81–90 of 172 posts
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The average house price in south east in UK is about 500K and the average salary in the same region is about 30K. This is more like ~17x.
similar in the southwest - Cornwall prices are crazy at the moment thanks to the mass migration from the southeast during the pandemic
It annoys me when they compare countries and don't consider income tax - you don't pay with pre tax income... If you earn 150k in High Tax Euro Country you're losing 50% of that. In low tax US state you're closer to 33%. Thats the difference between 75k and 100k.
I live in NZ and my home has more than doubled in value over the last 5 years. The rapid increase in prices is scary.
Can you explain what the cause of this sharp rise is? The linked article has nothing on that. It even feels a bit alarming without much depth. And is anything being done? In the Netherlands, many investors, big and small, are buying up houses to rent out. Airbnb renting was a part of this as well. Many local governments are now creating rules, like, you have to live in the house when you buy it. Also, some taxes for…
Another 20% growth and PM wouldn’t be able to afford her house on $470k a year salary
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That's not normal? I paid half my income to rent when living in London 10 years ago, and prices have only gone up since then.
I lived up North 10 years ago and my rent for a 2 bedroom house was £320 a month. It wasn't in bad area either.
Where I live (southern Germany), you cannot find a house under 600,000 EUR. The average net household income in Germany is around 43,000 EUR. That means that house prices here are over 16 times the average household income. Yupp, it's bad. My wife and I both have university degrees, we have good and secure jobs, and our net household income is above average. But we have generally accepted the fact that it is impossib…
The NZ share market is a joke. Pretty much any serious global company that started in NZ moves away from NZ without even entering our sharemarket. There are a few exceptions of course, but by and large it's a dull, depressing market and there are very few incentives to invest in businesses rather than property.
NZ's tax regime also actively discourages investment outside of NZ. Holding growth shares in US tech stocks will result in annual wealth taxes, even if you hold and never sell. No wonder property is easier and more profitable.
Last year a friend was gloating at how they purchased 5 rental properties in the South Island (with mortgages of course). Yes a degree of rental properties is required but what we're doing in NZ is way out of proportion.
Here is something I would like to get opinions on -- whether this is a valid historical viewpoint. Talking very macro here. We (the world) have spent the last 80 years in a period of relative prosperity, peace, and general building up of countries' (and people's) wealth and productivity. Currencies -- stores of value -- have not defaulted generally, and as everyone engaged in producing more over the last decades (rea…
No I think this may be off base (but appreciate your original viewpoint) but also correct. I think for luxury goods like artwork boats etc what you say is correct, but what I think doesn’t work is property prices. There’s no reason for the majority of the world to be struggling with rent given all the advancements in the world. it is human generated scarcity that doesn’t make no sense except to existing capital owner…
This! What I think most people missing is that all the money and wealth in the world is just a substitute for future consumption. There is at least billion people in this world that expect that their investment (delayed consumption) will be recouped. Those are not only wealthy capital owners, but simple people that believes in their pension funds or state provided pensions. This is the system that we live in - the real culprits are not only those in castles on top of the hill but millions of old people counting on the young to fulfill social contract that they did not sign.
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For a long time a "rule of thumb" was 33% of income dedicated to housing + debts (usually based on underwriting rules, the bank wanted to see that your home loan payment + any other loan payments would be under 33% of your gross).
That depends on income though, surely. If someone is on $1M a year, even 90% going to rent would be quite sustainable if the other living expenses are affordable. On the other hand if someone's on $10k a year they'd still live poorly even if rent was free.
The banks used 33% as a hard limit and recommended much less toward housing - but now that 33% has become “this is what you should spend”.
So, if the average person can save 10% of their income, it takes 8.8 years to save a 10% down payment? Factor in tax and the time it takes to save a down payment is starting to look close to the time it took my parents’ generation to own a house free and clear.
> if the average person can save 10% of their income, it takes 8.8 years to save a 10% down payment Not according to this article, where it mentions the average household income, not the average per-capita income. So you can expect it to take quite a bit longer than that to save for that down-payment, for the average person.
I live in NZ and my home has more than doubled in value over the last 5 years. The rapid increase in prices is scary.