£1.2tn given to old from young

undetterred

mbga9pgf wrote: »

F*ck you Pr*ck, if you though I was given 100K for free, think again, it took a lot of sacrifice, a lot of hard work on mine and my partners part. A LOT of time away in not particularly nice places.

I will be taking control of my life alright, if someone doesnt sort the UK out pretty pronto, I will be heading away from the UK permanently.

Yawn, same s hit different day,either shape or ship out.

kabayiri

There's an irony in this wealth transfer story.

Those baby-boomers who have tried individually to help their offspring, by giving them significant money for their deposit, have contributed to the HPI we have seen in recent years.

So, if anything, the moral of the story must be : "old people of Britain, don't give your money to your children! You will only stoke up House Prices. (Give it to a cats home or something)"

fc123

dopester wrote: »

That looks interesting. Will watch it now. I was doing some rough-research a few weeks ago about Margate... trying to better understand Brighton house prices and how vulnerable the support of the premium prices are in Brighton.

Edit: to add direct link to 4-OnDemand for this episode.

Edit 2: OMG at that show. Cringe a minute for me. Seriously one of the craziest 'boom-head' shows I've ever watched.

:rotfl::rotfl::rotfl:

Edit 3: The following episode was even worse (Episode 6). That baby-boomer and his younger girlfriend should be readying to retire in luxury. They already had a huge home, he should have been selling and downsizing for retirement. Instead, lets go for a £3m development (£1.5m purchase + £1.5m redevelopment), on a hotel where no one has prospered in recent decades... major risk, Clacton-on-Sea, huge debt levels, loads of hard work and stress running a hotel.

These two episodes totally eclipse all the crazy boom-headedness I saw in the last series of Property Ladder... including that muscle-fitness woman and the train-B&B baby-boomer couple.

Edit 4: Now watching Episode 2.. picked at random from the remainder. OMG. Many baby-boomers seem to be out of their minds. Expecting constant boom... no more bust... banks always lending whatever you want. This couple, multi-millions spending (bought property to run as a hotel at around £1.9m but spent over £5 million) ... don't have the money to finish it. Also... even if they did finish it.. the work behind running a hotel day-in, day-out, year-in ect. They could have retired in absolute luxury, instead of reaching so high. Every single couple so far has been totally knocked out by the real work involved in running a hotel, after their trial day in an established hotel. They were all about the property and having fun doing it up. Amazing show... so Twilight Zone.. but actually real. This stuff on repeats and included in history shows will melt future generations minds.... "Is this real - it can't be." Thanks for the tip-off about this show fc.

It was Pastures New who intro'd me to this ages ago and I recall watching the Clacton one....I was shocked too.
I feel it was a bit if an ego trip as it was his home town and he had made some serious £££ over the past decade. Perhaps a 'Shrine' to himself to prove something?

Margate still has a slowish rail link to London. About 1hr 45 mins
Brighton is losing many 'core' arty types due to being so expensive now....maybe they are off to Margate. I mean, I had to adapt our business to be more mainstream during our final 3 years and then shut as the costs to trade just got silly for us.

When we took our lease on in '98 the town was popular but property prices weren't too bad as I don't believe the fast link to Victoria had opened then. A lot of commuting to London and second homes has pushed prices farther than they may have gone?

I recall the old TB hospital on the cliff walk at Margate which became flats a few years back. 17 odd years back I would drool over it and the open wards onto the edge of the cliff were fascinating.

Same has happened with E1 as well...cheap areas get maverick types settle in them as they are cheap and, over time, area changes and the manistream follow to catch a bit of cool. Prices rise. Then it's time to move on.;)

treliac

Deleted_User wrote: »

There are plenty of young people that are as you both say doing just fine. My neice is a 26 year old single mum who seems to have the balance about right. My cousins boy and girl of the same age have had an afluent upbrining and their mum got them started by helping out with their first flats. But they are both hard working and happy to budget for what they want in life.

kabayiri wrote: »

There's an irony in this wealth transfer story.

Those baby-boomers who have tried individually to help their offspring, by giving them significant money for their deposit, have contributed to the HPI we have seen in recent years.

Anyone given a helping hand financially, is likely to be alright if they're sensible. It's those who don't have family who can give them money or other non-earned sources and are entirely self-reliant, who will find it more difficult to achieve their goals and who probably feel more aggrieved.

Unfortunately, life is often unfair.

dopester

treliac wrote: »

Anyone given a helping hand financially, is likely to be alright if they're sensible. It's those who don't have family who can give them money or other non-earned sources and are entirely self-reliant, who will find it more difficult to achieve their goals and who probably feel more aggrieved.

Unfortunately, life is often unfair.

The parents giving children a helping hand might be stretching themselves in many instances. At least I get that impression from a few threads on the associated forum, for house buying, such as one woman asking if she should take £50K from her home to help her daughter get on the ladder. Or someone making a capital drawdown from a pension or savings.... making their own retirement less secure.

All I know is what my sister is experiencing. Late 20s. After University and a (required) post-grad course costing £6.5K... 2 years as a trainee on £17K (repaying the £6.5K loan in that time)... now on £25.5K a year, a total payfreeze last year and this for all employees/associates/partners. Grateful for her job having seen other friends made redundant, and taking on lesser paid jobs. Snap back 15 - 25 years and she would be on course for the same path as many baby-boomers... with a lovely house at the end of it. Same for other employees in her position with her employer and many others in the sector in the region. Now she couldn't afford to buy anywhere decent even with a partner earning the same. Fortunately she's with someone just a few years older, earning significantly more, but that is rare for this area.

'Working hard', a baby-boomer theme of the last couple of pages, is not enough. Working smart/intelligently is no longer always enough, because there is less money in many sectors to support wages. Honestly... go tell many people to 'work hard' on the redundancy/unemployment forums or similar. Too many people haven't accepted the deflationary new conditions playing out. The critical change from your boom loads-of-good-paying-jobs, HPI love affair years.

dopester

fc123 wrote: »

It was Pastures New who intro'd me to this ages ago and I recall watching the Clacton one....I was shocked too.

I feel it was a bit if an ego trip as it was his home town and he had made some serious £££ over the past decade. Perhaps a 'Shrine' to himself to prove something?

It was shocking. His girlfriend seemed rightly aggrieved he took on so much risk without properly consulting her about the project. She was the sort who liked to be waited on... not wait on other people.. and I can't blame her, if she has gradually built up some success over the years. An option for a secure life with money to fall back on, only for someone to make a decision for you to put your security at risk. The relationship seemed to take a lot of damage as the documentary played out.

Ahh ok, slowish rail link to Margate-London. Thanks for that info. There were arty types in that Margate boutique hotel they did up - again borrowing on credit-cards to finish it. The younger couple seemed to crave the approval of the arty Margate crowd. I don't know where that arty crowd makes all it's money - if they really have real wealth to rely upon. Certainly those new B&Bers used a lot of their money in the project. 15 years as a DJ in Italy. Love their freedoms... to choose to be tied down to debt and the chore of running a B&B.

Sadly I think if the arty Brighton types are moving to Margate, there will be no repeat of Brighton style HPI and business success. Even if they buy cheaper... it has little chance of catching on with the mainstream. It still requires the money flowing from the wider economy/banks ect - imo.

kabayiri

dopester wrote: »

'Working hard', a baby-boomer theme of the last couple of pages, is not enough. Working smart/intelligently is no longer always enough, because there is less money in many sectors to support wages. Honestly... go tell many people to 'work hard' on the redundancy/unemployment forums or similar. Too many people haven't accepted the deflationary new conditions playing out. The critical change from your boom loads-of-good-paying-jobs, HPI love affair years.

It isn't working hard, you're right.

There have been differences in 'buying power' over the last few decades.

Sometimes it's being born at the right time, and living through a particular era.

Sometimes it's moving into an 'up and coming' area, and riding the accrual of prices in that area.

And then, there are those people who cash in on a property in a very wealthy area to snap up a couple of properties, one in the countryside. Krusty and Phil feature these all the time.

Then there's the modern phenomena, the 'developer'. These are young bucks who can spot a diamond property, which is sadly presented like a piece of coal. Bit of a polish and voila , instant wealth. These people are more likely to get on the Beenie show.

What's my point? It's that only some of these apply to the so-called baby boomers. But they all have resulted in winners and losers.

The unfairness can come from a variety of sources. Seems harsh to single out one.

Cleaver

Just to save me reading the 19 pages here could someone let me know if we've come to any of these conclusions:

a) the old have given the young 1.2tn
b) the young have given the old 1.2tn
c) a sum of money has possibly been passed from one generation to the other
d) nothing decided, we've just been arguing whether houses were more affordable now or then
e) none of the above

treliac

Cleaver wrote: »

Just to save me reading the 19 pages here could someone let me know if we've come to any of these conclusions:

a) the old have given the young 1.2tn
b) the young have given the old 1.2tn
c) a sum of money has possibly been passed from one generation to the other
d) nothing decided, we've just been arguing whether houses were more affordable now or then
e) none of the above

Perhaps you could start a poll?

kabayiri

I actually think it's f) Cleaver.

f) The media have realised that stories about 'billions' no longer carry shock value. The trillion is the 'teens version of the noughties billion.