Property Point 24 October

First there were the YUPPIES, then came the DINKS.

The terms emerged in the 1980s when marketing types got the Western world by the scruff of the neck and started ascribing labels to various groups.

The marketing people sought to categorise emerging groups within the society and then identify commercial opportunities.

YUPPIES stood for Young Upwardly-Mobile Professional People and they were the type of annoying people in their 20s and 30s who would be seen arriving at trendy inner-city cafes in their late-model BMW coupes to catch up for a latte with their equally cool young friends.

Later they would be the first to embrace the mobile phone as an eye-catching status symbol, typically attaching themselves to the BlackBerry as an indicator of high-flying status.

The commercial opportunities for car-makers like BMW, Mercedes and SAAB (remember them?), owners of trendy restaurants and bars and tailors of power-suits were endless as YUPPIES not only had the cash, they were keen to be seen to splash it around.

Then came the DINKS, which stood for Double Income No Kids. This rather self-explanatory label applied to a working couple who had lots of disposable income because, as the name suggests, they didn’t have to spend it on kids.

Again, the commercial opportunities were endless. Not just in the world of cars, fashion and expensive restaurants but also in the world of real estate.

DINKS could afford to buy that super-cool inner-city pad or that beachside home with water views and then deck it out in the best European furniture. Double income and no kids … laughing.

I always thought good luck to the YUPPIES and the DINKS; it’s your life to make the most of whatever circumstances you find yourself in.

The interesting thing about DINKS was not just the “no kids” part but also the “double income” aspect of the name.

These days, whether there are kids or not, the double income is a given for most couples and families. Yes, there are exceptions but it’s too hard for most families to survive without that second income.

At this important juncture I want to make clear that I think it is a wonderful thing that women have equal educational and employment opportunities and that they have been able to grow beyond a “home-maker” role to explore all opportunities available to them, create financial independence and reach their full potential in all facets of life.

I am pointing out, however, that there was a time when a double income was not required to buy a house, pay off a car, feed the family and have a holiday.

The double income that is the norm today is great news for governments because they get double the income tax. One family, two PAYE taxpayers.

And it’s great for the world of commerce. In the past, a single-income family would save up for the car and furniture and put aside savings just like their parents did. Today’s families borrow money for most things, buy as much as they can as soon as they can and use those double incomes to pay things off.

The double income has become crucial for buying real estate. It is very difficult for a family or couple to buy a property on a single income.

Did today’s double-income norm help push up housing prices around the country? People tend to establish the maximum they can afford, on their double incomes, when buying a property and then go for it.

There is nothing wrong with that but when you have an entire nation doing that you are probably going to push up prices.

These days the DINKS have been replaced by a group that could be labelled: Double Income And Big Loan Outstanding, the DIABLOS. Although it probably wouldn’t work in Spanish-speaking countries.

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