When will London burst ?

chucknorris

Carl31 wrote: »

Salaries in this country dont strecth as far as buying houses, saving for pensions, as well as trying to live and pay taxes for many, fast becoming most in the under 40s

That's why they need to plan better, some of my friends drive around in £35k cars (one bought with a loan) but they don't even have an ISA or a SIPP! Its a question of getting your priorities right, and not just people with expensive cars, I mean everyone.

lisyloo

That's why they need to plan better, some of my friends drive around in £35k cars

Chuck, I think you are living in a different world to some people.
I mean those on £27K median incomes or perhaps lower with a family.

Yes sure some are overspending.
That never happened in my parents generation because they didn't have access to credit.
I don't dispute that at all.
I am all in favour of personal responsibility.

But there are quite a few working people just making their day to day ends meet without savings or pension contributions. Those people's priorities are paying the rent/mortgage and feeding the kids and of course the costs of getting to work.

It's a tale of have and have nots with generally the older property owners being the haves. Younger people do not in general have access to career jobs with gold plated pensions.

I think there's some real timebombs in our economy e.g. when those without pensions get to retirement age, however that's not round the corner so no-one (important) really cares that much.

chucknorris

lisyloo wrote: »

Chuck, I think you are living in a different world to some people.
I mean those on £27K median incomes or perhaps lower with a family.

I do live in a different world (I accept that), because I planned my future, and worked hard for it, the first 10 years after graduating I didn't have a holiday, worked long hours, working full time and running two part time businesses, which meant that I worked virtually every weekend and late most nights. But I wish I had added something like 'and not just people with expensive cars'. Wait a minute, I did:

chucknorris wrote: »

Its a question of getting your priorities right, and not just people with expensive cars, I mean everyone.

It doesn't necessarily just mean expensive things, it could be always getting the latest mobile, holidays, nights out, gym (when running and/or cycling would suffice), lunches (instead of taking sandwiches in), the list is endless.

EDIT: I remember when I was 18, and having an argument (heated discussion) with my friends one night, their ethos was to enjoy yourself when you are young, mine was make the money when you are young enough to work hard AND play hard too. I had already started my first business then, and I was about to start a second one, in fact that is what started that particular discussion.

lisyloo

because I planned my future, and worked hard for it

Me too and yeah it bugs the hell out of me too when people say I was lucky (the harder I work the luckier I get right?)

it could be always getting the latest mobile, holidays, nights out, gym

If they have spare cash to prioritise then I agree.
What I was trying to say was that because younger people are not getting career pay rises and face much higher housing costs, many do not have that.

For those that do have space cash - I totally agree. It's immediate gratification vs deferred gratification.

I'm saying you are out of touch with how little some people have in the first place.
Median salary figures are there for all to see. - £27K outside London and of course there will be people below that.

chucknorris

lisyloo wrote: »

Me too and yeah it bugs the hell out of me too when people say I was lucky (the harder I work the luckier I get right?)



If they have spare cash to prioritise then I agree.
What I was trying to say was that because younger people are not getting career pay rises and face much higher housing costs, many do not have that.

For those that do have space cash - I totally agree. It's immediate gratification vs deferred gratification.

I'm saying you are out of touch with how little some people have in the first place.

I'm not out of touch, there will always be the have not's, I know that, and that is very unfortunate. But I am talking about a different set of people, the could have's, but don't plan and or prioritise properly.

wymondham

Carl31 wrote: »

Salaries in this country dont strecth as far as buying houses, saving for pensions, as well as trying to live and pay taxes for many, fast becoming most in the under 40s

exactly! I was not able to make anywhere near enough pension contributions whilst I had a mortgage, and that mortgage was for £36k, so I can only imagine what its like these days......

lisyloo

But I am talking about a different set of people, the could have's, but don't plan and or prioritise properly.

If you're just talking about the "could have's" then I agree entirely.
Not sure what can be done to change that mindset though.
I know a lot of people that buy stuff because they think it will make them happy and I know of marriages that only survive on constant outside stimulation (of the retail variety).
I have a relative in fact who even got into stealing from employers and family.

Thrugelmir

lisyloo wrote: »

But there are quite a few working people just making their day to day ends meet without savings or pension contributions.

My late father encouraged me to start my first pension savings plan once I started my first job. It taught me me to get my priorities right. Also as Chuck says. Planning is the key. If you take a long term view climbing the mountain is far far easier.

lisyloo

I think it's a fantastic idea.
All I'm saying is that some of those on minimum wage, don't have the option.

MARTYM8`

wymondham wrote: »

exactly! I was not able to make anywhere near enough pension contributions whilst I had a mortgage, and that mortgage was for £36k, so I can only imagine what its like these days......

Exactly – it rather irritates when certain posters fail to recognise that house prices rising 400% in the last 15 years has of course had no impact on their wealth or the ability of younger people to buy a house.

My parents house in London is worth 80 times what they paid for it in the early 1970s – they regard the price of their house now as laughable and comical. And like most of their neighbours there is no way they could have afforded it at current prices on their typical salaries – they paid the mortgage on one salary and bought it with a 1.5 times salary multiple on an average London salary.

If you can find a house in London now for £60k – one and a half times median salary good luck!

All this I worked hard and today’s kids are lazy attitude from certain smug posters on here rather irritates – you didn’t work hard for a 400% rise in house prices. Government and banking policies did that!