£1.2tn given to old from young

dopester

Too many baby boomers have spent themselves rich.

They should be sitting pretty in homes which have repeatedly doubled in value. Even if they traded up a few times over the years, within reason, and not during the frenzy, they should have very little worry about mortgage debt. They should also have significant money savings built up.

Unless they reached too high up the ladder, taking on comparatively massive debt to buy a really (during the Labour years), indulged in spending much of what they were earning, or gone buy-to-letting... they should be fine if their homes fall in value.

Fact is.. house prices are going to crash. Even the one I'm living in, owned by a sensible baby-boomer is not worth the £370K it was at peak. Not £300K, and looking to the state of UK economy, debt levels, and prospects for they young and their earning power.. not £100K either in the future. In this instance the baby-boomer owner couldn't care less about the HPI or the HPC. Owned outright after buying for £37K.

The baby-boomers can't maintain it as they would like to (high house prices), with Tony Blair being one of your champions with his love of property (but fortunately for him.. able to earn good money to service debt and fall back on to).

HPI giveth and HPC taketh awayeth. The longerwave cycle of boom and bust due to many megapolitical reasons. The system is wholly flawed. This is distasteful, but the warped view of much of the UK about the greatness of big debt and mega high house prices has been as powerful and as system-flawed as the people of Hitler's Germany really believing they were so superior and chosen to the lesser peoples in other countries. Your world-view will be changed by the brunt of economic necessity, which we're only at the beginning phase of.

An existing paradigm is seldom dispelled by evidence alone. Such systems of belief possess a resilience which makes them them virtually immune to external argument. A people whose culture grossly misinterprets certain facts will not necessarily reason their way to a more encompassing worldview until forced to do so by the brunt of economic necessity or military defeat. Reason does not alter values.

stueyhants

ukcarper wrote: »

Can you explain how the boomers have shaped society giving particular and widespread examples?

You could probably write a PhD on the subject if you had the time, I don't.

How is it possible for such a large group of people not to have an impact on society. I'm not arguing that what has happened to society is any delibrate act but it is a consequence of the way people have lived. The boomers started the mass consumer society, today's new generation are just taking it a step further.

stueyhants

ukcarper wrote: »

Like most babyboomers I know I have lived in my present house since the 80s so have not used easy credit to do anything

However the current generation (Boomers and their Children) are the NIMBYS preventing planning and building of new homes.

Graham_Devon

ukcarper wrote: »

Can you explain how the boomers have shaped society giving particular and widespread examples?

You are reading a thread about an hour long programme detailing it (amongst other things).

It's available here:
http://www.bbc.co.uk/iplayer/episode/b00psp5r/History_of_Now_The_Story_of_the_Noughties_Growing_Young/

The research has already been done.

It starts at 21 mins

treliac

The fortunes and misfortunes of each generation are due to many economic factors which are beyond the control of individuals. However some will always lose out due to their own irresponsibility. For years I've been worried about the easy access of unaffordable credit - it was bound to collapse around our ears. I'm just surprised it carried on for so long.

Our personal family misfortune was to be missold a mortgage, which caused a huge hurdle of disadvantage to get over. I don't blame a generation who wouldn't have that particular problem now, though.

The economy is something that's beyond the control or influence of each of us living our average lives. We only have one option - to work hard, make the best and most sensible decisions we can and....... to get on with life.

Who is going to turn down any advantages that come their way? Let's not pretend that anyone would. Equally, we all have to cope with any disadvantages that beset us. Any opportunities that present to today's young adults, as they go through life, will be eagerly grabbed by them with both hands.

BTW, does anyone really expect that 18 yr olds should expect to buy their own home? There was never a time when this was an expectation!

ILW

stueyhants wrote: »

The younger generation have a right to blame the current generation for not building enough houses, using easy credit to push prices up and getting the country in to massive debts.

However that blame is not going to change anything so they are just going to have to make the best they can.

The bit I don't get is that there are a higher percentage of owner occupiers now than ever, yet people keep saying prices are unaffordable. What am I missing?

stueyhants

treliac wrote: »

BTW, does anyone really expect that 18 yr olds should expect to buy their own home? There was never a time when this was an expectation!

I was not making the point that an 18 year should be able to buy a house today. I was making the point that when that 18 year comes to buy their first house in 'x' number of years it is likely to be more unafordable than it is now due to supply and demand and therefore they had a right to blame the current generation for not doing enough to prevent HPI.

stueyhants

ILW wrote: »

The bit I don't get is that there are a higher percentage of owner occupiers now than ever, yet people keep saying prices are unaffordable. What am I missing?

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

Graham_Devon

stueyhants wrote: »

I was not making the point that an 18 year should be able to buy a house today. I was making the point that when that 18 year comes to buy their first house in 'x' number of years it is likely to be more unafordable than it is now due to supply and demand and therefore they had a right to blame the current generation for not doing enough to prevent HPI.

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!!).

treliac

stueyhants wrote: »

I was not making the point that an 18 year should be able to buy a house today. I was making the point that when that 18 year comes to buy their first house in 'x' number of years it is likely to be more unafordable than it is now due to supply and demand and therefore they had a right to blame the current generation for not doing enough to prevent HPI.

I doubt it will be, but then I'm expecting prices to drop. If they don't, it would suggest that they will be affordable.

P.S. I don't accept any personal responsibility, having always remained sensible and cautious about finances.... and concerned, too about how our government and banks were sleep-walking into the problems we now find ourselves with.

But then, my own situation is the only one I've ever had control over. :rolleyes: