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Allow young people to dip into pension pot to fund first home

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Allow young people to dip into pension pots to fund first home deposit, says Housing Secretary - Brokenshire (appropriate name)

 

https://www.telegraph.co.uk/politics/2019/06/02/allow-young-people-dip-pension-pots-fund-first-home-deposit/

They have come up with another idea to inflate the price of housing and shift wealth into the hands of the established property and land owning wealthy.  The idea here is to make it a requirement for young people in order to win the bidding for a home to have to give up any aspiration for a dignified retirement.

As the Conservative Party decline hopefully such nasty schemes will go with them.

 

 

 

 

 

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17 minutes ago, Wayward said:

As the Conservative Party decline hopefully such nasty schemes will go with them.

Trouble is the Tories have a few more years to do this stuff and maybe another Parliament after that before housing tenure demographics turn against them.

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Wow, Im lost for words.
 

Quote

 

James Brokenshire will propose changing the rules on pensions to “empower”  first time buyers trying to get on the property ladder.

Mr Brokenshire will call on the next Prime Minister to reform pensions to allow young people to “make the choice for themselves” if they want to spend them on property instead.

 

 

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Do young people have pension pots?

I realise it it is the job of the housing minister to find new sources of money to keep the housing ponzi scheme from deflating, but this is getting ridiculous now.

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1 hour ago, Wayward said:

Allow young people to dip into pension pots to fund first home deposit, says Housing Secretary - Brokenshire (appropriate name)

 

https://www.telegraph.co.uk/politics/2019/06/02/allow-young-people-dip-pension-pots-fund-first-home-deposit/

They have come up with another idea to inflate the price of housing and shift wealth into the hands of the established property and land owning wealthy.  The idea here is to make it a requirement for young people in order to win the bidding for a home to have to give up any aspiration for a dignified retirement.

As the Conservative Party decline hopefully such nasty schemes will go with them.

 

 

 

 

 

It should be a crime to manipulate real estate prices using this kind of schemes. They are affecting lots of people to pocket the gains themselves. Shame on them!

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28 minutes ago, Burbujista said:

I actually think we could brainstorm a set of different silly proposals to prop up prices and try to put them on Twitter or something. Just to take the piss.

You know the phrase "don't give them ideas"...

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1 hour ago, Dorkins said:

Trouble is the Tories have a few more years to do this stuff and maybe another Parliament after that before housing tenure demographics turn against them.

Absolutely not the right demographics yet for them to throw the market under a bus. We will see more props, I have been told many times that they cant provide many more props then they do followed by the statements that "nobody could predict the market interference post 2012". Interestingly it shows the current thinking that they will prop again rather than let it collapse and blame brexit/trump or whatever the fashionable thing is now. Pension freedoms previously using my anecdotal evidence provided a bit of a boost my old landlord brought two new flats using the freedoms and a neighbout brought 3 semi detached homes for their grandchildren, (currently rented BTL untill old  enough to move back in). I would guess this could kick the can a bit further down the road of any correction as I know a few who have average pension pots (early 30's and putting aside £200 a month plus employers matching) who would probably jump at this.

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2 minutes ago, Riedquat said:

You know the phrase "don't give them ideas"...

Well, it hasn’t to be something outrageous  like: Let under 40s to become prostitutes in their spare time to fund a first home deposit under the scheme “get ****** to buy”. The government will match your earnings to give you quicker access to the ladder.

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10 minutes ago, Pebbles said:

I know a few who have average pension pots (early 30's and putting aside £200 a month plus employers matching) who would probably jump at this.

If people want to sacrifice their pensions to the property gods that's fine by me as they are adults able to make decisions and live with the consequences. I hope they like beans and working into old age.

If more people go all in on residential property by cashing in their pensions to buy it that should make the prices of other assets cheaper for those who don't suffer from housing mania.

Edited by Dorkins

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Is it brought or bought?
The Difference between “Brought” and “BoughtBrought is the past tense and past participle of the verb to bring, which means “to carry someone or something to a place or person.” Bought is the past tense and past participle of the verb to buy, which means “to obtain something by paying money for it.”

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6 minutes ago, Dorkins said:

If people want to sacrifice their pensions to the property gods that's fine by me as they are adults able to make decisions and live with the consequences. I hope they like beans and working into old age.

If more people go all in on residential property by cashing in their pensions to buy it that should make the prices of other assets cheaper for those who don't suffer from housing mania.

As long as they don't get bailed out.

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28 minutes ago, Dorkins said:

If people want to sacrifice their pensions to the property gods that's fine by me as they are adults able to make decisions and live with the consequences. I hope they like beans and working into old age.

But that's just the problem - they won't live with the consequences, they'll spend it all now driving up house prices and then gang together when they hit 65 and vote in a government that promises to steal someone else's money to bail them out.

So no, I don't think this should be permitted - not for their own good, but for mine.

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On the thread on making over 50's retire to make way for young people at work, someone cashing in his pension to buy commercial property was widely admired.

Is this much different?

What you are doing is diverting your pension investment into a property investment.  When you retire you can downsize/move out of London and live off the proceeds.  This is happening already with the "my house is my pension" people.

Many pension funds including the BBC are heavily invested in property.

People distrust pensions but they seem to trust property values will continue increasing.  All the signs are the government will do anything to maintain property values ahead of everything else.  They will rob your pension pot to do this if required (the next bank bail out will be a bail-in).

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1 minute ago, kzb said:

On the thread on making over 50's retire to make way for young people at work, someone cashing in his pension to buy commercial property was widely admired.

Is this much different?

What you are doing is diverting your pension investment into a property investment.  When you retire you can downsize/move out of London and live off the proceeds.  This is happening already with the "my house is my pension" people.

Yes it's different - the house you live in is NOT an investment (or at least shouldn't be in a properly functioning society without endless HPI).

Young people currently can barely afford a flat if anything and all this will do is drive house prices up even more - the idea that they can downsize their shoebox into a matchbox to fund their retirement  just doesn't work.

A retired person choosing to buy an additional property as an investment - well, that IS an investment so they can invest in property instead of shares or whatever if they want to.

The "my house is my pension" people are only right if they were able to buy a giant house at much lower prices many years ago - otherwise this clearly doesn't work unless you can have endless HPI, which you clearly can't, because we've had 25 years of HPI and now the whole of society is falling apart because of it.

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25 minutes ago, scottbeard said:

But that's just the problem - they won't live with the consequences, they'll spend it all now driving up house prices and then gang together when they hit 65 and vote in a government that promises to steal someone else's money to bail them out.

So no, I don't think this should be permitted - not for their own good, but for mine.

Exactly. That is why the best investment is to diversify as much as possible and invest in your own skill set and any children if you have them. Investing a lot in pensions with current demographics is a bit risk.

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41 minutes ago, scottbeard said:

Yes it's different - the house you live in is NOT an investment (or at least shouldn't be in a properly functioning society without endless HPI). (1)

Young people currently can barely afford a flat if anything and all this will do is drive house prices up even more - the idea that they can downsize their shoebox into a matchbox to fund their retirement  just doesn't work.

A retired person choosing to buy an additional property as an investment - well, that IS an investment so they can invest in property instead of shares or whatever if they want to.  (2)

The "my house is my pension" people are only right if they were able to buy a giant house at much lower prices many years ago - otherwise this clearly doesn't work unless you can have endless HPI, which you clearly can't, because we've had 25 years of HPI and now the whole of society is falling apart because of it.(3)

(1)  I know it shouldn't be an investment but this is what it has become like it or not.

(2) Spiritually I don't see much difference.  You're investing your pension pot in property.  That will have an inflationary effect on all property.

(3)  I don't disagree but I don't see why this is different. That is all I am saying.

 

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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