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Apr 21
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Well, I know I tend to go on and on about this, but more and more each day, I see proof that my cunning plan is correct., The plan to develop multiple income streams of income. One being from a job, to get all the benefits of paid employment (wages/pension/career prospects etc) and then one or two more from other sources, be it investments, shares, businesses or MLM, you name it, I will look at it, to be one of the income streams. The key though is that it needs to be residual income. Meaning something that comes in month in month out, with only doing the work once. This is so it has no effect on the ability of me to do my day job.
The crazy situation with the UK housing market at the moment is a scary point, that indicates further that its so important to have multiple income streams. (Unless of course you already have a super income!)
I know some professional workers (young and single) that arent able to get onto the UK housing market, until they are earning £25k a year, or are able to stump up a massive deposit. Realistaically a lot of jobs wont pay £25k for some time. And remember what I said these peopel are professional workers, with good coporate jobs.
An article I found on the bbc.co.uk website, talks about some research carried out by shelter, and mentions the struggle for first time buyers to get onto the first run of the ladder. It shows the shocking rise in house prices over the last 10 years. I have copied the graphs over from the article, to show here.
EAST MIDLANDS
| 1997 | 2002 | 2007 | |
| Average first time buyer house price | £44,342 | £82,326 | £124,019 |
| House price to income ratio | 1.58 | 2.25 | 2.9 |
| Average monthly repayment | £253.22 | £398.29 | £643.73 |
| Average repayment as % of average income | 10.8% | 13% | 18.1% |
| Source: Shelter | |||
SOUTH EAST
| 1997 | 2002 | 2007 | |
| Average first time buyer house price | £64,234 | £142,749 | £188,811 |
| House price to income ratio | 1.84 | 3.26 | 3.41 |
| Average monthly repayment | £376.37 | £690.62 | £980.04 |
| Average repayment as % of average income | 12.9% | 19% | 21.2% |
| Source: Shelter | |||
SOUTH EAST
| 1997 | 2002 | 2007 | |
| Average first time buyer house price | £64,234 | £142,749 | £188,811 |
| House price to income ratio | 1.84 | 3.26 | 3.41 |
| Average monthly repayment | £376.37 | £690.62 | £980.04 |
| Average repayment as % of average income | 12.9% | 19% | 21.2% |
| Source: Shelter | |||
EAST
| 1997 | 2002 | 2007 | |
| Average first time buyer house price | £57,115 | £121,326 | £169,285 |
| House price to income ratio | 1.84 | 3.03 | 3.55 |
| Average monthly repayment | £332.30 | £586.98 | £878.69 |
| Average repayment as % of average income | 12.8% | 17.6% | 22.1% |
| Source: Shelter | |||
YORKSHIRE AND THE HUMBER
| 1997 | 2002 | 2007 | |
| Average first time buyer house price | £43,021 | £69,096 | £119,722 |
| House price to income ratio | 1.53 | 2.07 | 2.99 |
| Average monthly repayment | £245.04 | £334.29 | £621.43 |
| Average repayment as % of average income | 10.4% | 12% | 18.6% |
| Source: Shelter | |||
WEST MIDLANDS
| 1997 | 2002 | 2007 | |
| Average first time buyer house price | £46,306 | £84,862 | £129,726 |
| House price to income ratio | 1.60 | 2.41 | 2.84 |
| Average monthly repayment | £265.38 | £410.56 | £673.36 |
| Average repayment as % of average income | 11% | 14% | 17.7% |
| Source: Shelter | |||
SOUTH WEST
| 1997 | 2002 | 2007 | |
| Average first time buyer house price | £53,211 | £115,634 | £163,377 |
| House price to income ratio | 1.89 | 3.23 | 3.68 |
| Average monthly repayment | £308.13 | £559.44 | £848.02 |
| Average repayment as % of average income | 13.1% | 18.7% | 22.9% |
| Source: Shelter | |||
LONDON
| 1997 | 2002 | 2007 | |
| Average first time buyer house price | £73,962 | £169,975 | £258,756 |
| House price to income ratio | 1.98 | 3.27 | 4.30 |
| Average monthly repayment | £436.60 | £822.34 | £1,343.10 |
| Average repayment as % of average income | 14% | 19% | 26.8% |
| Source: Shelter | |||
NORTH EAST
| 1997 | 2002 | 2007 | |
| Average first time buyer house price | £36,628 | £58,916 | £107,448 |
| House price to income ratio | 1.31 | 1.71 | 2.79 |
| Average monthly repayment | £205.46 | £285.04 | £557.72 |
| Average repayment as % of average income | 8.8% | 9.9% | 17.4% |
| Source: Shelter | |||
NORTH WEST
| 1997 | 2002 | 2007 | |
| Average first time buyer house price | £44,741 | £73,363 | £120,677 |
| House price to income ratio | 1.55 | 2.12 | 2.98 |
| Average monthly repayment | £255.69 | £354.93 | £626.39 |
| Average repayment as % of average income | 10.6% | 12.3% | 18.6% |
| Source: Shelter | |||
NORTHERN IRELAND
| 1997 | 2002 | 2007 | |
| Average first time buyer house price | £39,956 | £73,745 | £164,811 |
| House price to income ratio | 1.55 | 2.25 | 4.25 |
| Average monthly repayment | £226.07 | £356.78 | £855.47 |
| Average repayment as % of average income | 10.5% | 13% | 26.5% |
| Source: Shelter | |||
SCOTLAND
| 1997 | 2002 | 2007 | |
| Average first time buyer house price | £38,845 | £66,426 | £108,446 |
| House price to income ratio | 1.36 | 1.89 | 2.45 |
| Average monthly repayment | £219.19 | £321.37 | £562.90 |
| Average repayment as % of average income | 9.2% | 11% | 15.2% |
| Source: Shelter | |||
WALES
| 1997 | 2002 | 2007 | |
| Average first time buyer house price | £42,022 | £73,586 | £122,313 |
| House price to income ratio | 1.52 | 2.26 | 3.08 |
| Average monthly repayment | £238.86 | £356.01 | £634.88 |
| Average repayment as % of average income | 10.4% | 13.1% | 19.2% |
| Source: Shelter | |||
ENGLAND (ALL)
| 1997 | 2002 | 2007 | |
| Average first time buyer house price | £54,775 | £111,028 | £166,527 |
| House price to income ratio | 1.75 | 2.80 | 3.49 |
| Average monthly repayment | £317.81 | £537.15 | £864.38 |
| Average repayment as % of average income | 12.2% | 16.3% | 21.7% |
| Source: Shelter | |||
As you can see some shocking figures, about the rising cost of housing in the UK, prices which lets face it, are forcing out more and more first time buyers. Espically young single people. Ther reports says that even though the housing market is slowing down a bit, that demand is still high, well yes it is, however the demand is coming from private landlords, who are able to collect multiple houses, and then rent them out to people who cant afford to buy. All this practise will do, is continue this cycle, of the rich getting richer, and the poor getting poorer.
To then add insult to injury, good old Gordon Brown (the non elected ruler of our fine country) has decided to kick low earners even more in the nuts, by deciding and implementing the abolition of the 10p tax band.
A strange and stupid move, that once again attacks the millions of low earners of the United Kindgom, however it's all good dont panic, because this helps everyone (espically the ones who earn more) as they reduced the 22p tax band to 20p. So whilst millions of low income earners stand to be some £300 odd worse off with this new rule, the middle and top earners will benefit.(wonder what tax band Gordon Brown is in ??? )
A move that has effected me personally, being in the young single professional category, not only can I not afford (yet) to buy my own place, now I am affected by this new rule, from the amazing "New Labour" party.
Politics never used to interest me that much, and it was never my intention to use this blog, or any other of my sites to promote a political message. However this has really got my back up, in my opinion the Labour party (or a percentage of the MPs in the party) no longer hold the workers of the UK as a priority in their minds. This crazy rule is effecting millions of low income workers, at the rate they are going, everyone will be better off on benefits !!
However I will continue in my quest to find those multiple income streams, and hope to get a big pay rise soon, so that I can buy a house, and not be so effected by this 10p rule. However this will take time, and in the mean time, we will all have to live with Gordon Brown's stupid rule. If only he would call a general ellection, and then we could have someone appointed by the people running the country. I tell you one thing my vote this time will not be Labour.
Once again an article found on bbc.co.uk news article, has quotes from some people effected by these new changes:
Under the new system, standard income tax has been cut from 22% to 20% and tax credits raised – but the lowest 10p band has been scrapped entirely.
The government insists many stand to benefit. But a Treasury Select Committee report has warned that households without children or anyone over the age of 65, and on incomes below £18,500 a year, would lose out by up to £232 a year.
'Very painful'
Nervously awaiting her latest payslip is Victoria Forester, 55, from Birmingham, who earns just over £11,000 as an audio typist.
She fears the reforms could be enough to break her already frugal budget.
To make up the shortfall, she says, she would have to give up the Nissan Micra she drives to work – even though her bad back makes walking any distance agonising.
"It's very painful for me to walk," she says. "But if it's as much as I fear, I might just have to do it.
"As it is I always try to buy the cheapest own-brand groceries but it's never enough. I'd love a fresh wardrobe but I can't remember the last time I bought new clothes.
"I don't think it should be people on low incomes who have to pay more. It should be those with higher incomes – like MPs."
Her sentiments are shared by receptionist Kate Mason, 22, from Newcastle, who is on an annual salary of £11,000.
She says she is penalised because she earns too little to think about supporting a family, but as a result doesn't qualify for working families tax credits.
"At the end of each month I'm scrabbling around looking for pennies"
Kevin Davia
"Money is a constant worry for me," she says. "I keep a diary of which bills are due and I'm always checking my bank balance.
"Now I'm going to be even worse off. There's no way I can think about getting a mortgage or anything like that.
"This is meant to be a government for the ordinary Joe, but it seems to be hitting the poorest hardest."
'Corporate ladder'
Kevin Davia, 34, from Hitchin in Hertfordshire, says that he also has trouble making ends meet – a situation which will be made worse by the tax changes.
He takes home £13,500 a year working in customer support and says he has already been hit by rises in the cost of petrol, gas and electricity.
"As it is I have to dip into my credit card to pay the bills," he says.
"At the end of each month I'm scrabbling around looking for pennies.
"In business I think when people get so far up the corporate ladder they forget about the people on the bottom rung, and the same obviously applies to politicians."
Ministers say the changes will benefit millions. But that may be little comfort to those working on the breadline who feel they have been forgotten.
Another person commented
"I never thought I would see a Labour government penalise people in the lower pay bracket"
Elizabeth Philips, Halifax
So there we have it a very popular ruling from Gordon Brown, thats stands to effect millions of people in the United Kindgom, and these people are the people who need it the most.
Ironically as I was researching this article for my asuperincome blog, further developments happened on the 18th of April, Many Labour MPs who were angry of the new changes, put pressure on Gordon Brown to compensate the low earners, some even threatened to quit over this shocking change.
With over 70 Labour MP signing one of three commons motions criticising the reforms. Mr Brown has already had to take time out of his tour of America to stop Parlimentary Private Secretary Angela Smith quitting over this issue.
I do hate to be negative on my asuperincome blog, however these are two issues very close to and millions of other people's heart. My quest for a better standard of living will continue, and I will strive to meet my aims, of mutliple income streams, whilst building a successful career. However I think this rule is crazy, and if it isnt revoked, I think we will see a very interesting general election, whenver Gordon Brown decides to call it.
OKay thats it for now, if your interested in running your own online home based business, and creating yourself a residual income then check out www.asuperincome.co.uk which will show you how to earn a stonking extra income in your part time.