For babyboomers housing "has been free"

Alter_ego

In the 70s - 80s my 3 bed semi was earning more than I was and it didn't even pay tax!
However I still need to live in it (well, It's successor)

wotsthat

Isn't the chap from Legal & General just trying to sell equity release?

The boomer stuff is a simple way of grabbing the attention of people who don't understand how compounding works.

PasturesNew

ringo_24601 wrote: »

Yup, ultimately this cost is being past down to the young.

So the children of the baby boomers....?

This makes me laugh - every time somebody complains about baby boomers, they should look at their own parents and ask them what they're going to do about it then....

PasturesNew

CLAPTON wrote: »

ultimately the inheritance will be passed down to the young

We thought that. It's all been gobbed up by care home fees now.... which just increased again.

[Deleted User]

CLAPTON wrote: »

ultimately the inheritance will be passed down to the young

Tell that to the holiday industry .. http://www.dailymail.co.uk/femail/article-2020899/Meet-new-SKI-set-Thats-Spending-Kids-Inheritance-sports-cars-luxury-holidays-offspring-struggle-make-ends-meet.html

After they've spent their final salary pensions on cruise holidays, they'll life forever, drain the NHS of it's resources and spend their equity on care homes

I guess the annoying thing is the exponential rise in house prices - What the heck is going to happen to the young (I'm 34.. so not calling myself young anymore!) as they watch houses rise in value from £10-30k per year. I look at my own and wonder why it's now worth £50k more than I paid for it 2 years ago. Who's paying for that £50k? It's not me; but it will be paid for by someone one day. It'll be my own children's generation who will probably look at mine and ask "Why in the hell did you allow prices to balloon as they did?", just as I look at the 'boomers.

The only answer I see is to build on greenbelt and increase interest rates gradually. Now that's going to cost me, and all the boomers but it's something that needs to be done - but won't be. No one votes for a government that costs them (imaginary) money. Or.. maybe a tax on equity? Get rid of stamp duty, and tax people on the equity increase on their property.

It's a house of cards and it's going to fall one day

wotsthat

ringo_24601 wrote: »

Tell that to the holiday industry .. http://www.dailymail.co.uk/femail/article-2020899/Meet-new-SKI-set-Thats-Spending-Kids-Inheritance-sports-cars-luxury-holidays-offspring-struggle-make-ends-meet.html

After they've spent their final salary pensions on cruise holidays, they'll life forever, drain the NHS of it's resources and spend their equity on care homes

Presumably those working in the holiday industry, on cruise liners, the NHS and care homes could be classed as young?

All of the boomer cash will end up in the hands of younger people - not necessarily their offspring.

[Deleted User]

wotsthat wrote: »

Presumably those working in the holiday industry, on cruise liners, the NHS and care homes could be classed as young?

All of the boomer cash will end up in the hands of younger people - not necessarily their offspring.

And the ones who'll get seriously rich are the owners.. who are unlikely to be the 25 year olds working for NMW (Pay in the holiday/cruise/care home industry is hardly known for being good)

Some money will reach the hands of the youngsters; but the majority will not

onlyroz

CLAPTON wrote: »

ultimately the inheritance will be passed down to the young

Nope, my mother-in-law's house is being used to pay her care home fees and my parents' house might go the same way, unless they spend it on holidays first.

wotsthat

ringo_24601 wrote: »

And the ones who'll get seriously rich are the owners.. who are unlikely to be the 25 year olds working for NMW (Pay in the holiday/cruise/care home industry is hardly known for being good)

Some money will reach the hands of the youngsters; but the majority will not

Those 25 year olds currently working on cruise liners will likely form the wealthiest generation ever. If it goes really badly maybe they'll only be the second wealthiest generation that history has known. Terrible eh?

The average age of an MP is around 50. As soon as the next election boomers may well be the minority in parliament. It won't be long before Gen X take over the boomer mantle.

Older people tend to have more money because they've had more time to accumulate it. It's not a difficult concept.

[Deleted User]

wotsthat wrote: »

Those 25 year olds currently working on cruise liners will likely form the wealthiest generation ever. If it goes really badly maybe they'll only be the second wealthiest generation that history has known. Terrible eh?

The average age of an MP is around 50. As soon as the next election boomers may well be the minority in parliament. It won't be long before Gen X take over the boomer mantle.

Older people tend to have more money because they've had more time to accumulate it. It's not a difficult concept.

All my parents friends bought their first homes in their early 20s (and got married/had kids then). Pretty much all my friends (and my brothers) are getting married and buying homes in their early 30s. I'm aware this is a small middle-class subset, but i'm sure wider-observation would back it up that lifestyle is changing, and home prices are a key factor.

Watch as the average age of first time buyer rises...


From https://www.cml.org.uk/cml/publications/newsandviews/45/152

So, should we stand by and watch as progressive generations get poorer and poorer?