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Re: Salary Calculations between UK and US
Originally Posted by dlake02
(Post 10886070)
The result was that I owned my own flat outright in about 10 years. Set me up to never have to rely on credit, and even though I swore up hill and down dale at the Admin Manager cos I wanted to live in a "nicer" area than I was allowed to afford, in the long run, it gave us a level of financial stability and an understanding of planning for the long term.
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Re: Salary Calculations between UK and US
Originally Posted by Sally Redux
(Post 10886162)
Well hang on, you did have a loan and it was at a preferential rate.
But it wasn't where I wanted it to be - it was where I could actually afford to live given the rules on no more than 30% of my take-home pay on loans. It is interesting though that a bank that found itself in deep, deep shtum recently was very draconian about making sure it's employees only lived within their means less than 30 years ago. If you applied the same rules on amount of affordability now, I wonder how people would fare ? |
Re: Salary Calculations between UK and US
Originally Posted by Michael
(Post 10886029)
When borrowing from a 401K (50% maximum of the value of the 401K), any interest paid goes into your account. There isn't any taxes or penalty when borrowing from a 401K. One of the biggest disadvantages of borrowing from a 401K is that if you lose your job, you have 60 days to pay back the loan or else taxes and penalties will be accessed. Therefore it is never wise to borrow from a 401K.
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Re: Salary Calculations between UK and US
Originally Posted by dlake02
(Post 10886168)
Yes. And it was taxed, and MIRAS was not available. Plus the preferential rate declined over the 10 years.
But it wasn't where I wanted it to be - it was where I could actually afford to live given the rules on no more than 30% of my take-home pay on loans. It is interesting though that a bank that found itself in deep, deep shtum recently was very draconian about making sure it's employees only lived within their means less than 30 years ago. If you applied the same rules on amount of affordability now, I wonder how people would fare ? Well only up to 30% of take-home." :p |
Re: Salary Calculations between UK and US
Originally Posted by Sally Redux
(Post 10886175)
"Neither a borrower nor a lender be
Well only up to 30% of take-home." :p If I had my time again, I wouldn't bother buying. It's a mugs game. |
Re: Salary Calculations between UK and US
Originally Posted by dlake02
(Post 10886160)
I'm not so sure. When I was 18/19/20/21, it was drummed into me "buy your own house as soon as you can."
I just don't see the same rush in the younger generation. I have two cousins, both married, both in their late 20s with kids, renting privately and very, very happy to do so. Ask them about buying, and they have no desire to. |
Re: Salary Calculations between UK and US
Originally Posted by dlake02
(Post 10886209)
Yep - followed by 8 years of negative equity where we couldn't move. Cost us £15k to just get out.
If I had my time again, I wouldn't bother buying. It's a mugs game. I feel renting is a waste. At least with a house your money is going somewhere, albeit slowly. It's more than that though, I like being somewhere I can call my own. I think it's hard to really settle if you rent. |
Re: Salary Calculations between UK and US
Originally Posted by Sally Redux
(Post 10886025)
It sounds good, but do people save up and buy a place outright, or always rent? Genuine curiosity.
Is it easy? No. Especially on a rising market. Was I lucky? Incredibly so. Would I recommend it? Absolutely. Do I think it's doable now? Not really unless the cards fall absolutely perfectly... To my mind, a sensible size mortgage is "acceptable" debt, because it is really the only way out of the cycle of renting...I still see home ownership as a good thing, and generally see other property as a good long term investment. Most other debt we shy away from totally, and are trying to teach the kids that way too, but it's not easy when some of my 12 year olds friends have access to their parents credit cards...W.T.F.? |
Re: Salary Calculations between UK and US
Originally Posted by Bink
(Post 10886240)
I feel renting is a waste. At least with a house your money is going somewhere, albeit slowly. It's more than that though, I like being somewhere I can call my own. I think it's hard to really settle if you rent. We've had a tenant for 5 years who is now wanting to buy our apartment, which is fine, but she wants to apply all the rent she has paid over the term of her tenancy, which is not. She has obviously just worked out that she has "bought" more than half the apt in about a third of the period of a mortgage..... |
Re: Salary Calculations between UK and US
Originally Posted by SamiZ
(Post 10886085)
Yes family is the big driver but if I take the plunge and it doesn't work there because of finances for example, I will have to have a backup plan. If I make the move though, I will be determined to make it work so if I have to move somewhere else in the US, then I will review that if required.
Good luck! |
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