Quote:
Originally Posted by jackyalex
wow where did that figure come from,i know alot of people and 25k for a fam of 5 isnt even right never mind 2 adults earning 25k each,most of the people i know are earning on avr 17kpa and thats to run a fam of 5 thses are just some of the peeps that are stuck for a chance to get a foot hold on the property ladder,we both work but still cant afford to buy
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I know what you are saying, when I worked in the area I earned less than £12K(although it was 10 years ago). Even looking for work in the papers you struggle to see much over £17K. However there are a LOT of people who earn £25 and above depending on the industry you are in. IT seems to pay particularly well especially if you have a sought after skillset. I guess its a case of find something you are good at that pays well and focus on getting there.
It must be soul destroying to be trying to get on the property ladder with teh wages round accy. Having said that, there are options that people don't consider.
e.g. I was thinking laterally about how someone who can't earn enough to buy a decent house in Accy could get on the property ladder or at the very least live for a lot less. One idea I came up with was as follows
NB, THE FOLLOWING COULD BE SEEN AS INVESTMENT ADVICE, ONLY CONSIDER THIS IF YOU KNOW WHAT YOU ARE DOING, I STRONGLY ADVISE TALKING THROUGH WITH A FINANCIAL ADVISOR WITH REGARD TO YOUR VIEW OF RISK AND FINANCIAL SITUATION!!! I WILL NOT BE HELD RESPONSIBLE FOR ANY RESULTING PROBLEMS
OK, so you can't afford to buy in Accy but the rental market is relatively good value i.e. you can rent a nice house in a decent area for ~£500 a month. Comapred with London this is absolute peanuts. So an alternative, If you could 'earn' £500/month from somewhere you would effectively be living rent free. Considering that a mortgage on a £50K house would be in the region of £325. So looking to invest this money to return £500/month. It seems impossible but is it?
There is a strong market in property overseas at the moment. As we are all aware, holiday homes in Bulgaria/Romania/Egypt etc are quite cheap, some (Egypt for example) offer all year round rental prospects, I very nearly bought a place in Sharm el Shiek last year, it was a 2 bed apartment, sea view, next to a golf course and 1 mile from major diving centre, could easily sleep 6 and was for sale at ~£40K. Rental in the area was running at ~£250-£400/week to the golfer/diving enthusiasts. At this rate the rental would pay the mortgage(working on 3/4 weeks rental = £750-1200/month) and provide a decent income that would offset the majority of the rental on your house in Accy. At the same time you are 'on the ladder' and could gain from any increase in proerty value in Egypt. You only have to look at how prices have gone haywire in Spain to see that this could be a very nice little earner.
yes there are risks, just as I was thinking about it a bomb went off there that shook confidence in the area a bit, it seems to have recovered quite well now. There are obviously other charges (Council tax equiv in Egypt, local taxation etc hence SEE AN IFA or LAWYER) so you really need to do a proper business plan on something like this to make sure you understand teh risks and what would happen if you couldn't keep up payments or if rental dropped off.
So theres one lateral thinking solution, don't buy here, buy elsewhere!