Sunday, May 07, 2006

Britons paper wealth?

Times: Britons are getting wealthier

The average disposable wealth available to households in Britain has topped 40,000 for the first time, according to new estimates published today. This consists mainly of savings, shareholdings and accessible housing equity, net of mortgages and other debt.

Posted by Uncle Chris @ 10:37 AM (615 views)
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4 Comments

1. Paul said...

"accessible housing equity, net of mortgages and other debt".

That's not "wealth", that's debt!

Like me borrowing a million pounds and trumpeting "look I'm a milliona~~ire!".

Sunday, May 7, 2006 11:40AM Report Comment
 

2. Paul said...

"accessible housing equity, net of mortgages and other debt".

That's not "wealth", that's debt!

Like me borrowing a million pounds and trumpeting "look I'm a milliona~~ire!".

Sunday, May 7, 2006 11:41AM Report Comment
 

3. Paolo88888 said...

Paul,

I don't think you have read the article correctly. "... savings, shareholdings and accessible housing equity, net of mortgages and other debt. In the case of housing equity, the assumption is that 80% is accessible". By my reading, an example might be someone who owns a house worth 200k, 10k shares, 3k cash, a mortgage balance of 130k and 5k balace on their credit card. Then their disposable wealth would be 200 * 0.8 + 10 + 3 - 130 - 5 = 38k. Borrowing a million pounds would not change this, because they would then have 1M more cash but 1M more other debt.

Monday, May 8, 2006 12:25AM Report Comment
 

4. Sebastian said...

Borrowing against your house is still debt no matter how much you think it is worth.

Monday, May 8, 2006 12:23PM Report Comment
 

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