Author Topic: 200 years to save for a house  (Read 5303 times)

rockm87

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200 years to save for a house
« on: September 07, 2015, 06:04:39 AM »
sorry if this is the wrong place to put this...but it made me smirk anyway....

...honestly...*shakes head*

http://www.dailymail.co.uk/news/article-3225131/The-low-paid-workers-save-TWO-YEARS-deposit-buy-house.html



wordnerd

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Re: 200 years to save for a house
« Reply #1 on: September 07, 2015, 06:55:32 AM »
The wages listed seem really low (7500 pounds is about 11,000 USD). I hope these aren't full-time wages. And, yes, at those sorts of wages I wouldn't expect someone to be able to save for a house, much less one that costs 200,000 pounds.

rockm87

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Re: 200 years to save for a house
« Reply #2 on: September 07, 2015, 07:20:31 AM »
I think these maybe part-time or entry level wages, no-one earning that would be worrying about buying a house. Just seems a point-less scaremongering article.

Butterfingers

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Re: 200 years to save for a house
« Reply #3 on: September 07, 2015, 07:22:10 AM »
Minimum wage for a full time job (2,040 hours a year) in the UK is 13,260 (US$20,230). From next April that will rise to 14,688 (US$22,410). So I don't think those quoted figures can be full time, no.

slugline

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Re: 200 years to save for a house
« Reply #4 on: September 07, 2015, 08:16:40 AM »
They're measuring average house prices against the wages of the some of the lowest-paid workers. So the result isn't a surprise. But "average" is typically the arithmetic mean, so even a small seven- and eight-figure properties will drag that average up. There is a stock of housing out there priced below-average, is there not?

imustachemystash

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Re: 200 years to save for a house
« Reply #5 on: September 07, 2015, 10:23:34 AM »
Wow!  That website was an explosion of color and font types.  It was too distracting to finish the article.

Uturn

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Re: 200 years to save for a house
« Reply #6 on: September 07, 2015, 10:45:14 AM »
There is a stock of housing out there priced below-average, is there not?

I would say about half.

wordnerd

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Re: 200 years to save for a house
« Reply #7 on: September 07, 2015, 11:39:29 AM »
There is a stock of housing out there priced below-average, is there not?

I would say about half.

Only necessarily if it's the median, not the mean ;)

runningthroughFIRE

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Re: 200 years to save for a house
« Reply #8 on: September 07, 2015, 12:21:38 PM »
Wow!  That website was an explosion of color and font types.  It was too distracting to finish the article.

I made it about halfway through before having to shield my eyes

nobodyspecial

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Re: 200 years to save for a house
« Reply #9 on: September 07, 2015, 02:52:21 PM »
Note to Americans, the Daily Mail is the National Inquirer for tea party members. Merely visiting the website knocks off 10 IQ points

rockm87

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Re: 200 years to save for a house
« Reply #10 on: September 08, 2015, 06:12:37 AM »
I find the daily mail incredibly amusing....especially articles such as this!

It changes its opinion like it's socks and actually struggles with spelling and simple math...


It is a big joke, and its articles are always trying to inflame!

Butterfingers

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Re: 200 years to save for a house
« Reply #11 on: September 08, 2015, 06:27:34 AM »
Wow!  That website was an explosion of color and font types.  It was too distracting to finish the article.

I made it about halfway through before having to shield my eyes
Quote
Note to Americans, the Daily Mail is the National Inquirer for tea party members. Merely visiting the website knocks off 10 IQ points

And yet it's one of the most popular "news" websites in the world. It's enough to make you weep.

nobodyspecial

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Re: 200 years to save for a house
« Reply #12 on: September 08, 2015, 06:47:46 AM »
And yet it's one of the most popular "news" websites in the world. It's enough to make you weep.
Not forgetting their campaigning efforts to divide everything in the world into "things that cause cancer and things that cure cancer"


nereo

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Re: 200 years to save for a house
« Reply #13 on: September 08, 2015, 07:47:04 AM »
The wages listed seem really low (7500 pounds is about 11,000 USD). I hope these aren't full-time wages. And, yes, at those sorts of wages I wouldn't expect someone to be able to save for a house, much less one that costs 200,000 pounds.
don't forget, it simply isn't possible for someone to save more than 10% of their income, and the money they save has to sit in a 0% yield bank account for 200 years....

ugh, tweaking their basic numbers to account for market gains, 200 years becomes about 38.  If that person could up savings to 20% he/she could buy a home in cash within 29 years (less time than a typical US 30 year mortgage). 

I'm not saying a "kitchen assistant" should be buying a median-value home at all... just that it can be done, without any career advancement and while that person is still in their 40s.

rockm87

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Re: 200 years to save for a house
« Reply #14 on: September 08, 2015, 10:04:48 AM »
The wages listed seem really low (7500 pounds is about 11,000 USD). I hope these aren't full-time wages. And, yes, at those sorts of wages I wouldn't expect someone to be able to save for a house, much less one that costs 200,000 pounds.
don't forget, it simply isn't possible for someone to save more than 10% of their income, and the money they save has to sit in a 0% yield bank account for 200 years....

ugh, tweaking their basic numbers to account for market gains, 200 years becomes about 38.  If that person could up savings to 20% he/she could buy a home in cash within 29 years (less time than a typical US 30 year mortgage). 

I'm not saying a "kitchen assistant" should be buying a median-value home at all... just that it can be done, without any career advancement and while that person is still in their 40s.

exactly, just telling people....'forget it, you cant achieve it'....really isn't helpful!

mathy

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Re: 200 years to save for a house
« Reply #15 on: September 08, 2015, 12:15:29 PM »
Wow, husband and I saved for a 10% downpayment in a year on $10/hour and $12/hour, as a chef and a bank teller.  We had the luxury of 2 incomes (which really anyone could do with a roommate, I suppose), a low cost of living area (our house was less than $100,000) and not swayed by stupid articles telling us it was impossible.

Even though I know not every situation is like ours, it's frustrating to see these articles that discourage people from even trying.  A fellow bank teller I worked with whined they didn't make enough to buy a house but then just took out a car payment on a jeep when she lived 2 blocks from work.

Bob W

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Re: 200 years to save for a house
« Reply #16 on: September 08, 2015, 12:30:38 PM »
Note to Americans, the Daily Mail is the National Inquirer for tea party members. Merely visiting the website knocks off 10 IQ points

Well you would be wrong about that as tea partiers have higher than average scientific comprehension --- http://collegeinsurrection.com/2013/10/yale-prof-forced-to-admit-tea-partiers-are-intelligent/

Weird that on a site that advocates good budgeting that the only political movement pounding the table for a balanced budget and following good accounting rules is often put down.   

nobodyspecial

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Re: 200 years to save for a house
« Reply #17 on: September 08, 2015, 04:58:04 PM »
Sorry bob I meant that the Daily Mail has an historically famous "ardently anti-communist" political leaning.