The 3.5 x Salary ideal - ever realistic again?

Lotus-eater

baileysbattlebus wrote: »

Have you investigated Tax Credits regarding childcare? They will pay upto about 70% of childcare costs. It is income based ofcourse the more you earn the less you get. But it could help if you both don't high salaries

As I said, it isn't our situation now, we earn't too much to get help towards childcare, but one year it was very bad and we did get some of the childcare paid. Tbh we got so much money in tax credits it was embarrassing.

jammie*dodger

pollyanna24 wrote: »

I know the ideal is for wifey to stay at home and not have to work, but it's not the way of the world these days.

Speak for yourself that's exactly what me and my wife do. We had to realise that we would have to compromise on other things (like holidays and house?) but that's all part of being a parent IMO. If people don't want to look after kids they shouldn't have them.

Generali

jammie*dodger wrote: »

Speak for yourself that's exactly what me and my wife do. We had to realise that we would have to compromise on other things (like holidays and house?) but that's all part of being a parent IMO. If people don't want to look after kids they shouldn't have them.

That's pretty much the plan with Mrs Generali, the Generalissimos and me. I took contracting jobs so we could afford for her to stay at home and raise the kids. It's luck as much as anything else that I have subsequently fallen into this rather lucrative line of working in a hedge fund.

PasturesNew

Generali wrote: »

Hey PasturesNew - Have you considered offering your skills for nothing to a start-up company or to a charity in return for a reference to kick-start your CV?

No. Never heard of that. Wouldn't know where to find any such thing.

Generali

PasturesNew wrote: »

No. Never heard of that. Wouldn't know where to find any such thing.

VSO could probably point you in the direction of a charity. As for a start-up company, you could probably advertise your availablitity on the small business board here or talk to a local business bank account manager.

IveSeenTheLight

Lotus-eater wrote: »

We are in a strange situation, so it would be impossible to include my oh's income atm.
Besides what about when she has a child, unless we get maternity pay from her work (we won't) then we would have to budget for my pay alone. Also (as we found out) childcare is so expensive and limiting, it makes going back to work for a mother a hell of a lot of hard work for almost no gain. Unless you have a very well paid job of course.

This doesn't actually mirror our situation now, but 5 years ago it did.

This is important, the world has changed.
It is no longer the world of a working man taking home the money for his wife and family.
Both sexes now work and as a result house prices have adapted to accomodate both incomes.

If a 3/4 bed home was available on one person salary at 3.5x multiple, families would all have these type of homes and be mortgage free in about 10 years. Is this realistic? I think not. Is it possible, then yes.

LydiaJ

IveSeenTheLight wrote: »

This could be true but I see this multiple being a joint income.
In the past there was one breadwinner for the family, now there are two.
I think the prices will reflect 3.5x joint salary.
With the UK average wage being circa 25K, this would mean an average house price of 175K.

Sure single people will be able to buy, but it wont be family homes unless you have a very large deposit or co-share.

You are assuming that single people don't have families, but the proportion of families that are headed by a single parent is rising all the time.

Spare a thought, too, for so many new mums I come across who would love to give up work or at least only work part time, but have to go straight back to work full time because the couple can't pay the mortgage without two full time salaries. The only alternative would be to downsize the house, which isn't exactly what you want to do with a new ankle-biter.

ankyonline007

There are lot of rich peoples who dont need loan to buy house . So these are the peoples who inflate house prices .I agree house prices may correct a little but i dont think there will be any major correction in housing prices because everyone needs house and with growing population and growing immigrants housing demand will always be there moving its prices going up and up . (with minor corrections).

IveSeenTheLight

LydiaJ wrote: »

You are assuming that single people don't have families, but the proportion of families that are headed by a single parent is rising all the time.

Spare a thought, too, for so many new mums I come across who would love to give up work or at least only work part time, but have to go straight back to work full time because the couple can't pay the mortgage without two full time salaries. The only alternative would be to downsize the house, which isn't exactly what you want to do with a new ankle-biter.

I have not assumed this.
The OP question was whether realistically we would see a return to a 3.5x salary ideal.
I believe this is not possible as the way of the world has changed.
If the world reverted to one working parent families then maybe it would.

Until then I very much doubt it

Sapphire

IveSeenTheLight wrote: »

There are many professions that dont have a degree and earn much more than 15-16K. Plumbers, Joiners etc.

I don't have a degree but have built up an extensive work knowledge resulting in that I have been very highly paid.
Conversly I know people with degrees who are not working and others who earn less than myself.

Some of my bosses have not had degrees and they earn far more than me.

There will be lots of jobs that are paid below 15-16k, but to generalise as those with and without degrees is simply wrong.

I know many companies who have moved away from the degree requirement because having a degree is so wide spread and prefer people with more work experience

Personally, I think work experience is much more valuable in many professions (not talking about the 'unfashionalbe' sciences, of course), rather than a degree. Lots of people are currently taking degrees that are totally useless in practical terms (media studies, etc). They and the companies that take them on would be far better off if they did apprenticeships.

Currently because every Tom, !!!!!! and Harry is going to college, the general standard of education has slipped. The T, D and Hs are also incurring debt, which they would not need to do if they started off at the bottom of the ladder in an enterprise and worked their way up through experience. :cool: