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janch

Demographic-Homemageddon

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With so few new buyers, a growing quantity of new homes, and so many likely sellers...a very simple question must be asked, who will buy all those houses and at what price?

This is indeed the question, but a further question is how long will it take to play out over here? You only have to look at the occupants of housing e.g. in London to realise that 90% + of them could never afford to buy the houses that they live in, and that there are nowhere near enough people with enough money to buy them all when they die. How long we have to wait for that to become a significant effect though, I don't know.

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Theres a few things on the near horizon.

One the ramp of boomers retiring in ,5-10 years time. The workage pop falls and the unfunded pension payout goes up.

Two the change of DB pensioners to DC in about 10 years time. That 60/month pension is worthless.

Theres already a few places where there are more oaps in big houses and few working age people. Scarborough for one. Transaction on the floor, probate on the rise.

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This is indeed the question, but a further question is how long will it take to play out over here? You only have to look at the occupants of housing e.g. in London to realise that 90% + of them could never afford to buy the houses that they live in, and that there are nowhere near enough people with enough money to buy them all when they die. How long we have to wait for that to become a significant effect though, I don't know.

This ^........when the area you live in can no longer pay the wage required to do the job required of you...... ;)

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I recall a not dissimilar topically a little while ago and the consensus seems to be that the inheritors would most likely set them up as rented accommodation rather than "give it away".

Of course, depends on inheritance tax liability, and tax mitigation measures taken by the deceased. See Duke of Westminster for example.

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Theres a few things on the near horizon.

One the ramp of boomers retiring in ,5-10 years time. The workage pop falls and the unfunded pension payout goes up.

Two the change of DB pensioners to DC in about 10 years time. That 60/month pension is worthless.

Theres already a few places where there are more oaps in big houses and few working age people. Scarborough for one. Transaction on the floor, probate on the rise.

Three, IO mortgages coming home to roost in 2025ish.

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Theres a few things on the near horizon.

One the ramp of boomers retiring in ,5-10 years time. The workage pop falls and the unfunded pension payout goes up.

Two the change of DB pensioners to DC in about 10 years time. That 60/month pension is worthless.

Theres already a few places where there are more oaps in big houses and few working age people. Scarborough for one. Transaction on the floor, probate on the rise.

(3) term-ends of Io mortgages without repayment vehicles taken out in the Brown boom years - 2025-2030 Edited by Si1

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I agree with hp72, inheriters will rent out. House I rent was inherited and and rented out, they did not even bother emptying the old guys shed, its full of tools (inc lawn mower, strimmer and trimmer) and lifetime collection of gardening bits and bobs. No mention in inventory. Bit sad really.

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I agree with hp72, inheriters will just rent out. House I rent was inherited and and just rented out, they did not even bother emptying the old guys shed, its full of tools (inc lawn mower, strimmer and trimmer) and lifetime collection of gardening bits and bobs. No mention in inventory. Bit sad really.

Innit.

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I'm not sure everyone could be bothered really. Even before I found this site some years ago my first intention would be to either move in or sell my parents' house ASAP!

I mean, what do I need a second house for..? I can barely be arsed to look after the one we're in now.

Edited by Inoperational_Bumblebee

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I agree with hp72, inheriters will rent out. House I rent was inherited and and rented out, they did not even bother emptying the old guys shed, its full of tools (inc lawn mower, strimmer and trimmer) and lifetime collection of gardening bits and bobs. No mention in inventory. Bit sad really.

The people dying of old age now have offspring in their late 40s/50s i.e. they belong to one of the adequately-housed generations. Not needing to buy houses themselves they can afford the luxury of renting out the properties they inherit. Roll on another 10 years and those inheritors will start to include the priced out who will sell up in order to buy something for themselves.

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Nothing ever lasts for ever... ;)

Studies have shown that 70% of family wealth is lost by the end of the second generation and 90% by the end of the third.
Edited by winkie

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I bought a strimmer at a car boot sale from a woman whose husband had died. All of 50p.

She just wanted to get rid.

Dead man`s kit is worthless these days.

There is more excess stuff than homes/space to fill it with.......quality and useful things no longer wanted, no place to store it.... ;)

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The people dying of old age now have offspring in their late 40s/50s i.e. they belong to one of the adequately-housed generations. Not needing to buy houses themselves they can afford the luxury of renting out the properties they inherit. Roll on another 10 years and those inheritors will start to include the priced out who will sell up in order to buy something for themselves.

A lot will depend on where the house is, if for example it's in some town where the children have to move away to have a decent career, it will probably be sold for whatever they can get.

In big cities where the kids are more likely to be living in the locality it will be a different matter. Where I live kids moving into the parents home is already common and I imagine will get more so in future - do it right by moving in before the parent dies and you can avoid IHT (multi generational home). Although passing the money direct to the grand children so that they can get on the "ladder" is also becoming popular and will generate sales.

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A lot will depend on where the house is, if for example it's in some town where the children have to move away to have a decent career, it will probably be sold for whatever they can get.

In big cities where the kids are more likely to be living in the locality it will be a different matter. Where I live kids moving into the parents home is already common and I imagine will get more so in future - do it right by moving in before the parent dies and you can avoid IHT (multi generational home). Although passing the money direct to the grand children so that they can get on the "ladder" is also becoming popular and will generate sales.

Okay, but none of these scenarios involves a property moving from homeownership into the private rented sector when the current homeowner dies.

Edited by Dorkins

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RIP George Carlin....

He went from totally unfunny to absolutely brilliant over 20 or 30 years (IMO)

I wonder if he left much stuff ?

Of course when you die you pan out and you can see yourself on your death bed, pan out some more and see yourself in southern UK, the world, the universe,.........and even further...............and then you look back and can say to yourself ` I hope that bloke takes care of my strimmer.`

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