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UK Households wealthier than ever before
Comments
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Graham_Devon wrote: »Paper wealth.
If you want to talk about household disposable income instead why not start a new thread - this one's about household wealth.
Doubt you will though - real disposable income was up in 2012 too.0 -
Graham_Devon wrote: »Paper wealth. .
This is "paper wealth".
[IMG]http://www.professional-cv-writer.co.uk/wp-content/uploads/2012/09/£20-notes-by-freedigitialphotos.net_.jpg[/IMG]
I personally keep most of my wealth in other forms of assets.
Like shares, pensions, houses....
You can keep your wealth anywhere you choose. So long as you understand that assets are wealth just as much as cash is.“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 -
Someone at work regularly quotes Shelter derived headlines. The last one was "did you see that something like a quarter of people use Wonga to pay their mortgage?"
Not looked at this one but it will be a journalistic take on a nonsense survey just like all the others.
Whilst I'm out of the argument with Graham, I ain't out of the thread...
On this topic, if I were a journalist, all I need to do to grab headlines is sit outside a payday lender office or pawn shop, interview 100 people coming out of there and say:
"85% of people surveyed use payday loans to feed their children"
My alternative option would be to do a survey across a more varied section of society with the resulting headline being:
"4% of people surveyed use payday loans to feed their children"
As a journalist, which are you going to do?
Now, this may not be relevant to the survey above, but it's relevant to a lot of surveys - which is why I choose to ignore a lot of them without proper evidence of who, exactly, was surveyed.
If the Shelter survey, for example, questioned people that visited their offices worried about their housing needs, how is the results of that survey a reflection on society as a whole?0 -
marathonic wrote: »On this topic, if I were a journalist, all I need to do to grab headlines is sit outside a payday lender office or pawn shop, interview 100 people coming out of there and say:
"85% of people surveyed use payday loans to feed their children"
It's more subtle than that. They survey how many people, say, take out a Wonga loan and find it's 1m people. Therefore 1m people didn't have enough money to last until the end of the month. Then you just add your own headline "1m can't afford to pay mortgage without Wonga" etc. Yougov give the whole thing a false air of credibility.0 -
It's more subtle than that. They survey how many people, say, take out a Wonga loan and find it's 1m people. Therefore 1m people didn't have enough money to last until the end of the money. Then you just add your own headline "1m can't afford to pay mortgage without Wonga" etc. Yougov give the whole thing a false air of credibility.
Time for this classic....
http://www.youtube.com/watch?v=G0ZZJXw4MTA0 -
Here it is, it is in the comments on an article on Paris Brown (third post down)
http://uk.news.yahoo.com/tweet-paris-brown-controversy-how-to--clean-up--online-to-land-that-job-103722398.html
He looks pretty settled there. A comment based forum suits him - he can say what he wants with little worry about people asking him to justify his pronouncements.0 -
Graham_Devon wrote: »Paper wealth.
And this will be written off just like everything else thats a little inconvinient.
Most of this wealth has come from hpi.
Exept it's paper profit and real world debt, sure both can be written off, one by the borrower the other by the lender.
Things like Mew released paper wealth and left people with real world debt.
The paper wealth is there if people can access it and take advantage, which most won't or can't do.0 -
Most of this wealth has come from hpi.
Exept it's paper profit and real world debt, sure both can be written off, one by the borrower the other by the lender.
Things like Mew released paper wealth and left people with real world debt.
The paper wealth is there if people can access it and take advantage, which most won't or can't do.
Paper wealth is no different to any other type of wealth. I would consider someone driving a brand new BMW more wealthy than a 10-year old Fiesta driver - if all other financial affairs are identical.
Sure, he'd have to sell the BMW to access some of that wealth, possibly buying himself a 10-year old Fiesta with the proceeds and putting the rest into an ISA (or whereever).
It's no different than the paper wealth I had this morning in the form of a £10 note - from which, I released £3 at the local newsagent this morning.
This so called 'paper wealth' is harder to access and, some would consider, more risky given the ability to go down in value as well as up (although cash will ALWAYS go down in value due to inflation). In return for this illiquidity and higher risk, you get the expectation of higher returns.
Did you not read any of this thread before posting?
Which brings me to the last point:
I would expect that the household wealth of anyone that doesn't understand the difference between good debt and bad debt to be at the lower end of the spectrum when compared to someone that does understand the difference - and those people are in the minority.
I saw comments on this thread referring, sarcastically, to how it's a great idea to take on more debt, in the form of equity release, so that you have a deposit to take on more debt, in the form of a BTL mortgage. There was no need for the sarcasm here because it's a great idea, provided the figures stack up.
Looking at it from a very high level, if I were to get the above BTL mortgage, secured against a property where the yield was 8% to cover:
5-year fixed BTL mortgage interest: 4%
+Maintenance Estimate: 1%
+Insurance/Management: 1%
+Profit: 2%
How would that not be good debt - it's putting 2% of the value of the property into my pocket every year. Understanding this basic concept is what put a lot of todays wealthiest households in the position in which they are in.0 -
marathonic wrote: »Paper wealth is no different to any other type of wealth. I would consider someone driving a brand new BMW more wealthy than a 10-year old Fiesta driver - if all other financial affairs are identical.
That is a big assumption."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
grizzly1911 wrote: »That is a big assumption.
What's a big assumption - people are implying that someone with 50,000 in equity on their home is no more wealthy than a person renting because they cannot access this wealth.
Of course they can access this wealth - a lot of them just choose not to (some can't due to income levels, lack of desire to downsize, poor credit history, etc. - however, these are in the minority and the people that don't access it, for the most part, simply choose not to - usually because they've no other impending needs for that wealth).
There are many, many people in identical circumstances except for when it comes to the car that they drive. To think otherwise is ludicrous. The variety of society makes it inevitable.
Hell, even within my company, there are many renters that match expenditure to income and struggle to make it to the end of the month - whilst the value in the cars they drive (their only asset of value) varies WILDLY.0
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