Do you think £100,000 a year household income is a lot of money?

[SleepDreamThinkHuge]

I think it is a lot of money even in London where I live. When I hear people say things like "£100,000 is not enough to live on even in London" I think to myself what are they talking about. I have a family of four and we can only dream of earning that amount. The maximum I can see us earning is about £60k if we are lucky. Currently on over £40k combined income with still a relatively high rent and everything does go on bills and other necessities. But sometimes we are lucky and manage to save some money a year. Luckily no debt. I just think to myself £100,000 would be life changing even in London.

What are your thoughts? What do you consider to be average and above average in London and the city you are from?

just seen the update, can't see any 2 beds cheaper than 270k & what are the service charges? lol

2 years ago.

Have you not seen what house prices have done in the last year?

Have re-read.

Nothing about shared ownership.

It does say needs modernisation. 99 year lease.

Where are you seeing shared ownership?

Of course its a lot of money and no it doesn't depend on outgoings

Its still a lot of money even if you spend it all.

Depends whether you have any inherited wealth / property / existing property as well . If you don't it's still not enough to get a decent family home in London or home counties let alone if need childcare or school fees etc which are all paid after tax

Which takes us to the generational financial inequality point again

and something often overlooked @ApplesandBunions

There is one flat going to auction with a guide price of £150,000. Other than that the lowest price is £300,000.

We earn that and don’t feel “rich”, but we do have a lot of luxury spend and certainly don’t worry about money - but equally we can’t afford to go out for coffee everyday, we get take away once a month, eat out even less than that, rarely buy new clothes. I don’t think about cost when doing the weekly shop, we can generally afford to replace things when they break and spend a lot of money each month renovating the house and garden.

We live in the North though and there would be no way I’d choose to live in or around London on our salaries.

@ncererer you are absolutely right, I have a 4 bed Victorian house in the SOuth East, worth around £450k. My friend and his wife just brought what is just a ground floor flat in Fulham, which is a replica of the ground floor of my Victorian house (exact same floor plan and space as my own ground floor) for £800k. One bedroom. So it’s basically a replica of my house but split into two separate flats.

i told them they were nuts and that for £800k they could buy a beautiful 5 bedroom house in gorgeous area outside of London lol.

"Decent " family home
Is pure snobbery

100k is far more than most people could dream of ( the majority of people also do not benefit from inheritance) and a naice home in a naice area is not what most people have - yet they are still able to raise happy kind children and have nice safe homes

It depends on how much you have to pay out on rent/mortgage.

We have a joint income of £80k but our mortgage is £400.

My sister has a joint income of £200k but thinks she doesn't have much money! Her lifestyle is very expensive though- brand new cars, hobbies that cost an absolute fortune, designer clothes etc

Fair enough. The next is offers above £250,000, again within easy walking distance of the Tube

It’s a 99 year lease from 1957 - so it’s only got 34 years left. So will be cash buyers only.

@Runnerbeansflower which flat are you looking at

There is one as an auction property all the others under £300k are shared ownership.

Our household income is about 125k (one earner). We don’t have buckets of cash after paying the bills including a mortgage of 2.5k a month but that’s obviously our choice. We’d struggle to afford private school and we don’t have massive pensions. Do have a reasonable amount in savings. I struggle to spend to my income - I can’t imagine spending £2k on a bag or £10k on a holiday although technically I suppose I could afford it.

This is why we made damn sure we didn't start trying until our household income was over what the OP has listed. As its a bit shit bringing a child into the world and make them think having their own bedroom is a luxury.

Another brilliant from you @alphapie. Only those who own their own home, with a garden and as many bedrooms as people should have children. And of course, if you weren't in the position you are now, you'd selflessly give up on having children, and leave that down to the rich.

Our household income is about that, in an expensive city but not London. Yes it is a lot of money. We have a middle of the range mortgage on a 4 bed, run 2 cars, lots of activities for kids, 2 or 3 holidays a year, pensions and money to save. There’s no way it’s not enough for a decent lifestyle!

I'm sure plenty of kids are fine without gardens but is it really the height of privilege to want a garden?

Sarcasm, in case that's not clear 🙄

2 bed flat where I live, SE London, start at £500k, if you can find one. A modest three-bed house is £850k. Anything else is £1m+.

And 2 bedroom flats start at £150,000, within 15 minutes walk of z Tube Station

Where @Runnerbeansflower Please link to Right Move .

And which tube? End of the line in Surrey almost?

I can tell you precisely- although I won't- a flat in N London where a friend's DD bought a 2-bed conversion for £650K last year. Very small, basement. Both her and her partner earn a very good income and no kids.

The 2-bed London flat n my DS was renting was sold (he had to move out) and it was on the market for £700K. Just south of the river.

So even earning over £100K he couldn't afford it.

I get sick and tired of people showing shock/ horror at how they think £100K is a lot. For professionals, having an income of £50K each by your mid 30s is NOT a lot or uncommon.

Many teachers (not well paid by any means) are hitting £40K and those with extra responsibilities are on more.

I'd ask the OP and anyone else what exactly their jobs are, how many years they put into their education?

Because unless you are lucky and maybe in sales with a bonus, most jobs/ careers now expect a degree and the average starting salary for a new grad is around £30K.

My DCs spent 4 years at uni, worked very hard, have worked very long days to get where they are. It didn't land on their plates.

Having a household income of 100k isn't 'rich'

Why would you want your child to grow up thinking having their own room was a luxury, fgs

It’s definitely a lot of money - but it’s not a lot in London.

Just look at property prices in London if you earn your money there and need to live there. £100,000 can get you a mortgage of £400,000 (leaving out any savings you might have for a deposit). Where are you going to find a family house that costs £400,000 in London? Quite frankly, double that isn’t enough for a house in most areas.

It’s depressing and I constantly feel for the young people.

It is not a luxury that the rest of the world has, including quite rich countries.

@alphapie you have a warped view of the world. I'm not sure you even earn enough to deserve children. If you can't afford private tuition and to pay uni fees, that's really depriving a child.

A garden and own room are nice, not necessities. By the way, I had both growing up, my Dc have both. Still not necessary if you actually bother to take your kids outside using, to have a garden. Sharing a room is also ok.

@YukoandHiro We did also have some help to buy a house due to unexpected inheritance.

which is major help & why someone earning a bit more but paying rent likely doesn't feel so privileged.