£1.2tn given to old from young

StevieJ

stueyhants wrote: »

Because we have two incomes servicing the mortgage. Anyway, I thought the % of OO is starting to drop now.

I am pretty sure that was the status quo since the 60's, I am pretty sure it was for most peope I know.

mbga9pgf

stueyhants wrote: »

I can accept prices can be maintained at current levels, I just can't see where they can go from here

Affordability has been maintained by
a) using a second wage
b) Relatively low IR

What else can we use to maintain affordability going forward, shared equity, 50 year mortgages ?

Interest rates were 5% when my baby boomer grandparents bought their first home, a 3 bed, semi detatched house on 1/4 of an acre. They were 22 and 23.

MRSTITTLEMOUSE

Graham_Devon wrote: »

You could ask the question: "What is, or has been done by the baby boomers to secure housing and access to housing for their children and grandchildren".

I certainly do not know the answer (and inheritance is NOT it!!).

Lets see.
I think the answer to this one is the same as they did for my generation,nothing.
You have to get out there and try your best.
We slept on a friends floor for 8 months when we got married,whilst we continued to save up the deposit for a house.
My parents could well of afforded to buy me a house outright but if you knew my parents you'd know they liked to teach you lessons in life the hard way.
I'm pleased they did'nt provide for me it taught me that I have to look after my own life and not to expect anything for nothing.

mbga9pgf

Really2 wrote: »

So what can baby boomers do can they personally build houses?

If we are saying house prices are down to supply and demand (praise the lord if you may have warmed to that). the only thing that can be done is for the recession to hand so builders can get back to building.

Failing that perhaps they should not have had children.
(by that replacing 2 going out with 3 + grandkids is only going to make the problem worse.)

All to easy to play the blame game but I presume you are reasonably happy to be on the planet and alive.

Perhaps they should stop being a bunch of NIMBY C*nts and actually let us build enough DECENT fair sized housing like they had the benefit of?

CLAPTON

stueyhants wrote: »

Because we have two incomes servicing the mortgage. Anyway, I thought the % of OO is starting to drop now.

surely a major contributing factor for HPI is two people contributing to the mortgage.... surely you're not admitting to this crime... who knows maybe you are already part of the 'current generation'

Graham_Devon

Really2 wrote: »

So what can baby boomers do can they personally build houses?

If we are saying house prices are down to supply and demand (praise the lord if you may have warmed to that). the only thing that can be done is for the recession to hand so builders can get back to building.

Failing that perhaps they should not have had children.
(by that replacing 2 going out with 3 + grandkids is only going to make the problem worse.)

All to easy to play the blame game but I presume you are reasonably happy to be on the planet and alive.

Get a little context Really. We may then be able to debate the subject without flippant stupid lines about not having kids etc.

The government could have stopped the RTB scheme instead of letting it continue on, deminishing the stock of council homes day by day. Council homes were an absolute blessing to many of the boomers.

They could have said "hold on" to shared ownership, but oh no, that was pushed in order to keep prices high. I know, let's just sell our kids 25, 40% of a home if they can't afford it, will keep ours high.

Finanical regulation could easily have stopped 100% mortgages WITH a personal loan on top to make it up to 125% mortgages.

I'm not talking on a personal family level here, I am talking on a government / country level.

We have a massive, absolutely collosal pension crisis yet to hit. How many of the younger generation actually have pensions? How many can actually afford to pay into one while saving a deposit and getting a house in their 30's, then finally having kids?

Did the boomers look at this, see the potential problem and sort it? Well, at a very late stage after many many warnings they did, and made it so they were again excluded from the reforms and their kids would have to work longer for the same thing.

And on to homes. What about all the regulation STOPPING home building. I don't mean stopping as in physically stopping, I mean makign it very difficult to build. I.e. having to place social homes in with any new builds to ship those left over from the RTB sell off's into other places, just not the babyboomers doorsteps.

ALL that has been done is avenues created for the younger generation to get into more debt and allow HPI to continue. The root cause has not been touched.

StevieJ

stueyhants wrote: »

I can accept prices can be maintained at current levels, I just can't see where they can go from here

Affordability has been maintained by
a) using a second wage
b) Relatively low IR

What else can we use to maintain affordability going forward, shared equity, 50 year mortgages ?

Interestingly when I bought a house in the days when houses was oh so cheap :rolleyes: some couples were choosing to share a mortgage with other couples to 'get on the ladder'

mbga9pgf

StevieJ wrote: »

Interestingly when I bought a house in the days when houses was oh so cheap :rolleyes: some couples were choosing to share a mortgage with other couples to 'get on the ladder'

Deposit requirements perhaps and possible poor credit histories due to the 1990s crash?

I would much prefer to be limited to 3.5X Salary max as a pension, with preferable rates, knowing as a result I would have the prospect of upsizing in the future, than get a collossal amount of debt for your basic starter home.

Really2

mbga9pgf wrote: »

Perhaps they should stop being a bunch of NIMBY C*nts and actually let us build enough DECENT fair sized housing like they had the benefit of?

what a load of bull. It was easier to build bigger houses (well really it was only bigger plots the houses were no bigger) 100 years ago because we had a smaller population.

Those houses are still standing (mostly) buy one.

Unless you want to concrete over the whole of the UK and for it to be 100% relient on imported food I am happy for houses (plots) being slightly smaller.

Actually you will find most houses over 40 years ago would now be classed as overcrowded.

It is the most recent generation think they all deserve a 3 bed house for two people to live in.
when I was young we had 5 of us in a 3 bed house some had 6 people+ and that was only 20 years ago.

So don't get playing the new houses are to small card you just sound greedy and you are screwing the future generation, see the irony in your point considering the discussion.:rolleyes:

StevieJ

Graham_Devon wrote: »

We have a massive, absolutely collosal pension crisis yet to hit. How many of the younger generation actually have pensions? How many can actually afford to pay into one while saving a deposit and getting a house in their 30's, then finally having kids?

Agreed we do have a pension crisis not a housing crisis although RTB was an absoloute disgrace :eek: