The house 'earnings' award goes to ....

economic

fun4everyone wrote: »

People. Article a few years old but property has gone up since then but of course the pound has heavily weakened also.

https://www.theguardian.com/cities/2014/aug/05/london-millionaire-capital-world-city-new-york-tokyo

Substantial difference over time though. You could have been a dollar millionaire with a net worth of £500,000 in 2007. Nowadays you need over £800,000.

wow so im pretty much in the top 4-5% in london probably.

fun4everyone

economic wrote: »

wow so im pretty much in the top 4-5% in london probably.

I would think for your age bracket +- 5 years you are right at the top. A lot of these dollar millionaires will be older, retired people who now own their property outright and have seen serious above inflation gains since they purchased.

economic

fun4everyone wrote: »

I would think for your age bracket +- 5 years you are right at the top. A lot of these dollar millionaires will be older, retired people who now own their property outright and have seen serious above inflation gains since they purchased.

ive always said i was the exception.

ive always been careful with money as well and have had consistent well paying job.

GreatApe

economic wrote: »

yes agree however most people have a choice and can do something about it. namely gain new more valuable skills! it takes time and effort but no one says it was gonna be easy. thats the way life is.

or just continue renting. perhaps wait till prices fall. the point is there no point arguing or complaining prices are so high. they are high for a reason. but maybe the wannabe buyers salary and/or skillset is not upto par with london house price levels?

This is the simple reality.
London is full of wealthy people who will outbid you. If you can't compete with them then you have no choice but to look elsewhere. Crying for them to go away won't do you any good.

I don't know why this upsets some people here like Mr wind. The above is true for almost any level. I can't afford a 200sqm detached home in Kensington for £3m so I don't live in Kensington. I'd like to own said house in said location and the only way about it is to earn a lot more or maybe marry into wealth. Complaining that the average worker can't afford to buy in Kensington gets me no closer to buying in Kensington

GreatApe

economic wrote: »

ive always said i was the exception..

There are lots of very rich families in London.

I know one chap younger than you who bought a house for some £2m cash and the first thing he did was knock it to the ground and then rebuilt a bigger better version that must have cost him at least a million again just in build costs. Over £3m total cost mortgage and debt free in one house that is 'worth' probably in excess of £4m

At that point he hadn't worked a day in his life in London. But he had worked about 8 years in one of the rich middle east countries earning big money virtually tax free. When he hit 30 he gave that up and returned to London where he was born.

So when the 'it's a bubble' cheerleaders cry that the average London wage can't buy the average house I think of that guy. The average Dubai banker wage buying the upper end London homes. Really the top 10 maybe 20 percent of London Homes should be excluded from any sort of 'average' they are purchased with wealth not with income

Windofchange

GreatApe wrote: »

This is the simple reality.
London is full of wealthy people who will outbid you. If you can't compete with them then you have no choice but to look elsewhere. Crying for them to go away won't do you any good.

I don't know why this upsets some people here like Mr wind. The above is true for almost any level. I can't afford a 200sqm detached home in Kensington for £3m so I don't live in Kensington. I'd like to own said house in said location and the only way about it is to earn a lot more or maybe marry into wealth. Complaining that the average worker can't afford to buy in Kensington gets me no closer to buying in Kensington

I don't know how many times you can be told that nobody is advocating an average worker buying in Kensington. You keep dusting this off and it's getting boring. Nobody has ever said that.

As for the rest of it, your Kensington property has already had millions wiped off it's value according to latest figures - its a bloodbath in super prime London. As for the rest of London, the super wealthy aren't after studio flats in Croydon. Go figure. I don't want wealthy people to go away, we need them, but we also need the average worker to keep the city running. Many are leaving - London net emigration is rising. People are getting out.

ukcarper

GreatApe wrote: »

There are lots of very rich families in London.

I know one chap younger than you who bought a house for some £2m cash and the first thing he did was knock it to the ground and then rebuilt a bigger better version that must have cost him at least a million again just in build costs. Over £3m total cost mortgage and debt free in one house that is 'worth' probably in excess of £4m

At that point he hadn't worked a day in his life in London. But he had worked about 8 years in one of the rich middle east countries earning big money virtually tax free. When he hit 30 he gave that up and returned to London where he was born.

So when the 'it's a bubble' cheerleaders cry that the average London wage can't buy the average house I think of that guy. The average Dubai banker wage buying the upper end London homes. Really the top 10 maybe 20 percent of London Homes should be excluded from any sort of 'average' they are purchased with wealth not with income

Define lots London median full time earnings are £35k and £53k in the city so the majority are not rich.

economic

ukcarper wrote: »

Define lots London median full time earnings are £35k and £53k in the city so the majority are not rich.

but that doesnt matter. its all about the mrginal buyer and if there are enough that can buy then that will push prices up in a low supply market. for anyoen else its tough luck they cant afford.

GreatApe

ukcarper wrote: »

Define lots London median full time earnings are £35k and £53k in the city so the majority are not rich.

Why would you look at the median wages that include children and part time workers?

Also income and wealth are not only derived from wages. For instance what of the people who earn maybe a million a year in a small business but only draw say £30k a year as they don't spend much and keep the rest in the company as its not efficient to draw it out? Are dividends even in the income stats? What of the people who own shares that pay no dividends how do you class someone who bought £50k of rightmove shares 7 years ago that are now worth £1 million? What about people who bought shops or factory buildings for £100k that are now worth £500k? What about people who set up a business and sold the shares like the recent sale of ARM for billions or the Deepmind creators that sold their company for some 200 million dollars to google? What about all the people that earn nationally but disproportionately purchase London homes? For instance all the sports and movie stars that land on millions of wealth how think OK now that ibe made it what I need is a nice expensive home in Birmingham/Stoke/Wales/Scotland/etc? No they all go out and buy a London home. Likewise for international wealth how many think a second home in stoke is what they need how many think a home in London rather than living in hotels is what they'd like?

But keep posting the median wages that include part time workers and children as evidence for London unaffordability

economic

GreatApe wrote: »

Why would you look at the median wages that include children and part time workers?

Also income and wealth are not only derived from wages. For instance what of the people who earn maybe a million a year in a small business but only draw say £30k a year as they don't spend much and keep the rest in the company as its not efficient to draw it out? Are dividends even in the income stats? What of the people who own shares that pay no dividends how do you class someone who bought £50k of rightmove shares 7 years ago that are now worth £1 million? What about people who bought shops or factory buildings for £100k that are now worth £500k? What about people who set up a business and sold the shares like the recent sale of ARM for billions or the Deepmind creators that sold their company for some 200 million dollars to google? What about all the people that earn nationally but disproportionately purchase London homes? For instance all the sports and movie stars that land on millions of wealth how think OK now that ibe made it what I need is a nice expensive home in Birmingham/Stoke/Wales/Scotland/etc? No they all go out and buy a London home. Likewise for international wealth how many think a second home in stoke is what they need how many think a home in London rather than living in hotels is what they'd like?

But keep posting the median wages that include part time workers and children as evidence for London unaffordability

suddenly i feel a lot poorer