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Could Your Boss Afford To Buy The House You Rent?


Starcrossed

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HOLA441

The job of head of the council directorate I work in has been advertised at £45,000pa this week.

This job is four notches up in the hierarchy from my own post.

Going by an old-fashioned 3x mortgage I still wouldn't be able to buy the house I am renting if I had this job. In fact even with the 70K deposit I do have I would struggle to buy my house on 45K a year. Yet I can comfortably afford the rent.

Shocking isn't it.

So, could your boss afford your house?

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HOLA442
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HOLA443
The job of head of the council directorate I work in has been advertised at £45,000pa this week.

This job is four notches up in the hierarchy from my own post.

Going by an old-fashioned 3x mortgage I still wouldn't be able to buy the house I am renting if I had this job. In fact even with the 70K deposit I do have I would struggle to buy my house on 45K a year. Yet I can comfortably afford the rent.

Shocking isn't it.

So, could your boss afford your house?

Yes, if he wasn't already up to the eyeballs in debt.

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HOLA445

A slightly larger 1 bed flat up the road from me is going for 180K, so I'm guessing mine is 'worth' roughly 150K.

My rent is £500 and property is fully furnished. If I bought it, the mortgage would cost an additional £470 (assumed 5% deposit, 25yrs, 6.5% IR), with insurance and maintenance costs on top of that.

Might be possible if I live off lentils, never go out, don't use electricity or gas (I'll gather sticks for cooking the lentils), and only exist to work :o

Edited by Turnbull2000
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HOLA446

With every scrap of savings down, it would cost about 200 more to buy the house we rent. However, we've had around £2000 of work done at the landlords expense in the two years we've been here.

I don't really see how paying 200 more, losing all savings and being responsible for patching up a typically slapdash pollyfilla'd BTL hovel would make me any happier.

There's a chance we'll be moving to the provinces in the next few months. Looking at rental there, the gulf looks far wider. Ie: Rent something with a market value of 200k for £600PCM.

I guess the boss at the place I work must be on around 50k. They live alone in what must be a 450k house in a posh part of town. However, if they were a young high flyer on 50k that'd be out of the question and would have to go, at a stretch, for a flimsy Travelodge-style executive two bed with a cooker in the living room and a juliet balcony overlooking the decline of western civilisation.

Edited by CrashedOutAndBurned
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HOLA448
With every scrap of savings down, it would cost about 200 more to buy the house we rent. However, we've had around £2000 of work done at the landlords expense in the two years we've been here.

I don't really see how paying 200 more, losing all savings and being responsible for patching up a typically slapdash pollyfilla'd BTL hovel would make me any happier.

There's a chance we'll be moving to the provinces in the next few months. Looking at rental there, the gulf looks far wider. Ie: Rent something with a market value of 200k for £600PCM.

I guess the boss at the place I work must be on around 50k. They live alone in what must be a 450k house in a posh part of town. However, if they were a young high flyer on 50k that'd be out of the question and would have to go, at a stretch, for a flimsy Travelodge-style executive two bed with a cooker in the living room and a juliet balcony overlooking the decline of western civilisation.

That's brilliant :lol: , sums up new builds throughout the UK - did you come up with that yourself?

Edited by GARCH
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HOLA449
A slightly larger 1 bed flat up the road from me is going for 180K, so I'm guessing mine is 'worth' roughly 150K.

My rent is £500 and property is fully furnished. If I bought it, the mortgage would cost an additional £470 (assumed 5% deposit, 25yrs, 6.5% IR), with insurance and maintenance costs on top of that.

Might be possible if I live off lentils, never go out, don't use electricity or gas (I'll gather sticks for cooking the lentils), and only exist to work :o

sorry mate but if you want to own your own home home you need to make sacrifices. What do you expect somebody to give it to you for free?

you choose to rent that's fine. It's a lifestyle choice.

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Guest DissipatedYouthIsValuable
sorry mate but if you want to own your own home home you need to make sacrifices. What do you expect somebody to give it to you for free?

you choose to rent that's fine. It's a lifestyle choice.

So is putting yourself at risk of having your throat slit.

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HOLA4412
sorry mate but if you want to own your own home home you need to make sacrifices. What do you expect somebody to give it to you for free?

you choose to rent that's fine. It's a lifestyle choice.

Far Out.

I would've thought someone with 1,444 postings would understand the pure logic and reasoning better than that.

No one is asking for anything for free, just placing the facts on the table fair and square.

Paying nearly double for the 'privilege' of owning the place is just madness. Stick with renting ol' son - the mortgage

will be the same as your rent in 3 years!!

"It's a lifestyle choice"

:lol:

Edited by Da Vinci Code
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HOLA4419
£45K is not a lot of money and you are unlikely to attract anyone of any real abilty..unless is somewhere in Cornwall or Wales where somebody looking to downsize and live there would be happy to take a pay cut.

Sorry but £45k is very good money in my book. Ability is a matter of opinion. ;)

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HOLA4420

Yes, my boss could very easily purchase the place where I rent. He's not short of a few quid. He has, however, become scrotum-shakingly bearish recently about the prospects for the housing market and prospects for the economy in general, so the chances of him actually being persuaded to buy anything are zero.

As it stands, my earnings are not dissimilar to those of the example boss, and we could technically afford to buy the place we're in (on a repayment mortgage, not "let's pretend we're buying a house" IO crap). However, the repayments would be in the realms of seriously browned trousers, and any "change in circumstances" would result in arrears in next to no time.

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HOLA4421
The average salary here for someone at managerial level is 29k and non managerial 16k.

Would be interesting to see where those people live who think 45k is a low salary.

Average income in the square mile is £105k for a male. £45k in London would go nowhere there is no way a family of two children can be bought up in any semblance of comfort on £45k unless they have substantial savings to make a mortgage unnecessary. That why debt is rising

Edited by The Ginger Winger
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HOLA4422
Average income in the square mile is £105k for a male. £45k in London would go nowhere there is no way a family of two children can be bought up in any semblance of comfort on £45k unless they have substantial savings to make a mortgage unnecessary. That why debt is rising

What is it for a female then?

Why, just borrow yourself into oblivion, it will all come out right in the end. ;)

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HOLA4423
What is it for a female then?

Why, just borrow yourself into oblivion, it will all come out right in the end. ;)

£51,008 and I attach the link to prove it!

http://www.thisismoney.co.uk/news/article....mp;in_page_id=2

Borrowing when inflation is round the corner may not be too foolish beside IVAs and bankruptcy are so easy (although some banks are getting sniffy about the fee charged by these debt management cos)

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£51,008 and I attach the link to prove it!

http://www.thisismoney.co.uk/news/article....mp;in_page_id=2

Borrowing when inflation is round the corner may not be too foolish beside IVAs and bankruptcy are so easy (although some banks are getting sniffy about the fee charged by these debt management cos)

Half measures, time I lodge my claim.

That was last year... I think you will find a lot has changed over the last 12 months. Yes we have inflation, but not wage inflation, we have to equalise with the rest of the world I am afraid.

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