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Perfectionist

You’ll Get My House When I Die, Son .....

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http://www.citywire.co.uk/Blogs/Property/E...VersionID=93364

With all the whinging and whining about young people being priced out of property and How Something Really Must Be Done About It, one fact always gets overlooked.

It is that this generation will inherit the property assets of their parents when they die and so benefit from the massive property inflation about which they carp so loudly.

It's what John Major once referred to as 'wealth cascading down the generations' and it's bucketing down right now in ever greater torrents.

So far from being disenfranchised, they get to keep skin in the property game, assuming of course they remain on speakers with their parents and indeed outlive them. They would be foolish to not do the first and statistically unlucky not to do the second.

The point is well made with an extremely funny letter in the FT that responds to the paper' own humorous {2 leader} on the rising generation's envy of their parents. Set out as a note from Mom and Dad, the letter's points include:

'Any transfer of wealth from a younger generation to an older one is only temporary. The more money we have when we die, the more money you will inherit. We realise that this requires deferred consumption - something we admit we have not prepared you for.

'Do not confuse debt for consumption and debt for investment. Contrary to what the banks and credit card companies may tell you, borrowing for a latte, a suit or a holiday will simply reduce you to a modern form of debt peonage.'

And most pertinently

'Supply and demand are iron laws in any market. If the majority of young people cannot afford houses then either incomes will rise or prices will fall to a level were they can.'

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Guest casaloco

oooooohhhh where do we start??? :)

Ignoring the fact that evidence suggest that the "baby boomers" may well OUTLIVE their children due to being wealthy and able to afford private healthcare... (Seriously!)

Anything you inherit above a certain amount attracts a LOT of tax.

Also, many old people claim there "house is their pension"... and "will pay for their retirement"... so they re planning to sell it or MEW or "equity release" all the value out. If prices do crash the house may well end up in negative equity, with the lenders strpping the house off all valuables and even going after the kidsfor the difference.

In terms of families, by the time BOTH the baby-boomer parets have died and pass on the house to their children, their children will almost certainly be too old to have children themselves. If our generation are going to have children, we need houses to bring them up in NOW... not when were 50.

In reality, the baby boomer don't give a sh1t about their children. Yes they'de like to see their children have a nice life, but only as long as it does infringe on their ability to live the life they think they deserve.

If the old people REALLY cared about their childre they would swap houses... live in the 1 bedrom flat and let their kids bring up their grandkids in the 4 bedroom semi.

But they don't because thy simple don't care. They've asset stripped our country and left us with unimaginable debts.

I like one part of your argument though... the bit where these parasite baby-boomers die.

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Except for inheritance tax, what if your parents can't afford anywhere (plenty couldn't), what if your parents' social care needs to be taken out of their assets, and what if the majority of your working life is spent struggling to save as rents are to high relative to your salary?

Other than that it's a perfectly sensible article.

Oh, and the "young" will have the last laugh, as if they've any brains and no debt, they will be idealy placed within the coming crash & associated recession.

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Guest casaloco

Sadly due to the amount of money flowing out of their generations pockets and into their parents generations pockets, few people live with no debt.

That's actually deliberate... by ensuring the young people have large debts, the baby boomers ensure that they don't get ideas above their station.

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And furthermore... In these enlightened times the odds of your father still being married to and living with your mother are rather less than 100%. Which means when daddy carks it the odds of his natural children seeing a brass farthing are pretty slim.

Note to self: need to have a word with dad regarding will. :P

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Except for inheritance tax, what if your parents can't afford anywhere (plenty couldn't), what if your parents' social care needs to be taken out of their assets, and what if the majority of your working life is spent struggling to save as rents are to high relative to your salary?

If it were that bad then I suppose one would seek opportunities elsewhere. The fact that so few of the young and disgruntled seem to be willing to do this suggests either that their life in the UK not be as intolerable as they claim, or that the following is the truest line in the letter:

"We apologise that we have done such a poor job of preparing you for life in the modern world."

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If it were that bad then I suppose one would seek opportunities elsewhere. The fact that so few of the young and disgruntled seem to be willing to do this suggests either that their life in the UK not be as intolerable as they claim, or that the following is the truest line in the letter:

"We apologise that we have done such a poor job of preparing you for life in the modern world."

Maybe many are just biding their time, making as much as they can whilst the going is good, ready to act when the time is right.

A lot ARE leaving, it's just the insane levels of uncontrolled inward migration that are masking the figures.

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Guest casaloco
Maybe many are just biding their time, making as much as they can whilst the going is good, ready to act when the time is right.

A lot ARE leaving, it's just the insane levels of uncontrolled inward migration that are masking the figures.

Actally most of those leaving are baby boomers retiring to spain to live in the sun, while renting out the housesthey used to live in in the UK.

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If it were that bad then I suppose one would seek opportunities elsewhere. The fact that so few of the young and disgruntled seem to be willing to do this suggests either that their life in the UK not be as intolerable as they claim, or that the following is the truest line in the letter:

"We apologise that we have done such a poor job of preparing you for life in the modern world."

Emmigration from the UK is at record levels.

I've noticed it certainly amongst people I know...seems a steady drip each year. The reason the majority can't leave is that they wouldn't get into Australia or Canada without qualifications etc and are scared by places that don't speak English. So its just doctors, scientists, engineers, nurses, useless good-for-nothing people like that which society doesn't need who are leaving. Don't worry though, the much sought after benefit claiming chav, the real engine of British prosperity, isn't going anywhere.

I do agree with the point that boomer parents were too selfish and lazy to bring up their kids properly in many cases. I think the damage they've done to this country with their negligence is something that they should feel very, very ashamed about. I think that little bit of sarcasm backfires frankly because there is a case to answer.

Edited by Cogs

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Anything you inherit above a certain amount attracts a LOT of tax.

HPC which will happen will correct this massively as prices can not outstrip wages forever . The only question now as during every period of HPI is when.

Also, many old people claim there "house is their pension"... and "will pay for their retirement"... so they re planning to sell it or MEW or "equity release" all the value out. If prices do crash the house may well end up in negative equity, with the lenders strpping the house off all valuables and even going after the kidsfor the difference.

The mortgage, MEW or equity release is secured against the property not its contents, stripping out the property to bare shell would devalue it and worsen the lenders position come resale time. Repeat after me, you can not inherit any debt you are not liable for, debt contained within your dead parents estate is not inheritable.

If the old people REALLY cared about their childre they would swap houses... live in the 1 bedrom flat and let their kids bring up their grandkids in the 4 bedroom semi.

I personally know of few that have done just that and many more planning to do this should it continue to point their own children need to settle down having been priced out. This incidentally helps to hold up the property market by transferring the "wealth" without a sale and transfers a greater burden onto the state when covering the cost of any long term care they may need.

Edited by b0rk

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Guest casaloco
HPC which will happen will correct this massively as prices can not outstrip wages forever . The only question now as during every period of HPI is when.

Well yeah but then arn't inheriting anything of value, which was the point of this thread!

The mortgage, MEW or equity release is secured against the property not its contents, stripping out the property to bare shell would devalue it and worsen the lenders position come resale time. Repeat after me, you can not inherit any debt you are not liable for, debt contained within your dead parents estate is not inheritable.

The bank can strip the entire estate... no they wont remove light fitting etc, but all the possession/furnishings/cars/antiques etc. True the debt doesn't pass onto the children... though bank will initially TRY.

I personally know of few that have done just that and many more planning to do this should it continue to point their own children need to settle down having been priced out. This incidentally helps to hold up the property market by transferring the "wealth" without a sale and transfers a greater burden onto the state when covering the cost of any long term care they may need.

Hold up as in delay or is in support?

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Well yeah but then arn't inheriting anything of value, which was the point of this thread!

Why do they need to, property is for living not investment. The sooner the idea of housing as an investment goes back out of fashion the faster the market will correct to normal levels. Part of the reason why housing is so much cheaper else where in Europe (Germany in particular) is exactly because it's not seen as an investment rather a deprecating asset.

The current residential property investment manna is a predominately english language cult distorting global markets as investors look even further for decent returns, to for example Mongolia where investment properties trade for up to 50 times local earnings. :blink:

Hold up as in delay or is in support?

Both, you've already identified why in an earlier post btw just think of the downstream buyer if property came on the open market who and how old are they?

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And furthermore... In these enlightened times the odds of your father still being married to and living with your mother are rather less than 100%. Which means when daddy carks it the odds of his natural children seeing a brass farthing are pretty slim.

Note to self: need to have a word with dad regarding will. :P

Its not just that you know, inheritance is a simple formula for a complex situation. When someone dies you have the funeral and then the argument. When this was researched they found that it caused terminal family rifts in 25% of cases.

The problem is if you introduce complexity, lawyers get involved and the cost of sorting it all out goes through the roof.

About all you can do is throw all the details before a judge and they should judge on the basis of fairness and right, stamped and done with.

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Hang on a second...a big assumtion is made that everyone has parents that will give them their house.

Some people's parents don't own a house you know. Some people don't have the support of parents at all and have to make their own way in the world.

So what of these people? Assuming that everyone else is happy to wait till they are 50+ for the demise of their parents before they get their own house, what about the people who have no such inheritence?

The really sad thing is that for most of these people, they cannot aspire to owning a house, no matter how hard they work, because prices are so stupidly high.

Oh, and my parents do own a house. But I don't want to spend the next 25 years waiting for them to die so I can reap the rewards; I'd rather make my own way in the world thank very much.

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'Supply and demand are iron laws in any market. If the majority of young people cannot afford houses then either incomes will rise or prices will fall to a level were they can.'

Am I the only person who read as far as this in the quote...?

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Hang on a second...a big assumtion is made that everyone has parents that will give them their house.

Some people's parents don't own a house you know. Some people don't have the support of parents at all and have to make their own way in the world.

So what of these people? Assuming that everyone else is happy to wait till they are 50+ for the demise of their parents before they get their own house, what about the people who have no such inheritence?

The really sad thing is that for most of these people, they cannot aspire to owning a house, no matter how hard they work, because prices are so stupidly high.

Oh, and my parents do own a house. But I don't want to spend the next 25 years waiting for them to die so I can reap the rewards; I'd rather make my own way in the world thank very much.

I dont actually agree with inheritance, it is unfair, but you have to be realistic. Set a point say 50 years in the future and work towards not having it then. Could you imagine turning the tap of over night. Tantrums, blimey can you imagine.

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The bank can strip the entire estate... no they wont remove light fitting etc, but all the possession/furnishings/cars/antiques etc. True the debt doesn't pass onto the children... though bank will initially TRY.

Strip it yourself before the banks and solicitors get near it then. What they don't know about won't hurt them.

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I dont actually agree with inheritance, it is unfair, but you have to be realistic. Set a point say 50 years in the future and work towards not having it then. Could you imagine turning the tap of over night. Tantrums, blimey can you imagine.

Changed my mind, 100 years, I dont know do I.

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Guest Skint Academic
A lot ARE leaving, it's just the insane levels of uncontrolled inward migration that are masking the figures.

http://news.bbc.co.uk/1/hi/uk/6109230.stm

"In total, 565,000 people arrived in the UK in 2005 saying they intended to stay for at least a year. At the same time, 380,000 people left - 1,000 people a day - more than half of whom were British citizens."

I suspect the number of British emigrants might actually be much higher. How many official forms are there that require you to fill out sections if you have left the country for 6 months or more? It's easier to say that you are currently living at a parent's or friend's address and not admit to leaving the country. That makes it easy to return, go to the GP, claim benefits if need be and allows mail to be collected for you. I know plenty of people that do this.

My partner and I have decided to emigrate at the end of December. It will have to be a really good job in Scotland for us to stay, nothing less. And we do not expect that to happen.

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Where I live, inner city area. My neighbours change so quick you dont have time to get associated, its that transcient. Even if you try to strike up a conversation you only have what you are looking at to guess nationality. I opened a conversation with what I thought was an English person and they had not a clue what I was saying, I still dont know where they were from.

I'm not the only person with this problem. They cant talk to each other either. You just cant figure it out. In the end you give in.

PS was in response to post above, I pressed wrong button.

Edited by deano

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"It's easier to say that you are currently living at a parent's or friend's address and not admit to leaving the country. That makes it easy to return, go to the GP, claim benefits if need be and allows mail to be collected for you. I know plenty of people that do this."

- Surely this can't work? Surely after say 6 months there will be a record on computer somewhere that you left the country on a certain flight, but never came back?

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Guest AuntJess
Am I the only person who read as far as this in the quote...?

Maybe...maybe not. You have to realise that reading and accepting that point would not allow the vitriolic baby-boomer ill-wishers to vent their spleen. Some social misfits have to blame someone for their problems.

Sad b*stards are everywhere. :rolleyes:

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The really sad thing is that for most of these people, they cannot aspire to owning a house, no matter how hard they work, because prices are so stupidly high.

I managed it, just last year, bought a nice starter house in London. All good. Sadly im not a big earner or have an account with the bank of M&D.

Im not going to suggest it was easy. It wasnt. I had to save right from leaving education, I had to sacrifice treats and mod cons, save hard, scrap the pennies, etc. For years. And years. But now, heading towards my 30s I am starting to see my hard work pay off and my disposable income is on the up!

Its ironic that this very thread slates the "chav" culture. Yet a hard worker, grafter, saver like me will also be dismissed as a loon no doubt. I sometimes wonder if people are expecting to cruise through life - bit of a shock when you realise you cant I guess.

Its not impossible, but if you think it is... well whadyaknow... it is. But it isnt ;)! Make ya choice, sit and whinge or do something about it.

GL :)

Edited by Orbital

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By the time inheritance tax has taken its lump out, and the property has been split between my siblings and I, I should just about be able to buy a cup of coffee.

Okay, I exaggerate, there are some delightful parking spaces in the price range of what would be left.

Edited by rnicoll

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Surely this [pretending to have remained resident in the UK after emigrating] can't work? Surely after say 6 months there will be a record on computer somewhere that you left the country on a certain flight, but never came back?

Knowing this government's record on IT, do you seriously think they can get a system which provides that information to work reliably?

My guess would be that you could get away with that until your passport expired (assuming your relative was willing to fraudulently sign you onto the electoral role each year), at which point you'd either have to return to the UK to renew it, or do so at a foreign embassy, thereby making your expat status official. The other possibility is that the absence of any tax and NI payments would show up after a while, possibly triggering an investigation by the IR if it thought you were still resident at a UK address.

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