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How is anyone supposed to buy a house in London? Watch


    (Original post by itsfantanoo)
    You wait till the bubble bursts and house prices plummet
    With the shenanigans going on in Puerto Rico, Venezuela, and other spots [like China and Japan], that may not be far off. We've got the same prob here with house prices. If you saw my earlier post about average house prices 1946 to about 1980 being 3x to 3.5x the average salary in the same area as the house. Now, they are double that or more. The area i live in is mainly blue collar, but most of the residents have been in their house for 20+ years. The others are either renters - struggling to pay $3500 to $4000/month rent, or attempting to buy with house payments of about the same magnitude. With a plumber and a schoolteacher in a house, i don't think there is any way they can pay $4000 a month. Schoolteachers here [elementary or high school] make about $40,000 to $45,000. a plumber, even if he's a part owner of a small shop, would be lucky to take in $60,000, even with overtime. That makes a combined income of $100,000. The way our taxes run, you get to keep about half - so their net income is $50,000. With a $4000 a month house payment, that is $48,000 a year PITI [principal interest, taxes, and insurance]. I don't see how you can do that whilst running at least one car, and eating. Forget kids at this point. Even if you take in a roomer, you're still behind the 8-ball. Most of the money owed by Puerto Rico is owed to insurance companies and pension funds. When they default [i think we're past the "IF" point], there are gonna be a LOT of peeps who won't be able to make their monthly rent payment, or buy groceries, This will be because their pension stopped paying them a monthly income. I have read (and i believe it), that there are a LOT of peeps on this side of the pond who are one or two paychecks away from being homeless. Typically, most ppl spend it as fast as it comes in. I did that for a couple years right out of Uni, but then decided that i had to 'get ahead' somehow. I took an overseas tour for nearly 3 years. That put me enough ahead that i could buy a house with the proceeds when i got back to the US. Getting started right now is rough. You can make money with overseas work, but you have to go to places that nobody else wants to go - so they have to bribe you to go. Best of luck!!
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