Defeated and trapped. Young look on in despair at The Kingdom of the Boomers

Percy1983

MrRee wrote: »

Can you please replace THERE with THEIR ??

Shame you couldn't find anything else wrong with the point.

Remember pointing out spelling and grammar is the last line of defence.

mayonnaise wrote: »

Hold on.

mayonnaise wrote: »

You mean HPI has made it easy moving up the housing ladder?

In the other thread you claim the exact opposite;

Sorry to say I have been consistent with this and have never denied either side of the double edged sword, admittedly I only mentioned one side of it in the post quoted.

Let’s see how both sides (therefore both points I have made) are both perfectly valid and perfectly consistent with each other.

So how HP costs me more to move up the ladder:

So buy a house at £100k want the house which is £200k, boom 100% HPI

So my house is now £200k but the bigger house is now £400k.

So as mentioned before I now need to find £200k instead of £100k, this isn't good whichever way you look at it.

So now how HPI helps you up the ladder,

Assume the same as above and the house was bought with a 10% deposit, ignoring payments made as assuming within 2 years and for rounds sake.

So without HPI I sell and get £10k back, but the bigger house is £200k so I only have a 5% deposit, so I have to work hard and save another £10k and off I go. I am more than happy with this idea of working for something bigger/better.

So here we go boom 100% HPI, I sell and of course get £110k which is a good deposit on the £200k house, off I go, no hard work required (not bad for the generation who apparently worked hard for everything.

So without HPI I need to save £10k and have £180k on a mortgage.

With HPI I don't have to save a penny but do end up with a £290k mortgage.

So one requires hard work and one doesn't and the 'hardworking iphoneless' boomers took which route again?

Sorry if both points being valid and working in parallel upset you, but hey I am sure you will keeping telling me black is white for the fun it.

de1amo

you can theorise about how well off you will 'not' be by the HPİ going up but unless you join the game you can sit back and watch the prices rise and continue griping.....it won't change a thing!

Fella

Smithers37 wrote: »

Young people shouldn't complain, after all...

We got in to huge debt in studying with no hope of getting a decent job because that's what we were told to do, with no hope of ever finding a decent job.

You'd have to be monumentally stupid to go to University because it's "what you were told to do".

Someone should only go to University if they have a career path they're following. If they want to just go for the "life experience", then come out with a generic degree in something no employer cares about, then, surprise surprise, they'll have a load of debt & no decent job prospects.

de1amo

As an employer of University graduates here in Turkey i go for life experience over degree all the time.....if someone has a meaningless degree on their CV i just rip it up!!...c'est la vie!!!

Conrad

Very strong recent purchasing managers’ surveys for all sectors–manufacturing, services and construction–suggest a first quarter annualized GDP growth rate closer to 5%


Wall St Journal (http://blogs.wsj.com/moneybeat/2014/...nment-and-boe/)










So it would appear by prediction of 4% for this year was downright pessimistic.

wotsthat

Percy1983 wrote: »

So without HPI I sell and get £10k back, but the bigger house is £200k so I only have a 5% deposit, so I have to work hard and save another £10k and off I go. I am more than happy with this idea of working for something bigger/better.

So here we go boom 100% HPI, I sell and of course get £110k which is a good deposit on the £200k house, off I go, no hard work required (not bad for the generation who apparently worked hard for everything.

What's your house increased by since you bought? 10%? Not sure why you have such a problem with assets appreciating in value.

Say there's HPI of 100% before you die and your house goes from £150k to £300k. Your argument is that if you have two kids then they're worse off because they need to pay more for houses themselves etc. etc.

It's not the way I look at it because I don't control HPI and prefer to compare choices instead.

In your case I'd compare Percy Buyer against Percy Renter. Percy Buyer's kids are going to get £300k whilst Percy Renter's kids will get nothing.

Percy1983

wotsthat wrote: »

What's your house increased by since you bought? 10%? Not sure why you have such a problem with assets appreciating in value.

Say there's HPI of 100% before you die and your house goes from £150k to £300k. Your argument is that if you have two kids then they're worse off because they need to pay more for houses themselves etc. etc.

It's not the way I look at it because I don't control HPI and prefer to compare choices instead.

In your case I'd compare Percy Buyer against Percy Renter. Percy Buyer's kids are going to get £300k whilst Percy Renter's kids will get nothing.

You are correct hence where I am now in the game and will have to accept HPI however it goes. Looking at it HPI on my house is approx 2.2% going from LR figures, so not really moved in real terms.

The point I have with children is I can see beyond my own children (which may or may not ever exist). Yes mine will be fine as hopefully I will continue to make good choices and have a house and hopefully more to pass down.

But I would much rather HPI stayed with wages and other peoples children can get just was rich as mine without parental help, in short I want my children and to do well though their hardwork not through needing my hardwork.

ukcarper

Jason74 wrote: »

And for those whose grandparents (or parents for that matter) aren't homeowners ?. . . . . . .and there of course lies the big issue here. Going back to the 60s-70s, young people with no family history of wealth had a realistic opportunity of getting together a deposit for a house, accumulating wealth, and ending their working lives significantly richer than their parents based on their own efforts. My parents started just that process when a newly qualified electrician's wage enabled them to buy a 3 bed house in an unfashionable but pleasant London suburb as 21 yr old FTBs in 1976. All without a penny from their parents, who simply had no funds to help them in that way.

For someone starting their working life now, they could work as hard as my parents did, have the same work ethic, be just as successfyul in their jobs, and have the same education as my parents, but would have no chance of acheiving the level of wealth that my parents (or I for that matter) have been able to acheive independently.

Property prices do not just go up they are cyclical I bought just before your parents in 1972 and it was just as difficult as now house prices in relation to average earnings were just under 5x compared to just over now. The amount of money I could borrow in relation to earnings was lower, deposits were similar and interest rates higher. To much of this argument concentrates on house prices when the real problem is employment opportunities especially to those without degrees. I don't think much of that is down to babyboomers.

wotsthat

Percy1983 wrote: »

You are correct hence where I am now in the game and will have to accept HPI however it goes. Looking at it HPI on my house is approx 2.2% going from LR figures, so not really moved in real terms.

Real prices have fallen every year since 2007 and are currently at 2004 levels according to the Nationwide.

It's amazing how the first real HPI for years brings out the frothers though.

Percy1983 wrote: »

But I would much rather HPI stayed with wages and other peoples children can get just was rich as mine without parental help, in short I want my children and to do well though their hardwork not through needing my hardwork.

The increasing value, or otherwise, of your house is probably one of the least significant factors to influence the future success of your children.

de1amo

My newest employee has just reported back to work after his day release at a TEFL university course. He has no degree unlike all the other people on the course. İ spoke to his tutors and they have nothing but praise for him.. İ chose him because of his life experience and his willingness to learn unlike the established idiots who call themselves trained teachers that are doing the course alongside him.......he is Australian!..İ wouldnt touch a UK graduate!