3x income

novazombie

Some friends of mine are on 25K per year, thats the family income both working. They have always rented nice houses about 600pcm but now want to buy, because they are fed up with having to move everytime they have problems with the landlord/rent etc.

They can olny get a mortgage for 75K and dont have any savings. I think they are typical family in the UK right now.

Do you think they will be able to buy a house in the next few yrs?

SingleSue

They would need to save a deposit as a starter, difficult I know but it really is a neccessity.

Cannon_Fodder

"where" will make a big difference.

They need to save. Irrespective of prices still being too high.

ToMoCo

Well I think they could buy now (if they had a deposit). Of course it depends where they are, but I think they could buy in the 'not so sunny' side of town most places.

But a lot of people will put forward a case that they should be buying the 'average' house on part time or minimum wage

MrDT

Do you think it would be wise for them to buy? If 25k combined is what they're on, what if a baby comes along? I don't think everyone is destined to be a homeowner, at least not right away. I certainly wouldn't expect to be a homeowner on 12k a year - I'd rather rent off the council at that kind of wage level.

ukcarper

MrDT wrote: »

Do you think it would be wise for them to buy? If 25k combined is what they're on, what if a baby comes along? I don't think everyone is destined to be a homeowner, at least not right away. I certainly wouldn't expect to be a homeowner on 12k a year - I'd rather rent off the council at that kind of wage level.

I think a lot of people would but what is the chance of getting a council/housing association house. That’s the real problem for low earners not enough social housing. But at least if you’re renting you might get housing support.

Really2

novazombie wrote: »

Some friends of mine are on 25K per year, thats the family income both working. They have always rented nice houses about 600pcm but now want to buy, because they are fed up with having to move everytime they have problems with the landlord/rent etc.

They can olny get a mortgage for 75K and dont have any savings. I think they are typical family in the UK right now.

Do you think they will be able to buy a house in the next few yrs?

I think average family income is around £38K per year not £25K, that means thay are both on just over the minimum wage (on an equal £12,500 that equals £6 per hour @ 40 hours.)

£25K joint would not have purchased a house in 2000 never mind now. They are better off renting and saving possibly looking to get better jobs.

Minimum wage is always going to stuggle to get a family home.

Graham_Devon

When you think that one wage often bought a house a few decades ago, and hat one wage was average, it shows our problems...or not problems as such, but expectations these days that you got to earn a lot more to have your own home.

Things have changed now though, our expectation have changed, and I don't think the OP's friends will be buying a house for sometime yet, unless of course they live in one of the cheapest areas of the country.

Really2

Graham_Devon wrote: »

When you think that one wage often bought a house a few decades ago, and hat one wage was average, it shows our problems...or not problems as such, but expectations these days that you got to earn a lot more to have your own home.

Things have changed now though, our expectation have changed, and I don't think the OP's friends will be buying a house for sometime yet, unless of course they live in one of the cheapest areas of the country.

Equal opertunitys stopped that graham, A good thing that women paid more a bad thing in that two wages became the norm.

It will never go back to 3.5X one wage now as society as changed.

Dan:_4

Graham_Devon wrote: »

When you think that one wage often bought a house a few decades ago, and hat one wage was average, it shows our problems...or not problems as such, but expectations these days that you got to earn a lot more to have your own home.

Things have changed now though, our expectation have changed, and I don't think the OP's friends will be buying a house for sometime yet, unless of course they live in one of the cheapest areas of the country.

But this has always been the case Graham. Back in the 1970s only those earning an above average salary would buy a house. The difference back then is that the majority were happy to rent whereas these days it seems home ownership is a must for everyone, regardless of status.

Graham_Devon

Really2 wrote: »

Equal opertunitys stopped that graham, A good thing that women paid more a bad thing in that two wages became the norm.

It will never go back to 3.5X one wage now as society as changed.

LOL, I wouldn't say equal opportunties stopped it!

I would agree though that 2 wages just meant more money coming in, which just meant everything got more expensive.

It's a strange world, where, when 2 people are earning, instead of one in say the 50's and 60's, were actually worse off, not only monetry in terms of buying stuff, but also a mass on benefits because they cannot afford to live and also, everyone with less time with the family.

I'm going off topic....again