Thursday, January 25, 2007

BTL Boom Fuelled By Pensions Crisis

80% 'seriously worried' about pensions - ITV show

Many BTL investors are trying to secure their retirement through the property market and after watching tonights ITV documentary I can fully understand why. The much ignored pensions crisis in this country will in the long term be a big nail in the coffin of property prices as it is the current FTB's who are paying the price of their parents failing pension funds and jeopardising their own retirement.

Posted by enuii @ 10:09 PM (608 views)
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8 thoughts on “BTL Boom Fuelled By Pensions Crisis

  • japanese uncle says:

    The whole sequence of events leading up to the unprecedented/ridiculous level of house price, must have been preditable, thus may well have been designed when Crash Gordon raided the pension funds’ tax sanctuary. An epic titled the rise and fall of the British Housing Bubble (21st century version), written and directed by XXXXXXXX, and implemented by Undisputably Gorgeous Gordon, credit shared by the Silky Tefron.

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  • I cant argue with this i know many that have gone to BTL as they see it easy money long term and effectively someone else funding a retirement assett, thats fine while IRs stay low and tax rules dont change, at the moment most of them dont pay any tax on their income as it can all be offset, should Gordon change that or introduce a second property tax FTBs would benifit greatly and the UK would be a different place.

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  • japanese uncle, whilst conspiracy theories make life interesting that is about all they’re good for. You’re far more likely to encounter incompetence than malice at the core.

    I had to switch channels half way through that ITV rubbish which was simply unbearable. They fluffed the perfect opportunity to present the facts on this time bomb and chose instead to ham it up in the most pathetic way possible. An illustration, if I may;

    [Scene: a group of retirees seated around a table in a pub listening to their “pensions consultant”]
    Consultant: “I’m going to explain to you what has happened to your pensions.”
    Retirees: [stare blankly at consultant.]
    Consultant: “You’re going to get nothing.”
    Retirees: [stare blankly at consultant.]
    [cut to yet more garbage]

    FFS!! They had the gall to bill this as a documentary! So that’s what advertising pays for? I will gladly pay double the Beeb licence fee never to have to see this kind of tripe ever again.

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  • I didn’t see the documentary, mostly because I already know what would have been said.

    The pensions debacle is not a conspiracy IMHO. It’s pure incompetence for which no-one will be fired and everyone will suffer. At it’s core is shortsightedness on the part of Gordon. He unwittingly engineered the pensions crisis just as he is unwittingly engineering a housing crisis.

    Its a desperate situation, not least because the only way older generations can secure themselves a decent retirement is by effectively robbing the young of theirs. But of course this situation can’t continue. At some point ownership demand for housing will dry up as it gets pushed beyond the means of the many with steadily rising rents, and prices will have to slump not least before the elderly owner robber-barons cark it.

    Until then, we’re all waiting for tomorrow …

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  • dohousescrashinthewoods says:

    I don’t own a TV for this reason.
    I agree, this is not “news”, it’s common knowledge: the non-existence of any serious retirement option being the source of BTL desperation.
    These days, effectively each citizen is expected to become “independently wealthy” before they can retire and then they have to give half the principal to sexy G when they die.
    What a bloody awful country. I quit.

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  • I didn’t see the programme, but it’s all true – 95% of my clients don’t have any decent pension provision and many think that ‘good old bricks n mortar’ is the answer. Most people simply can’t afford to live and make provision for their old age, so something that sounds like something for nothing is bound to appeal.

    For so long the message (from the media and ‘down the pub’) has been that BTL is a no-brainer, but that message is slowly changing (I’d be interested to know if it was addressed in the programme). Eventually owning lots of properties will be regarded as a mug’s game.

    And the answer for all those without pensions? Work til they drop, I’m afraid. Or sit at home on the state pension, doing a bit of taxi work on the side, while they still can.

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  • Politicians are fundamentally unqualified for what they do. I am not making excuses for Gordon, I just wonder why you all think he could tell everyone that taxes would rise by 10% (just an optimistic guess) to fund pensions 10 years ago. Politicians are ultimately self-serving survivalists. If any one of them had to make a tough choice, the impacts of that choice would shorten his or her career. Assuming the majority of the voting public are short sighted idiots. Given the phenomenon of Spin, it seems the voting public are.

    So it seems we are doomed…..

    How hard can it be to provide housing, heating and food these days, given current levels of technology? A house is ultimately, a structure built from clay, wood and a few extras. The house is built from the work of a few people and some automated machinery. Given our manufacturing processes we could do this easily.

    The reasons we can’t, I think, is because of politics. Land accounts for about 70% (last I heard) of the value of a new house. So someone would have to be paid for the land. (Take a drive out anywhere, there is plenty of land in the UK) Someone would have to build the house at current rates (even though there is plenty of unskilled labour doing nothing). Also once we have built all these houses, the housing market would crash due to the increase in supply and all the current home owners would be upset at the drop in NOMINAL value of their properties.

    The world of cash, and council policy and perceived market value of houses is all just a farce. The resources to house everyone are there. All it takes is the will to do it.

    And I think the current political system is engineered to guarantee that it will never have that will.
    How is it that the government in power at the time decides when the next vote will occur?
    How is it that a group of rich people have the right to veto any policy generated by the legislative branch of government?
    Or that the house that is supposed to contain representatives of the common people are not really worried about their pensions?

    And the only way for the common people to improve the situation is to vote for the Tories as opposed to Labour?

    Time to head for Australia!!!!!

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