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Oap Property Boom: One In 12 Over-60S Owns Second Home As 'grey Savers' Buy-To-Let

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One In 12 Over-60S Owns Second Home As 'grey Savers' Buy-To-Let
'Grey pound' has helped push up the number of loans for rental properties
The number has soared by 58 per cent in less than two years
Over-60s own a quarter of the nation’s £4.01trillion property wealth

This is news somehow? Make money more expensive, and repo their BTLs and their main homes, for a HPC cascade, with homes falling to younger generations at much lower prices / lower mortgage debt.

imo it's pointless in repossessing enmass as the only people most likely to be in the position to buy will be the BTL brigade.

Not when they are the ones taken down heavily in the first place.

Including Timak's parents-in-law (sorry Timak, nothing personal) - all the ones leveraged chasing yield, making younger people their pension, as it's forever hpi, until it isn't.

There are different types of BTL investors.

My parents-in-law would never have bought a BTL flat (indeed they were massively against it) however they had several hundred k sitting in a bank account earning 1%.

If they'd shopped around they'd be getting 2% at best in a savings account (maybe slightly more)

If they'd bought shares they might have gone up, maybe down and with dividends they'd be making maybe 4%. However in living memory the stock market has lost and recovered 50% of its value.

With the flat they bought they get a yield of about 4% (after costs and contingency), price might go up or down (up about £50k so far) in the long term.

Put it this way if they could get 4-5% in a savings account - like was common up to 2008 - there is no way they'd own a BTL flat. But as they want an income in retirement BTL is a sensible way of getting a BTL income.

Now levereged BTL for flats in Bulgaria is another matter...

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I find it extraordinary that over 60s would want the hassle of BTL....one house is enough for me. We seem brilliant in this country at getting a rod for our own backs.

Because the boomers are greedy feckers who've spent their entire lives expecting something for nothing?

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I will start a post on this issue next week regarding buy-to-let, but I will summarise.

I think the systematic risk of large numbers of buy-to-let landlords has been under estimated.

Many of the masses who are renting are in part time, zero hours and low paid positions.

The next recession will see many of these people lose this part time and zero hours contracts.

Buy-to-let landlords will face mass repossessions as tenants won;t be able to pay the rent.

If these people were buyers, not tenants they would have bank forbearance to see them through.

There will be a homeless crisis, followed by a rent price crash, followed by a house price crash.

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Sign of the times.....savings losing value and property losing value......everything is going down, they call it gravity....use it or lose it.

What goes up, must come down. ;)

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Second home ownership should be banned, and rentals highly regulated.

I hate these people for what they've done to me. If house prices had stayed sane my life would be very very different.

And the worst thing is that they believe utterly that they 'worked hard' and that they are now entitled. No clue how they can miss the fact that the link between 'hard work' and success is completely broken. No imagination, to think of themselves starting out in the job market today, having to find 3x more money to buy their same houses.

Even the ones that do get it, the most they do is give their own families an early inheritance. Never mind other people's children.

Ten years we have waited for something to change, and it's just got worse and worse and worse. If the pension changes are another Help to Buy then seriously, what's the point in 'working hard'? They'll rig things in favour of the existing 'winners' forever and ever. May as well go on a big holiday and blow the lot.

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Second home ownership should be banned, and rentals highly regulated.

I hate these people for what they've done to me. If house prices had stayed sane my life would be very very different.

And the worst thing is that they believe utterly that they 'worked hard' and that they are now entitled. No clue how they can miss the fact that the link between 'hard work' and success is completely broken. No imagination, to think of themselves starting out in the job market today, having to find 3x more money to buy their same houses.

Even the ones that do get it, the most they do is give their own families an early inheritance. Never mind other people's children.

Ten years we have waited for something to change, and it's just got worse and worse and worse. If the pension changes are another Help to Buy then seriously, what's the point in 'working hard'? They'll rig things in favour of the existing 'winners' forever and ever. May as well go on a big holiday and blow the lot.

Rentals should be highly irradiated. Whilst the landlord is trapped inside.

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Second home ownership should be banned, and rentals highly regulated.

........ what is the difference between owning a one £700k home or owning two £200k homes?....... ;)

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It's already been said but it's a consequence of low interest rates along with savings theft through inflation - plus government support for high house prices.

Over 60s/retirees weren't previously known for BTLing - they were mostly content to live off savings and interest.

It's a new phenomenon for some older people due to the bail the banks out government policy.

I agree it's shameful the way they've devalued most work in the UK with many people falling further and further behind in the UK even when working and in what used to be described as good jobs

Edited by billybong

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Up 17% in the LAST MONTH!!!

Did anyone other than BTLers buy a house last month?!

That'll be Gidiots pension reforms coming through then...

Well cml numbers so if just BTL could be the mmr live in the BTL game?

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I find it extraordinary that over 60s would want the hassle of BTL....one house is enough for me.

Things I find extraordinary......

As I'm in my 60's I obviously know lots of people of a similar age. Number of them who have a BTL? ZERO

Timak's in-laws (see above) not knowing what to do with several hundred k in the bank other than buying a BTL. Unless they bought a long time ago in London, sold up and moved to a very cheap place elsewhere then they're in a tiny, tiny minority. Number of people I know with this "problem"? ZERO

That everyone on HPC seems to know or be related to someone of my age who has pots of cash, a huge house (waiting to be sold for even more cash) and spends their time going on cruises. Number of people I know in this situation? ZERO

That so many on HPC really believe all older people think them to be feckless layabouts who could easily save for a house if they stopped buying iPads. Percentage of my contemporaries that I know would fall into that camp? ZERO

Really.....behave!

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So should their main home be repossessed to pay for the shortfall in the funding for the 2nd home, and they're left on the streets with no means of income to cover their financial responsibilities, should I be upset?

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........ what is the difference between owning a one £700k home or owning two £200k homes?....... ;)

If you own one 700k home then there's probably still a 200k home somewhere for me to buy.

If you own two 200k homes then you've outbid at least one other family for your second home. Planning ensures that I can't go and build myself a new home to avoid the consequences of your greed (let alone build a home where I need to be - in a city or otherwise near a semi-decent job). If you rent out your second home then the situation is even worse, as not only have you outbid me but you're helping yourself to my wages as well.

Note that 200k is already a crazy price. In 1997 the average house price was 100k - it is now over 280k.

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Things I find extraordinary......

As I'm in my 60's I obviously know lots of people of a similar age. Number of them who have a BTL? ZERO

Timak's in-laws (see above) not knowing what to do with several hundred k in the bank other than buying a BTL. Unless they bought a long time ago in London, sold up and moved to a very cheap place elsewhere then they're in a tiny, tiny minority. Number of people I know with this "problem"? ZERO

That everyone on HPC seems to know or be related to someone of my age who has pots of cash, a huge house (waiting to be sold for even more cash) and spends their time going on cruises. Number of people I know in this situation? ZERO

That so many on HPC really believe all older people think them to be feckless layabouts who could easily save for a house if they stopped buying iPads. Percentage of my contemporaries that I know would fall into that camp? ZERO

Really.....behave!

BTL has exploded over the last decade and a half. Maybe it's not people in their 60s - but it certainly isn't people of my age, who have enough of a struggle just to get one roof over their heads, and who have spent their entire working lives in a house-price-bubble environment.

And just go look at any Mail or Guardian article about housing to see the 'work hard like I did' and 'stop buying iPads' brigade out in full force in the comments.

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That so many on HPC really believe all older people think them to be feckless layabouts who could easily save for a house if they stopped buying iPads. Percentage of my contemporaries that I know would fall into that camp? ZERO

Have to say I have come across many people like this online, and I have met people like this is real life. Loads of em!

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Things I find extraordinary......

As I'm in my 60's I obviously know lots of people of a similar age. Number of them who have a BTL? ZERO

Timak's in-laws (see above) not knowing what to do with several hundred k in the bank other than buying a BTL. Unless they bought a long time ago in London, sold up and moved to a very cheap place elsewhere then they're in a tiny, tiny minority. Number of people I know with this "problem"? ZERO

That everyone on HPC seems to know or be related to someone of my age who has pots of cash, a huge house (waiting to be sold for even more cash) and spends their time going on cruises. Number of people I know in this situation? ZERO

That so many on HPC really believe all older people think them to be feckless layabouts who could easily save for a house if they stopped buying iPads. Percentage of my contemporaries that I know would fall into that camp? ZERO

Really.....behave!

+ 1 million

in other news 11 in 12 OAPs do not have a BTL /holiday home

to the OP - pensioners pay tax (have you not noticed that the tax free personal allowance is about to be equalised for the over 65s and the under 65s)

AND - what free benefits do the over 65s get that are so generous - winter fuel payment (£4 pw for a household), free bus pass (only useful if you live in a city), free TV licence (only if you are over 75) :o

as far as free glasses, prescriptions etc are concerned - other groups (the disabled, the very young, long term sick) also get these - and as with most things the oaps only have prescriptions because of their failing health (same as the disabled then)

I don't know why I waste my breath - I don't know any oaps who have BTL/second homes

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http://www.dailymail.co.uk/news/article-2752871/OAP-property-boom-One-12-60s-second-home-grey-savers-buy-let.html

If the government needs money why aren't they heavily taxing the OAP's who have more money than they will ever need whilst people on PAYE earning nothing are taxed heavily and don't get any of the free benefits that OAP's get?

...they are taxed in that interest on their money does not match inflation and it is therefore depreciating, while rates are held low to save the banks ....and why discourage people who are not claiming benefits but keep the country going by spending their own resources instead of someone else taxes,which is money canabalism ...... :rolleyes:

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One In 12 Over-60S Owns Second Home As 'grey Savers' Buy-To-Let

'Grey pound' has helped push up the number of loans for rental properties

The number has soared by 58 per cent in less than two years

Over-60s own a quarter of the nation’s £4.01trillion property wealth

This is news somehow? Make money more expensive, and repo their BTLs and their main homes, for a HPC cascade, with homes falling to younger generations at much lower prices / lower mortgage debt.

Not when they are the ones taken down heavily in the first place.

Including Timak's parents-in-law (sorry Timak, nothing personal) - all the ones leveraged chasing yield, making younger people their pension, as it's forever hpi, until it isn't.

" Make money more expensive, and repo their BTLs and their main homes, for a HPC cascade" :P:P

I`ll vote for you, where do I put my cross?

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