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UK household debt versus assets
HAMISH_MCTAVISH
Posts: 28,592 Forumite
UK personal debt = 160% of income.
UK personal savings in financial assets alone are worth 450% of income.
UK housing equity is worth more than 400% of income.
Net worth per household is around 700% of income, on average.
Hardly a crushing burden then, for the country or economy as a whole.....;)
Although it's understandable a few whiny youngsters from the "me, me, me" generation want to complain about house prices, the reality is all housing wealth is ultimately passed on to future generations and always will be unless we find a way to abolish death.
UK personal savings in financial assets alone are worth 450% of income.
UK housing equity is worth more than 400% of income.
Net worth per household is around 700% of income, on average.
http://www.telegraph.co.uk/finance/comment/jeremy-warner/8861014/UK-economy-moves-out-of-intensive-care.htmlAlthough debt at 160pc of income looks high, it's dwarfed by counterbalancing levels of household assets.
Despite its debt, Britain is still, by any standards, an extraordinarily wealthy country
Hardly a crushing burden then, for the country or economy as a whole.....;)
Although it's understandable a few whiny youngsters from the "me, me, me" generation want to complain about house prices, the reality is all housing wealth is ultimately passed on to future generations and always will be unless we find a way to abolish death.
“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”
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Comments
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HAMISH_MCTAVISH wrote: »UK personal debt = 160% of income.
UK personal savings in financial assets alone are worth 450% of income.
UK housing equity is worth more than 400% of income.
Net worth per household is around 700% of income, on average.
http://www.telegraph.co.uk/finance/comment/jeremy-warner/8861014/UK-economy-moves-out-of-intensive-care.html
Hardly a crushing burden then, for the country or economy as a whole.....;)
Although it's understandable a few whiny youngsters from the "me, me, me" generation want to complain about house prices, the reality is all housing wealth is ultimately passed on to future generations and always will be unless we find a way to abolish death.
We are a rich country but surely its all about distribution?
The poor sod with a wife and 3 kids and one wage living in rented accomodation with debt totalling his annual wage probably doesnt feel quite so rich? and I am sure there are many similar to that ? Or have I been dim again and missed the point?Dont wait for your boat to come in 'Swim out and meet the bloody thing'
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Erm right.
So what's your message? If times get tough we all sell out houses to (well, im not sure, no one it would seem) and live on the streets?
All well and good having 400% in housing, but it's not as if we can free it up, is it. Do you have a point? If so, what is it?0 -
It's true, from my viewpoint, that we are hugely wealthy in the UK.
Yes, we have debts - but generally the debts are held by those who couldn't wait to get something .... the gullible and the simple in essence.
Those 'oldies' who saved before spending have made themselves wealthy by patience and not borrowing at high rates.Bringing Happiness where there is Gloom!0 -
Going4TheDream wrote: »We are a rich country but surely its all about distribution?
Total personal debt is miniscule compared to total personal assets.
Take housing for example. Housing assets alone are worth 3 times total personal debt.
The distribution of housing wealth is fairly widespread, with around 68% of households living in owner occupied housing. Of those households around 50% have no mortgage at all, and another 25% have less than 50% LTV mortgages.
If you want to argue there is a significant minority with little in the way of wealth, I won't disagree. But there always has been.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
It's true, from my viewpoint, that we are hugely wealthy in the UK.
Yes, we have debts - but generally the debts are held by those who couldn't wait to get something .... the gullible and the simple in essence.
Those 'oldies' who saved before spending have made themselves wealthy by patience and not borrowing at high rates.
Being sensible, saving and investing is not only the prerogative of the old, and some of us just prefer not to 'brag' about it Dont wait for your boat to come in 'Swim out and meet the bloody thing'0 -
Graham_Devon wrote: »So what's your message?
UK personal debt = 160% of income.
UK personal savings in financial assets alone are worth 450% of income.
UK housing equity is worth more than 400% of income.
Net worth per household is around 700% of income, on average.
Hardly a crushing debt burden.....“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
It's true, from my viewpoint, that we are hugely wealthy in the UK.
Yes, we have debts - but generally the debts are held by those who couldn't wait to get something .... the gullible and the simple in essence.
Those 'oldies' who saved before spending have made themselves wealthy by patience and not borrowing at high rates.
You are the ultimate man !!!!!!!!!!!!!!!!!!!0 -
Going4TheDream wrote: »Being sensible, saving and investing is not only the prerogative of the old, and some of us just prefer not to 'brag' about it
That's very true ..... but, the Oldies were living through real hardship well before the internet, ipads, iphones, plasma TV's and holidays abroad.
Oldies are very capable of waiting for something ..... hell, I would wait until Xmas for the chance to get an Orange in my sack - along with a lump of coal and a toffee apple!!Bringing Happiness where there is Gloom!0 -
HAMISH_MCTAVISH wrote: »
Take housing for example. Housing assets alone are worth 3 times total personal debt.
So if my house is worth 300k, and I owe 100k on an interest only, or even repayment mortgage.
Are you saying I can just sell the house, and then I will have money, but no where to live?
This seems, well, rather stupid.0 -
It's true, from my viewpoint, that we are hugely wealthy in the UK.
Yes, we have debts - but generally the debts are held by those who couldn't wait to get something .... the gullible and the simple in essence.
Those 'oldies' who saved before spending have made themselves wealthy by patience and not borrowing at high rates.
The reason you have "made yourselves wealthy" is due to sitting on your behinds doing nothing while the biggest property bubble in living memory put a large number of very ordinary houses out of the reach of anyone who didnt already own one.
Incidentally, the only way you're ever going to see any of that wealth, is if someone much younger than you comes along and saddles themself with debt to buy into it. Better pray they do eh, an awful lot of you seem to have pretty much spent that downsizing retirement money before retirement.0
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