Nationwide aug: + 1.3%

DpchMd

Graham_Devon wrote: »

Yes, if you ignore every single price rise that's happened in the same period, you are better off.

This forum just get's worse and worse with the almost blatant rose tinted view of viewing the data however you want to, so long as it makes housing look a good bet.

Think about what you just said.

ukcarper

Graham_Devon wrote: »

Yes, if you ignore every single price rise that's happened in the same period, you are better off.

This forum just get's worse and worse with the almost blatant rose tinted view of viewing the data however you want to, so long as it makes housing look a good bet.

I thought that that was what the RPI and CPI represented.

DpchMd

ukcarper wrote: »

I thought that that was what the RPI and CPI represented.

You have the patience of a saint, I don't know how you stay polite.

Graham_Devon

ukcarper wrote: »

I thought that that was what the RPI and CPI represented.

It does.

You realise that RPI and CPI are measurments of inflation don't you....not wage inflation?

Therefore, put wage inflation next to RPI. You do the maths. Are you better off?

Food will be going up soon, adding to inflation. I suppose in your view of the world, as food has gone up, adding to the inflation index, were actually all better off. The more inflation we get, the better off we are!

ukcarper

Graham_Devon wrote: »

It does.

You realise that RPI and CPI are measurments of inflation don't you....not wage inflation?

Therefore, put wage inflation next to RPI. You do the maths. Are you better off?

I’ll explain it you are taking home £15,724 a year your mortgage is £4,000 and you spend the remaining £11,724 on living.

Now you are taking home £16,681 your mortgage is still £4000 leaving you £12,681 the stuff you were buying has increased 7% to £12,544 leaving you £137 better off.

These figure are based on a 2% rise a year which I believe is the average also tax allowances have been increased since 2010 meaning your take home pay increases by a larger % than your gross pay.

Graham_Devon

ukcarper wrote: »

I’ll explain it you are taking home £15,724 a year your mortgage is £4,000 and you spend the remaining £11,724 on living.

Now you are taking home £16,681 your mortgage is still £4000 leaving you £12,681 the stuff you were buying has increased 7% to £12,544 leaving you £137 better off.

These figure are based on a 2% rise a year which I believe is the average also tax allowances have been increased since 2010 meaning your take home pay increases by a larger % than your gross pay.

That's the average if you include bonuses, yes.

It's not "the" average for most. As I said, there are numerous articles on the realities of pay rises and inflation.

You can create whatever statistics you like to create your position, but I'd suggest reality is the best statistic you can look at.

Loughton_Monkey

Graham_Devon wrote: »

.....This forum just get's worse and worse with the almost blatant rose tinted view of viewing the data however you want to, so long as it makes housing look a good bet.

Quite agree.

I take a very realistic view of the data. Since buying a house almost 40 years ago, at a near-high in a rapidly rising market, I look back and find that I have only achieved a miserable 7.2% compound interest on every penny I have invested in houses, including refurbishment costs.

And now I have to live here rent free for the rest of my life, No landlord to come and mend broken windows. No landlord to suck-up to. No landlord to slag off on these boards. That's quite miserable really.

Been here 13 years. House only worth a miserable 3.2X what I paid for it.

What's worse, is that I'd virtually paid off the mortgage 10 years ago. But since they are ripping me off at 1½%, I've had no choice but to take out the whole mortgage amount and save it at 4% (3.2% net) in order to provide small solace in my regret at ever buying a house.

Take my advice. Rent, rent, rent.

ukcarper

Graham_Devon wrote: »

That's the average if you include bonuses, yes.

It's not "the" average for most. As I said, there are numerous articles on the realities of pay rises and inflation.

You can create whatever statistics you like to create your position, but I'd suggest reality is the best statistic you can look at.

You might not have got a rise but plenty of people have and i believe the figures i used are accurate.

Rinoa

Graham_Devon wrote: »

This forum just get's worse and worse with the almost blatant rose tinted view of viewing the data however you want to, so long as it makes housing look a good bet.

Quote of the week. :rotfl:

Only an MSE bear could argue that inflation reduces real house prices whilst leaving the real value of any outstanding mortgage unchanged.

wotsthat

Graham_Devon wrote: »

That's the average if you include bonuses, yes.

It's not "the" average for most. As I said, there are numerous articles on the realities of pay rises and inflation.

You can create whatever statistics you like to create your position, but I'd suggest reality is the best statistic you can look at.

Graham, you've always struggled with percentages. In this puzzler we've got people getting a small % rise on all their income and trying to compare that to a mortgage payment that is a small percentage of total outgoings. On top of that total mortgage debt on a repayment is reducing in nominal terms and even more in real terms. Keep on muddling and pretending you know what you're talking about though.

Father Ted explained it better to Dougal. A toy cow in your hand isn't bigger than the cows in the field - the cows in the field are far far away.