Independent says UK enjoys price rises, Telegraph praises BTL

JonnyBravo

Thrugelmir wrote: »

Total Wage Inflation :T

Suggest it's 1 - 1 now JB.

You can "suggest" all you like.
Your inability to understand a turn of phrase attempting to explain the inflation of the total wage one earns rather than any portion of that wage such as "disposable income" is your problem not mine.
Seeing as "disposable income" as you define it is now all of the wage minus tax, and wages ARE going up, albeit slowly, can you explain why rents can't increase?

Thrugelmir wrote: »

Suggest staying in your cave rather than attempting to Troll which obviously isn't your forte.

You got me there, but poking fun at the "rule of 51" does amuse me.
Seriously though, did you ever work out what it even is? I've googled it and can't even find a reference for it. What is the Rule of 51? It clearly wasn't what we were talking about but I doubt you just made it up entirely.

JonnyBravo

Thrugelmir wrote: »

Disposable income income is defined is that after which taxes have been deducted.

Well, I'll be jiggered.
Having checked a couple of google hits and the definition of disposable income income (sic) is correct. I'd been labouring under the impression it was more as chewy described it. I do wonder how it is used in the press.

Anyway, I never knew that and so I can now thank him for a genuinely new experience. Education from Thrugelmire.
Thanks Thrugelmire

robmatic

JonnyBravo wrote: »

Well, I'll be jiggered.
Having checked a couple of google hits and the definition of disposable income income (sic) is correct. I'd been labouring under the impression it was more as chewy described it. I do wonder how it is used in the press.

Anyway, I never knew that and so I can now thank him for a genuinely new experience. Education from Thrugelmire.
Thanks Thrugelmire

So it's actually correct to say that disposable income is growing (albeit slowly) at the moment.

Thrugelmir

JonnyBravo wrote: »

Anyway, I never knew that and so I can now thank him for a genuinely new experience. Education from Thrugelmire.
Thanks Thrugelmire

Then I'll settle at 1-1 JB. :beer:

Thrugelmir

robmatic wrote: »

So it's actually correct to say that disposable income is growing (albeit slowly) at the moment.

Recent figures show a different picture.

Figures released by the Institute for Fiscal Studies [IFS] show that take-home household income in the UK dropped by over 3% on average in 2010-11; the largest fall for over 30 years.


Furthermore, the IFS predicted that when figures for 2011-12 are released they will show average incomes falling again and the process will continue right up to 2016 when real disposable income will have slipped back to the levels last seen in 2002.

The main reason for incomes falling was a drop in the real earnings of those in employment because many had accepted very small pay rises or even pay freezes to keep their jobs during a time when inflation rose to over 5%.

http://www.brightonbusiness.co.uk/htm/ni20120614.284269.htm

JonnyBravo

Thrugelmir wrote: »

Recent figures show a different picture.

Problem is you're using figures adjusted for inflation there.
In other words figures adjusted for (partly) the increase in rents!
So you're saying people can't afford to pay more for rent cos they're paying more in rent???

Disposable income (nominally) is definitely rising.




So whilst I thank you for your education on "disposable income" your original point that rents won't be able to rise as dispoable incomes are dropping is entirely false.
Rents may (or may not) rise in real terms but they will as sure as hell rise in nominal terms. That'll do me, my debt on the house was fixed years ago.

Thrugelmir

JonnyBravo wrote: »

Problem is you're using figures adjusted for inflation there.
In other words figures adjusted for (partly) the increase in rents!
So you're saying people can't afford to pay more for rent cos they're paying more in rent???

Disposable income (nominally) is definitely rising.




So whilst I thank you for your education on "disposable income" your original point that rents won't be able to rise as dispoable incomes are dropping is entirely false.
Rents may (or may not) rise in real terms but they will as sure as hell rise in nominal terms. That'll do me, my debt on the house was fixed years ago.

My personal view is that rental yields need to be around 10% to be commercially viable. So there is a correction on its way. Either rents rise or property prices fall. Again my view is that capital gains are more likely to turn into losses in the medium term. Which will panic amateur investors to jump off the cliff like lemmings.

Turnbull2000

Yup, the substantial upward adjustment in rents we can expect over the coming years will be similar to that indicated through house prices to income ratios. The old salary multiples are obsolete despite the insistence of some bearish posters that the current high figures indicate over-valuation. Two full-time incomes are now the norm for house buyers, so the multiples (and house prices) adjusted upwards accordingly.

And then there's the matter of an unprecedented and continued collapse in house building - a situation I believe will not turn around for a very long time. In my own area, even the few developments that are trying to proceed are being crushed by coordinated and vocal NIMBY groups and councillors.

edit: Here's two examples of nearby, and largely successful, anti-housing groups...

http://www.holystoneag.co.uk/

http://www.westmooractiongroup.co.uk/Home.html

Graham_Devon

undetterred wrote: »

Thats right Grayham,people need the car,mobile fone,clothes,nights on the !!!!,holidays........the list is endless.

Heaven forbid having to spend it on a roof above your head.

Remove the rose tint specs.

In what universe do working people not need a car, mobile phone, and clothes?

Thrugelmir

Graham_Devon wrote: »

In what universe do working people not need a car, mobile phone, and clothes?

Live close to work and walk, mobile phone not essential, clothes can be bought cheaply .

Wasn't so long ago . This is how people lived.