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Baby Boomers Just Don't Get It

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Ok, I'm at work, bumped into a fifty something colleague who knows I've got two very young kids. She could easily work out I'm on an average UK salary. Conversation moved onto the fact she is selling her house, and she asked if I was interested......

It's a 5 bed bungalow, £650k!!!!!

Seriously!?!??! How on earth does she think I could afford that. Even with a £150k deposit, repayments would be £3k a month, which is £1k more than our combined take home! AND the loan amount would be THIRTEEN TIMES OUR JOINT INCOME.

No wonder they don't want to drop their asking prices!

She did comment that the market is slow, and reading between the lines the house has been on the market a long time.

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Delusion.

The good news is you don't need a 5 bedroom house.

Indeed .... but 3 bed minimum, 4 bed would be nice.

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Those sort of conversations happen to me with baby boomers all the time.

Boomers have benefited from the boom so much, they've lost the concept of money and it's relative value.

I spoke to a boomer the other day, she knew I can't afford to buy, and she said "well why don't you just buy a little cottage instead?"

I tried to explain cottages are the most expensive properties out there. She didn't have a clue.

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Ok, I'm at work, bumped into a fifty something colleague who knows I've got two very young kids. She could easily work out I'm on an average UK salary. Conversation moved onto the fact she is selling her house, and she asked if I was interested......

It's a 5 bed bungalow, £650k!!!!!

Seriously!?!??! How on earth does she think I could afford that. Even with a £150k deposit, repayments would be £3k a month, which is £1k more than our combined take home! AND the loan amount would be THIRTEEN TIMES OUR JOINT INCOME.

No wonder they don't want to drop their asking prices!

She did comment that the market is slow, and reading between the lines the house has been on the market a long time.

It's your fault for buying 100 iPods a month, don't you know?

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Those sort of conversations happen to me with baby boomers all the time.

Boomers have benefited from the boom so much, they've lost the concept of money and it's relative value.

I spoke to a boomer the other day, she knew I can't afford to buy, and she said "well why don't you just buy a little cottage instead?"

I tried to explain cottages are the most expensive properties out there. She didn't have a clue.

But boomers deserve it - many of them had to work seven hour days, five days a week for ten years to pay off their 2x single salary mortgages with only minimal help from wage inflation while their wives had to stay at home and bring up the kids instead of having a proper career like today's girls. The trouble with today's generation is they spend all their money on Ipod this and Ipad that, when they should be saving up for a deposit. :lol:

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Ok, I'm at work, bumped into a fifty something colleague who knows I've got two very young kids. She could easily work out I'm on an average UK salary. Conversation moved onto the fact she is selling her house, and she asked if I was interested......

It's a 5 bed bungalow, £650k!!!!!

Seriously!?!??! How on earth does she think I could afford that. Even with a £150k deposit, repayments would be £3k a month, which is £1k more than our combined take home! AND the loan amount would be THIRTEEN TIMES OUR JOINT INCOME.

No wonder they don't want to drop their asking prices!

She did comment that the market is slow, and reading between the lines the house has been on the market a long time.

What did you say to her? "£650k on a house would require me to earn about £200k to allow a good margin of safety, I'll call you as and when I get the pay rise".

My folks are similar, I was at their place when some property porn was on TV, focussed on Liverpool. The young couple were being cajolled by you-know-who into parting with over £200k for a place that might do them a few years, to their immense credit they didn't bite saying that it was poor value regarding the size, but my folks were saying what brilliant value it looked like. I tried to broach the subject of local wages in view of £200k houses but as usual it fell on deaf ears.

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Ok, I'm at work, bumped into a fifty something colleague who knows I've got two very young kids. She could easily work out I'm on an average UK salary. Conversation moved onto the fact she is selling her house, and she asked if I was interested......

It's a 5 bed bungalow, £650k!!!!!

Sounds like she was just bragging.

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I don't think there is enough money in the world to meet the average boomer expectations of what their houses are 'worth.'

However was reading in the Torygraph today that only 8M out of 24M households are in fact mortgaged.

Many of these boomers will be carried out of their homes in a box, with their delusions fully intact.

I speak as a very late boomer.

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Sounds like she was just bragging.

She really wasn't - she mentioned location & size and I looked on rightmove. When she comes back I'll ask her what price, then mention I'd need a £500k deposit!!!!!! :)

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Those sort of conversations happen to me with baby boomers all the time.

Boomers have benefited from the boom so much, they've lost the concept of money and it's relative value.

I spoke to a boomer the other day, she knew I can't afford to buy, and she said "well why don't you just buy a little cottage instead?"

I tried to explain cottages are the most expensive properties out there. She didn't have a clue.

+1

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Ok, I'm at work, bumped into a fifty something colleague who knows I've got two very young kids. She could easily work out I'm on an average UK salary. Conversation moved onto the fact she is selling her house, and she asked if I was interested......

It's a 5 bed bungalow, £650k!!!!!

Seriously!?!??! How on earth does she think I could afford that. Even with a £150k deposit, repayments would be £3k a month, which is £1k more than our combined take home! AND the loan amount would be THIRTEEN TIMES OUR JOINT INCOME.

No wonder they don't want to drop their asking prices!

She did comment that the market is slow, and reading between the lines the house has been on the market a long time.

Thats your answer followed by how much do you earn a month

There are a lot out there that are detached from reality and some just like to say my house is worth loads whenever possible and they do tend to be female but the worst by far are the ones that have their @rse in their hand because they can't cash in their HPI chips ,the standard reply to the latter is you will sell dog $hit if the price is right

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I was chatting with an 84 year old neighbour this week - he gets it. He pointed out that when he bought a house 3.5 times salary was considered very risky and banks preferred you nearer 2 times at most.

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I was chatting with an 84 year old neighbour this week - he gets it. He pointed out that when he bought a house 3.5 times salary was considered very risky and banks preferred you nearer 2 times at most.

Funny you should say that, my 92 yr old grandma gets it too.... it's the generation inbetween that is the problem. As a previous person said, they'll be taken out in a box, dreams intact. At that point the remaining family can drop the price until it sells (hopefully).

So maybe this will only end once the baby boomers start kicking the bucket... or going into homes... another 10 or 20 years perhaps?

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Ok, I'm at work, bumped into a fifty something colleague who knows I've got two very young kids. She could easily work out I'm on an average UK salary. Conversation moved onto the fact she is selling her house, and she asked if I was interested......

It's a 5 bed bungalow, £650k!!!!!

Seriously!?!??! How on earth does she think I could afford that. Even with a £150k deposit, repayments would be £3k a month, which is £1k more than our combined take home! AND the loan amount would be THIRTEEN TIMES OUR JOINT INCOME.

Liar loan and IO? When the price doubles in the next few years as your wages inflate to the moon, you'll be quids in! :lol:

Seriously though, let's look at the maths a little. A ten percent deposit for that would be 65k. That's 2.5 times 26k (the average salary). That used to be the standard multiplier for the 90 percent mortgage, not the ten percent deposit.

Q

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Funny you should say that, my 92 yr old grandma gets it too.... it's the generation inbetween that is the problem. As a previous person said, they'll be taken out in a box, dreams intact. At that point the remaining family can drop the price until it sells (hopefully).

So maybe this will only end once the baby boomers start kicking the bucket... or going into homes... another 10 or 20 years perhaps?

Wouldn't bet on it. The dark genius of the Ponzi is that inheritor kids need bubble probabte prices since, after splitting the proceeds with their siblings, the gap to owning a whole house is still too big to bridge.

The UK is increasingly dependent on UK ponzi wealth.

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Funny you should say that, my 92 yr old grandma gets it too.... it's the generation inbetween that is the problem. As a previous person said, they'll be taken out in a box, dreams intact. At that point the remaining family can drop the price until it sells (hopefully).

So maybe this will only end once the baby boomers start kicking the bucket... or going into homes... another 10 or 20 years perhaps?

From what I've seen, they don't. They fight tooth and nail over the will and when they've got their mitts on the house it stays on the market for ages, possibly rented out. They're not giving it away!

In truth, the belief that a house is worth 10% more than the highest price paid for a similar house in the area is not confined to any particular generation, it's what property owners want to believe.

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From what I've seen, they don't. They fight tooth and nail over the will and when they've got their mitts on the house it stays on the market for ages, possibly rented out. They're not giving it away!

In truth, the belief that a house is worth 10% more than the highest price paid for a similar house in the area is not confined to any particular generation, it's what property owners want to believe.

+1

but most of the above are in team boomer

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Yes generalising about people based upon 'fat bloke down the pub says' is as dumb for you as it is for me.

It was meant as something of a joke. My personal experience is that it's more blank incomprehension - a boomer friend of the family was seriously telling us to invest in 'bricks' as she called it, having herself bought a couple of flats in London in the early 1970s and therefore becoming a millionaire by dint of existing for a further 40 years.

The fact that this is simply not now possible seems to escape them.

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Wouldn't bet on it. The dark genius of the Ponzi is that inheritor kids need bubble probabte prices since, after splitting the proceeds with their siblings, the gap to owning a whole house is still too big to bridge.

Surely the sensible ones realise that a crash helps them?

Houses = £300,000, split 3 ways, they'd each need £200,000 to buy a house

Houses = £90,000, split 3 ways, they'd each need £60,000 to buy a house

I realise that some people have trouble with what they consider unintuitive maths... check out this comments thread (I'm tomandlu, needless to say):

http://discussion.theguardian.com/comment-permalink/23780322

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Surely the sensible ones realise that a crash helps them?

Houses = £300,000, split 3 ways, they'd each need £200,000 to buy a house

Houses = £90,000, split 3 ways, they'd each need £60,000 to buy a house

I realise that some people have trouble with what they consider unintuitive maths... check out this comments thread (I'm tomandlu, needless to say):

http://discussion.theguardian.com/comment-permalink/23780322

As you eloquently demonstrate with the Grauniad tour de force of comments ignorance in that face of fairly straightforward maths, just how many 'sensible' people are there?

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