The Old Get Richer As Under-34s Fall Behind

[Catch22]

"The rich get Richer, and the Poor get children"

But the would be poor, dont want to do that any more

= = =

"Older people have seen their wealth treble in ten years thanks to soaring property prices while young adults have become poorer, the Bank of England says today.

Those between 55 and 64 have been the biggest winners, with the boom in the property market helping their average wealth increase to a record £150,000.

But an alarming report from the Bank says the young, which includes everybody under 34, are the biggest losers.

Over the last decade, their net financial wealth has collapsed to close to zero because so many have been unable to climb on to the property ladder."

HOW are the old going to cash all that supposed wealth,

if the would-be buyers cannot afford the prices??

The fact is... that prices will meltdown whne they move to sell to the next generation

"The Trap" on TV last night, showed how this Nue Labour [a Con Clone] government, let "The Market" manage the economy. Meaning the Banks "wound the economy up" by chucking money at people. Net result we have a two class system in this country, where the rich get considerably richer and the poor get poorer.

Like I have said time and time again, governments run the country not for the benefit of the people, but for the benefit of Global Corporate Business.Why because Big Business backs them through bribery and corruption, and once the electorate kick them out of power, they " the politicians" are rewarded by directorships. See John Major's pay off for Gulf War One Payback Only thing is the dumb smuck voting public have not sussed out both main political parties are bought and paid for. We live in a one party state, owned by the global elite.

Imagine what Bliar is in line for with Gulf War Two, and for transferring billions of UK tax receipts to the US armaments industry with the Trident contract. Obviously it was pushed through with Conservative backing, because they have been earmarked for their Turn at the Trough

The Military Industrial Complex will give Rupert M the nod and the Media will destroy the party that the electorate are sick of........................time to give the smucks change, only there is no change in a one party state.

Edited March 19, 2007 by Catch22

[Son of Taeper]

I give this troll 3/10. Shows promise but you need to be a little more subtle if you want traction.

The kids are quite sophisticated these days, grandad.

I don't think it was trollish. In fact, I think it was educational to the youth of today.

As for the kids being "quite sophisticated these days", if that were the case why do they bleat so much about not having the money to purchase a property.

[homeless]

(less 40%)

around these parts there are 1000s of semi derlict properties, big farm and croft houses lying empty while the younger generation live in static caravans at the back of cow sheds.

Us younger people always drive past salvating and wondering in awe how the heck the owners of all these properties can just leave such wealth lying empty and decaying while we are all screaming out for somewhere to live.We dont care what state it is in, we can soon fix it up over time and create a decent house.

But the real truth is that the owners of these properties are so well off and comfortable that they have no inclination of even doing anything with them.i know personaly 100s of people that have houses like this in the north of scotland.

It is sheer "im all right jack" attitude and selfishness.

[Son of Taeper]

Yes, I was thinking just that. Most people I know who are struggling are those who have 'bought' property. They do jobs they don't like, work 60+ hr weeks, and commute huge distances in order to keep up their mammoth mortgages. Now, I know this is about monetory wealth and not quality of life wealth, but in a debt based economy where wealth is based on the notional value of one speculative asset class it all begins to become a bit theoretical.

Quite, and most people I know who are whinging are those who have not 'bought' property. They only do jobs they like, cannot comprehend doing more than a 35 hour week and think any job more than one mile from their rented doorstep is not worth getting out of bed for.

Is this about monetory wealth? Really ? Only insofar as one can sell up and move into rented at any time and take any 'profit' with you.

As for the "quality of life wealth"bit, well, when you reach the stage in life when you have paid the mortgage off and start living 'rent free', yeah, I suppose it is quality of life

[Pablo-silver or lead?]

“Grandma if property in the UK today is such a great investment why are you selling your three” and moving to Spain????

To all of us in our late 40’s +, have you ever wondered whose paying for the majority of the paper wealth we have accumulated in our properties? It could of course be us. We work hard, we are smart and we have bought up property assets over the last 25 years because we can, as they are a good investment and we get those assets to work for us. But the people we have to thank the most are the under 40’s. If it was not for the under 40’s willingness to take on ever larger (in real terms) debts over the last 6 years or so, as they stretch to get on the ladder, or move up the ever widening rungs, the whole ‘free wealth creation’ thing that is the UK property market, would grind to a halt.

Now we can’t have that, so the lending institutions must come up with ever more innovative ways of assisting aging FTB (Ave age 34) or new wet back BTL’s, to take on huge debts so they can invest in and share this opportunity with us! Available for their signing pleasure,the market allready offers 6 x income, self cert, 125% loan to value, interest only, 40 year term……… So what next?

What we have witnessed over the last 12 years or so is the biggest transfer of wealth to a couple of generations by a couple of generation’s willingness to take on ever riskier debts. Lets just hope we can convince the current generation of twenty something’s to keep the gravy train going.

Recent research has shown that around 39% of all people in the UK between the ages of 24 and 64 are considering leaving the UK at some time in the future to live/work/retire/semi-retire abroad.

Ironically the very thing that allows a lot of the older respondents to fund their ‘escape’ (namely house price inflation), is also the reason many under 35’s are giving for considering going abroad.

“Older people have seen their wealth treble in ten years thanks to soaring property prices while young adults have become poorer, the Bank of England says today.

Those between 55 and 64 have been the biggest winners, with the boom in the property market helping their average wealth increase to a record £150,000.

But an alarming report from the Bank says the young, which includes everybody under 34, are the biggest losers.

Over the last decade, their net financial wealth has collapsed to close to zero because so many have been unable to climb on to the property ladder.”

http://www.dailymail.co.uk/pages/liv...n_page_id=1770

Between 2001 and 2003 the FED poured extra tequila into the punch. They then let us party too long = big hangover. So in the UK do we think Gordon Brown, the MPC and Gordon Browns successor at the treasury can keep ‘UK property party PLC’ going and if so how?

[Orbital]

What way are they sophisticated, Explain? :angry:

well im <34, by quite a lot, I own a nice family sized semi in London, I was a savvy buyer, got a good deal, affordable mortgage, locked my rate at 4% and am enjoying overpaying quite substantially. Thanks to investment in career and making the most of my opportunities I am earning and securing my financial future.

Many of my peers are doing and have done the same. I know a number of examples of people who arent. The question is, does this generation really have more wasters than previous ones? This is obviously impossible to quantify in any meaningful way and so is often based on prejudice - for example most of our media pushes and pushes home the message that the 'young' are desperately in debt and incapable of doing up their show laces.

Its tempting to suggest that people who can only see things in such black and white terms are really the unsophisticated ones. Perhaps I should have a go at the pensioners who werent so lucky and havent cashed in on HPI, clearly they were lazy good for nothings - wasting all their money on bingo and tinned spam. One could also argue who's responsibility it is to shape society, from that point of view its the Boomers who have really messed up. Im a big believer in parental responsability - one has to ask what chance did generation x have when their parents were more interested in playing golf or working late etc?

The kids are OK. Dont let your prejudice get in the way of reality. Those of us who want to get on the property will, but like every generation there is a portion that will be left behind as they expect life to be mapped out for them. To write off an entire generation is about as sophisticated as the music of Scooch.

[Bear Goggles]

Quite, and most people I know who are whinging are those who have not 'bought' property. They only do jobs they like, cannot comprehend doing more than a 35 hour week and think any job more than one mile from their rented doorstep is not worth getting out of bed for.

Is this about monetory wealth? Really ? Only insofar as one can sell up and move into rented at any time and take any 'profit' with you.

As for the "quality of life wealth"bit, well, when you reach the stage in life when you have paid the mortgage off and start living 'rent free', yeah, I suppose it is quality of life

Yes, the B of E report was most definitely about monetory wealth.

Of cause if you are a lazy bugger then you don't deserve nowt, but there's the problem, it's very easy to dismiss people as lazy, but if the cost of accomodation is higher in relation to earnings than it has ever been then logic tells us you need to work harder and longer for the same thing.

As far a paying off your mortgage and living rent free is concerned, there is more than one way to achieve financial independance in this life. Unfortunately most of the UK population are one trick ponies when it comes to this sort of thing, therefore the future direction of the property market make-or-break for your average punter.

[Saving For a Space Ship]

OP, C4 midday news is reporting on this now.

Biggish article and interview with Rightmove spokesman on housing

giving it the old 'lack of supply' increasing hpi bull . He's predicting 6% rise and said IR rises effect ed market slightly, but shortage of housing supply negated it overall.

[Son of Taeper]

Perhaps I should have a go at the pensioners who weren't so lucky and haven't cashed in on HPI, clearly they were lazy good for nothings - wasting all their money on bingo and tinned spam.

Too right. Lazy good for nothings spending their spare cash in that manner is inexcusable. I blame Monty Python for promoting the stuff in the first place. Think how many impoverished pensioners have the likes of John Cleese to blame for their sorry state of affairs.

I'm a big believer in parental responsibility.......

Hit the nail right on the head and once again, Monty Python is the root cause.

My Father spent way too much time watching the program and I think it was that lumberjack song that was the cause of the divorce and his untimely death. He bequeathed the lumberjack hat to me which I don occasionally when my wife is out at bingo.

She really should get a life.

[Europa]

Incontinence pads these days are brilliant, you don`t even know you`ve wet yourself.

No, but those behind you in the pension queue may have their suspicions

[steve99]

Seems we need a cull. Where did I leave my boomer gun?

By definition, I fit into the false definition of 'Baby boomer' which in fact spans an age group of about 18 years disparity. Very few people on earth control the policies that determine how things like property and inflation etc etc affect the population, there are just as many people of your age that have or will have that power as there is of my age. In fact your thought processes as many on this board are no better than one spoiled poodle biting another poodle just becuse its owner gave the other one a better kennel. As for increased wealth, I would beg to differ on that one, all we have is the same sh*tty flat weve had for years and until property prices drop we cant move to where we want and a FTBer will be able to buy our place. Getting back to the '18 years disparity' bit I mentioned, there is a massive difference between those that were looking for their first property in 1971 and say 1989 , in 1989 it was very similar to today, almost impossible for many to get on the ladder. Its like saying that someone of 25 years old now has the exact same set of conditions as the current group of 8 year olds will have when they get to 25. I would say the current generation of FTB'ers who hold off will get the deal of the century in the next few years, if not then you will inherit a fortune, so its win-win for your generation.

[Smell the Fear]

I'd like to see where all this "wealth" is, that I am supposed to have. If I sell my house I have to buy another, so where does that make me wealthy as regards property? Many of the older gen. are wealthy only in the fact that they own their own home outright and many others do not. If the price of houses fell to 50K for a 3 bed detached they would still be better off in terms of ownership.

Why does mere ownership make them 'wealthy'? Any oldie lucky enough to have amassed a pile of money atop of this - usually through hard work, shrewd investment, and careful spending - will soon find that when ill health strikes - as strike it does - they will pay through the nose for care, whilst their poorer counterparts get it all for free. Surely this "wealth" will free you and yours from having to provide for them, won't it?

I sometimes read the posts on here and think it is like reading stuff written by 'Martians'. They don't seem to have a grasp of human society, then I realise their callow remarks are down to a total lack of wisdom and insight, due to their tender years.

I'll give them another 20 years to get some, or will I see that they have just become more entrenched in their bitter resentful, "us and them" approach, clinging to an idea which allows them to focus their rage on another section of society.

So, you have an asset that would cost a young person between 10k (for a basic one) and 30k+ (for a nice one) per ANNUM, and you wonder where the wealth is????????Your wealth is in the fact that you do not have to pay this. Your wealth is inthe disposable income you have as a result of not having to pay this.

p.s. Freud is widely discredited as being full of sh*t.

[Son of Taeper]

......... there is more than one way to achieve financial independance in this life. Unfortunately most of the UK population are one trick ponies when it comes to this sort of thing, therefore the future direction of the property market make-or-break for your average punter.

Now I can't argue with that.

In fact, had I not diverted some funds away from paying off capital and investing in various shares I doubt I would have paid the mortgage off as soon as I did but there's the rub, I was a one trick pony and just got lucky on the shares I bought. (that and working over 80 hours a week to achieve financial independance.

Now, will the future direction of the property market make-or-break me? I see a crash on it's way.......and I've seen them before...... and they didn't make or break me.....but this one is the Daddy.....and it's going to make me.

[Gene Pool Lifeguard]

Option 1. Don't give the old'uns the money. Refuse to play the game and don't buy overvalued property. (i.e. any property)

Option 2. Old people should be shot at birth.

Hint: One of these options is more practical and beneficial than the other

[Son of Taeper]

p.s. Freud is widely discredited as being full of sh*t.

Err, did you mean credited

[Guest Charlie The Tramp]

there is more than one way to achieve financial independance in this life

Yes as I did.

If we take working a 40 hour week from 16 to retirement at 65 my total hours worked would have given me retirement at 45 years of age.

[crashmonitor]

well im <34, by quite a lot, I own a nice family sized semi in London, I was a savvy buyer, got a good deal, affordable mortgage, locked my rate at 4% and am enjoying overpaying quite substantially. Thanks to investment in career and making the most of my opportunities I am earning and securing my financial future.

You are confusing possessions with equity,which is the point of the thread.A swing in house prices and you too could be worth zilch.You are up against boomers that even if they have made a f**k up of property,like Tony Blair,have a public sector super-ann pension that would cost 2 million to buy as an open market purchased annuity.Most,of course,aren't as stupid as Tony Blair and are sitting on unmortgaged properties picked up for under 10K before the last two booms.No wonder the over 50s control over 80% of the Nation's equity.

Edited March 19, 2007 by crashmonitor

[poorman]

Yes as I did.

If we take working a 40 hour week from 16 to retirement at 65 my total hours worked would have given me retirement at 45 years of age.

Well said

[Planner]

In a minute someones going to tell us that if the younger generation hadnt bought that i-pod for Christmas and gone for a week in Ibiza last summer they would be on the ladder now........ im waiting.......

[Son of Taeper]

In a minute someones going to tell us that if the younger generation hadnt bought that i-pod for Christmas and gone for a week in Ibiza last summer they would be on the ladder now........ im waiting.......

Is that comment aimed at me

I have been resisting the urge for three pages now as it always gets me into trouble but, seeing as you brought the subject up, yeah, I agree with you, if the younger generation hadnt bought that i-pod for Christmas and gone for a week in Ibiza last summer they would be on the ladder now.

[crashmonitor]

Is that comment aimed at me

I have been resisting the urge for three pages now as it always gets me into trouble but, seeing as you brought the subject up, yeah, I agree with you, if the younger generation hadnt bought that i-pod for Christmas and gone for a week in Ibiza last summer they would be on the ladder now.

Haven't these i-pod buyers heard of the 6 times income inter-generational mortgage or just lie on that self-cert application,anything up to 20 times earnings is affordable(look at Tony).Get into trouble just MEW,because houses will always go up by 10%.

No excuse,get on that ladder.

[expatowner]

Many, many thousands will not sell to the next generation but hand their housing wealth down to them.

Yes all those bad bad bad baby boomers.

[Son of Taeper]

....... inter-generational mortgage.......

Now theres a thought and not as crazy as it might sound. Does anyone know if there is a minimum age at which one can purchase a property ?

[Guest AuntJess]

By definition, I fit into the false definition of 'Baby boomer' which in fact spans an age group of about 18 years disparity. Very few people on earth control the policies that determine how things like property and inflation etc etc affect the population, there are just as many people of your age that have or will have that power as there is of my age. In fact your thought processes as many on this board are no better than one spoiled poodle biting another poodle just becuse its owner gave the other one a better kennel. As for increased wealth, I would beg to differ on that one, all we have is the same sh*tty flat weve had for years and until property prices drop we cant move to where we want and a FTBer will be able to buy our place. Getting back to the '18 years disparity' bit I mentioned, there is a massive difference between those that were looking for their first property in 1971 and say 1989 , in 1989 it was very similar to today, almost impossible for many to get on the ladder. Its like saying that someone of 25 years old now has the exact same set of conditions as the current group of 8 year olds will have when they get to 25. I would say the current generation of FTB'ers who hold off will get the deal of the century in the next few years, if not then you will inherit a fortune, so its win-win for your generation.

Absolutely! As for laying the blame at the feet of ALL the older generation: I feel a certain disquiet at the possibility that seemingly large groups of people, make such sweeping generalisations, devoid of evidence or logic.

I have seen a fair few 20-somethings and thirty-somethings acting like dorks.. Does that mean they all do?

[MarkG]

if not then you will inherit a fortune

a) the boomers will spend much of it.

the government will tax most of the rest.

c) it's not much help to be 'inheriting a fortune' when you're sixty.

d) surely you can't believe a society where kids are just waiting around for their parents to die so they can have a house of their own would be healthy?