£194,400 minimum wage

davomcdave

economic wrote: »

then stop taking out coffee!

on minimum wage the couple earn what 36-38k a year combined? thats a net take home of around 30k at least or 2.5k a month

if they live in the west midlands, assumign a rental yield of 7%, thats a rent of 1k a month. add to that bills and food etc of 800 a month (please dont tell me its too low, it really isnt) then you have about 700 a month to save potentially. maybe spend 200 for fun then thats 500 and a year thats 6k. a deposit of 30k would take 5 years to save up. and this is just a couple of minimum wage.

of course they are not gonna do it if they spend on take out coffees, holidays, new cars etc but thats their own fault.

My colleagues make plenty more than the minimum wage.

A couple on the minimum wage gross under 30k for 40 hrs a week each.

ruperts

GreatApe wrote: »

But I did not just demonstrated affordability I demonstrated extreme affordability in 8 regions of the UK where prices are so low that people on minimum wage can afford to buy.

The median full time male wage is about twice minimum wage

7-8 regions of the UK are cheap not just affordable but cheap

You didn't demonstrate any sort of affordability never mind extreme. You demonstrated an entirely fictional and unrealistic scenario where wages go up by 25% and house prices stay exactly the same. That has not, and will not happen so spinning any sort of affordability story out of it is absolutely ludicrous.

Windofchange

"Returning to the analysis of local authorities, by consumer champions Which, looked at 355 local authorities and compared house prices with the average earnings of 22 to 39-year-olds.

Annual income multiple / Number of local authorities
3-5 times / 46
5-8 times /149
8-10 times / 98
10-15 times / 55
15-18 times / 7

Only in 46 of the local authorities (sorry London, you didn't feature) were house prices between 3-5 times salaries."

Yup, housing has never been so affordable.

GreatApe wrote: »

Someone I know did just that. They saved from 16-19 and got married and also bought a house at age 20 on just a few pennies above min wage. Their husband was also on min wage. They bought a 3 bed terrace in the west Midlands just last year.

These children must be outbidding your fictional adults on min wage saving just 3% of their income.

So, minimum wage for someone under 18 is £4.05 an hour and that rises to £5.60 for 18 - 20 year olds.

https://www.gov.uk/national-minimum-wage-rates

Did your friends also not eat for 3 years? How much of their £4 an hour would you advocate they save. I smell some porkies...

michaels

Windofchange wrote: »

"Returning to the analysis of local authorities, by consumer champions Which, looked at 355 local authorities and compared house prices with the average earnings of 22 to 39-year-olds.

Annual income multiple / Number of local authorities
3-5 times / 46
5-8 times /149
8-10 times / 98
10-15 times / 55
15-18 times / 7

Only in 46 of the local authorities (sorry London, you didn't feature) were house prices between 3-5 times salaries."

Yup, housing has never been so affordable.



So, minimum wage for someone under 18 is £4.05 an hour and that rises to £5.60 for 18 - 20 year olds.

https://www.gov.uk/national-minimum-wage-rates

Did your friends also not eat for 3 years? How much of their £4 an hour would you advocate they save. I smell some porkies...

The OP specifically looked at 2 x income purchasers and a 4.5X mortgage multiplier which would appear to show that in perhaps 70% of LAs not only could two average earning 22-39 year olds buy a property but that they could afford the average priced property rather than a starter home. Are you trying to support the OP?

GreatApe

Windofchange wrote: »

Did your friends also not eat for 3 years? How much of their £4 an hour would you advocate they save. I smell some porkies...

The house they purchased was £95,000 and they bought with a 10% deposit so they only needed about £10-£11k for deposit plus legals.

I believe they were on the adult min wage, the girl lived with her parents until they got married and the boy lived in a shared house until they got married.

You demonstrated an entirely fictional and unrealistic scenario where wages go up by 25% and house prices stay exactly the same. That has not, and will not happen so spinning any sort of affordability story out of it is absolutely ludicrous.

Min wage is set to go up 20% not 25%
And yes I agree house prices are likely to be a little higher come 2020, this debate was a copy of a debate with others who think there will be a crash by then so I was trying to show them how affordable houses are and would especially be if their hpc happened which it likely wont.

Whats better is to look at local median full time couple income vs local house price and if you do that prices in 8 regions are cheap

GreatApe

michaels wrote: »

The OP specifically looked at 2 x income purchasers and a 4.5X mortgage multiplier which would appear to show that in perhaps 70% of LAs not only could two average earning 22-39 year olds buy a property but that they could afford the average priced property rather than a starter home. Are you trying to support the OP?

well spotted,

in their data set 82% of local authorities are between 3-10x single income which is 1.5x - 5x duel income.

If the deposit is 10% then its 1.35 x - 4.5 x mortgage + 10% deposit

so yes very affordable in 7-8 regions of the uk

ukcarper

In the real world 2 people aged 23 working 37.5 hours a week gross £27.5k or £25.260 net

Windofchange

So in order to afford to buy you need to be with a partner and at the stage in your relationship where you are buying a house?

If homes are so cheap, why is home ownership falling off a cliff across all but the retired demographic as per charts two and three? Has everyone decided to rent in favour of buying, or are homes increasingly unaffordable?

http://visual.ons.gov.uk/uk-perspectives-2016-housing-and-home-ownership-in-the-uk/

Windofchange

And all this against a backdrop of credit and repayments having never been so cheap. They are talking about the possibility of the first 0.5% mortgage fix and yet ownership is falling.

GreatApe

Windofchange wrote: »

So in order to afford to buy you need to be with a partner and at the stage in your relationship where you are buying a house?

If homes are so cheap, why is home ownership falling off a cliff across all but the retired demographic as per charts two and three? Has everyone decided to rent in favour of buying, or are homes increasingly unaffordable?

http://visual.ons.gov.uk/uk-perspectives-2016-housing-and-home-ownership-in-the-uk/

its primarily to do with the 4-5 million additional migrants over the last 10 years. They predominantly rent or at lest have a vastly different profile from the natives

As evidence I point to the cheapest towns in our country where renting has also increased.

There are also other reasons too like people starting work and starting true adult lives later and later.