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Older Homeowners Accused Of Muscling In On First-Time Buyers

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Not seen this posted...

http://www.guardian.co.uk/money/2013/jul/14/older-homeowners-first-time-buyers

According to the latest data from estate agency Strutt & Parker, around 40% of those moving home in the six months to April 2013 were "at or near" retirement, and using the equity they have accumulated to buy a smaller property outright. "It's easy to see why first-time buyers might be aggrieved by this news as they are competing with rising numbers of cash-rich buyers who aren't struggling on tight budgets," says Harris.

That said, as one commentator remarks, are they hoarding large houses or snapping up smaller homes as they downsize? Make your mind up...

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Not seen this posted...

http://www.guardian.co.uk/money/2013/jul/14/older-homeowners-first-time-buyers

That said, as one commentator remarks, are they hoarding large houses or snapping up smaller homes as they downsize? Make your mind up...

Same story here In Australia.I have stopped having lunch in our tearoom as it is just full of >50 middle managers debating the returns on their investment properties and HPI!

Fortunately I personally have managed to duck out of contributing to the WA Property Ponzi by signing up for a Post Grad. Found out the Campus has vacant units - put an application in and now moving into fully inclusive Uni accommodation for <$200 a week B)

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Less can be more....but less doesn't always mean less space, it can be less cost to buy, less cost to maintain and service.....less bills, less people, less traffic, less noise.....less money, but more space, and time.

....all part and parcel of a lifetime cycle...building it up then drawing down......no different to how it has always been.....it is a concern that because of the lack of supply and high cost of suitable property it is now affecting first time buyers.....more a symptom of the problem not the cause...

...housing where we live, a rich country by all accounts, with people used to getting what they want, when they want, used to having home comforts, shopping till dropping on a card, more widely travelled, educated, used to eating good food, having facilities on tap is building up and causing resentments, resentment that they can have access to almost everything except a home that they can call their own.... in the past people more readily accepted what they had, if poor, their peers were poor, less was more, because they didn't know any different, but the people with less and are accepting of less, were they happier and more contented then or now? ;)

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Greed usually has a nasty ending, however everyone is chasing yield at the moment. I wonder why that is.

The older home owners would rather have cash in the bank, rather than becoming reluctant landlords.

Edited by Secure Tenant

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Greed usually has a nasty ending, however everyone is chasing yield at the moment. I wonder why that is.

The older home owners would rather have cash in the bank, rather than becoming reluctant landlords.

Would or should?

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Greed usually has a nasty ending, however everyone is chasing yield at the moment. I wonder why that is.

The older home owners would rather have cash in the bank, rather than becoming reluctant landlords.

...chasing yield when yields are low, below inflation or non existent and housing is expensive with a growing element of risk attached to it....the costlier it becomes the riskier and the lower the yield it generates.....cash is still flexible, spendable and relatively safe, when having little or reduced income spending becomes less, people are creating their own deflation if they are able to, because sometimes they have to and it is more possible to do so in this world of excess....the things there are an excess of are falling... ;)

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What a particularly stupid thing to say (the quote, not you ;) ).

Is it the duty of the old now to hoard big properties they'll need taxpayer help to maintain? Or to move somewhere they can afford and not be a burden on the taxpayer?

Does someone have an Agenda that suffers from bigger properties coming onto the market as downsizers sell?

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I thought they were hoarding the bigger houses?... or has the theme changed. At least our young and aware genX government is making it much easier for you youngsters to contribute to the bubble at last and perhaps the new schemes will get the FHBers competing with the oldsters to push up prices once again.

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Usually, retirees want to sell their house, and most of the time it's quite a modest place in the big city where the work is, to move out into their rural dream home in the dales or similar. There is of course no work in these rural areas that pays well enough to buy a house, so we wind up with communities of elderly people driving the younger ones into the towns.

The retirees compete for the country houses, forcing the price up, and the ftbs compete for the houses where jobs are. Win-win for the landowners.

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Heard this story last night - retired lady sold big house, downsized to a small bungalow and then with the rest of her money bought a BTL for income because of ZIRP on her savings.

All running to plan as intended by our 30years and running unelected government (the bankers that is). In fact I know 2 70 year olds (pre boomer that is) who have bought BTLets purely on account of Zirp. What a complete scam.

Edited by steve99

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nothing new here....if 30% of the market was FTBs, then the remaining 70% was everything else....always.

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:lol:

The nightmare scenario.

nothing wrong with Buy to Let.

A whole chain of someones though are financing it

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I suppose the definition of a pension is for the young to finance the old. This is just another method in a way. Others include share dividends from private companies, or taxes.

except, this is in the main, someone cashing out of a ponzi...yet, buying into it again.

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Heard this story last night - retired lady sold big house, downsized to a small bungalow and then with the rest of her money bought a BTL for income because of ZIRP on her savings.

I have met downsizing boomers who were keeping the old place and renting it out, with the new place funded by an elderly parent passing away.

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Are you being ironic? BTL has destroyed the quality of life for many in this country.

BTL ain't great, or rather the landlord friendly BTL legislation ain't great, but the real villain is restrictive planning regulations.

If we'd have had the house building boom that happened in the US, Spain, and Ireland then we'd now have the property crash that happened in the US, Spain, and Ireland.

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Are you being ironic? BTL has destroyed the quality of life for many in this country.

I have no problem with Buy to Let.

I have serious misgivings about Borrow to Let.

Indeed, I have serious misgivings about ANY market that is financialised to destruction.

Edited by Bloo Loo

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My parents are retiring and moving to the sticks this year (kids left the big smoke years ago). I can’t see them selling our London family home. In an environment of low interest rates and rising prices, nobody would sell up when they can rent/buy cheaply elsewhere.

Plus retirees have plenty of time to drop by and see how their investment is doing.

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My parents are retiring and moving to the sticks this year (kids left the big smoke years ago). I can’t see them selling our London family home. In an environment of low interest rates and rising prices, nobody would sell up when they can rent/buy cheaply elsewhere.

Plus retirees have plenty of time to drop by and see how their investment is doing.

Please don't flatter them by describing it as an investment; it's not, its a punt on following the herd, and if their investment criteria are as woeful as yours then it might not last very long

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Funny part was my dad asked if I thought it was a good idea to sell, what with me having such an interest in the property market and all.

My reply was that I’ve been consistently wrong on this topic for almost a decade, so my advice wasn’t worth hearing.

Please don't flatter them by describing it as an investment; it's not, its a punt on following the herd, and if their investment criteria are as woeful as yours then it might not last very long
Sorry, that last line was back on topic, referring to retires in general.

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Funny part was my dad asked if I thought it was a good idea to sell, what with me having such an interest in the property market and all.

My reply was that I’ve been consistently wrong on this topic for almost a decade, so my advice wasn’t worth hearing.

Sorry, that last line was back on topic, referring to retires in general.

Err ok

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Heard this story last night - retired lady sold big house, downsized to a small bungalow and then with the rest of her money bought a BTL for income because of ZIRP on her savings.

Sounds like an episode from Location Location......how many times do Kirsty and Phil get the brief for two homes rather than one.

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I suppose the definition of a pension is for the young to finance the old. This is just another method in a way. Others include share dividends from private companies, or taxes.

A pension should be spread across borders though, investing in youthful countries like India.

Having a property portfolio 100% in UK property, an ageing society, with less workers, is not something to celebrate.

Add that to the fact that a house worth £300,000 generates no more jobs than if that same house is worth £30,000.

It does however deny £270,000 of credit to job creating businesses.

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A pension should be spread across borders though, investing in youthful countries like India.

Having a property portfolio 100% in UK property, an ageing society, with less workers, is not something to celebrate.

Add that to the fact that a house worth £300,000 generates no more jobs than if that same house is worth £30,000.

It does however deny £270,000 of credit to job creating businesses.

Try telling that to Tony Blair, the investment of choice of champagne socialists.

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  • 241 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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