment Share on other sites More sharing options...
Badger Posted April 21, 2006 Share Posted April 21, 2006 (edited) 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 April 21, 2006 by Badger Quote Link to comment Share on other sites More sharing options...
SHERWICK Posted April 21, 2006 Share Posted April 21, 2006 (edited) 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? 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! Edited April 21, 2006 by SHERWICK Quote Link to comment Share on other sites More sharing options...
MarkG Posted April 21, 2006 Share Posted April 21, 2006 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? Quote Link to comment Share on other sites More sharing options...
Guest Winners and Losers Posted April 21, 2006 Share Posted April 21, 2006 OMG! 98% - See ya, I'm going shopping. Shoes, glorious shoes... Quote Link to comment Share on other sites More sharing options...
LivingTheDream-JustLikeLeedsUtd Posted April 21, 2006 Share Posted April 21, 2006 What a pointless website, basing my "income" on purely my salary and my council tax. I live in London and pay council tax in Wandsworth. Guess what, 99%!!!!! If I ignore everything I spend money on, I've got loads of money! Quote Link to comment Share on other sites More sharing options...
Jimmy James Posted April 21, 2006 Share Posted April 21, 2006 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. Quote Link to comment Share on other sites More sharing options...
Merryn Posted April 21, 2006 Share Posted April 21, 2006 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. Quote Link to comment Share on other sites More sharing options...
teddyboy Posted April 21, 2006 Share Posted April 21, 2006 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 TB Quote Link to comment Share on other sites More sharing options...
Goat Posted April 21, 2006 Author Share Posted April 21, 2006 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. Quote Link to comment Share on other sites More sharing options...
stormy Posted April 21, 2006 Share Posted April 21, 2006 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... Quote Link to comment Share on other sites More sharing options...
Goat Posted April 21, 2006 Author Share Posted April 21, 2006 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? Quote Link to comment Share on other sites More sharing options...
Jimmy James Posted April 21, 2006 Share Posted April 21, 2006 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' Quote Link to comment Share on other sites More sharing options...
Shamus Posted April 21, 2006 Share Posted April 21, 2006 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!! Quote Link to comment Share on other sites More sharing options...
oracle Posted April 21, 2006 Share Posted April 21, 2006 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. Quote Link to comment Share on other sites More sharing options...
ʎqɐqɹǝʞɐɥs Posted April 21, 2006 Share Posted April 21, 2006 Well I am wealthier than 96%!!! Quote Link to comment Share on other sites More sharing options...
Smell the Fear Posted April 21, 2006 Share Posted April 21, 2006 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? Quote Link to comment Share on other sites More sharing options...
RichB Posted April 21, 2006 Share Posted April 21, 2006 (edited) 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 April 21, 2006 by RichB Quote Link to comment Share on other sites More sharing options...
Jimmy James Posted April 21, 2006 Share Posted April 21, 2006 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 Quote Link to comment Share on other sites More sharing options...
Smell the Fear Posted April 21, 2006 Share Posted April 21, 2006 Oh yeah - have now slipped down to top 14%, which is still a bunch of crap That's tumbled me to 95%, that explains everything. Quote Link to comment Share on other sites More sharing options...
Without_a_Paddle Posted April 21, 2006 Share Posted April 21, 2006 (edited) 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 April 21, 2006 by Without_a_Paddle Quote Link to comment Share on other sites More sharing options...
undersupply Posted April 21, 2006 Share Posted April 21, 2006 A single person earning £310 per week net income with no kids is in the top quartile The peasants are revolting Quote Link to comment Share on other sites More sharing options...
a j Posted April 21, 2006 Share Posted April 21, 2006 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! I got the same but can't figure out how I could afford a 2 bed flat in a 'fairly nice' area of London. Quote Link to comment Share on other sites More sharing options...
HouseDog Posted April 21, 2006 Share Posted April 21, 2006 Wealthier than 99% .. and living at home with my Mum! Quote Link to comment Share on other sites More sharing options...
Nijo Posted April 21, 2006 Share Posted April 21, 2006 96%, but I wouldn't have this income if I weren't in London, where costs are higher. Pfft. Quote Link to comment Share on other sites More sharing options...
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