The Future.... What Happens When All The Priced Out Grow Old?

[Agentimmo]

Unless there's a HPC and reset of prices, I think there'll be rioting and change before today's priced out 30s and 40yr olds reach retirment age (of about 70yrs old).

I've got about 20yrs to go. Already planning to retire to a cheap place...no need for me to live in a metropolis , paying rent to a parasite until the day I drop. Once you get out into the shires (away from the overheated London/South bubble), things become bearable again. Think north Scotland, Ireland...in a village , small town...Welsh countryside etc.

All these oldies that plan to retire near to their workplace (usually in big towns , cities these days) will be in for a shock if there's no HPC.

As I live in France, getting a rental for a reasonable price should be OK. I'm sure Scotland/Ireland offer similar opportunities?

e.g.

http://www.fnaim.fr/annonce-immobiliere/35037096/18-location-maison-creuse-23.htm

400€ /mo for 90m square...2 beds.

These places will stay cheap as the younger population migrate to the citirs for work.

My siblings suggest we get a couple of places together in a French village..I'll translate ;-)

[whitemice]

The baby boomers want to live forever.

The cost of healthcare is only going to go up, as more innovate ways of milking this hugely entitled demographic become available. In the next decade, expect a lot of technology companies to enter this market in a big way.

None of the more exotic stuff will be available on the NHS, so I guess the house will be sold (or mortgaged, or whatever) to pay for it. I hope you weren't relying on some kind of inheritance?

With each generation, expect the percentage of owners to renters to drop, and for the owners to own steadily less of the house they a living in.

Eventually the money printers always end up owning everything.

[Orsino]

The Priced Out generation is not priced out of saving and investing for the long term. Those that plan for later life may well find they are much better off with their diversified portfolio than those that took out a huge IO mortgage and bet it all on the constant appreciation of a single, highly illiquid asset class. Thinking that not buying a house = poverty, is no more logical than thinking buying a house = riches.

[irrationalactor]

Buying a house frees you from paying rent. It doesn't matter how well your investments are doing if it all goes to the landlord.

I for one am not going to be treating my house as a cash machine or as a pension pot.

[wherebee]

Buying a house frees you from paying rent. It doesn't matter how well your investments are doing if it all goes to the landlord.

I for one am not going to be treating my house as a cash machine or as a pension pot.

er - no it doesn't, unless you buy young enough to live long enough to have a rent free and mortgage free period. Rent from the bank (mortgage) or rent from a landlord - those are the options. Sometimes option one is right for a person, sometimes option 2.

[BLOW FLY]

The point is there are and will be vast swaths of people that have had no acces or chance to opt for option one because of increasing house prices.

So they have had zero chance of having a rent or mortgage free period in their lives as it's been taken by other generations.

What will they do when they're tool old to work, no savings, meagre pension and still have to pay rent?

[winkie]

The point is there are and will be vast swaths of people that have had no acces or chance to opt for option one because of increasing house prices.

So they have had zero chance of having a rent or mortgage free period in their lives as it's been taken by other generations.

What will they do when they're tool old to work, no savings, meagre pension and still have to pay rent?

I am sure as in the past the landowners will be happy to house and employ them as chief cooks and bottle washers, tending their estates.

[CunningPlan]

I am sure as in the past the landowners will be happy to house and employ them as chief cooks and bottle washers, tending their estates.

You know what - that sounds like quite a nice stress free life (as long as there is the potential for a bit of 'Lady of the Manor' action on the side!).

Actually scratch the last bit. Just remembered that picture of Judith!

[council dweller]

......that`s now burned into the reptilian part of my brain....thanks.

Yes my parents went from tied houses and then into council housing when they were kicked out. all very convenient.

[bendy]

You know what - that sounds like quite a nice stress free life (as long as there is the potential for a bit of 'Lady of the Manor' action on the side!).

Actually scratch the last bit. Just remembered that picture of Judith!

They'll be none of that but rest assured the rich want to go back to the pick of the peasant 'filly'.

[winkie]

......that`s now burned into the reptilian part of my brain....thanks.

Yes my parents went from tied houses and then into council housing when they were kicked out. all very convenient.

They had free access to the common land, free for everyone to graze their goats and sheep......then the powerful bought the land because they could and the villagers were forced to work for them for a pittance on the land they once all collectively benefited from........all sheep and goats were banned only six chickens were allowed....the fox saw the death of them.

[council dweller]

Well, I`m only going back to about 1950.....

[porca misèria]

Buying a house frees you from paying rent. It doesn't matter how well your investments are doing if it all goes to the landlord.

Up to a point, Lord Copper. It took me five years investing for the income from it to cover my rent in full (and with only 20% of the portfolio generating income at all).

A very refreshing contrast to the '80s, when rents and tax were still so high that five years savings couldn't reach the capital value of one years rent, let alone generate that much in income. Likewise, a happy contrast to the bubble years of about 2000-5.

[StainlessSteelCat]

The baby boomers want to live forever.

The cost of healthcare is only going to go up, as more innovate ways of milking this hugely entitled demographic become available. In the next decade, expect a lot of technology companies to enter this market in a big way.

None of the more exotic stuff will be available on the NHS, so I guess the house will be sold (or mortgaged, or whatever) to pay for it. I hope you weren't relying on some kind of inheritance?

With each generation, expect the percentage of owners to renters to drop, and for the owners to own steadily less of the house they a living in.

Eventually the money printers always end up owning everything.

Actually, that's a good point. They are probably the first generation where a significant number are non-believers in religion. Life extension, either quality or quantity, tech is going to be huge. There's more than a few nutters out there that believe if you can make it through the next couple of decades, you might be able to keep going for considerably longer.

As someone without any kids I would almost certainly do the same - especially if the tech actually turned back the clock rather than maintaining the status quo.

Edited October 29, 2015 by StainlessSteelCat

[winkie]

It wouldn't surprise me one day there will be lots of money to be made from selling extra years, not everyone will buy it.

[Errol]

Back when people could actually sing and make proper records.

That track is just stunning. And the vocal/performance talent just puts 95% of stuff made today to shame.

edit - would have made a great Bond song as well.

Edited October 29, 2015 by Errol

[oracle]

Living standards are already much lower than previous generations. I'm 32 and I live like a student. Had I been born twenty years earlier I would have had my own place by now.

The current generation of near-pensioners didn't save enough - why else is their property their pension? And renters like me have spent their whole working lives building up someone else's 'pension pot' of equity, left with very little to save for ourselves.

Either the government will keep borrowing to pay for everything, or there'll be a generation that just can't afford to get old.

well,for those of you who have been paying attention, we DO have another hitler to deal with.

now either our elected leaders are completely blind, crassly incompetent,or in on the act.......

the economy is being trashed...as per hitlers directions if he could not succeed militarily last time.

the industrial capacity is gone, so the means to fight back are being reduced....coupled with "nicey nicey don't train your kids to use cutlery..it's knife crime!!)

the next bit will be down to all those fit,healthy fighting age immigrants to to a "social darwinism" number to weed out the indigenous old and infirm.

coupled with a partially successful naval blockade to starve people...like hitler tried with U boats last time, but this time a bit too close for comfort.

let's put this bluntly...we ARE in danger.

I think logan's run will be for the survivors...IF we get out of this one with a win.

Payback for being so bloody greedy and selfish.

Edited October 29, 2015 by oracle

[Si1]

Buying a house frees you from paying rent. It doesn't matter how well your investments are doing if it all goes to the landlord.

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Opportunity cost

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[sPinwheel]

Pensioner Gulag.

[The Generation Game]

I always believed that there would have to be some reversion towards affordability because, if there wasn't, we'd be returning to a Dickensian-esque society.

Unfortunately, with each passing day, inadequate government policy/regulation (some would say deliberately) makes a dystopian future seems more and more likely for most, where even the veneer of social mobility and meritocracy give way in favour of usury, nepotism and control of the capital.

He who controls the spice, controls the universe.

[Dave Beans]

I think it'll come down to who'll get a decent inheritance, and those who don't. Those who get enough to buy are sorted, otherwise everyone else is screwed...

[EmmaRoid #FBPE#JC4PM#GTTO]

Opportunity cost

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I think the point Mr actor is making is that landlords will cream off whatever you make by going down the opportunity route. It is increasingly not an option.

[non frog]

Opportunity cost

If people knew what that was house prices would be half the current level. Even at 2% return living in a £1.4m house in London "costs" 28 grand a year. A lot of people sitting on that kind of theoretic money would cash up if they could see the chance.

[campervanman]

Something I've been pondering for a while and have come to a variety of thoughts and conclusions but I thought I'd pose the question here to see what everyone else's thoughts might be.

So hypothetically say things continue as they are and successive governments, BoE and financial institutions etc manage to keep the plates spinning and house prices rising steadily for the next 30 years?

What will happen to all those people that have been priced out of the housing market but been paying large percentage of their income all their life to some BTLr or housing institution?

They now retire, have no savings, maybe no pension or house equity to show of because it's all been swallowed in rent and living expenses.

That's one huge benefits bill that's going to have to be paid out, if of course there is still a welfare state. I just can't really see any solution to this.

BF

There will be inter generationsl conflict with the elderly (born 1970-2000) blaming the younger generations for stealing their past. Either that or the past 35 years will not have been a blip.

[Si1]

I think the point Mr actor is making is that landlords will cream off whatever you make by going down the opportunity route. It is increasingly not an option.

Depends where you live and if there is a decent rental market.