Jump to content
House Price Crash Forum
thirdeye

2 Million Over 55S Plan To Downsize: A Risky Business

Recommended Posts

http://money.aol.co.uk/2014/05/21/2-million-over-55s-plan-to-downsize-a-risky-business/

"A new study has shown that around two in five of all people over the age of 55 plan to downsize their home in order to help fund their retirement. On average they need to free up £85,000 in order to make their retirement plans a reality.

However, they are taking some significant risks."

Share this post


Link to post
Share on other sites

Quite a few families here squeezed into two bedroom detached retirement bungalows as they seem to come up reasonably priced.

there aren't going to be many left for the greedy generation.

Share this post


Link to post
Share on other sites

http://money.aol.co.uk/2014/05/21/2-million-over-55s-plan-to-downsize-a-risky-business/

"A new study has shown that around two in five of all people over the age of 55 plan to downsize their home in order to help fund their retirement. On average they need to free up £85,000 in order to make their retirement plans a reality.

That equates to removing £170 billion or so from the market i.e. wholesale implosion of prices.

Share this post


Link to post
Share on other sites

Indeed. I don't think BTL'ers are interested in the old housing ladder. Who is going to move from renting to a 4 bedroom house for £400,000?

The problems are already baked in, and nobody can see that it's not a pain au chocolat. :lol:

Share this post


Link to post
Share on other sites

Tried to discuss issue with parents recently.

Parents: "well they need to build more houses"

Me: "but you objected to them building in village and you're pissed about the new road that just got planning"

Parents: "well not in this village"

Me: "but look at all the kids the village has created in last 20 years, and no new houses, where can they live?"

Parents: "hmm"

Me: "and all the boomers have 2, 3 or 4 spare bedrooms, I reckon only 30% of beds in village are occupied at night"

Parents: "well I agree it's problem, but they can't just go building anywhere, we've worked hard ..."

Parents: "struggled ... get on ladder ... interest rates for that month in the 80s ... ipads ..."

Edited by slacker

Share this post


Link to post
Share on other sites

Parents: "struggled ... get on ladder ... interest rates for that month in the 80s ... ipads ..."

Your parents, my in laws. I love the ipods and ipads argument. I counteract that with explaining how cost effective ipods and music download sites are compared to all the money they wasted on expensive stereos, speaker systems, vinyl lps, petrol getting to the shops etc. So wasteful.

Share this post


Link to post
Share on other sites

Your parents, my in laws. I love the ipods and ipads argument. I counteract that with explaining how cost effective ipods and music download sites are compared to all the money they wasted on expensive stereos, speaker systems, vinyl lps, petrol getting to the shops etc. So wasteful.

We don't have ipads or contract phones as they are an expense we can do without. My boomer mother & stepfather have one each.

Share this post


Link to post
Share on other sites

Your parents, my in laws. I love the ipods and ipads argument. I counteract that with explaining how cost effective ipods and music download sites are compared to all the money they wasted on expensive stereos, speaker systems, vinyl lps, petrol getting to the shops etc. So wasteful.

indeed, your parents loved music and quality. todays generation will listen anything providing its got a great label...which are the gullible fools?

Share this post


Link to post
Share on other sites

Can I ask who the feck is going to be able to afford this housing stock?

borrowers.

Share this post


Link to post
Share on other sites

The house will be there for the next generation.

The next generation better decide how they want to pay for it...cash...cheaply, sensible lending...not so cheaply..or ponzi lending "at low low interest rates" and intergenerational commitments...it really is up to them

Share this post


Link to post
Share on other sites

or ponzi lending "at low low interest rates" and intergenerational commitments...

Careful putting a dotted line after a comment like that. People will think it's where to sign up.

Edited by rantnrave

Share this post


Link to post
Share on other sites

Can I ask who the feck is going to be able to afford this housing stock?

Our children when it is passed down to them for nothing? if 2 out of 5 need to do it 3 out of 5 don't.

Share this post


Link to post
Share on other sites

Our children when it is passed down to them for nothing? if 2 out of 5 need to do it 3 out of 5 don't.

Prices are set at the margins, Greg.

2 of out 5 in need to find buyers, for homes currently bid up to silly highs, selling at lower prices to a diminishing pool of proceedable buyers, brings down the value of your own mansion.

Share this post


Link to post
Share on other sites

By the time the economic fundamentals (wages) have caught up with these downsizers asking prices they will be dead.

In other words, how long can they keep putting their lives on hold? Oversized houses are dead money.

Share this post


Link to post
Share on other sites

In other words, how long can they keep putting their lives on hold? Oversized houses are dead money.

As they wait, at least the taxpayer will help them heat the larger house they no longer need.

Share this post


Link to post
Share on other sites

Your parents, my in laws. I love the ipods and ipads argument. I counteract that with explaining how cost effective ipods and music download sites are compared to all the money they wasted on expensive stereos, speaker systems, vinyl lps, petrol getting to the shops etc. So wasteful.

If I price up every electronic device in the house (apart from the boiler and inverter), then I could replace them from a month's take home pay and have change..

Ironically, the boomers probably spent proportionately more on consumer electronics in the 1970s.

Share this post


Link to post
Share on other sites

Plan to downsize.....but never actually do.

Exactly. Plan to downsize to make money then upon realising how much it will be for all the costs, fees and taxes, decide to stay put.

Most likely downsize is a couple of 8' * 2'6" * 6'

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   224 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.