London, England – Tuesday, 5 August 2008 - Couples living on the average UK salary must reportedly save approximately two-thirds of their household earnings to cover the expenses of purchasing a home. This amounts to approximately £30,000, a large amount of money which also means a large sacrifice.
This is a new obstacle for first time homeowners, though. Ten years ago, couples earning an average salary only needed to put aside around one-fifth of their household income. For those couples earning a net income each of less than £27,500, over a year’s salary must be set aside to cover the stamp duty, down payment and fees according to the Royal Institute of Chartered Surveyors (RICS).
Unfortunately, the situation is not going to improve anytime soon according to RICS senior economist David Stubbs thanks to the credit crunch debilitating mortgage lenders. High stamp duty combined with a requirement for larger deposits make it increasingly difficult for first-time homebuyers to make a purchase.
The real question with all of this is what couples earning average incomes can do to make homeownership a reality. Setting aside such a large proportion of their combined net pay is generally not feasible, particularly in the current economic climate of higher prices on virtually all staple goods. An obvious answer is to seek additional income. Many seeking extra income take up a second job, perhaps in the evenings after working all day in the office or at their full-time job, whilst others have explored opportunities available now thanks to the internet and advanced software.
Gaming is one of the largest growing industries online. With new software, such as ArbAlarm, it is now possible to scan prices quickly and on a global basis to discover risk-free trading opportunities. Returns can reach as high as twelve percent each month, which can make homeownership a reality much sooner for some.
A good place to start is to do a little homework and explore the possibilities of this fast growing online opportunity. Rajeev Shah, a former city trader, discusses it in depth in his book Sports-Arbitrage – How to Place Riskless Bets and Create Tax-Free Investments. This is a great resource to learn more about this unique investment. The book provides an in-depth look at the benefits of sports arbitrage trading, including its zero-rated tax status, granted by the UK Treasury.
With the average salary increasing by only 3.5% whilst inflation grows ever higher, couples trying to save for a home will not need long to do the math and realize supplementing their current income is really the best option to make homeownership a reality.
Post a Comment