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cupidstunt

One In Five Have £10,000 Debt......or Worse

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Now that is a scary article, the amount of spin in it is frightening.

If the average houseprice is £150Kish, and the average aggregate equity is only £40K, then what have people done with their money - it indicates more MEW than I had suspected. Given all the old dears with no mortgage, and the few megarich, that would indicate less than £30K net equity and assuming an average of say 1.5 adults per household that's a net worth of a niggardly £20K a pop. Christ almighty.

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Now that is a scary article, the amount of spin in it is frightening.

If the average houseprice is £150Kish, and the average aggregate equity is only £40K, then what have people done with their money - it indicates more MEW than I had suspected. Given all the old dears with no mortgage, and the few megarich, that would indicate less than £30K net equity and assuming an average of say 1.5 adults per household that's a net worth of a niggardly £20K a pop. Christ almighty.

But 30% of all property is held by owner occupiers who own outright (no mortgage). See table 809 here. What gives?

T&T

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They should burn for that first paragraph, equating equity with savings.

Equity is NOT 'wealth' at the moment. It is DEBT POTENTIAL.

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Now that is a scary article, the amount of spin in it is frightening.

If the average houseprice is £150Kish, and the average aggregate equity is only £40K, then what have people done with their money - it indicates more MEW than I had suspected. Given all the old dears with no mortgage, and the few megarich, that would indicate less than £30K net equity and assuming an average of say 1.5 adults per household that's a net worth of a niggardly £20K a pop. Christ almighty.

There`s an article/opinion knocking around somewhere suggesting that you should always aim to pay down your mortgage asap to have a minimum of 50% equity in your home (after a correction) I listened to money box R4 last week, a guy in total financial disarray IMHO, actually referenced to the fact that he had at least about 50K equity in his home, I`m sure he mentioned that his mortgage was 150Kish. I recall thinking "you have next to no equity given your valuation will be skewed", this is not uncommon for those who have bought recently, particularly for the first time over the past 30 months or so. They talk about/imagine these magic beans of equity that do not exist and are reliant on it in lots of ways. Not just the comfort factor, but the ability to mew :( sad state of affairs. <_<

Edited by Converted Lurker

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But 30% of all property is held by owner occupiers who own outright (no mortgage). See table 809 here. What gives?

T&T

More worryingly, it means that over 43% of all owner occupied property is owned outright (6.4million out of total of 14.8million). So that means the renters must have sod all assets, given that they drag the rest down to that tiny number.

Or is that the numbers are all bunkum again..... ?

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More worryingly, it means that over 43% of all owner occupied property is owned outright (6.4million out of total of 14.8million). So that means the renters must have sod all assets, given that they drag the rest down to that tiny number.

Or is that the numbers are all bunkum again..... ?

If debt is £1.2 trillion and there are 21 million households with an average value of £160,000 then average equity is £103,000. I might be combining England only and British figures here, but all the same it looks like the figures are bunkum. Perhaps they're per household member?

T&T

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  • 302 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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