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Discussing You And Yours With A Baby Boomer

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Mods - feel free to move this to anecdotals...

My father in law came to vist my wife and I yesterday, bringing his long term partner who is a baby boomer of the worst sort... thinks houses only ever go up in value, is very satisfied with the equity she has "acheived" in her house, and thinks she made a very wise investment when she bought her house 30 years ago.

Anyway... we always argue about houses and prices... and this time she mentioned a radio programme a few days ago (You and Yours as it turns out). She started by saying she felt really sorry for a young girl on the radio, because the banks wouldn't lend her enough to buy a house. I queried the fact that £250k was a lot for a young girl to borrow, and the bank were correct in not lending her more than she can afford. A few muttered comments followed about it being so unfar that the young were being deprived of the chance to get on the "ladder"...

Later on the subject arose again... after a few drinks... I explained firmly that my wife and I will soon only have one salary (our first baby is on the way). On that basis we can barely afford £700 a month for a mortgage (which, with deposit, and future rate rises, equates to a £100k house. Therefore, if an average starter home costs £180k, that is just too damned expensive and if the bank offerered me a mortgage of £180k, we would not want it and could not afford it..

There followed an awkward silence as she processed this. I think after several years of almost identical conversations, she is finally FINALLY realising why there is a problem.

Only the day before I was discussing possible job cuts with a chap I work with (another baby boomer), who had always maintained house prices won't come down. He is worried he'll need to sell his house if both he and his wife lose their jobs. I asked how much he'd get for it... his answer was "Well at one point it would have fetched £350k, but now maybe £250k". I nearly spat my coffee out in amazement.... he has suddenly, and without putting up a fight, accepted his house has lost 30% in value.

Just a couple of annecdotes I know, but if baby boomers are seeing the light then maybe there is hope for the rest of us.

Edited by Guest

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My Dad is a pre Boomer and bought a house for £3,750 in 1961 , today it is worth about £325,000 . He had 4 children and my Mum did not work.

My younger brother now 42 has never been able to buy and my Dad has nagged him for years and years . We told him untill we were blue in the face that a single salary of £30k did not buy a £250-300k house . After years the penny has just dropped and his conversation has changed from " I did it why not you " to something like " the young are priced out ".

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Although I bought last year (right place, right area, right price for me), I had a similar very heated discussion with my parents at Christmas about house prices. Once the dust had settled, they had literally been shouting in rage at me for daring to suggest that it was easier for them to buy a house on 2x one salary than somebody starting today, they paused, thought about it all and suddenly they apologised and agreed. I nearly faint, after all, it's only taken around eight years for them to finally understand. I do think that the boomers are *slowely* starting to wake up and smell the proverbial.

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My Dad is a pre Boomer and bought a house for £3,750 in 1961 , today it is worth about £325,000 . He had 4 children and my Mum did not work.

My younger brother now 42 has never been able to buy and my Dad has nagged him for years and years . We told him untill we were blue in the face that a single salary of £30k did not buy a £250-300k house . After years the penny has just dropped and his conversation has changed from " I did it why not you " to something like " the young are priced out ".

Thats the funny thing. The 'young' are now sometimes early forties. In these years they should have a young family, security and one eye on the saving for retirement. Fat chance. Society has been robbed, good and proper. Unfortunately those complicit in the crime where unaware and fooled (the boomers).

Edited by desertorchid

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Thats the funny thing. The 'young' are now sometimes early forties. In these years they should have a young family, security and one eye on the saving for retirement. Fat chance. Society has been robbed, good and proper. Unfortunately those complicit in the crime where unaware and fooled (the boomers).

I wouldn't say we were complicit, I'd say we were conned. We expected to work for about 45 years, pay our taxes, and get a modest pension in return. Our parents (my father was born 1918) drummed into our heads that you shouldn't trust paper money or governments, the only safe investment* was bricks and mortar, and this was standard advice in working-class families.

* but they didn't mean investment, as in an appreciating asset. They meant SAVING. It was the only safe store of value.

Sad to say, a lot of my generation still don't understand the damage to our society started by greed-is-good Maggie and the following governments with their never-never model of society.

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After years the penny has just dropped and his conversation has changed from " I did it why not you " to something like " the young are priced out ".

I am hearing this more and more from the boomer generation.

The penny finaly seems to have dropped and they are accepting the inevitable.

The game is up and more importantly THEY BELIEVE.

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Still nothing but brick walls from any boomer I talk to. :angry:

"Things were hard in their day too you know"

The worst thing is that they all think that as my partner and I are in reasonably decent jobs that we must be rolling in it. :-(

P

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Hearing the same thing here ,a few I know jumped on the get the biggest mortgage you can boat {because that is how to make the most} One is on the the verge of going under a couple of others are expecting their first child all deeply concerned now with talk of interest rate rises.

I suggested they should get a fixed rate for piece of mind ,but both said they could not afford to do so at the rate`s they were offered as they now have a high LTV ,and can only just manage with what they are paying now.I can see a lot off pain is going to felt in the next few years ,and I definitely get the sense that the above have come to realised they jumped on a boat with out checking the life raft`s

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I wouldn't say we were complicit, I'd say we were conned. We expected to work for about 45 years, pay our taxes, and get a modest pension in return. Our parents (my father as born 1918) drummed into our heads that you shouldn't trust paper money or governments, the only safe investment* was bricks and mortar, and this was standard advice in working-class families.

* but they didn't mean investment, as in an appreciating asset. They meant SAVING. It was the only safe store of value.

Sad to say, a lot of my generation still don't understand the damage to our society started by greed-is-good Maggie and the following governments with their never-never model of society.

+1 - was born in 1965 and have suffered from being on the trailing edge of the baby boom and ill conceived policys on immigration and training, its harder now than ever for people basically to have anything like a decent life on an average wage what with no job security if you can get one and massive demands on your income that previous generations never had ie the tax take/what you get for that, pensions blackhole, insurance thru roof and escalating fuel prices. Its very right that the bboomers should wake up to the situation buut they created it knowingly or otherwise !+ :unsure:

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Although I bought last year (right place, right area, right price for me), I had a similar very heated discussion with my parents at Christmas about house prices. Once the dust had settled, they had literally been shouting in rage at me for daring to suggest that it was easier for them to buy a house on 2x one salary than somebody starting today, they paused, thought about it all and suddenly they apologised and agreed. I nearly faint, after all, it's only taken around eight years for them to finally understand.

I do think that the boomers are *slowely* starting to wake up and smell the proverbial.

Nope, the knowledgeable ones (Thanks to HPC) smelt the coffee long ago, and got out!! :P

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My favourite phrase in these conversations is "would you take a £700 a month paycut so others can be free to buy?"

Because that's more or less what it equates to for the average.

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Mods - feel free to move this to anecdotals...

My father in law came to vist my wife and I yesterday, bringing his long term partner who is a baby boomer of the worst sort... thinks houses only ever go up in value, is very satisfied with the equity she has "acheived" in her house, and thinks she made a very wise investment when she bought her house 30 years ago.

Anyway... we always argue about houses and prices... and this time she mentioned a radio programme a few days ago (You and Yours as it turns out). She started by saying she felt really sorry for a young girl on the radio, because the banks wouldn't lend her enough to buy a house. I queried the fact that £250k was a lot for a young girl to borrow, and the bank were correct in not lending her more than she can afford. A few muttered comments followed about it being so unfar that the young were being deprived of the chance to get on the "ladder"...

Later on the subject arose again... after a few drinks... I explained firmly that my wife and I will soon only have one salary (our first baby is on the way). On that basis we can barely afford £700 a month for a mortgage (which, with deposit, and future rate rises, equates to a £100k house. Therefore, if an average starter home costs £180k, that is just too damned expensive and if the bank offerered me a mortgage of £180k, we would not want it and could not afford it..

There followed an awkward silence as she processed this. I think after several years of almost identical conversations, she is finally FINALLY realising why there is a problem.

Only the day before I was discussing possible job cuts with a chap I work with (another baby boomer), who had always maintained house prices won't come down. He is worried he'll need to sell his house if both he and his wife lose their jobs. I asked how much he'd get for it... his answer was "Well at one point it would have fetched £350k, but now maybe £250k". I nearly spat my coffee out in amazement.... he has suddenly, and without putting up a fight, accepted his house has lost 30% in value.

Just a couple of annecdotes I know, but if baby boomers are seeing the light then maybe there is hope for the rest of us.

I've had many similar conversations with my inlaws and they are exactly the same - I can spend 20 minutes laying down indisputable facts, each to which they generally agree, and then when I've finished they come out with something along the lines of 'but still, you can't go wrong with bricks and mortar'. Head - brick wall...

Funny though how they still can't see the contradiction - they believe it's a universal certainty that house prices only ever go up, yet at the same time they also believe they have been somehow canny with their 'investment'.

Now however, they are in a position where they now need to move and have have the house valued - 20% less than what they paid. I know I shouldn't laugh but :lol::lol::lol::lol:

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Thats the funny thing. The 'young' are now sometimes early forties. In these years they should have a young family, security and one eye on the saving for retirement. Fat chance. Society has been robbed, good and proper. Unfortunately those complicit in the crime where unaware and fooled (the boomers).

Interesting comment indeed. I am forty one this year and feel in many ways that I have not reached this level of adulthood, is it because of the sheer amount of those older than me that now exist? In thought and action I am mature.

Something else has started to happen recently as well, normally I would be amongst the older people applying for my type of work but anecdotal evidence suggests that this is no longer the case, and these older applicants have now pushed me back down into the younger bracket (which is good news for me).

Will I reach my sixties and still be surrounded by so many in their eighties holding on to their assets, perpetual midlife?

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Thats the funny thing. The 'young' are now sometimes early forties. In these years they should have a young family, security and one eye on the saving for retirement. Fat chance. Society has been robbed, good and proper. Unfortunately those complicit in the crime where unaware and fooled (the boomers).

+ 1

Good thread.

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High house prices would be OK for the 40yr olds masses to muddle through , if womens fertility was 100% the same as if they were 16.

Its not a case of being price out, but also too late to start a family.

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I've had many similar conversations with my inlaws and they are exactly the same - I can spend 20 minutes laying down indisputable facts, each to which they generally agree, and then when I've finished they come out with something along the lines of 'but still, you can't go wrong with bricks and mortar'. Head - brick wall...

:lol: Exactly!

(...) Now however, they are in a position where they now need to move and have have the house valued - 20% less than what they paid. I know I shouldn't laugh but :lol::lol::lol::lol:

You should say to them: " Wow! You went wrong with bricks and mortar?! :o:unsure: "

:lol:

I think the penny will finally, finally drop all the way to the final conclusion then. :D

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Great thread.

Looks we are moving past the denial phase then on the boom bust chart.:rolleyes:

I concur with all the anecdotals had many of the same experiences been shouted at abused ostracised etc. etc. ad nauseum.

Currently taking my front row seat with a very large bucket of popcorn - I've spent a bit extra to watch the HD 3D version.

Remember people might wish unsustainable bubbles to go on forever and they may think that if they are all in denial then reality won't bight - but we all know gravity always wins!!

Bump!! is that the housing market.:D

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To add to this. I had a very interesting but depressing conversation with kids this week. They asked how they could get jobs in a mrket where three years experience is being demanded. Obviously they have zero years and little to no chance. My heart sank and i also thought of how the heck they ever get half of what the older generation have. Education, houses, holidays, cars and relative job stability. It's all been p1ssed up the wall just for 20- 30 years of excess by a generation or two. And now that same generation are relying on these kids to fund their retirements, health services and pensions. Where will this magical money appear from to pay for the 'downsizing' era people to free up their 'housing investments' cash. I think they are all scr3wed.

Sad times for youngsters though, they did nothing to deserve this start.

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Will I reach my sixties and still be surrounded by so many in their eighties holding on to their assets, perpetual midlife?

Not if we bring in an annual property tax based on the value of the house and they suddenly realise that a small two bedroom sheltered aprtment is more suitable for their needs and they should free up their big old gaff for their children's/grandchildren's generation.

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To add to this. I had a very interesting but depressing conversation with kids this week. They asked how they could get jobs in a mrket where three years experience is being demanded. Obviously they have zero years and little to no chance. My heart sank and i also thought of how the heck they ever get half of what the older generation have. Education, houses, holidays, cars and relative job stability. It's all been p1ssed up the wall just for 20- 30 years of excess by a generation or two.

Just remember though that only the baby boomer generation have actually had Education, houses, holidays, cars and relative job stability.

Those before had job stability but that's about it. Those after generally have some of education, holidays and cars.

Only those born between 1945 and 1965 have had - or will ever have - all the things on your list as "standard".

(That said, even most of the baby boomers didn't go to University. It's just that the few who did go didn't have to pay.)

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Not if we bring in an annual property tax based on the value of the house and they suddenly realise that a small two bedroom sheltered aprtment is more suitable for their needs and they should free up their big old gaff for their children's/grandchildren's generation.

+ 1

Exactly!

I've been arguing for t here for a long time.

And it doesn't have to be a high rate. We rent a small ugly flat, and we pay around 1% of its (current) market price in council tax per year. But better properties pay a lower rate! That is both unfair and irrational. Worse still: There is an effective cap, and mansions pay a ridiculously low rate! This is beyond absurd.

I would suggest a flat rate of 1%/year for all properties. And no cap.

If the lower classes/properties can pay 1%/year, then why better properties can pay a lower rate?? Indefensible.

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My mother is disgusted that my husband won't add another £150k to our mortgage to accommodate her moving in with us.

Apparently she had a nervous break down at 52, has been claiming a teachers pension ever since on top of an old age pension from 60 and has more per month to live on than us, but we are wrong not to make sacrifices for the family.

And if anyone is to blame it's the single mums and immigrants, I have to try hard not to smack her one, really I do.

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where I work, the 'young' are split into two camps, those which have bought slave boxes and those who are still renting, neither are very happy.

The sad part about it is that high house prices, together with the high cost of living and peoples expectations puts pressure on relationships....however hard you work you are still standing still or sinking... :blink:

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My mother is disgusted that my husband won't add another £150k to our mortgage to accommodate her moving in with us.

Apparently she had a nervous break down at 52, has been claiming a teachers pension ever since on top of an old age pension from 60 and has more per month to live on than us, but we are wrong not to make sacrifices for the family.

And if anyone is to blame it's the single mums and immigrants, I have to try hard not to smack her one, really I do.

:lol: Brilliant post iLB, :lol:

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  • 276 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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