Originally Posted By davewasbaloo According to the AA (UK version of AAA), things are getting worse. I have converted prices to US dollars Fuel Price Update Diesel passes $12-gallon 25 June 2008 Average diesel prices across the UK broke through the $12-gallon barrier yesterday, hitting $2.64 per litre. The average price of petrol also hit a record of $2.37 per litre. Compared to this time last year, diesel ($1.95) is now 70 cents per litre more expensive and petrol ($1.94) costs 44 cents more. Diesel broke through the $10-gallon mark on 24 February this year. Impacts (Compared to this time last year) Extra cost of 50-litre refill – petrol $21.72, diesel $34.76 (petrol $118.66 v $96.94, diesel $122.04 v $97.28) Extra monthly petrol cost for two-car family – $93.10 Extra monthly cost of refuelling the average diesel car – £59.22 Extra UK daily spend on petrol – £28,828,760 AA comment Commenting, Edmund King, AA president said: "The $12-gallon would have been an unrealistic nightmare to motorists only one year ago yet today it is a reality. Two thirds of motorists have already cut back on their journeys and many are slowing down to conserve fuel. "However, many car-dependent motorists such as the disabled, shift workers and rural dwellers have to cut back on household expenditure as the car is a necessity. "More than half of motorists blame the Government for the high cost of fuel even though global pressures and market speculation have raised costs. The Chancellor does need to look again at levels of duty on fuel as it is taxed as a luxury item at rates higher than Champagne rather than as a necessity."
Originally Posted By fkurucz Just to clarify, the price in US gallons is a "mere" $9.99. The $12 dollar price is for "imperial gallons" which are bigger than US gallons. If (when?) prices get that high here I expect that most light trucks will be sold as scrap. Imagine paying over $300 to fill up the tank on a pickup truck. That could be easily over $1000 a month. Few Joe 6 Packs can afford that.
Originally Posted By davewasbaloo Good point fkurucz, but it's not funny. And what is worse is the average house value in southern england (the area we live) dropped $50,000 this year!!!
Originally Posted By SoThisIsLove The housing market here in the Phoenix area is down 25%, it was reported today. I beleive Las Vegas (and one other area I forget) is down 27%. Our home's assessment went down 40k from last year. Crazy times, guys.
Originally Posted By davewasbaloo Wow, we really all need to brace ourselves. As much as I would love to go to DL or TDL, I think we may have to stick closer to home next year. The other day, I wanted a cheap but filling breakfast. I went to a "cheap" place near work. 1 bacon filled bagel and an orange juice, $14!
Originally Posted By fkurucz <<Good point fkurucz, but it's not funny. And what is worse is the average house value in southern england (the area we live) dropped $50,000 this year!!!>> I know that a lot of people on both sides of the pond were counting on their home equity to fund their retirements. Looks like that won't be happening. Some of our bubblier housing markets (like Vegas and Phoenix) are in free fall and the bottom is nowhere in sight. What happens if you walk away from a mortgage in the UK? Can the bank come after you for the balance of the loan after it sells the house?
Originally Posted By gottaluvdavillains Wow Dave the housing part must be frustrating - what percentage would that be about - I know the bank recently lowered our house's worth about 25% since last summer - we live in the East bay in a modestly priced area for the bay area... Didn't you say you lived quite far out in a lower cost area so Sarah could be home with the kids --- Are the higher end areas being hit as hard? As far as Diesel - in the east bay it has come down a little - closing the gap on regular fuel...Which is good for me - but I won't be scraping my Truck anytime soon - even with fuel going up I own the vehicles I drive so scrapping them for a smaller car with a payment and a raise in insurance would make that option a wash!
Originally Posted By davewasbaloo >>>I don't know how you guys survive over there.<<< It's not a disaster if you get sick, and the state does take care of you! Lol. I think it is getting harder. Now the average deposit needed to buy a house is $62,000 - an average year of pretax salary for brits. My brother in law who is in construction (skilled machines driver) has been saving for 4 years now, and is still no where near getting his foot on the property ladder.
Originally Posted By davewasbaloo >>>What happens if you walk away from a mortgage in the UK? Can the bank come after you for the balance of the loan after it sells the house?<<< Depends on the agreement. The courts will issue a County Court Judgement (CCJ) where the debtor is liable for the debt for 7 years. It was very hard because 1000's lost there homes (same time DLP opened - it wasn't just hotel rooms or location that lead to DLP's troubles in the 90's - convenient excuses). My parents and I had a very rough and scary time. Living in a camper van with a pregnant mom and hard working cancer suffering father while I studied for my AA and worked 2 jobs was very difficult. But we all made it through. And people will make it through this too.
Originally Posted By davewasbaloo >>>Wow Dave the housing part must be frustrating - what percentage would that be about - I know the bank recently lowered our house's worth about 25% since last summer - we live in the East bay in a modestly priced area for the bay area...<<< Wow!!! It's not that bad here yet. That drop represents 14% of an average house. Still pretty bad.Everywhere is being hit, except the very rich parts of London and Suburbs. With the old addage of the rich getting richer, the 4 most expensive boroughs of London have increased by 3-5% this month! Gggggrrrrr
Originally Posted By avromark Housing market hasn't been hit too much here value wise, but it is getting slower. My parents are no longer getting to many "We have buyers in your area, would you be willing to sell your house messages", houses are now taking several weeks to sell. In regards to Diesel right now it's about $1.36 to $1.40ish a litre. How about we stop subsidizing buses that do nothing but pollute, run half empty and block traffic as they "wait" so they'll be on schedule. Or they could put in decent infrastructure for public transit, like those bus pull over areas at bus stops Toronto/US sees. As well as seats that will actually hold an average sized adult. And having decent routes, or perhaps travel times less then 2 hours for a 15 to 20 minute drive... But then again we'd need at least here to have courtesy amongst bus riders. You know like not taking up three spots, or getting up for elders. Sorry for the rant everybody. All I can say is economy/world peace/domestic problems it all kind of pours down at once doesn't it?
Originally Posted By fkurucz <<My brother in law who is in construction (skilled machines driver) has been saving for 4 years now, and is still no where near getting his foot on the property ladder.>> In his case falling prices a GOOD thing.
Originally Posted By davewasbaloo In theory, but because the demand for builders are lower his pay has decreased, he travels further for work, and is using the savings for gas and food! I feel for him
Originally Posted By fkurucz <<and is still no where near getting his foot on the property ladder>> I think that we need to stop think about "the property ladder". The notion that ordinary real estate (that is to say, not in special locations) will appreciate faster than the rate of inflation into perpetuity is nonsense. Once middle class people can no longer afford to buy there is nothing that can continue to push prices up. History has demonstrated that median prices cannot remain above 4 times median income. Anything above that requires voodoo financing which falls apart at the first sign of trouble.
Originally Posted By fkurucz <<<>>>I don't know how you guys survive over there.<<< It's not a disaster if you get sick, and the state does take care of you! Lol.>>> Maybe. But how can anyone over there afford the daily necessities when they cost 2-3 times as much as over here, yet salaries appear to be comparable? I mean how does a UK Joe 6 Pack make ends meet when he has a $500,000 mortgage, pays $10 for a gallon for gas, $17 for a fast food breakfast and only makes $60,000 a year?
Originally Posted By davewasbaloo Well outside of London, the food is cheaper. A McDonald's breakfast bagel and OJ runs a more reasonable $8
Originally Posted By mawnck >>I mean how does a UK Joe 6 Pack make ends meet when he has a $500,000 mortgage, pays $10 for a gallon for gas, $17 for a fast food breakfast and only makes $60,000 a year?<< Would that be Basil Three-Pints? Don't mind me, I'm just a dumb Yank. That is a good question, though. I would suspect that UK's spending patterns are a bit different from ours. What's a typical UK bill for cable, cell phone, internet, health care, taxes, transportation, utilities, Tivo, caller ID, ringtones, newspaper subscriptions, exercise club memberships, movie tickets, sodas, six-packs, sunscreen, and so on? For instance, I could easily handle $10/gal gas if the buses and trains around here were frequent enough to make them viable for my transportation needs. (Of course, I wouldn't be able to handle the inflation and unemployment that went with it.) From here it looks like there's a lot more public transportation options on that side of the big pond.
