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Household Income compared House Value, with Age

(74 Posts)
Seav Thu 18-May-17 19:39:31

Bit of a nosy question (I'm not asking for exact figures though) for home owners:

What number do you come up with when you divide the approx. value of your home by your current household income (ignoring how much is equity/mortgage)? What is your age/average age of the homeowners?

Ours comes out as 3.0 (and could be as low as 2.5 if I go with a more conservative house price estimate and upper end of income fluctuation) with an average age of 46.

I was thinking that it was a fairly low figure for our age (3.0) i.e. our house is worth less than you would expect for people of our age and income - just wondered where we fitted in? Obviously, how much actual equity you have/how much has come from family help/inheritance and other factors play a part but...ignoring all of that for now...

User06383 Thu 18-May-17 19:44:21

3.75 with an average age of 30.

That's taking last year's income and the valuation of our house from a few weeks ago.

As we're looking to move soon this will change to an estimated 5.6. Part of me can't wait to have a bigger house but part of me would love to stay and be mortgage free a lot quicker!

MovingtoParadise Thu 18-May-17 19:44:40

Ours is 6.8. I'm not sure what that means though confused

I may not be bright enough to work it out grin

MovingtoParadise Thu 18-May-17 19:45:11

With an average age of 41

irregularegular Thu 18-May-17 19:47:56

about 8-9 times

average age of 50.

High because DH first bought in 94, in a part of the country where house prices have gone up fast.

smu06set Thu 18-May-17 19:52:22

7 - with average age of 30.

Thats the mad house prices in the thames valley!

irregularegular Thu 18-May-17 19:55:41

smu06set - We're Thames Valley too.

yomellamoHelly Thu 18-May-17 19:56:51

14.4. Av. age 45

Bluntness100 Thu 18-May-17 19:58:39

That's silly maths, honestly.

Mines just over five. Late forties.

My neighbours is a negative, his home is worth about five million. His salary is publicly available and is more than that.

My friends is also five, her home is worth less than a quarter of mine, but the family income is much lower. Average age late forties.

Another friends it's about ten. Because one of them retired and they have no mortgage and have lived there forever. The value is half of ours and they are also late forties. But they have a ten and we have a five.

There is nothing that can be taken from that maths, I'm sorry.

titchy Thu 18-May-17 20:00:31

About 12. Age late 40s.

rightsofwomen Thu 18-May-17 20:02:18

Was 0 (mortgage free)
Divorced abusive ex and bought him out and now it's 3.5

grasspigeons Thu 18-May-17 20:05:16

Aged 40

MovingtoParadise Thu 18-May-17 20:07:44

Is it better the higher the number confused
Or worse?

What does it MEAN, I need to know

Bluntness100 Thu 18-May-17 20:09:37

I think there is arguments either way, that the lower the number the better or the higher the better, it really means'd have to know the numbers for it to mean anything.

Mrscog Thu 18-May-17 20:10:00

6.4 and we're early 30s. It has been as low as 3.94 though but DH has massively reduced his income this year setting up a new business.

Terramirabilis Thu 18-May-17 20:12:54

9 and I'm mid 30s. It's partly because house prices have gone crazy since we bought a few years ago and partly because DH isn't working atm.

NiceCuppaTeaAndASitDown Thu 18-May-17 20:14:53

2.35 for the price we paid for the house, but we've just spent 50k on an extension which has definitely raised the value.
Assuming it's added as much back as we spent (that's conservative, everyone I've spoken to thinks more) then 2.7

We're 29

RufusTheRenegadeReindeer Thu 18-May-17 20:15:15


I think

And 48

Brogadaccio Thu 18-May-17 20:15:45

I live with my dc so house mine.
Answer 10.75

Is this calculation a thing? what's it called?

smu06set Thu 18-May-17 20:15:49

I think the meaningful figure would be using the value of the equity in your home, rather than your homes value.

milkysmum Thu 18-May-17 20:19:10

We are both 37.

patheticpanic Thu 18-May-17 20:26:00

16 and average age 28.

Stillwishihadabs Thu 18-May-17 20:31:25

Wow, what a range we are in the middle at 4.2 average age 42. About to upsize though so will be 6.5 those with 12 or 14 -wow.

Okite Thu 18-May-17 20:31:59

I agree it doesn't tell you much. Ours is around 4, in early 40s. But that could be a household income of £20k and a house worth £80k or a household income of £500k and a £2m house.

KanielOutis Thu 18-May-17 20:41:08

5x wages for outstanding mortgage, 8x wages for house value. Average age 30 ish. Bought a decade ago in a commuter town where prices have risen. Can't afford to move.

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