100k+ salary, is it worth it?

[Goingtogetslated]

For the record…Not trying to be insensitive…

partner and I both earn approx 150k each. Working long and unpredictable hours with high levels of stress and responsibility.

Yet here we are living in a 3 bed terrace in the east end of london, a basic car, neither of us into high end expenses/dining out/clothes. We used to holiday a lot pre children, I guess would classify as our major expenditure in the past.

But is it actually worth it? A decent 4/5 bed house (with kerb appeal I admit) in the commuter belt seems to be coming in at 1.5 million minimum. Add the commuting costs/ extended nursery hours, paid help required theres barely anything left - relatively speaking.

Would we not be better off sacking it all in, moving to the countryside and earning enough to pay the bills?

We appear to be stuck in this middle ground where we earn too much to have any allowances from the state, contribute a lot to the government yet not enough for any real benefits in lifestyle

Im just more interested in who can afford these properties!

3 school mum friends moved recently to a 2m house, 1.7m & 1.4m. They have good jobs but normal ones eg GP, marketing etc & I know 1 qualifies for tax free childcare. They got helped onto the ladder in their early 20s which makes a massive difference & some have had a few inheritances, the 2m family inherited 500k for example.

I actually don't think child benefit or tax free childcare should be means tested. The equivalent to CB when I was young wasn't.

I get where you're coming from! It's astonishing to me that someone on that wage can only afford a 3 bed big standard house. In my head someone on that income is living the absolute high life!!

Dh and I earn much much less although stil above average and count ourselves v lucky, we're moving to a 4 bed with lovely big garden and great schools etc. We're in a city away from London with good culture and lots to do, much less
Stress than you by the sounds of it and dd in bog standard nursery as our commute is short

But it's only 60% on some earnings, not that amount on the whole salary.

Salary calculators give an overall tax rate of around 46% including student loan payments but not pension, with a take home of around £6200, so if they both earn the same they'll have a monthly income of around £12.5k.

With that repayment rate they might pay off their student loans quite quickly if they have them, which will boost take home further.

I think the OP is saying that this does not allow a lifestyle that is discernible different from the “ordinary”.

A mortgage for the house she desires could be about £6k per month. Kids at private school would be £5k. Leaving £4k for other major expenses such as pension top up, commuting, food, petrol, etc.

OP, the big expense is the mortgage so you are right. On your combined salary, a house costing over a million would be tough going but that’s life. However, I think what posters are saying in general is that living in a million pound home and sending kids to private school plus not having to worry about making ends meet is “life changing” from their “ordinary” lifestyle.

I guess the question for you is what is the lifestyle you think £300k should afford you over and above the “ordinary” lifestyle that an ordinary salary would give?

I clearly said 60% on a portion. But the 60% does exist because of the loss of personal allowance.

I'm very much with KnickersThatFit's post of 03:05
I could have lived in London but decided not to as I didn't fancy the rat race (as described by OP). I purposely chose a career that I could do anywhere (again, avoiding OP's "we have to be here for our well-paid but niche jobs).
I think I'm saying a very unhelpful "I wouldn't start from here if I was you".

It's why I'm always amazed by those 'London is the best city in the UK / world / universe' threads. All that glisters is not gold.

It's astonishing to me that someone on that wage can only afford a 3 bed big standard house

But that's not true, they can afford a much bigger house. But likely not a big house, that's been done up nicely and is in a nice area of one of the most expensive cities in the world. There's a difference.

How can someone who earns £150k not understand the concepts of a starter home and the property ladder?

The concept of the property ladder doesn't really exist anymore in London when you look at age of FTBs, the price of the stater homes & stamp duty.

“where we earn too much to have any allowances from the state”

never understand why people think this. You may not receive benefits but you get what everyone gets: battered as our public services are, you live in a society with access to free healthcare; police; enforcement of property rights etc; libraries; parks; roads.

300k is also a vast sum to earn.

Why? Feminism doesn’t mean unilaterally supporting every opinion and feeling ever had by a woman

I agree to an extent. On that kind of money you'd expect people to living a glamorous lifestyle full of holidays and luxury cars rather than a modest 3 bed semi and standard car.

However, you are still in a great position if you don't have to worry about bills and can choose where you live. I'd kill to be where you are. I'm stuck in a ha flat next to a trap house, in a deprived area full of drugs and anti social behaviour. Not much chance of getting out in the near future.

OP, if you do buy a house that requires both salaries at the level they currently are to service, please look into income insurance. You'd be just one sickness or major life event away from not being able to service that mortgage.

I know London is its own world, but there are plenty of smaller homes in less sexy areas which is where most people would start.

I work for a global investment bank and you live the kind of life that I wonder why our young talent go flooding to London for! Yes the pay is higher but I don’t think it actually reflects an improvement in lifestyle for working very very hard.

We work in one of the regional offices- I earn £70k, husband earns £100k. We have a 3 bed detached house in a swanky market town and drive 15 mins to the office where we can park on site for like £20 a month. We have a cleaner, send out our ironing, eat out a lot and still have a four figure sum left over- no kids however.

Our lifestyle quality is seriously seriously high. I still have the career options in the regional office as long as I’m happy to travel to London say once a month!

I understand where you’re coming from. You’re just reflecting on the cost/benefit of your job. That’s all.

Jobs paying that sort of money are incredibly stressful and all-consuming and take over your life. And you’re questioning whether the stress is worth it for the benefit,

And you get slated on here in part because people imagine that you earn that money for a little 9-5 job without appreciating that it probably means constantly checking your emails, working into the night, working at weekends, working on family holidays, etc.

This.

You’ve been given a hard time OP but that link is fucking ridiculous and does nothing to make your point. That house is nobody’s idea of a ‘nondescript new build’. It is over 4000sq with SIX double bedrooms, four with en-suite, four reception rooms and large separate double garage. If that is your idea of a ‘family home’ then no wonder you are struggling with the next step.

@KnickersThatFit we looked at moving to the Brum suburbs, some of the houses are stunning. This is like my dream style house

www.rightmove.co.uk/properties/132072359#/?channel=RES_BUY

Something similar to where I grew up is (obvs renovated to the max)

www.zoopla.co.uk/for-sale/details/63743192/?search_identifier=0f889ec33d05047a0d9c5a820682ce44

We decided against it as parents health was declining, some days I do regret it.

Hi OP, instead of gawping at vulgar mansions, get a house for 800k (plenty of those in South London), repay the mortgage quickly on your huge salaries and live mortgage-free. A paid-for roof over your head and plenty of money to cover normal expenses, retirement planning and whatever life throws at you. That’s the ultimate luxury and something most of us can only dream of. And we work hard to. For much less money.

Erm. I earn 5x less than you (approx 30k) and I’m a teacher. What makes you think a lower paid job will be less stress? 🤔

I work long hours across 7 days a week and don't even earn 6 figures for it 🥲

It's a hard life OP

@Goingtogetslated the fact you are questioning whether it is worth it suggests you feel it isn't. If that's the case maybe you should look into options of jobs you can do that are linked to your jobs but less pressured somewhere else in the UK where your housing wants meet your salary/monthly mortgage ratio.

I wish you luck because it's not an easy decision to make.

@DarrellRiversCriminalBehaviourOrder I was talking about London though... The point is it's much harder to built equity now particularly if you getting on the ladder at 30, look at London flat sales in many areas for those who bought post Brexit. Also the less sexy smaller homes in London generally still have high prices.

Like I said...not a starter home.