Sorry mate but £875 to rent a 2 bed terrace in Stoke seems very high to me. Unless there are aspects to the property I am not aware of the average price should be £650 to £700.
We were paying £875 a month in rent for a 2 bed terraced house in Stoke. Renting generally costs a higher % of people's income than mortgage payments which makes it more difficult to put money aside for a deposit. It's a good thing that daft mortgages are a thing of the past but it's just one part of the picture of fewer people in permanent employment, high house prices and more people privately renting than before
So the mortgage is over 8 times larger than yours. So are his wages over 8 times more than yours were at the time? Can't do a direct comparison without asking personal information of you both regarding earnings so if we take the average annual income of £35k for today, that would mean wages would have to have been around £4,200 at the time you bought your house to be equivalent. Now I don't know what age you are so I've no idea when you got your first mortgage but you seem to be talking around the Thatcher era so I looked it up and the average UK salary in 1980 was £5,720 and in 1985 was £8,890 (non London)
So if you bought in 1985 the average earnings were over double what the equivalent house price rise has been.
Or put it another way the equivalent mortgage as a percentage of average wages would've been £41k in 1980 and £63,500 in 1985
For perspective, my dad was taking home between 250 and 300 pound in the late 90s a week at massey ferguson and his mortgage was 150 pound a month, petrol prices were half the price of today, as were insurance premiums and the cost of eating in general was cheaper... He'd pay almost all of his monthly bills in just over a weeks wage excluding food and petrol ... You can't live like that today on 1 wage
Did he have internet, phone, sky TV, new car?
Pay as you go phones were the thing then, he used to phone my step mum from work though using the pay phones... Purchased a car outright with money he saved from disposable income, Ford escort lol, we never had sky TV and the Internet came in the house around 2002 after I'd joined the army
The point is luxuries become the norm and the level people expect and people don’t want to go backwards and sacrifice. I bought my first furniture from some second hand store in Ball Hill - now days that would be grounds for poverty from the entitled one here. I paid £30 for an old telly. This was the 90’s
Sorry mate but £875 to rent a 2 bed terrace in Stoke seems very high to me. Unless there are aspects to the property I am not aware of the average price should be £650 to £700.
Average annual salary is £27k I think.
The point is luxuries become the norm and the level people expect and people don’t want to go backwards and sacrifice. I bought my first furniture from some second hand store in Ball Hill - now days that would be grounds for poverty from the entitled one here. I paid £30 for an old telly. This was the 90’s
Sorry mate but it’s what we paid
I just did a quick google search and a few results came back with around £35-36k.
So had a look on ONS and they have average weekly earnings in Jun 2020 at £530pw or £27.5kpa. A £250k mortgage is therefore around 9 times the current annual income.
So redoing the figures on my last post that would mean average wages would have to have been around £3.5k to be equivalent to the difference in the mortgages. As I've said 1980 was £5,720 and 1985 was £8,890.
So using the 1980 and 1985 equivalents the mortgage at that time would've been £52k and £80k.
I know this is a flawed calculation because I'm using average wages against the known mortgage values of. It could well be that at the time Grendel was earning far below the average while you were earning above the average.
No I used an extended mortgage for other reasons and cashed an endowment in for an investment - all about choices
I do believe you and was not questioning it. Sounds like you were being had over. Just checked Right Move and the highest (at this moment) rental price for a two bedroom house in Coventry is £800, and that does not mean they are going to get that much.
How do you both get to work ?All our furniture is second hand. Neither of us drive either
How do you both get to work ?
Absolutely agree. I remember 16% . Worked 16 hour weekends for about a year on top of the other 5 days and it was difficult.I had an endowment mortgage, when the interest rates went up to 16% I worked overtime on Saturday and Sunday mornings, and also had a sideline of drawing up house extensions for people for a few quid. No luxuries. 15” telly, cheap car, season ticket was my only extravagance.
no idea how that compares to modern times really, but it was tough.
my first stereo system I got for £112 and paid monthly over 2 years.
Plenty of young people still live this way, you’re just generalising. When I moved back to the UK in 2014 all our furniture was secondhand from house clearances. I’m now in the best state financially I’ve ever been and a lot of it is thanks to working 100+ hours a week.The point is luxuries become the norm and the level people expect and people don’t want to go backwards and sacrifice. I bought my first furniture from some second hand store in Ball Hill - now days that would be grounds for poverty from the entitled one here. I paid £30 for an old telly. This was the 90’s
Plenty of young people still live this way, you’re just generalising. When I moved back to the UK in 2014 all our furniture was secondhand from house clearances. I’m now in the best state financially I’ve ever been and a lot of it is thanks to working 100+ hours a week.
Saying that though I’m now 35 so not sure I quality as young
Yeah I remember when I was about 24 and living in a flat that didn’t even have central heating.I know people that only heat one room of their house and people with no telly or internet or phone. It’s just lazy generalisations.
The point is luxuries become the norm and the level people expect and people don’t want to go backwards and sacrifice. I bought my first furniture from some second hand store in Ball Hill - now days that would be grounds for poverty from the entitled one here. I paid £30 for an old telly. This was the 90’s
Good post .I just did a quick google search and a few results came back with around £35-36k.
So had a look on ONS and they have average weekly earnings in Jun 2020 at £530pw or £27.5kpa. A £250k mortgage is therefore around 9 times the current annual income.
So redoing the figures on my last post that would mean average wages would have to have been around £3.5k to be equivalent to the difference in the mortgages. As I've said 1980 was £5,720 and 1985 was £8,890.
So using the 1980 and 1985 equivalents the mortgage at that time would've been £52k and £80k.
I know this is a flawed calculation because I'm using average wages against the known mortgage values of. It could well be that at the time Grendel was earning far below the average while you were earning above the average.
Great stuff. Its just bloody difficult and somewhere along the line everyone has to work their bollocks off, go without holidays abroad and takeaways three days a week . I've got 20 years and more on you but I remember my 30s and early 40s being a time of long hours and cutting back, particularly when the kids were young. Then it got easier bit by bit, but I learned from it not to waste money.Plenty of young people still live this way, you’re just generalising. When I moved back to the UK in 2014 all our furniture was secondhand from house clearances. I’m now in the best state financially I’ve ever been and a lot of it is thanks to working 100+ hours a week.
Saying that though I’m now 35 so not sure I quality as young
Oops tax relief on the interest up until around the mid eighties .Here's one thing that isn't available to current purchasers but I think was for buy to let, and Joe public back in the day.
Erm, the first place in my life that I lived in with central heating... is this house!didn’t even have central heating.
Which ties in to the whole issue. I tried to get a mortgage on the place I've just purchased that ran to 67, retirement
why not overpay on your mortgage and bring down the term. You can then retire earlier!Which ties in to the whole issue. I tried to get a mortgage on the place I've just purchased that ran to 67, retirement age, couldn't get one as £550 a month was apparently unaffordable. So now I have a mortgage that runs into my seventies and there's no way I'll be able to retire while I've still got payments to make.
Absolute loads of older people don't and have never owned a dishwasher. When they bought the first video recorders I'm sure they sat down with a pen and paper and did the whole money out/in before they bought one. Same with their TV because a lot of people rented in the 50s and 60s before they could afford to buy.And stuff like washing machines, video recorders, dishwashers were the luxuries of their era and the equivalent of iPhones today and cost a fortune. My grandparents paid over £400 for their first VCR and each tape cost a fair few quid. Makes netflix look positive VFM if you bought as many film/programmes available on VCR at the time.
You seem to have made this all about yourselves when the main people that I thought were being discussed were older than that. Those that were young adults in the 60's.
Absolute loads of older people don't and have never owned a dishwasher. When they bought the first video recorders I'm sure they sat down with a pen and paper and did the whole money out/in before they bought one. Same with their TV because a lot of people rented in the 50s and 60s before they could afford to buy.
Owning a TV or VCR was a luxury.
Having netflix, an iPhone, a 4K TV are seen as a necessity , when we all know they're not.
The mortgage always came first.
Now it's a mobile phone and takeaways.
...and what a bloody waste of money 4K TVs are !
Was talking about this thread with my Dad last night. Checked how much he paid for their house, nice big detached house in Styvechale with a huge garden, and if the value had risen in line with inflation today it would cost less than I paid for my 2 bed terrace but in reality is worth at least 2.5 times as much as my house, probably nearer 3 times.Meanwhile the value of the house goes up 300%
Was talking about this thread with my Dad last night. Checked how much he paid for their house, nice big detached house in Styvechale with a huge garden, and if the value had risen in line with inflation today it would cost less than I paid for my 2 bed terrace but in reality is worth at least 2.5 times as much as my house, probably nearer 3 times.
Add in wage suppression and there's a fundamental issue. Someone posted on here about working in the public sector and their wages in real terms going down 20%. Wish they hadn't as I've worked mine out now. I'm private sector and have had one pay rise since 2008 which it real terms means my salary has been cut 22%. Since starting work in 1994 the industry standard for annual leave entitlement has dropped from 30 days to 20 and hours have gone through the roof while overtime and TOIL have pretty much disappeared. When I started a 35 hour week was the norm (9-5 with a lunch hour). These days my core hours are 50 hours a week but its rare that the reality is less than 70 and as a salaried employee those 20 plus extra hours are unpaid.
But I pay £8 a month for Netflix which seems to supersede everything else and mean you can't complain.
Not sure why this is so difficult for the older generation to grasp. Had the same with my Dad who was convinced I was pissing my money away as he couldn't get his head round me having the job I have, and working the hours I do, and struggling. In the end I had to sit him down and literally go through my monthly budget and even then I'm not convinced he's grasped it.Again assuming that all older people made the calculations on affordability and no younger people do. It's lazy assumptions.
I’m not for writing off generations generally but in terms of being soft and entitled the boomers have the millennials beat on every count. All while wearing the clothes of their parents to pretend they won a war. They then spend their retirement whinging others might get a fraction of what they got.
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