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Babies, Boomers And Buyers...

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Hello everybody,

New and all... I'm just thinking out loud after considering this myself for a time. The board (well certain members ;) ) seem to think the boomers hold all the cards and have had a lucky break during the HPI compared to the young un's and FTBs. The impending(!) crash is seen as a return to balance of power. However, surely this isn't going to happen? The most vunerable people affected by a crash would be those FTB'ers and younger folk with less equity, the ones who have only recently got on the ladder. The boomers would be the least likely to be affected as they have had more time to repay and bought for less int he first place. They are the most likely to cope with anything bad... is this a fair assessment?

Therefore, crash or no crash.. our children are doomed?

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The boomers have more to lose, a lot of them have bet everything

they have on forever increasing house prices. Which means if that doesn't

happen they stand to lose everything.

From a purely psychological standpoint, having it all, and then losing it

all is going to be more painful than having very little, and losing money

you never had to begin with. You can always go bankrupt,

which is probably going to be more devasting for a boomer that has

got used to the idea of being "rich", than it is for a younger person.

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Guest Charlie The Tramp

It will be the junior boomers born between 1956 and 1962 who are most at risk, the senior boomers 1940 to 1955 are more savvy, all IMHO of course. ;)

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It will be the junior boomers born between 1956 and 1962 who are most at risk, the senior boomers 1940 to 1955 are more savvy, all IMHO of course. ;)

I doubt it.The more ingrained security is...and with people approaching retirement property most certainly is.The more at risk they are.I can see a major bull-market for healthcare coming up as these guys want to do their best to put off the inevitible....the slight catalyst of a war will most likely remind them of their own mortality.

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The boomers have more to lose, a lot of them have bet everything

they have on forever increasing house prices. Which means if that doesn't

happen they stand to lose everything.

A boomer by definition was someone born between 1945 and 1950. The average property price in the late sixties/early seventies was around £3000. The average wage then was around £1500. Today the average property is £200,000 and the average wage around £25000. When the crash comes it will take a 75% drop in property prices before the boomer is out of pocket in real terms.

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It will be the junior boomers born between 1956 and 1962 who are most at risk, the senior boomers 1940 to 1955 are more savvy, all IMHO of course. ;)

I suppose that the older "senior" generation have seen alot of it before, and I assume that most born in that age would own their own house outright by now - their only problem is if they need the inflated value for a pension. I still think the others will be ok, So your house drops from £250,000 to £175,000 you've seen it all before. You will cope, you can still work and pay the small mortgage you have left, children have gone... its all for you now.

But the young ones will be wondering how they can possibly struggle like this forever, not having that experience of neg equity and all (as well as not being used to surviving with very little.. ipods are a necessity at te moment).. the only conclusion that leads me to is... poor children.

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A boomer by definition was someone born between 1945 and 1950. The average property price in the late sixties/early seventies was around £3000. The average wage then was around £1500. Today the average property is £200,000 and the average wage around £25000. When the crash comes it will take a 75% drop in property prices before the boomer is out of pocket in real terms.

Was that a typo? I thought it was 1945 to 1960 (ish) for the boomers?

Edited by Without_a_Paddle

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Was that a typo? I thought it was 1945 to 1960 (ish) for the boomers?

No, It was 1945 to 1950. The baby boom was caused by the sex starved troops returning home after the war. All troops had been demobbed by 1949.

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A boomer by definition was someone born between 1945 and 1950. The average property price in the late sixties/early seventies was around £3000. The average wage then was around £1500. Today the average property is £200,000 and the average wage around £25000. When the crash comes it will take a 75% drop in property prices before the boomer is out of pocket in real terms.

Yes, you are correct. Assuming a boomer with one house

and no equity withdrawal.

I was talking about those boomers loaded up with BTLs

and second homes, the wealth destruction effects of a HPC

will be multiplied in these cases.

I don't have any stats but I don't think it will be too uncommon.

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Guest Charlie The Tramp
the slight catalyst of a war will most likely remind them of their own mortality.

As one of the Senior Boomers who started with £20 in 1969 when returning from my honeymoon, my biggest worry is that I may not survive to spend my money, and that without taking into consideration the value of my property which no doubt my beneficaries will enjoy. All the Senior Boomers I know who are many are in the same situation as myself. We are the prudent generation who prepared for retirement when we were still young. I know of one who has just received a £250k payout on his life endowment policies alone. As a matter of fact I did quite well with these myself. Lost about £10k due to the last SM downturn. Each £25 per month from 1975 over 25 years paid out £40k.

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Yes, you are correct. Assuming a boomer with one house

and no equity withdrawal.

I was talking about those boomers loaded up with BTLs

and second homes, the wealth destruction effects of a HPC

will be multiplied in these cases.

I don't have any stats but I don't think it will be too uncommon.

Yes I agree, equity release is just a cheap way of borrowing, a loan is just a loan in reality. Btl and second homes are a form of high risk investment that needs to be treated with utmost caution. If they decide to hang on to them they will get their fingers badly burned.

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Hello everybody,

New and all... I'm just thinking out loud after considering this myself for a time. The board (well certain members ;) ) seem to think the boomers hold all the cards and have had a lucky break during the HPI compared to the young un's and FTBs. The impending(!) crash is seen as a return to balance of power. However, surely this isn't going to happen? The most vunerable people affected by a crash would be those FTB'ers and younger folk with less equity, the ones who have only recently got on the ladder. The boomers would be the least likely to be affected as they have had more time to repay and bought for less int he first place. They are the most likely to cope with anything bad... is this a fair assessment?

Therefore, crash or no crash.. our children are doomed?

Yes, you are correct. Assuming a boomer with one house

and no equity withdrawal.

I was talking about those boomers loaded up with BTLs

and second homes, the wealth destruction effects of a HPC

will be multiplied in these cases.

I don't have any stats but I don't think it will be too uncommon.

And there we have it - I DON'T have any stats!!! so what you don't think (or do think - I'm confused by the double/triple negative) doesn't mean squat!

Too many posters on here think that HPC is going to affect everyone who owns a house when quite obviously it won't!!!!! I bet most boomers as well as huge section of society in general will barely even notice!! their house will be 'worth' (whatever that means) less than it was last week! So what!

How many boomers actually have a BTl - what proportion? Anyone got any 'stats'?? or sanity?

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