by Wildwell » Wed 20 Jul 2005, 15:41:25
Enslaved?
Well, here the minimum wage is about £9k a year.
The mean average wage is about £22k a year, most people are on less that that.
The average house price is £150k approx. Minimum is around £80k, but that’s is less well off parts, in London and most of the South the minimum would be £150k
On the minimum wage you can borrow £27k, you cannot buy. You would need to have a £53k deposit.
If your rent is £400 pm (you’d be lucky to get less than that) for a bedsit, 1/2 bed flat, your council tax is £100, your utility bills are around £75 and food £100 (min) that means you have £50-100 per month to spend other than basics with no savings. That would just about keep you in clothes, might buy you a bike to get to work or a bus fare.
You cannot buy a house as a single person on the average wage (3x22 = 66k).
You would need two people earning 18k a year to buy the cheapest house going, and two people with good jobs to buy the basic average house or minimum house in London. Renting is no cheaper. There’s no choice about this, unless you wish to live on benefits or in a carboard box.
The point is, in the 1950s the average rent was about 1/10 of a wage and a mortgage not much more, that’s some inflation to buy the same bricks and mortar. In the real world, unless you got your mortgage some time ago you need two wages, and rent is the same for a family. There’s no choice about one person going to work anymore, I call that enslaved, an emotive term maybe.
Still we're lucky, in Japan at one point people used to have 100 year mortages with their parents property tied into it.