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scuuzeme

No Place Like Home: The Generation Who Can't Afford To Buy

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Patience. I have every confidence I will actually be able to buy a castle in the next few years the way things are going. All this HPI sh1t had to happen first for the big gains to be made easy afterwards, for those that timed it right anyway ;)

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Prices of houses will drop , but with wages dropping l , taxes going up and other things like food and travel to work . Plus the insecure job market I think in years to come we will see pensioners who have lived in bedsits all their lives. Especially the ones who have never married.

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I don't see the point in articles like this. Young people and sympathetic oldies will agree, while the more tw@ttish fraction of the older population will automatically launch into a property-flavoured Three Yorkshiremen act. There is no point in discussing intergenerational injustice anymore. At this point only market forces can do what needs to be done to restore the balance.

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I don't see the point in articles like this. Young people and sympathetic oldies will agree, while the more tw@ttish fraction of the older population will automatically launch into a property-flavoured Three Yorkshiremen act. There is no point in discussing intergenerational injustice anymore. At this point only market forces can do what needs to be done to restore the balance.

Indeed, my parents are often known to launch into a conversation along the lines of, "It was hard in our day too. We had to find £2k to buy our ex-Council flat from Maggie at below Market value, don't you know!"

Anyway, I've noticed a curious thing recently. Of my peers who bought over the last couple of years, a transformation has been taking place. Instead of deriding my partner and I for renting, they're increasngly jealous of our flexibility and limited financial risk.

Take one example of a couple I know. They bought a grotty ex-council two bed in a less than desirable area at peak on a 125% mortgage from Northern Crock! They've now split up and he's lost his job. I don't know how they're paying it and assume they must be getting some benefits. Obviously they want to sell, but they had it valued at £120k (they paid £138k). To be honest given what else is currently available in the area that still seems far

too expensive. I was talking to them the other day and they cursed the day they bought the house and wished they'd rented instead.

Personally, I love renting because the flexibility has been very good for my career. And, if my partner moans about redecorating, I tell her to buy some new curtains! I figure it's small change compared to the amount I could be losing on a house. She's never bothered.

Edited by picador

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Someone's got to pay the bankers bonuses. The transfer of wealth from the poor to the rich is going to plan.

Bankers are a drop in the ocean. The big transfer of wealth from the productive economy to the idle rich was the HPI, and that died.

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I don't see the point in articles like this. Young people and sympathetic oldies will agree, while the more tw@ttish fraction of the older population will automatically launch into a property-flavoured Three Yorkshiremen act. There is no point in discussing intergenerational injustice anymore. At this point only market forces can do what needs to be done to restore the balance.

Like this, for instance? Archetypes may be embellished, but they don't come out of thin air.

And stories like "A Kind of Loving" (where it's just accepted as normal the young couple can't afford a house) were the norm, not an archetype.

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... as it was in the beginning, is now and ever shall be, ....

I'm not sure why you're sometimes so fatalistic about houses always being expensive. 70% of the adult population are owner occupiers. If 70% of people can do something, that tells me it's not exactly rocket surgery.

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Personally, I love renting because the flexibility has been very good for my career. And, if my partner moans about redecorating, I tell her to buy some new curtains! I figure it's small change compared to the amount I could be losing on a house. She's never bothered.

Not sure i'd like renting when I'm 65 and on the old age scrap heap. People are forgetting the freedom and security out right (mortgage free) homeownership brings in old age, and how (disgustingly) this personal freedom has become increasingly denied.

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I'm not sure why you're sometimes so fatalistic about houses always being expensive. 70% of the adult population are owner occupiers. If 70% of people can do something, that tells me it's not exactly rocket surgery.

They were given deliberate bribes to buy (kickbacks called MIRAS) off the backs of the working classes who couldn't afford to buy.

Thatcher then came up with house-discount bribes to sell off houses in deprived areas - designed to stiff the poorest in society in the future (the 5 million 'poor' waiting list in 2010)

We've been manipulated into this position by the Vi Elites who have creamed off all the commissions and expanding interest paid from the gen population buying and selling to each other thru increasingly worse boom-bust periods.

The reason Govt now support house prices as we all know - it will crash/wipe out their banks (rip-off vehicles) and the UK - elite's greed let it all get completely out of hand!

Edited by erranta

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Bankers are a drop in the ocean. The big transfer of wealth from the productive economy to the idle rich was the HPI, and that died.

How does that work? If all housing is rising, what relative wealth is created for the owners? Isn't it just an illusion?

On the other hand, aren't the banks raking in the wealth?

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Not sure i'd like renting when I'm 65 and on the old age scrap heap. People are forgetting the freedom and security out right (mortgage free) homeownership brings in old age, and how (disgustingly) this personal freedom has become increasingly denied.

What do you mean? Because housing has become so unaffordable? Or because of taxation?

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I'm not sure why you're sometimes so fatalistic about houses always being expensive. 70% of the adult population are owner occupiers. If 70% of people can do something, that tells me it's not exactly rocket surgery.

Yep.

There's an age profile to that. The 30% are spread across all ages, with the greatest number among the young who have ample time to join the richer 70%. Similarly, precious few of today's 50-year-olds were homeowners at 25.

What really has changed is the profile: today the Bank of Mum&Dad has a bigger profile than ever before. Once upon a time it was only a tiny elite who had access to that kind of family money; now it's a growing chunk of the younger generation. That leaves the remainder of the young generation that bit more marginalised.

(And older non-owners all the more marginalised, not even on the radar for journos on a "priced out" story).

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Yep.

There's an age profile to that. The 30% are spread across all ages, with the greatest number among the young who have ample time to join the richer 70%. Similarly, precious few of today's 50-year-olds were homeowners at 25.

What really has changed is the profile: today the Bank of Mum&Dad has a bigger profile than ever before. Once upon a time it was only a tiny elite who had access to that kind of family money; now it's a growing chunk of the younger generation. That leaves the remainder of the young generation that bit more marginalised.

(And older non-owners all the more marginalised, not even on the radar for journos on a "priced out" story).

Yet in the early 1990's at the beginning of a severe HPC, I asked an well respected local accountant, "How can people afford to buy houses at these prices?" And his reply was, "They will inherit money from their parents, or be given it".

Have things really changed that much?

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How does that work? If all housing is rising, what relative wealth is created for the owners? Isn't it just an illusion?

On the other hand, aren't the banks raking in the wealth?

Well, the major transfer was to the likes of the Wilsons. And a whole class of BTL and property-flipping spivs. Not to mention everyone who bought at £60k and sold - or could realistically sell - at £150k: the innocent majority.

The owners have an asset on which to draw. Try setting up your own business that involves up-front investment: if you have money (like the value of a house) you can borrow your money to invest. Without that money you're excluded. And worse, that same funny money was widely used for pure consumption.

Bottom line: it's inflationary, in that it devalues money. Hard-earned income counts for sod-all.

[edit - tyop]

Edited by porca misèria

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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