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I keep the (UK) National Statistic report of salaries. * 22K is the median salary. The people under 22K get propped up by social security up to around that amo
by gutnor 9y ago
I keep the (UK) National Statistic report of salaries.
* 22K is the median salary. The people under 22K get propped up by social security up to around that amount (theoretically, practically not)
* top-20% percentil starts at 38K
* top-13% is 45K (relevant in the UK as it is the limit for high tax bracket)
* top-10% is 50K
* top-5% is 70K
* top-2% is 110K
* top-1% is 160K
The average cost of a house is 250K, 400K in London. Only the smallest fraction of the population will be able to get that amount of money from just working. You need to be propped up by something, your parent, luck, post-code lottery on your first ring of the property ladder, ...
You need to borrow from the future and the past to afford the present.
edit: formatting
edit2: all amounts are in GBP.
- danbruc 9y agoWhich currency, GBP?
- gutnor 9y agoYes, GBP.
- MagnumOpus 9y agoYou are very right on your main point, but some nitpicks on your data: * Your data is for all workers including part-time workers (including students and part time for lifestyle reasons like parenting). Full time work pay averages are quite a bit higher - median at £28k, 90th percentile at £56k. In London where the housing lottery problem is more extreme, it is partly because pay is also higher - full time annual median at £35k, 90th percentile at £75k. * The median earner doesn't buy property - the people who buy houses are the prime-age segment who earn quite a bit more.