£1.2tn given to old from young

FATBALLZ

baileysbattlebus wrote: »

You could also argue that things haven't changed in the last 9 years...

True, if you were a complete cretin.

mbga9pgf

ukcarper wrote: »

There was a big difference house prices doubled in the early 70s when most boomers bought

And what were payscales doing at this time? I will tell you. They were raising pay on a monthly basis.

chucky

mbga9pgf wrote: »

So, whats the difference?

or if you bough in 1998 and sold in 2007

ukcarper

mbga9pgf wrote: »

And what were payscales doing at this time? I will tell you. They were raising pay on a monthly basis.

Average house price 1973 £9.9k. Don't know average salary but definitely less than £2k

chucky

ukcarper wrote: »

Average house price 1973 £9.9k. Don't know average salary but definitely less than £2k

that's nearly 5 times salary - i was always told it was much, much better back in the old days

baby_boomer

I'd be very surprised if the average house in 1973 was more than 5x the average salary. In fact, you could knock me down with a feather & I'll give up posting if it was.

It was before the ground breaking 1975 Sex Discrimination Act

Double full income households were unheard of for families who reproduced - which almost all did who were physically capable.

Building societies were still in the mortgage = 3x salary mode, and then only if you'd saved with them for years.

And in those days they could discount any female earnings on the grounds that women would become pregnant & give up work for at least 25 years (even if they were infertile).

mbga9pgf

ukcarper wrote: »

Average house price 1973 £9.9k. Don't know average salary but definitely less than £2k

I was comenting on HP rise vs salary rise. They more or less matched was my point, so no real price rise in House prices. Prospects for UK pay rise in the next decade?

Emy1501

mbga9pgf wrote: »

And what were payscales doing at this time? I will tell you. They were raising pay on a monthly basis.

The above is the issue. There is nothing wrong with rising houses prices if there is wage inflation to match. The problems is when wage inflation does not match HPI then we get the situation where people borrow way more than they can afford and then are unable to pay it back.

People also forget that there are developing nations who's economies will overtake us in the years to come and these countries plus others will be offering our well educated to chance of a better life.

Given the choice of a 50 year mortgage in a studio as the likes of Hamish would like or the chance to move to a warm up and coming country with a nice package to go with it I know the choice I would make. I know a few young well educated people who are considering the move. There was also a financial company on the news the other day suggesting they may move their business abroad. My old employers one of those who said they would never move call centres etc abroad have just done so.

If we carry on as we are there will come a time when the best youngsters will of had a enough and will disappear and the country will be left mainly with the people that no one else wants. Just look at those multi national companies who have failed due to complancey and living in the past. Something this country seems great at.

If we want our young to look after us in old age then we need to protect them whilst they are young.

ukcarper

mbga9pgf wrote: »

I was comenting on HP rise vs salary rise. They more or less matched was my point, so no real price rise in House prices. Prospects for UK pay rise in the next decade?

Are you quite as silly as you sound average house price 9.9k salary 2k thats almost 5 times. House prices double in 72 alone I can assure you wages no where near doubled

mbga9pgf

ukcarper wrote: »

Are you quite as silly as you sound average house price 9.9k salary 2k thats almost 5 times. House prices double in 72 alone I can assure you wages no where near doubled

And what happened to real UK prices at the end of the 70's decade?

Here is a clue.

They were overvalued at peak, as they are overvalued now, thats why they are due a fall.