£1.2tn given to old from young

stueyhants

CLAPTON wrote: »

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'

I don't have a mortgage at present. I sold up a few years ago (not to benefit from HPI but just moving areas temping). I'm looking at buying and trying my hardest to finance my next move based just on my income and it's proving difficult. I'm in my low 30s but my partner is slighlty older so we will be having kids soon hence why I only want to consider my salary.

Its scary how you very quickly become the "current generation"

Graham_Devon

StevieJ wrote: »

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

It was. I'm not going to make this a thatcher thing as it seems good enough for Blair and Brown too.

How many boomers grew up in council homes?

How many would have been stranded without or in a very serious problem?

Well thats today. The only thing we have now instead is a benefits culture, which is good for some, but no good for anyone working.

chucky

mbga9pgf wrote: »

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.

really!? are you sure that was in the UK?

mortgage interest rates didn't go below 5% until around the year 2000.

dopester

chucky wrote: »

a few people on here could have bought in the 90s and didn't.

they now blame high prices for them not owning property now - the only people you can blame in those scenarios for not taking that opportunity is themselves instead of looking at making excuses.

it's about taking the opportunities or making the most of them that are available to you at the time instead of blaming the previous generation.

In 1997, Gordon Brown, new Chancellor of the Exchequer, made a pledge in the House of Commons: YouTube linky.

"I will not let house prices get out of control and put at risk the sustainability of the recovery."

>> Since then, the average price of a house in Britain has nearly trebled, from around seventy thousand pounds to over a hundred and ninety thousand.<<

Mostly all powered by credit expansion way above what the true economy was ever capable of supporting. And soon to be found out there is very little supporting those values - with broken banks, huge debts, and increasing numbers of young people coming out to find no jobs, or not well paid jobs. (I'm off out for a few hours - will catch up on this interesting thread later.)

chucky

dopester wrote: »

Mostly all powered by credit expansion way above what the true economy was ever capable of supporting. And soon to be found out there is very little supporting those values - with broken banks, huge debts, and increasing numbers of young people coming out to find no jobs, or not well paid jobs. (I'm off out for a few hours - will catch up on this interesting thread later.)

that would mean that the credit expansion was a good thing as it gave more people the opportunity to own their own homes.

StevieJ

mbga9pgf wrote: »

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.

Add a 90% mortgage and I couldn't agree more.

Graham_Devon

Really2 wrote: »

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.

GRRRRRR!

No, its NOT!

Yet another over exagduration to make a stupid point. I don't think anyone espects a 3 bed home to live in as a couple.

But people buying those 3 bed homes now are desperate for a family, or indeed, already have a family.

FTB's have changed. The whole culture has changed. The generalistation of "people get married, buy a house, have kids, live happily every after" has gone.

I'd say it was far more common for people to have kids before they buy now, hence still being FTB's, they need something bigger. I know the answer is to not have kids, but that's not really an answer, it's just a line thrown out in resposne.

StevieJ

chucky wrote: »

really!? are you sure that was in the UK?

mortgage interest rates didn't go below 5% until around the year 2000.

He said grandparents so probably 50's or 60's.

StevieJ

Really2 wrote: »

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.

.:rolleyes:

That was nothing :eek:

There were ten in a bed
And the little one said
"Roll over, roll over"
So they all rolled over
And one fell out

julieq

The reason the babyboomers had access to cheap homes was the same as there was a baby boom: there had just been a World War which had killed millions of people, following on from one just 20 years previously which had also killed millions of people.

That cleared any supply/demand issues.