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Baby Boomers’ Children Left With Nowhere To Go

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http://www.independent.co.uk/news/business/comment/baby-boomers-children-left-with-nowhere-to-go-9842251.html

People tend to support the principle of social mobility because they assume they will be moving up the ladder of social status; yet few imagine their fate will be to descend.

For many years in the wake of the Second World War most people did indeed rise. Between the 1950s and the 1980s, there was a significant expansion of professional and managerial employment. The baby boomers’ parents wore overalls to work; their children wore shirts and ties. There was more “room at the top”.

But that increase in the size of the professional class was a one-off economic shift. The number of those relatively desirable jobs is rising more slowly than the numbers entering the workforce. The demand for lower-skilled jobs, however, has grown. This is one of the reasons why, as this study finds, downward social mobility appears to be on the increase.

That trend looks likely to continue. Since the 2008 financial crash, the British jobs market has been surprisingly robust. But a considerable proportion of the new jobs created have been part-time posts. These are not worthless jobs, but there is a question mark over the quality of many. Young people face less job security and, in some cases, worse living standards than their parents.

If the trend is going to continue what's going to support house prices?

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http://www.independent.co.uk/news/business/comment/baby-boomers-children-left-with-nowhere-to-go-9842251.html

If the trend is going to continue what's going to support house prices?

http://www.independent.co.uk/news/business/comment/baby-boomers-children-left-with-nowhere-to-go-9842251.html

If the trend is going to continue what's going to support house prices?

Debt.

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Debt.

foreign oligargchs,but I don't think people are taking too kindly to that sort of stuff here much longer.

Edited by oracle

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foreign oligargchs,but I don't think people are taking too kindly to that sort of stuff here much longer.

Pffff, what are we gonna do about it?

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I think that the foreign oligarchs comment is close to the truth. Of course, for too long, the West has allowed its savings to erode by trade and Government deficits, funded by those pesky foreigners. All this accumulated offshore savings has to go somewhere. Given that the UK is not about to start selling plastic crap back to China, the only logical place for this capital to end up is in investment into the UK's and other Western countries' assets, notably when it comes to the UK, the upper-end of the housing stock.

As the deficits accelerate, rather than correct, this process will increase, as new debt of the West is available to the East to convert into assets of the West.

Local ownership laws here in the East are also a trigger to the attraction of this investment, as the more logical route of investment into closer neighbours are frustrated with restrictive ownership laws, which need effort to get round. There is general amazement here that the UK and other free capital countries allow foreign ownership of land and real estate and that amazement manifests itself into what they see as exploiting the buying opportunity provided by the lax ownership rules.

So no end in sight I would say, other than a reversal of the deficit approach of the West.

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Hmmm. Interesting. If the young are earning less, with less security, they will be able to borrow less. So prices must drop. Similarly, if they inherit a house more than IHT threshold, a chunk of money will be needed; from where? Pension pots lower or raided / possible equity release to repay / rising costs on everything... I can't see how it'll pan out well.

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Inheritance...back to Medieval life outcomes. No longer about work or what you put in.

All politicians desperate to ensure their multi million pound balance sheets get transferred to the kids as intact as they can get away with. Even Labour want a general care home fees insurance package. The 650k tax free band is just not enough for them.

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From the independent link:


Since the 2008 financial crash, the British jobs market has been surprisingly robust. But a considerable proportion of the new jobs created have been part-time posts. These are not worthless jobs, but there is a question mark over the quality of many. Young people face less job security and, in some cases, worse living standards than their parents.

So the British jobs market hasn't been "surprisingly robust" then - it's been really feeble.

Edited by billybong

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Same paper, two days earlier.


Tuesday 04 November 2014
Print
A A A

A fifth of househunters are considering leaving the UK to look for a home in another country, says a new report.

The research from Gocompare.com shows that a third of the 2,000 people polled are keen to take advantage of Help to Buy schemes, but another 20 per cent are seriously thinking about moving abroad.

The USA is the most popular destination (31 per cent), followed by Australia (29 per cent), and New Zealand (20 per cent).

A separate survey of non-homeowners by mortgage and home loans broker Ocean Finance shows just under a third believe they will ever be able to buy their own home, while another third say they are happy to carry on renting and have no interest in buying. Nearly half of non-homeowners aged 25 to 34 said they did not think that they would ever be able to afford to buy a house.

Happy vs the debt levels maybe, to pay 'what it is worth' and give some flipper/older person a double-treble fortune payoff on low house prices, wage inflation, compounded savings rate/stockmarket growth.


http://www.independent.co.uk/property/housing-crisis-is-encouraging-plans-to-emigrate-property-news-update-9838799.html

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