The north/south divide

Thrugelmir

michaels wrote: »

I would note that 70k is below build cost which suggests a pretty depressed, non-sustaining, local economy.

Alternatively an area with the potential to grow.

http://lcr4.uk/

There's much going on that people simply don't know about.

System

I wasnt really asking for advice. Just more of a how do they do it sort of thing!!! I am ok with my current salary as I obviously live in an affordable part of the country. I think id be outside parliament with my placard if I had to pay sussex prices on a nurses wage.

And Vivatifosi you made a very good point. I love the trust im currently working for. I have had a short spurt of working in the DGH and I would not be happy and content going there day in day out..

Thrugelmir

tessiesmummy wrote: »

Just more of a how do they do it sort of thing!!!

Fewer people are now buying their own homes. There's no magic trees in the UK. Will take time to reverse the trend.

GreatApe

It's not that much more expensive

Mortgage rates are about 2% so an additional £200k price on a house costs only £4,000 a year on interest. If its a couple working full time its just £2000 each or about £2500 pre tax.

So if you can earn £2500 gross more in the south east its worthwhile paying the higher house prices.



Its actually even better than that, if you take inflation at 2.8% (the average for the last 10 years) and assume house prices go up with just inflation then you are better off in an expensive area/property. The mortgage costs 2% but the house appreciates 2.8%

michaels

GreatApe wrote: »

It's not that much more expensive

Mortgage rates are about 2% so an additional £200k price on a house costs only £4,000 a year on interest. If its a couple working full time its just £2000 each or about £2500 pre tax.

So if you can earn £2500 gross more in the south east its worthwhile paying the higher house prices.



Its actually even better than that, if you take inflation at 2.8% (the average for the last 10 years) and assume house prices go up with just inflation then you are better off in an expensive area/property. The mortgage costs 2% but the house appreciates 2.8%

But you don't rent from the bank, you have to pay back the capital too so although capital repayments are savings - they may be a very large 'forced saving' leaving little to live on.

I still say buying a house for half of what it probably would cost to build it once you include the infrastructure is definitely a bargain and it would be impossible for average houses to be that cheap on none would ever get built.

ukcarper

GreatApe wrote: »

It's not that much more expensive

Mortgage rates are about 2% so an additional £200k price on a house costs only £4,000 a year on interest. If its a couple working full time its just £2000 each or about £2500 pre tax.

So if you can earn £2500 gross more in the south east its worthwhile paying the higher house prices.



Its actually even better than that, if you take inflation at 2.8% (the average for the last 10 years) and assume house prices go up with just inflation then you are better off in an expensive area/property. The mortgage costs 2% but the house appreciates 2.8%

Assuming you can get a big enough mortgage.

zagubov

By and large, down south, masses of people can't afford to buy.

Loads of people are renting. living in digs, lodging with others, renting rooms, renting out rooms. flat-sharing, subletting. None of these has enough space or security of tenure, and even home-owners don't have room to swing a cat.

If you want to be nearer your MIL, there must be better options than you giving up living in the north to move down here.

GreatApe

Imagine how cheap the north would be if we hadn't had the mass migration from 2004

Those £80k terrace homes op norf might well only be £40k today

Thrugelmir

GreatApe wrote: »

Mortgage rates are about 2% so an additional £200k price on a house costs only £4,000 a year on interest.

That's similar to the danger of sitting on a railway track and facing in the wrong direction. Trains are going to keep coming fast.

System

It's not that much more expensive

Mortgage rates are about 2% so an additional £200k price on a house costs only £4,000 a year on interest. If its a couple working full time its just £2000 each or about £2500 pre tax.

So if you can earn £2500 gross more in the south east its worthwhile paying the higher house prices.



Its actually even better than that, if you take inflation at 2.8% (the average for the last 10 years) and assume house prices go up with just inflation then you are better off in an expensive area/property.

Just because the interest isnt that much higher doesnt mean a person earning 30k will get approved for a mortgage of 220k.. a lot of people on here explain things much better with people living at home until 40 and houseshares etc.. I guess i see it in the media all the time but the north is that much cheaper it just doesnt impact us as much.