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Relative values, becoming very introspective.

(65 Posts)
annsixty Sat 04-Feb-23 21:30:26

I am 85 and I am sure that my musings will ring a bell with some, if not many of you.
On Wednesday I went out with a friend to celebrate her birthday (81).
This evening I have been out for a meal with my GD, she is having elective surgery on Wednesday and I thought it would be a treat for her and to take her mind off it for a few hours.

The two evenings, for two people each evening cost just less than the deposit on our first home in 1961.
We had saved so hard for that, sacrificing so much to do it.
Who would ever have thought then, that in the future we would have been gaily paying such a sum for eating out.
It has certainly made me think but it is the nature of progress I suppose.

Aveline Sat 04-Feb-23 21:59:33

I know what you mean. I recently bought a nice apple and enjoyed it until I realised it had cost 15/-!
You couldn't even buy a small car for what our first home cost us.

Norah Sat 04-Feb-23 22:07:00

Our home cost £1,800 and the interest was 5%.

But his wage was £10 a week. If I recall the numbers correctly.

Then to now? Homes have gone up as much as wages?

MerylStreep Sat 04-Feb-23 22:09:55

Annsixty
We were having much the same conversation today.

BlueBelle Sat 04-Feb-23 22:12:24

My first wage was £8 a week and he who became my husband for a few years was earning £6
I paid rent on a small flat, bought food, coke for the fire, and went home by train every weekend 🤣

M0nica Sat 04-Feb-23 22:13:15

annsixty It is caused by inflation.

Supposing that you and your DH bought your house in 1965 with a £100 deposit, Today you would need over £2,000 to buy what £100 would buy in 1965.

The house we paid £5750 for in 1969 - and it was a struggle, now sells for £425,000. Back in 1968, £425,000 would have bought us a house in a select area of central London or a large stately home with acres of land.

Norah Sat 04-Feb-23 23:02:59

MerylStreep

Annsixty
We were having much the same conversation today.

Our daughters have been having the exact conversation quite often. They are clever enough to realize how very much wages have exploded since they were babies in the late 50s to 80s.

We've never moved house, a money waster, many times, I suspect.

Callistemon21 Sat 04-Feb-23 23:16:27

We've had to relocate due to work.

I remember offering the vendors £50 less than the asking price for the first house we bought.
They refused so we had to pay the asking price and struggled with a larger mortgage!!

Norah Sat 04-Feb-23 23:26:27

Callistemon21

We've had to relocate due to work.

I remember offering the vendors £50 less than the asking price for the first house we bought.
They refused so we had to pay the asking price and struggled with a larger mortgage!!

Forgive me. I worded improperly.

I should have said "people who move house, without relocating for work or important reason, unfortunately have had to waste money."

Or that was our thought whilst having the housing cost talk.

Deedaa Sat 04-Feb-23 23:28:35

Our first house cost £2,750 in 1971. The deposit was £150, it took us a year to save and we were both earning around £20 a week. The mortgage cost us around £20 a month and I remember electricity was about £5 a month.

The house I am in now cost £84,000 in 1999. It is now valued at £370,000, an increase of nearly £300,000 in 23 years! No wonder salaries of 30 or 40,000 pounds aren't enough to live on.

Callistemon21 Sat 04-Feb-23 23:31:23

Norah

Callistemon21

We've had to relocate due to work.

I remember offering the vendors £50 less than the asking price for the first house we bought.
They refused so we had to pay the asking price and struggled with a larger mortgage!!

Forgive me. I worded improperly.

I should have said "people who move house, without relocating for work or important reason, unfortunately have had to waste money."

Or that was our thought whilst having the housing cost talk.

We calculated the cost of moving recently when we looked to downsize and it's a very large sum.

Shinamae Sat 04-Feb-23 23:33:15

M0nica

annsixty It is caused by inflation.

Supposing that you and your DH bought your house in 1965 with a £100 deposit, Today you would need over £2,000 to buy what £100 would buy in 1965.

The house we paid £5750 for in 1969 - and it was a struggle, now sells for £425,000. Back in 1968, £425,000 would have bought us a house in a select area of central London or a large stately home with acres of land.

Yes, it is all relative
My dad sold a six bedroom house with a wonderful Seaview in the late 60s for £6000,(detached in a quarter acre of land) it’s been turned into flats now and worth well over 1 million but…
He bought a house in a small village in North Devon, the house was a 3 bedroom terrace,£3000.I’m not sure how much he put down but I know he had a mortgage of £9 a month but was only earning £17 a week so yes it is all relative..

seadragon Sat 04-Feb-23 23:33:30

Oblivious of the stock market crash and associated financial disasters: monevator.com/the-uks-worst-stock-market-crash-1972-1974/ we moved to Orkney with a young baby. Interviewing and removal expenses were paid, we were allocated a key worker's 3 bed house and went on to buy a house 5 years later with a 95% mortgage from the council and a £300 deposit. It was a listed building which needed renovating so we also received a grant of about £4,000 to carry out the works which including re-roofing. When we both became seriously ill, our mortgage interest was paid for until I recovered sufficiently to complete professional training with the help of a full grant from the government, a Conservative government. Relative values indeed....

seadragon Sat 04-Feb-23 23:37:10

None of the above is available to young folk now....

Witzend Sun 05-Feb-23 01:41:24

At a local history exhibition there was an original newspaper advert from the 1930s, for new houses in a large development near here. Prices ranged from a little over £500 for a small 3 bed terrace, to about £950 for a 4 bed semi.

It said, ‘A £5 deposit secures any house!’
Those same houses now go for a minimum of about £600k, to over £1m.

Calendargirl Sun 05-Feb-23 07:33:13

When I started work in a bank in 1969, 16 years old, women staff didn’t get a pension. Instead there was a ‘marriage gratuity’, which you could have if you worked for 5 years before marriage. It was £200, and back then where I lived, it would have paid for a deposit on a house.

Fast forward 5 years, by then, the gratuity would probably have bought a three piece suite, but not a house deposit.

Marmight Sun 05-Feb-23 08:23:18

This chat propelled me into Googling our first house, a a 2.5 bed, s/d cottage bought for just under £10,000 in 1974 and so small we renamed it Wren Cottage. We moved 3 years later as our family was growing and we couldn’t get planning permission to extend. It now has 3 bedrooms and an extra bathroom but is on exactly the same footprint and last sold for £675.000. Funny old world.

Iam64 Sun 05-Feb-23 08:27:11

The cost of food, fuel and heat is the thing I’m constantly shocked by.

annsixty Sun 05-Feb-23 08:44:23

I agree Iam
As the OP of this thread , when we moved into the house I referred to, I had £6 a week housekeeping, out of which I paid my bus fare to week and saved for things like presents and special occasions.
My mind just can’t quite take it in now.

pascal30 Sun 05-Feb-23 11:16:25

I was absolutely horrified yesterday to see that a cup of coffee in my localcafe now costs £4.70

Bellanonna Sun 05-Feb-23 11:46:42

pascal, that really is horrifying. I was surprised to pay £3.50 last year for a coffee in London but I think that’s more or less standard now.

My parents paid £600 for their first home. It’s now worth £500,000.

Norah Sun 05-Feb-23 13:52:22

Bellanonna

*pascal*, that really is horrifying. I was surprised to pay £3.50 last year for a coffee in London but I think that’s more or less standard now.

My parents paid £600 for their first home. It’s now worth £500,000.

Inflation is a funny thing. Works in 2 directions.

"Median average salary for those working full-time is £33,000."

Wages have inflated as well.

My husband earned £500 annually at his primary job in 1958.

ParlorGames Sun 05-Feb-23 13:57:21

pascal30

I was absolutely horrified yesterday to see that a cup of coffee in my localcafe now costs £4.70

Blimey pascal.....you can buy a box of teabags for less!

pascal30 Sun 05-Feb-23 14:22:27

ParlorGames

pascal30

I was absolutely horrified yesterday to see that a cup of coffee in my localcafe now costs £4.70

Blimey pascal.....you can buy a box of teabags for less!

I know.. I was staggered and certainly didn't/couldn't pay those sort of prices

Kate1949 Sun 05-Feb-23 17:19:59

We were just talking to our granddaughter and her boyfriend about this. They are 22 and both have good jobs. We told them our first house cost £9000. They were saying they have very little chance of buying a property.