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Timm

Here Come The Next Generation Of Homebuyers

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Please someone tell me I've got this seriously wrong:

Current (post) 98 student loans have an interest rate of 1.5% at the moment.

They pay RPI or BoE rate +1%, whichever is the lower.

According to This Link, new borrowers, from Sept 2012, will be paying RPI + 3%.

That works out at 8.2% just now!!!!

That's £3567 in interest a year.

If you're on £25k, you'll be paying off £360 a year.

So your debt will be £3207 larger.

There are some words for this.

http://en.wikipedia....ve_amortization

http://en.wikipedia....entured_servant

http://en.wikipedia....edatory_lending

Edit: From Sept 2012, not from now.

Edited by Timm

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I don't think its retrospective, only the post 2012ers on the new system of £9K fees plus loans

So, in 2012 we might expect to see a lot of unfilled places?

This might also go some way to explaining the huge demand this year.

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(...) the RPI + X% figure depends on your salary/wages.

True, from 2016, it will be RPI plus up to 3%.

HOLD on there... so this is only for NEW graduates? I graduated 4 years ago and still have £11k to pay off.... hopefully this wont be applying to me!

I don't think it will.

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Interesting report out today in Wales - basiclly says that when the Welsh Assdembly said they would not charge students... no one actually understood what it meant... and it meant different things to different organisations... lots of back-tracking beginning...

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I often feel as if I and others in the priced-out generation have been the only victim of Broon's mad decade at the helm. In the last 12 months I've realised that we are now just one of several groups who have been massively affected. I learned so much about life at uni and it saddens me that many young people, through no fault of their own, are not going to have that opportunity in the future. My aunt is also one of those women who is at the age most affected by decisions re women's retirement age. It's not just us out there that are hurting. I expect more groups to be added to this number as well.

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I often feel as if I and others in the priced-out generation have been the only victim of Broon's mad decade at the helm. In the last 12 months I've realised that we are now just one of several groups who have been massively affected. I learned so much about life at uni and it saddens me that many young people, through no fault of their own, are not going to have that opportunity in the future. My aunt is also one of those women who is at the age most affected by decisions re women's retirement age. It's not just us out there that are hurting. I expect more groups to be added to this number as well.

The boomers.

Despite what many on here say, the boomers will hurt the most. They will be the ones forced to sell-off their assets (houses) at knock-down prices to fund a meagre retirement life. Their pensions will be destroyed / inflated into nothing. The following generations will continue to hate them and the UK will continue to treat its aged population as some sort of scab that it is itching to flick off.

I feel very much for those in their 50's and 60's who have yet to see the light, feeling smug and financially secure. They will be utterly ****-raped, and their children will leave them to rot in old peoples' camps.

This does not in any way balance out the suffering of other groups / generations of course. We will all suffer, some more than others.

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<br />Interesting report out today in Wales - basiclly says that when the Welsh Assdembly said they would not charge students... no one actually understood what it meant... and it meant different things to different organisations... lots of back-tracking beginning...<br />

Still up to their old ways?

"For bureaucrats of the Welsh Assembly Government, the retirement age is 50"

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I feel very much for those in their 50's and 60's who have yet to see the light, feeling smug and financially secure. They will be utterly ****-raped, and their children will leave them to rot in old peoples' camps.

Whatever you say captain!

Meanwhile, get back to work to pay for my retirement and pension.

Whatever happens to the 50/60 generation will be much better than what happens to you in old age.........

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<br />The boomers.<br /><br />Despite what many on here say, the boomers will hurt the most. They will be the ones forced to sell-off their assets (houses) at knock-down prices to fund a meagre retirement life. Their pensions will be destroyed / inflated into nothing. The following generations will continue to hate them and the UK will continue to treat its aged population as some sort of scab that it is itching to flick off.<br /><br />I feel very much for those in their 50's and 60's who have yet to see the light, feeling smug and financially secure. They will be utterly ****-raped, and their children will leave them to rot in old peoples' camps. <br /><br />This does not in any way balance out the suffering of other groups / generations of course. We will all suffer, some more than others.<br />

Bitter post - but you are right.

There will be massive house devaluations esp for larger houses passed down unless the satanics amongst our Govt members and in the City deliberately divert more taxpayer c_ash into supporting prices (thru pretend bank support) in bricks 'n mortar (a Mason connection!) that is not happening anywhere else in the World = so 'highlights' the wrong-doing of UK specific elites/leaders!

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Either way, if you graduated in 2000, the most you could owe the SLC after 3 years drinkingstudy was around £6K. In 2012, it looks like it'll cost £9K a year just to go to University, nevermind the rent, books and beer.

Now that's what I call inflation.

Its not just tuition either. Nor is it new. Full board hall of residence when i was at uni was £60 a week when in 2003 when i started uni, had doubled to £120 a week when i left in 2006. Seems worse in the actual university halls though. I was still able to houseshare in 2005/6 for £33 a room/week in a house close by.

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I believe those figures to be true, and the interest is added to the loan if you're earning below the minimum threshold, so the debt can easy spiral out of control considering few students are getting high paid jobs anymore.

Now combine that with the plans to sell off the student loan book to banks and you can see the banks are on to a massive winner. Guaranteed debts that large minority will never be able to pay off, it'll be a debt for life for the students, the only hope they'll have is to never earn loads of money so it gets written off when they turn 55 or something. It's almost disincentive to get a good job.

As much as I like this government, this is idiotic plan!

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So, in 2012 we might expect to see a lot of unfilled places?

This might also go some way to explaining the huge demand this year.

I have some more insight here. I work for a charity whose goals include sending people on gap years to do voluntary work overseas. We usually expect 20 applicants a year for those programmes. For next year we are currently running at a big fat zero.

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I feel very much for those in their 50's and 60's who have yet to see the light, feeling smug and financially secure. They will be utterly ****-raped, and their children will leave them to rot in old peoples' camps.

While i dont intend to let my parents 'rot' in and OAP camp, i do find it slightly unfair that being an only child (as pretty much all of my mates seem to also be - all born in the 80s) will have to look after our elderly parents alone. My parents all have 2 or 3 brothers or sisters, as most of that generation did, so share the looking after between them. My generation of only children will have to look after their ageing parents alone. Theres only so much you can do AND lead your own life at the same time.

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While i dont intend to let my parents 'rot' in and OAP camp, i do find it slightly unfair that being an only child (as pretty much all of my mates seem to also be - all born in the 80s) will have to look after our elderly parents alone. My parents all have 2 or 3 brothers or sisters, as most of that generation did, so share the looking after between them. My generation of only children will have to look after their ageing parents alone. Theres only so much you can do AND lead your own life at the same time.

Yes interesting

It is hard work the Doctor visits, hospital visits , stays in hospitals dealing with the day to day stuff . The more children the more it is spread out however even then it often falls to one or two children as others might have moved away become estranged ect. With my mother and her years upon years of illness there was me a brother and my Dad . Still it took it out of us when you have a busy life at work at the same time . I have a cousin who has two brothers but they live a long way off , so all the care of her eldley mother is falling on her and with a job , husband and two kids she is finding the whole thing a big struggle.

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They're trying to make people forget about the loan, and only drawing attention to the low monthly repayments.

They're turning it into a tax.

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While i dont intend to let my parents 'rot' in and OAP camp, i do find it slightly unfair that being an only child (as pretty much all of my mates seem to also be - all born in the 80s) will have to look after our elderly parents alone. My parents all have 2 or 3 brothers or sisters, as most of that generation did, so share the looking after between them. My generation of only children will have to look after their ageing parents alone. Theres only so much you can do AND lead your own life at the same time.

At least they will have one to look after them. Unless I have some very kind nephews and nieces, when I can no longer look after myself, I thihk I'll be best off finding a Dignitas way out of things.

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Here Come The Next Generation Of Homebuyers

One wonders exactly who will be buying houses 10 years from now.

60+ year olds with meagre pension pots trying to fund their retirement?

50+ year olds with mortgages on existing properties worrying about redundancy.

40+ year olds still underwater on their 2007 FTB newbuild flats?

30+ year olds still paying off student debts?

20+ year olds working in call centres?

Apart from public sector workers with secure incomes and huge pension pots I struggle to see who's left.

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At least they will have one to look after them. Unless I have some very kind nephews and nieces, when I can no longer look after myself, I thihk I'll be best off finding a Dignitas way out of things.

Just hope the Japanese perfect their Robot technology by then.

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One wonders exactly who will be buying houses 10 years from now.

60+ year olds with meagre pension pots trying to fund their retirement?

50+ year olds with mortgages on existing properties worrying about redundancy.

40+ year olds still underwater on their 2007 FTB newbuild flats?

30+ year olds still paying off student debts?

20+ year olds working in call centres?

Apart from public sector workers with secure incomes and huge pension pots I struggle to see who's left.

Contender for post of the day IMO.

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  • 312 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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