[SPLIT]Salary discussion(was last trip to Walmart)

Karin, I agree with your thoughts.

Karin has a good head on her shoulders 

I am shocked this thread has gone the way it has. If salary will cause hardships, then perhaps the move needs to be reevaluated against as the pros previously listed.

good luck

Dove Deodorant                     $3.35                     £1.69

Well, a veritable bargain on deodorant, you really won't smell bad!

As for the 2L of coke, you don't want to drink that much anyway, it'll rot your teeth! 

Seriously, your £350K average for houses in Reading is probably closer along the lines to the average Detached house.  While you won't get
a mansion by any means for that amount you could have a *very* nice house even in Reading which is a fairly expensive area.
There are a lot of companies, including Oracle in Reading (I don't mean the shopping centre but the software company!)

myoracledba, going by your name I'm assuming you are a DBA and the salaries you are quoting that you have a lot of experience with it in various companies.  Are you a manager or senior manager or mostly hands on work?

Go to http://www.itjobswatch.co.uk/, they track salaries of all kinds of IT professionals in the UK.  It will give you a flavour for what the trends are, you can punch in Senior Oracle DBA.  Location will factor in, ie working in The City at somewhere like an Investment Bank (especially as a contractor) can pay out in spades.  It looks like you can search down to the County level for your field where they're showing £57,500.

I agree with Karin it depends on how the OP defines their lifestyle and needs ...£50K is a good salary and this is based on a good few friends here in London with multiple children that are living comfortably on that.... they just wait for the 2 for 1 offers on coke at sainsburys now and then

When we first moved to finchley Phil was developing his software so we lived off my bursary that's £7,500 a year in London !! We don't take any benefits and we don't have a mortage but even then that was a hard to stretch the pennies..

You can still find a few houses in the Reading area 3bed semi for £140K and I've just had a look you can get a 10 bedroom for £275K  so I think maybe you'll survive
http://www.fish4.co.uk/ls/triicbrkshr/homes/advert?adId=10132390&sid=80651798B4FA519348&pos=4&src=search&tot=35&page=1

I also agree with Karin, Alicia, Jules and recent posts.

I have met people who earn into the millions of pounds and they will tell you they don't earn enough.  Equally the trick is to live within your means.  Of course everyone should get a fair opn-market wage for their job.  This is reasonable and a good aspiration.

Just bear in mind that most readers of this forum (not all) do not live in the expatriate centres of towns where rents and shopping are expensive.  Instead they live alongside (and with) locals and spend the same as Brits do.  Consequently some things (such as tea) are cheaper here.  Other items (such as Xmas crackers) are unobtainable in the States.  Then again other American habits - such as finding 32 varieties of Head & Shoulders shampoo on a drugstore shelf - would seem peculiar over here.  The trick is to adapt - but of course to bring over things you'd miss if you can't get there here.

Brits do not discuss income; it is somewhat infra dig over here. 

Now to talk about buying houses.  I hate to repeat my other tax related posts; but for those who anticipate being here for less than 2 or 3 years then buying a home can cost you considerably in extra UK tax you could have avoided by renting.  Just something else to consider I guess...

Brits do not discuss income; it is somewhat infra dig over here. 

So very, very true. 

I am shocked this thread has gone the way it has. If salary will cause hardships, then perhaps the move needs to be reevaluated against as the pros previously listed.

I certainly didn't mean to cause offence to anyone. For some reason I was under the impression that the OP was single and coming over alone. I apologise that I was apparently wrong in that. I was actually trying to be optimistic as it sounded as though there was some worry that £50K wasn't a particularly comfortable wage. I only meant to light-heartedly suggest that it's actually quite comfortable....

Sorry.

OP - I work in IT for an investment bank in London.  If you want some advice, feel free to PM me.

Other items (such as Xmas crackers) are unobtainable in the States

On the contrary, I would argue that Xmas crackers have become relatively ubiquitous in the States.  I certainly seem them in various shops around Christmas time when I'm over there.  Granted, they tend to be rather expensive, not sure if they're imported?

but for those who anticipate being here for less than 2 or 3 years then buying a home can cost you considerably in extra UK tax you could have avoided by renting

Guya, does this have to do with domicile taxation rules or whatever?  Is there a clear cut answer on this, ie if you were here 2 years and 364 days vs 3 years and 1 day before moving back would your UK tax be extremely different?

Matt - no it is related to the splendid tax reliefs that are available for shortp-term business visitors to the UK.  There are several possible reliefs (domicile is only one of them).  Buying a home is a serious long-term commitment.  I would recommend spending a few hundred pounds on good tax advice at the same time as spending several hundred thousand pounds on as home.   A good dual-qualified US/UK tax specialist may be able to save far more than her/his fees.

what i don't understand is this:

if the vast majority of people in the UK earn about 25K, w/ some joint incomes approaching circa 40/50K, and w/ most mortages being between 3.5x salary (unless you're a fresh faced 25 yr old solicitor/doctor/accountant starting on 50K who can get a 6x mortgage), then that means the vast majority of people only qualify to purchase homes in the 90K-170K range. Right?

and yet, at least in the south, most 2/3 bedroom terraces/semis are at least 200K now.

so where is the demand coming from. one cannot demand what one cannot afford. what then is it (because it can't be average UK salaries) that is keeping house prices so high?

if the average UK household salary is 35K (seems about right), and most mortages are 3.5x, then it means there is a huge demand for 100-120K houses.

PS: i don't get it.

if the average UK household salary is 35K (seems about right), and most mortages are 3.5x, then it means there is a huge demand for 100-120K houses.

PS: i don't get it.

There's been a huge drop in the number of first time buyers in the past 5 or so years when housing really took off.  I think the numbers might be as low as 30% of all houses bought in the UK, but don't quote me on that.  This means the vast majority of house buying and selling is between existing owners.  I suppose the smaller houses/flats that used to be quite affordable years ago are now becoming out of reach for many and so those who bought entry-level homes are more likely to upgrade to bigger houses based on the gains on their home.

I suppose a larger portion of the rest of sales are going to 2nd home owners for buy-to-let or holiday home.
I can only guess that this leaves little spare capacity as council housing is so limited now and there's not been a huge amount of house building either because of environmental restrictions or economic factors.  The gov't is looking to build a lot of houses in the South East but I suspect that will take time.  Compared to America housing sprawl is much more confined due to greenbelt legislation (although the gov't looks to be getting around that in some places - this is the case to a certain degree with Airport expansion as well).

There's been a lot of new mortgage products to try to combat the high prices - many of them a bit dubious - such as applying a ratio of 5 times salary and offering 130% mortgages.  There are meant to be key worker schemes where certain professionals in the medical or teaching field, etc are given incentives to be able to buy but I'm not sure how successful it's been.  Some people have decided to move abroad where housing can be quite a bit cheaper in certain locations.

Hiya!

Mattj74 - You're on the right track with that - the housing 'demand' is coming from those already a few pegs up on the ladder - first time buyers numbers are dwindling around the property hotspots all over the UK - It's not just confined to the South East anymore.

In addition, there's more and more people who are buying with 'close' friends and even family members. This has been happening in my (Indian) community for generations and only recently has 'western' cultures begun to do this simply because of the high prices of everything and for the want of at least being on the property ladder!

TenthPlanet - you're theory is quite correct, the 'sums/finances/deals/income' just don't add up - it's a ludicrous situation and one thats not likely to change. We already pay some of the highest prices in the world for a comparitively lower standard/quality of living (compared to other 'western' nations) and I think it's pretty sad. What kind of future have my kids (when I have em!) got ? looking in a property paper and finding a studio being half a million pounds on a average salary of by then amounting to maybe £30-35K? - It just means I'll have to work to pay off and upgrade on the property ladder and hope really hard that by the time I'm 60-65 I've paid off the mortgage so as to sell and be able to put down a large deposit for my kids place. And I dread to think if I have 2 or 3 kids !

Although they do say 'what goes up must come down' and historically that 'should' happen. There HAS to be a housing price 'correction' at some point. It's a double edged sword though, if prices do come down a bit, it'll be a little easier for 1st time buyers, but current owners will be paying the same for something worth less than before. Then it also means there'll be less to 'sell off' when older, unless there's another (predictable) price increase frenzy say in 15-20 years time.

Maybe i'll buy somewhere in the UK thats still 'relatively' cheap..  or as I'm wanting to do now..  buy abroad.

oh look, now I've got to go buy fuel for the car which is another rip off! - dont even get me started on the price of other goods we pay through the nose for! 

   - I'll shutup now....

Dennis! West 'blimmin' expensive London & Slough UK!!

Dennis,
You'll just have to buy 1 property for each kid so when they turn 18 they can move right in, my good man.  Cheerio! 

Last night, I was talking with my mother, and she asked if I would consider buying a flat rather than renting after graduation.

I had to say no, for the time being, when a 1 br in my new neighbourhood goes for $500,000, which is beyond insane. 

I rather get a lovely mid-sized Georgian country house in need of repair (which I love doing) and communte, even for 2 hours or so. Besides, in design, there is no need to be in London 24/7, and it is a great investment.  Plus there is a soft spot in my heart for the Georgian. 

I rather get a lovely mid-sized Georgian country house in need of repair (which I love doing) and communte, even for 2 hours or so. Besides, in design, there is no need to be in London 24/7, and it is a great investment.  Plus there is a soft spot in my heart for the Georgian. 

I adore Georgian houses. Unfortunately, they're few and far between where I am. But I would settle for an old farmhouse.