money

buttercup · Post by **buttercup** » Tue May 02, 2006 1:09 pm

just seen a programme on t.v (no wonder i dont watch it) called location, location, idea is these people find you a house based on your requirements

what struck me was how much money some people have to spend, have they inherited it or won the lottery as some of these properties seem so out of reach of ordinary people, when i say that i mean just your everyday couple that both have some sort of trade work long hours or have experience behind them

we both work hard & have trades / standard wage & im thinking what kind of jobs do you have to have to enable you to have these super duper houses that are thought of as just standard

DesignerGal · Post by **DesignerGal** » Tue May 02, 2006 1:36 pm

Hi butter....someone made a comment in the "Gas" thread about "No one tells you lazy fat Americans to commute 50 miles to work" well this is exactly why we do because where I live people are settling, its becoming the suburbs because the mean house price in Washington DC is upwards of $600,000.00 USD!! Where I live you get about 1500 sq feet for $375,000.00 USD.

buttercup · Post by **buttercup** » Tue May 02, 2006 1:38 pm

i just calculated that to Ã‚£'s dg

jesus H christ

OpenMind · Post by **OpenMind** » Tue May 02, 2006 1:52 pm

buttercup wrote: just seen a programme on t.v (no wonder i dont watch it) called location, location, idea is these people find you a house based on your requirements

what struck me was how much money some people have to spend, have they inherited it or won the lottery as some of these properties seem so out of reach of ordinary people, when i say that i mean just your everyday couple that both have some sort of trade work long hours or have experience behind them

we both work hard & have trades / standard wage & im thinking what kind of jobs do you have to have to enable you to have these super duper houses that are thought of as just standard

I've wondered how these people get on the programme in the first place. There's no way these are folk that have built up savings, they're too young in most cases. They had to have enough money to get through a degree course (at least one of the pair) to start with and then amass savings between them. In some programmes, I've seen couples buy two or three properties. The type of money you're talking about is way above the average couple's means.

I think it's surreal, so I don't watch it as a rule. It just happens to be on sometimes according to when I turn on the TV and what channel it's tuned into.

buttercup · Post by **buttercup** » Tue May 02, 2006 1:56 pm

i like that theory open i really do but when you actually look around there are a lot of fab houses owned by relativley young couples, are they just up to thier eyes in debt?

Nomad · Post by **Nomad** » Tue May 02, 2006 2:09 pm

Many people live beond their means Scot girl.

buttercup · Post by **buttercup** » Tue May 02, 2006 2:11 pm

Nomad wrote: Many people live beond their means Scot girl.

why do they do that nomie, is that not stressful?

abbey · Post by **abbey** » Tue May 02, 2006 2:11 pm

buttercup wrote: i like that theory open i really do but when you actually look around there are a lot of fab houses owned by relativley young couples, are they just up to thier eyes in debt?Two cars in the garage and beans for tea,

or fur coat & no knickers my mum used to say. :wah:

OpenMind · Post by **OpenMind** » Tue May 02, 2006 2:34 pm

buttercup wrote: i like that theory open i really do but when you actually look around there are a lot of fab houses owned by relativley young couples, are they just up to thier eyes in debt?

Over the last decade, it has been easier to get loans, mortgages and credit. And, I have no doubt that a lot of them have had help from their parents. Truth is that things have been turning this last year and there are a lot of young couples that are being forced to live with their parents or rent at exorbitant rates because they can't afford the mortgages. The nation as a whole is only just staying out of negative equity. But it's only the estate agents that are bolstering the prices at the moment. The expected crash has been held off. When it comes, it will coincide with a major financial crisis for everyone except the poor. Those in debt will suffer.

Lon · Post by **Lon** » Tue May 02, 2006 3:20 pm

During my working career I was able to buy several nice modern homes to live in that never took more than 15% of my takehome income. With many young couples today I understand that 50 to 70% of take home income is not uncommon.

buttercup · Post by **buttercup** » Tue May 02, 2006 3:22 pm

did that allow you to retire early lon?

Lon · Post by **Lon** » Tue May 02, 2006 3:33 pm

buttercup wrote: did that allow you to retire early lon?

Yes, it certainly helped, as I was able to fund private pension plans and investments because of not having exorbitant housing costs. I also lived within my means.

buttercup · Post by **buttercup** » Tue May 02, 2006 3:41 pm

things have certainly changed nowardays lon, well done on being comfortable with the choices you made, its what we all aspire to

Lon · Post by **Lon** » Tue May 02, 2006 3:55 pm

buttercup wrote: things have certainly changed nowardays lon, well done on being comfortable with the choices you made, its what we all aspire to

I am not unique. I live in a community of retirees that are all pretty comfortable due for the most part to the times in which they were working as well as enjoying huge appreciation in the value of their homes when they retired. Plus, many of them are enjoying company sponsered pension plans. There are many receiving two or more pensions plus the government sponsered pension (Social Security). Double & Triple Dippers they are called.

Company pension plans are beginning to be a thing of the past in the U.S. now as many companys can no longer afford to have them. Those folks coming along 30's, 40's & 50 year olds will not have the same opportunities as their parents I'm afraid, and will no doubt be working longer.

buttercup · Post by **buttercup** » Tue May 02, 2006 3:58 pm

dont we know it & feel it

Rapunzel · Post by **Rapunzel** » Tue May 02, 2006 5:38 pm

OpenMind wrote: Over the last decade, it has been easier to get loans, mortgages and credit. And, I have no doubt that a lot of them have had help from their parents. Truth is that things have been turning this last year and there are a lot of young couples that are being forced to live with their parents or rent at exorbitant rates because they can't afford the mortgages. The nation as a whole is only just staying out of negative equity. But it's only the estate agents that are bolstering the prices at the moment. The expected crash has been held off. When it comes, it will coincide with a major financial crisis for everyone except the poor. Those in debt will suffer.

I wondered about this. How is it that estate agents can make prices sky-rocket so high? My neighbours bought their house for Ã‚£3,000 (about 35 years ago) and have just sold it for Ã‚£225,000! That's nearly a quarter of a million pounds!!! Are these prices all relative or is it like monopoly money?

Is there to be a crash? When do you think it will happen? And how has it been held off? Also, what will happen when the crash occurs? Will we be entering another depression era?

Lon · Post by **Lon** » Tue May 02, 2006 6:10 pm

Rapunzel wrote: I wondered about this. How is it that estate agents can make prices sky-rocket so high? My neighbours bought their house for Ã‚£3,000 (about 35 years ago) and have just sold it for Ã‚£225,000! That's nearly a quarter of a million pounds!!! Are these prices all relative or is it like monopoly money?

Is there to be a crash? When do you think it will happen? And how has it been held off? Also, what will happen when the crash occurs? Will we be entering another depression era?

Why blame the Estate Agents? How about supply and demand? When there are lots of properties and many buyers prices are lower. When there is limited property and many buyers prices will soar.

DesignerGal · Post by **DesignerGal** » Tue May 02, 2006 6:35 pm

Lon wrote: Why blame the Estate Agents? How about supply and demand? When there are lots of properties and many buyers prices are lower. When there is limited property and many buyers prices will soar.

No crap! I made $110,000K of my house in 4 months. This market is crazy right now!

Rapunzel · Post by **Rapunzel** » Tue May 02, 2006 6:45 pm

Lon wrote: Why blame the Estate Agents? How about supply and demand? When there are lots of properties and many buyers prices are lower. When there is limited property and many buyers prices will soar.

Its true, Lon, there is a greater demand as the population expands exponentially.

However, I was really querying the potential market crash that OM proposed, rather than the laws of supply and demand.

OpenMind · Post by **OpenMind** » Wed May 03, 2006 10:54 am

Rapunzel wrote: Its true, Lon, there is a greater demand as the population expands exponentially.

However, I was really querying the potential market crash that OM proposed, rather than the laws of supply and demand.

There are a lot of factors that affect the economy of a nation. The supply and demand of residential property is only one part. There are also factors such as debt, rising bill payments, wages and redundancy, taxation, fuel, imports and so on. A lot of money is constantly flowing out of the country (although commerce also maintains a balance here). International money markets can cause currencies to fall dramatically.

Explaining how an economy can go into crisis is very convoluted and requires a lot of research. The explanation would be very lengthy and tedious. Basically, the economic process slows down when people are no longer able to afford the product.

Sorry I can't go into it in more depth.

Bez · Post by **Bez** » Wed May 03, 2006 2:11 pm

The guy I work is in 'House buying mode.'

He bought his house that was run down, did it up and it is now worth Ã‚£180,00. His partner had a flat that she has now sold for Ã‚£130,00. They now have Ã‚£250,00 to spend on another house. If they play their cards right they will have no mortgage...they are both in their early 30s.

A lot of people bought properties in the less desirable parts of London (or other cities) and these areas are far more desirable now due to demand...these properties are worth a fortune and I have noticed that these are the people that appear on Location....

Lon · Post by **Lon** » Wed May 03, 2006 2:28 pm

OpenMind wrote: There are a lot of factors that affect the economy of a nation. .

That is certainly true, but I believe we are talking about simply real estate values as opposed to the overall economy of a nation.

minks · Post by **minks** » Wed May 03, 2006 2:37 pm

What I can't wrap my head around is this "I can get $***,***.** for my house right now today!". But isn't anyone seeing what they are going to have to pay out to get into another house if these prices keep going higher and higher. Sure makes it difficult to even consider a house when someone is a first time buyer. Where to start, whooo weee you sure have to have a lot saved.

Lon · Post by **Lon** » Wed May 03, 2006 2:49 pm

minks wrote: What I can't wrap my head around is this "I can get $***,***.** for my house right now today!". But isn't anyone seeing what they are going to have to pay out to get into another house if these prices keep going higher and higher. ..

That's certainly true if a person stays in the same area. If on the other hand you are able to sell a home in San Francisco for example and relocate to Oaklahoma, Iowa, Wisconsin, Alabama, South Carolina etc., you would not only be able to by a bigger and better home for less money, but have a pile of money left over. A number if people have prospered by selling in expensive areas an then re-locating to another part of the country.

minks · Post by **minks** » Wed May 03, 2006 2:54 pm

Lon wrote: That's certainly true if a person stays in the same area. If on the other hand you are able to sell a home in San Francisco for example and relocate to Oaklahoma, Iowa, Wisconsin, Alabama, South Carolina etc., you would not only be able to by a bigger and better home for less money, but have a pile of money left over. A number if people have prospered by selling in expensive areas an then re-locating to another part of the country.

oh yes duh me not thinking that.

Unless..... you have to stay put due to work.

bigears · Post by **bigears** » Wed May 03, 2006 3:14 pm

Lon wrote: That's certainly true if a person stays in the same area. If on the other hand you are able to sell a home in San Francisco for example and relocate to Oaklahoma, Iowa, Wisconsin, Alabama, South Carolina etc., you would not only be able to by a bigger and better home for less money, but have a pile of money left over. A number if people have prospered by selling in expensive areas an then re-locating to another part of the country.

Personally, I'd go and live in Spain. B*gger of a commute though. :rolleyes: