The generation poorer than their parents

Percy1983

Just an interesting article really, I really can see the points made and wonder at exactly what point will it all boil over.

http://www.bbc.co.uk/news/business-14294021

"Let's take my own house [which] I bought 16 years ago for £160,000. It's in south-east London. It's now worth about £1.15m.

"So I've gained a million pound windfall to which I do not feel entitled, and that windfall, at the moment, is tax-free. Were I to sell [the house], there's no tax on that gain."

"It may appear very lucky for me, but the reality is when I sell, it will probably be to a younger person who'll be getting a mortgage and spending most of their working life paying off that windfall which went to me. I don't think that's fair."

DervProf

The quote from the SE London house owner is interesting, and refreshing to hear someone who has gained from HPI, but can see the unfairness behind it.

That homeowner may not have gained as much as they think (if anything) if they want to move to a better or larger property in the local area.

shortchanged_2

It shows really how mainly thanks to rampant HPI this countries future has been shafted.

House buying is the biggest financial burden almost everyone will make and that burden is now huge on the younger generations. Many of the 1st time buyers of around 2002 onwards are going to be saddled with a lifetime of huge debts unless things change dramatically.

shortchanged_2

DervProf wrote: »

T
That homeowner may not have gained as much as they think (if anything) if they want to move to a better or larger property in the local area.

But if they want to move to a nice house in the country then they are quids in.

DervProf

shortchanged wrote: »

But if they want to move to a nice house in the country then they are quids in.

And the prices in the nearby village will increase "cos that one up the road went for £400K". Win for the Londoners, lose for the youngsters in the village who might want to setup home near where they were brought up.

MFW_10YRS_4

The flip side is that there are a lot more opportunities for our generation than our parent's. The free mobility across Europe and the opportunities for skilled workers outside Europe would have been a dream for our parents as they trudged en-mass to their factory jobs. The internet has also opened up huged possibilities, which again would have been a dream for our parents who were delighted at getting a fourth TV channel.

pinkteapot

The baby boomer generation has something much larger to answer for... The sense of entitlement they've given the current generation.

wotsthat

"There is this huge population of older people who have essentially had it all, and my generation are then paying for their retirement."

When this dawns on people, George argues, "the riots will happen".

What a moron.

There's a generation that MIGHT when they reach middle-age be less middle-class that those in middle-age now. Oh dear.

I'm in my mid-forties. Can someone tell me if I should be rioting because I've been shafted by the older generation. Or maybe I am one of the older generation that should hang their heads in shame because I went and purchased a house in the late 1990s'.

When the older generation snuff it where does all their wealth go? Does it just disappear into thin air?

shortchanged_2

wotsthat wrote: »

When the older generation snuff it where does all their wealth go? Does it just disappear into thin air?

No........but the taxman will get most of it.

ILW

How many of the current "younger generation" would want to live a basic 70s lifestyle?

DervProf

MFW_10YRS wrote: »

The flip side is that there are a lot more opportunities for our generation than our parent's. The free mobility across Europe and the opportunities for skilled workers outside Europe would have been a dream for our parents as they trudged en-mass to their factory jobs. The internet has also opened up huged possibilities, which again would have been a dream for our parents who were delighted at getting a fourth TV channel.

And, again, the flip side is that what my parents didn't have, they didn't miss. Despite not being "high flyers", my parents can now afford to be "high flyers" (a couple of foreign holidays a year), run a reasonable car and eat well. Because they didn't spend money on the things we can today, they can now afford the things that progress has brought us. Because my father didn't have to compete so much with workers from Europe or beyond, his wages were reasonable, considering he did manual labour. His property value has increase by about 100 in 50 years. Although that doesn't directly benefit him, he knows that he wouldn't stand much of a chance of buying it if he were 20 today.

And yes, the internet has opened up huge opportunities. Likewise it has closed others.