London home 'needs £93,000 wage'

Harry_Powell

Inspector monkfish, are you a divorced gentleman?

LittleMissAspie

chucky wrote: »

depends on how you look at it - on a single salary very dificult

on a joint income it's easily achievable
£40k x 2 = £80k x 3.5 salary = £280k + £43k deposit = £323k
The £43k deposit is only 13%.

there are a few costs too i know but more importantly that £40k salary today won't be the same £40k salary in 10 or 20 years time so it will be higher and be even more affordable.

and the mortgage it would be 7 times salary not 10 times salary
still extremely high though

He said 30-40k and you're assuming the other half also earns this much. I doubt most couples earn £80k, even in London.

chucky wrote: »

and the point made about London being a war zone... it's not...

I know, that was my point. I grew up in a "no-go zone" :rolleyes:

Bonia77

chucky wrote: »

quite true - how long will she be away from work for?
in theory she can come back in less than a year.
this is a bit of a can of worms because for me it is good for mums to raise children at home - so i agree with you.

but the point i was trying to make was property is affordable but it is still expensive. they are different things.

Two points:
a) she may not earn as much as before, as might work part time or could have missed a promotion while on maternity
b) the cost of the child care will decrease the disposable imcome of the family

chucky

LittleMissAspie wrote: »

He said 30-40k and you're assuming the other half also earns this much. I doubt most couples earn £80k, even in London.

even at 30k you're then looking at a 25% deposit.

what i was trying to say and said it above too was that it is expensive but
it is affordable.

you won't be earning 30k in 10 or 20 years time either making the affordability easier.

the_ash_and_the_oak

I think where it gets interesting is not so much the starter homes in Penge but the pretty large numbers of 1bed flats in the 200-300k range in places like Shepherds Bush, Camberwell or Kensal Green

chucky

Bonia77 wrote: »

Two points:
a) she may not earn as much as before, as might work part time or could have missed a promotion while on maternity
b) the cost of the child care will decrease the disposable imcome of the family

i knew this would be can of worms - should never have mentioned it!!

you are right of course, she also may not even want to go back to work - and there are many other variables to put in there too.

the_ash_and_the_oak

The other interesting thing is definitely about the dual-income households and the role they play in a society in which long-term partnerships are on the decline

chucky

the_ash_and_the_oak wrote: »

The other interesting thing is definitely about the dual-income households and the role they play in a society in which long-term partnerships are on the decline

which is also pushing up the age of FTB's. buyers are having to wait to buy until they are in a 'stable relationship'.

the_ash_and_the_oak

chucky wrote: »

which is also pushing up the age of FTB's. buyers are having to wait to buy until they are in a 'stable relationship'.

Definitely - which brings up a bunch of interesting questions imo. FTB age rising - possibly because of waiting until stable relationship - but otoh the introduction of a new 'rung on ladder' - the 1bed flat (which is presumably not being bought at time of stable relationship). And If the 1bed flat is increasingly the first rung on the ladder for FTBs and FTB age is rising, brings into question how long these are going to be lived in for


Then on top of this, if buying is being delayed then this also brings into question how long the period of dual-income paying on a home is before questions re:children arise

Bonia77

the_ash_and_the_oak wrote: »

The other interesting thing is definitely about the dual-income households and the role they play in a society in which long-term partnerships are on the decline

I come from dual-income family. My mum went back to work when my brother was 1.5; I was 3.5. i can assure you that nothing bad happened to us. We were well-looked after; didn't have problems at school, both have degrees and nice jobs and nothing to compaint about ;-) (Except high propert prices of course )

I also think that my parents probably spend more quality time with us than non-working parents