Are you a top revenue earner?

[HangTime]

I wonder how many people chase a bigger/more expensive house due to the expectation of capital gains.

By that I mean.. Would people be much more inclined to get what they need vs go for the maximum?

I wonder how much difference no capital gains would make

I partly resent not having chased bigger property because would've made more capital gains. Now in a position where we own our house outright but worse off than if we'd pushed the envelope a bit and/or moved up the ladder, people who earn less and are less frugal with money will be more wealthy than us due to buying more expensive properties and hence gaining more.

If house prices were largely static people would still want more expensive homes because it should give a nicer place to live and in theory you can always liquidate that asset in future if needed.
But you'd get less speculation and probably a reduction in B2L because it's less effective in the long term and reduces the amount they can borrow to expand their empire (i.e. harder to use gains in one property to fund the next one).

 

[413x]

I partly resent not having chased bigger property because would've made more capital gains.

If house prices were largely static people would still want more expensive homes because it should give a nicer place to live and in theory you can always liquidate that asset in future if needed.
But you'd get less speculation and probably a reduction in B2L because it's less effective in the long term and reduces the amount they can borrow to expand their empire (i.e. harder to use gains in one property to fund the next one).

If houses weren't seen as an investment I probably wouldn't have (at the time) maxed out my lending. Because it comes with risk.

But with way prices go it's crazy not to. Plus the losses on moving.

 

[HangTime]

Na; "wealth" gives you options. Being a top revenue earner is the same as a middle revenue earner, you are still governed by your mortgage. It just means your mortgage may be "bigger" because you could afford more, but relatively speaking its the same.

Edit: in fact I'd argue it gives you fewer options. Everything gets astronomically more expensive at that level of lifestyle. I can't even afford to downsize, lol.

Only if the horse hasn't bolted yet. There are very few 100k overnight success stories; most built up to that figure by working hard and rewarding themselves. That means by the time they want to throw the towel in, they are already balls deep in a mortgage relative to their pay, kids in the local school etc etc. It is a lot harder to get a job paying £100k than below £100k.

For people without high wealth however, buying an expensive house isn't an option if you aren't a top revenue earner. That's an extra option you get being a top revenue earner, because you can choose (or not) to borrow a lot of money. The person on a lower salary simply can't buy that potential house full stop because they can't get a big enough mortgage. More revenue = more choice of potential homes, which in some cases means more choice of locations (e.g. some areas might be out of reach for lower earners in terms of the minimum size property / crime rates etc they consider livable). London is a good example; if you want to buy a family home somewhere that isn't a ******** and has fast access to central London, that's hard to achieve if you aren't a top revenue earner. More options innit.

 

[200sols]

For people without high wealth however, buying an expensive house isn't an option if you aren't a top revenue earner. That's an extra option you get being a top revenue earner, because you can choose (or not) to borrow a lot of money. The person on a lower salary simply can't buy that potential house full stop because they can't get a big enough mortgage. More revenue = more choice of potential homes, which in some cases means more choice of locations (e.g. some areas might be out of reach for lower earners in terms of the minimum size property / crime rates etc they consider livable). London is a good example; if you want to buy a family home somewhere that isn't a ******** and has fast access to central London, that's hard to achieve if you aren't a top revenue earner. More options innit.

That is also hard to achieve with 100k.

 

[[FnG]magnolia]

Where did you school?

This is absolutely true. When i started work as a graduate on under £12k in middle of 1998 (yes money was worth more back then but living in cambridge it was still a crap salary) even then, i still saved every penny I could, even if it meant only going out to the pub with friends once a month (and for many years i never went to the pub without having a hipflask in my pocket )

Oh, the other place.

 

[bigmike20vt]

Where did you school?



Oh, the other place.

not sure what you mean by the other place. originally I am from the northwest from a small village. I went to uni at UMIST (doesn't exist any more now part of Manchester)
I tried for a year to get work near home but ultimately I had to go where the work was ... Needs must and all that

 

[[FnG]magnolia]

not sure what you mean by the other place. originally I am from the northwest from a small village. I went to uni at UMIST (doesn't exist any more now part of Manchester)
I tried for a year to get work near home but ultimately I had to go where the work was ... Needs must and all that

It's a stupid joke, ignore me

It's Eton, for future reference.

 

[moon man]

Obviously i am well over the hill but some train drivers hitting the 100k mark, was randomly pondering over my coffee how hard it is to get in to
I did read that one of the tests was watching a dot go around a virtual track for a very long time and you have to react when it crosses
https://www.bbc.co.uk/news/business-68650114

 

[Uther]

i think the single most expensive clothing item i have ever bought was a barbour coat.............. and that wasnt even for me, it was for my dads birthday present!.

look at your cars though...
I have started spending more on clothes now, but still live in the same 2 bedroom end terrace we moved into in 1999. Lifestyle creep (and the stress that goes with it...) is what kills people IMO.
Saying that, I'm seriously eyeing up a (used) Porsche as my next car in a few years when I push go on my pension.

 

[bigmike20vt]

look at your cars though...

oh I know... tho forgetting the Jag they were all well considered bargain hunter cars.

my yellow peril is and will probably always be my favourite car in have ever owned. (it was reliable as well) but cost me £6000.

the red one (iirc) £6500.
the 350z was £12k so getting more expensive but they gave £4k trade in for the red fiat with a blown turbo.
I then had boring runarounds for 8 years when we had a kid (a 2011 pug 308 left to me in a will which we would still have now but was written off last year) and an original shape 2012 nissan QQ ).
no man maths in the world can make the ipace sound good value but I saved up for it for years and it was half price from new.

but that is sort of my point. I earn less than £50k my wife earns around £50k (but just a bit under) and we have a kid
but despite what some are saying here I believe our combined household earnings of close to £100k is a very nice household income.

it's not London but it is 15 miles from Cambridge. Obviously I could not afford a family sized home in Cambridge and there are times I think it would be nice...... but you don't HAVE to live in a big city.

the main difference we made was my wife works full time rather than stay at home parent.. we don't have our parents locally to help out so we make a lot of use of breakfast and after-school and holiday clubs....... the Mrs used to feel guilty about that but actually I think it's benefitting our lad a lot. he is super confident around people of all ages and he always has people to muck about with.... and as an only child he wouldn't if at home all the time.

I have experience living on the breadline and this certainly isn't it.

 

[Stu999]

Obviously i am well over the hill but some train drivers hitting the 100k mark, was randomly pondering over my coffee how hard it is to get in to

Apply for the job. I saw one listed recently.

 

[413x]

look at your cars though...
I have started spending more on clothes now, but still live in the same 2 bedroom end terrace we moved into in 1999. Lifestyle creep (and the stress that goes with it...) is what kills people IMO.
Saying that, I'm seriously eyeing up a (used) Porsche as my next car in a few years when I push go on my pension.

I'm on way to my biggest ever discretionary spend. (I'm discounting house deposit).

Eyeing up a van in may. It's making me wince looking at the amount that's going to be leaving my account though.

 

[Diddums]

Obviously i am well over the hill but some train drivers hitting the 100k mark, was randomly pondering over my coffee how hard it is to get in to
I did read that one of the tests was watching a dot go around a virtual track for a very long time and you have to react when it crosses
https://www.bbc.co.uk/news/business-68650114

Doesn't say how they get to that £100k though. I could get there very easily too, but I wouldn't have much of a life.

 

[dlockers]

Doesn't say how they get to that £100k though. I could get there very easily too, but I wouldn't have much of a life.

you'd need a train for starters

 

[moon man]

Apply for the job. I saw one listed recently.

I've just got my old job back after being made redundant last year, it's all a bit surreal tbh, didn't think my application would be accepted, still got some time off before I start but will be 6 months I've been off.
So my pay is going up substantially from my £84 a week !!!!

 

[Diddums]

you'd need a train for starters

No.

 

[Moley]

Obviously i am well over the hill but some train drivers hitting the 100k mark, was randomly pondering over my coffee how hard it is to get in to
I did read that one of the tests was watching a dot go around a virtual track for a very long time and you have to react when it crosses
https://www.bbc.co.uk/news/business-68650114

Thanks to the unions, the rail industry is effectively a closed shop. Not many people who aren't in the industry and unions are getting to be train drivers.

 

[413x]

you'd need a train for starters

That career path is too railroady for me

 

[jeffk]

Thanks to the unions, the rail industry is effectively a closed shop. Not many people who aren't in the industry and unions are getting to be train drivers.

Isn’t that true of most industries? You don’t just waltz into a senior role without prior industry experience.

 

[Moley]

Isn’t that true of most industries? You don’t just waltz into a senior role without prior industry experience.

I'm not convinced a train driver or tube driver is a 'senior' role in the industry.