Monday, May 21, 2007

Pensioners sitting on £1.25 trillion of property value

Pensioner property rises in value by £41.5 billion in Q1 2007

Homewise Pensioner Property Equity Index has revealed the value of pensioner property has risen by £41.5 billion over Q1 2007. The Index showed that equates to a collective increase of around £461.49 million every day. According to the retirement finance and property specialist, the nation's 6.3 million retired homeowners have each gained on average around £6,553 in property wealth since January. Over the past 12 months a pensioner can expect to have gained on average around £20,017 in the value of their home and the total collective worth of British pensioners' homes now stands at some £1.252 trillion.

Posted by converted lurker @ 10:20 PM (882 views)
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10 thoughts on “Pensioners sitting on £1.25 trillion of property value

  • The nursing home landlords will be waiting for this generation to mature………………………………

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  • george monsoon says:

    The balance of wealth is now tipped heavily in favour of the 50+ generations.

    It is diabolical. Don’t anyone give me the bull $** about you have to build up your wealth through your working life. That is crap. The only way you build up wealth is if the government allows you to build up wealth. Thats fine if you are now a retired homeowner, who’s pension is actually worth something.

    I sit here working my arse off. I pay all my taxes, shove a huge wad of my pay into a pension and my personal wealth does not increase. In fact because of this lying government, my standard of living is falling, my disposable income is negligable and I have to watch the homeowners around my neighbourhood all in their 50s and 60s, polishing their mercedes, new 4×4’s talking about their next 12 week holiday away. Yes I am jealous, because I know the facts. I know that the economic factors that put these older people in their nice financial position no longer exist. I know that unless there is some radical and fundamental change in British economics, I will never be in the position to holiday 6 months of the year, or own a new car, (any make!!) or even buy a home of my own.

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  • dohousescrashinthewoods says:

    I agree, George. It is sickening. I like Gandalf’s quote from Lord of the Rings: “So do all who live to see such times, but that is not for them to decide. All we have to decide is what to do with the times that are given us.”

    All “we” can do is give up on having it “their” way, look at the world as it stands in front of us now, learn all we can, (e.g. S2R1 studying K-Waves) make the wisest judgement possible and take what opportunities arise.

    For my part, I think there is a good chance of serious economic turmoil and my wife senses something changing in the air. The time-frame of the next 6 months appears to have several possible shocks in it: sub-prime, Dow collapse, US recession, etc.. So arises the question “what to do” and discussions here have often revolved aroud inflation/deflation and stocks or gold. Those with no debt stand to do well in a credit contraction (read: those without 4by4s and holidays on the credit-card). There seems a good chance that “now” is the time to move (next coule of months).

    Chances are pension funds will take a hit, and since nowadays you can keep some out of the fund and whack it in later, you have more of a choice. Retirement planning is very wise – you won’t regret it later (unlike those getting back from costa-del-chav on their 65th birthday with nothing but debts to accompany them into old age – houses will be worth nothing as an investment by then). My guess is steer away from equities towards steadier, inflation-protected investments and try to make good decisions if madness does unfold in the next 6-12 months.

    It looks grim right now, but a) it can’t last and b) a shakeup provides the best opportunity for change. If we catch this wave (buoyant with lack of debt) then we could well find ourselves out in front in the next decade (at which point the trick is not to get cocky – like some current-day BTLers). Sit tight and take the opportunity. It usually looks like a dud at first sight, but with work tends to turn out nicely in the end.

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  • George, the point is – they are in their 50s and 60s and you’re not – chill out. If you’re 65 now, then you were 30 in 1972 – do you think things looked rosy then? Why wait to live your life in your 60s? This site can make things seem bleaker than they are – remember, people have made a living and money through every economic depression, downturn and disaster in history by applying common sense – act prudently and wisely and there’s nothing to worry about.
    Trying to second guess, speculate and micro manage your finances will make you desperate, obsessed and liable to come a cropper, or you could make a bit of money – but money’s not everything.

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  • I hope that all these money grabbing BTLers, MEWers, and over-extended borrowers lose everything, then they can spend the rest of their lives working for people who have invested in a more sustainable fashion.

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  • The Capitalist says:

    Nice one shipbuilder,

    It ‘s no use getting chippy or thinking they had it easy then. Life is not easy – ever. Sometimes you get lucky, you might even get rich (if you want wealth read Felix Dennis’ excellent How to get rich – it should, I hope, put you off that ambition).

    As an excellent US website says “Switch off the TV AND THINK!” Make plans for a severe recession, dump illiquid investments and live thriftily (a much abused virtue)
    and go and learn to dance or something (I did – the Tango – and it has put a lot of things into perspective!)

    Good luck!

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  • george monsoon says:

    Thanks for the advice,

    should I shove my pension money into gold instead, at the risk of some mad scientist discovering alchemy?

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  • shipbuilder says:

    I’m no expert, but my opinion would be that it is better to invest rather than speculate, as I read somewhere – better to be safe than sorry in dodgy times. Time-honoured fashion says invest (when not overvalued) in well run businesses that make something (preferably a niche product) that society wants and needs, no matter what the economic climate. I’m sure that sounds boring and obvious (and probably even stupid considering current stock market levels), but it’s common sense.

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  • If things turn hairy i’ll invest my pension in canned food and shotguns!

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  • dohousescrashinthewoods says:

    “Switch off the TV AND THINK!”

    Definitely. It’s amazing what you can do, feel, see, understand in life without TV.

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