MoneySaving Poll: How much are you worth (or do you owe)?

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  • Flick216
    Flick216 Posts: 8,955 Forumite
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    Jeepers! 4 people owe over £1m :eek:
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    Smoke me a kipper; I'll be back for breakfast
  • kkgree1
    kkgree1 Posts: 328 Forumite
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    I agree with others that there appears to be a point missing that you should divide your total by 2 if you are married/co-habiting. I did realise this before voting but I suspect this will throw out the poll results.
    Mortgage free wannabe
    Mortgage (November 2010) £135,850
    Mortgage (November 2020) £4,784
  • Ectophile
    Ectophile Posts: 7,335 Forumite
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    londonlydia wrote: »
    I think this whole poll is probably skewed by the single fact that many people are paying mortgages and believing that the value of the house at the present time is theirs, and then have simply subtracted the price of mortgage loan they took out. In fact, you need to consider the total cost of the mortgage over the lifetime, or at least a comparable period.

    I based my house value on what it's worth now (based on the sale price of neighbouring houses that sold recently), minus the amount remaining on my mortgage now. How else would you value an asset?
    If it sticks, force it.
    If it breaks, well it wasn't working right anyway.
  • InA
    InA Posts: 224 Forumite
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    Ectophile wrote: »
    I based my house value on what it's worth now (based on the sale price of neighbouring houses that sold recently), minus the amount remaining on my mortgage now. How else would you value an asset?

    IMO there's no such thing as what your house is worth now. At the end of the day it's only worth what someone will pay for it at the time you sell it.

    Houses perform the function of being a roof over your head (you will always need one of those) and you can't therefore spend the value of your home. To make matters worse, if you're a homeowner and you need care in your old age, the house will need to be sold to pay for that care. So how much of an asset is it really?
  • InA
    InA Posts: 224 Forumite
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    If these poll results are accurate why is it the case that a third of middle class families would not be able to afford an unexpected bill of a measly £500?

    http://www.bbc.co.uk/news/business-36466186
    A third of middle-class families would need to borrow to pay an unexpected bill of £500, according to a new survey.


    The YouGov poll for the Times found 31% of ABC1 workers, which includes junior managers and professionals, would struggle to pay a sum of that size.
    The figure rises to 46% for manual workers and the unemployed.
  • Ectophile
    Ectophile Posts: 7,335 Forumite
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    InA wrote: »
    Houses perform the function of being a roof over your head (you will always need one of those) and you can't therefore spend the value of your home. To make matters worse, if you're a homeowner and you need care in your old age, the house will need to be sold to pay for that care. So how much of an asset is it really?

    It's a lot more of an asset than a rented house. Any sensible landlord will set the rent at a sufficient level to cover all the maintenance bills, and leave them with a profit margin afterwards. That probably means that the rent is more than the repayments on a mortgage (especially if the house is subject to a buy-to-let mortgage).

    Plus, with a mortgaged house, you will eventually pay off the mortgage. With a rented one, you have to keep renting indefinitely. When you retire, and your income goes down, you still have to keep renting. A homeowner will have paid off the mortgage and will live rent-free until they have to go into a nursing home.
    If it sticks, force it.
    If it breaks, well it wasn't working right anyway.
  • mgriff5
    mgriff5 Posts: 50 Forumite
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    I am very sceptical of the results of this poll. If it were true we wouldnt need gazillions of articles on shifting debt to 0% credit cards etc in the weekly email would we?!

    Personally I agree that 1. there was no guidance on joint debt / ownership and 2. I may be over cynical but I do wonder if people have taken all their debts in to account, particularly younger folk who may have a large student loan but arent earning enough to be paying it off yet (and thus don't see it coming out their PAYE every month) and secondly almost everyone I know with a new car has it on PCP and therefore owe a large sum of money in 2 or 3 years car. I wonder if those sorts of people remembered to deduct that off their net wealth?

    Just a thought (or 2):rotfl:
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