Thursday, June 10, 2010
Is this A Good Thing or A Bad Thing? Mr G?
Retired homeowners' equity level up
The total property wealth of retired homeowners has jumped by almost £2 billion in the last three months after house prices continued to edge ahead, according to new research. A report by equity release firm Key Retirement Solutions said people aged 65 and over in Great Britain had collective equity of £767 billion at the end of last month, £1.88 billion up on January's figure. Some older people, however, experienced a loss after house prices continued to fall in their region - Scotland was the biggest loser with an equity drop of 7.8%, or £12,249 per household. Humberside, the South East, Wales, the West Midlands and Yorkshire also saw decreases. Retired homeowners in the North East were the biggest winners as their equity levels grew by 4.6%, or about £5,000 per household...
Posted by mark wadsworth @ 09:32 PM (1337 views)
8 thoughts on “Is this A Good Thing or A Bad Thing? Mr G?”
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rumble says:
A good thing or a bad thing for who? The dice rolled, favoured some. It’s a mob eat mob world; the elite declare that the mob is defined by class, wealth, or education, but those only define the manner of the mobster.
“hidden veneers”
braindeed says:
Grumpy would say that it didn’t matter, he can’t eat his ‘bricks and mortar’ – and in a sense that would be true.. The rub is that there would continue to be an asset transfer from one generation to another , not by effort or ingenuity, but by birth date – they’ll need to get organised and fight this.
. Yesterday’s proclamations about tuition fees being ‘too cheap’, was another insult perpetrated on this younger generation. If it were truly so, then those of us who received a free university education in the past, have effectively robbed our grandchildren (with interest) of the amounts foisted on them.
I thought that Cameron was using the coalition to soften the parties monetarist stance and ease over to Heaths *one nation* centre, but there are signs that he is {at core} just as neo-feudalist as Redwood. I think the Liberals will be flamed and consumed by this coalition – it’ll be dawning on their supporters as we speak.
*It’s a mob eat mob world*……sums it up perfectly.
“busted ring”
tenyearstogetmymoneyback says:
I wonder how many Retired Householders would prefer a decent return on their savings ?
Its rather difficult to sell the Bay Window from your house. Contrast the current situation
with that ten years ago when I was getting over £100 a month interest after tax on savings of £20000
in a bog standard High Street Building Society instant access account (the sort pensioners like).
alan says:
@ tenyearstogetmymoneyback,
My old mum’s house is in E. London, a short walk from the Olympics site. Unless she has around £10,000 to invest, she gets a derisory rate on her savings which are rapidly losing their buying power. Old age pension and a small pension from my dad’s railway time allow her to get by, just enough to keep her off benefits. She wants to stay where she is, although most of her friends have died or left and she is not good at getting around. OK, the council deliver a lunch each day, but its not an exciting life…
Mark’s researchers are right…the old folk have made a packet! In my mum’s case, unintentionally. The only way forward seems to be to MEW or move to a flat where she knows nobody. Joy!
letthemfall says:
Some old folk have made a packet – as indeed have some young folk. I read in an article the other day that the age group struggling the most financially is 55 – 65 (which encompasses the baby boomers). It’s the inequality stupid.
mark wadsworth says:
@ Alan (and anybody else who is interested), if a low-income pensioner MEWs or trades down, the pensions and benefits system punishes them most heavily and they end up a lot worse off.
So the system collects taxes from young people and uses the money to bribe low-income pensioners to stay put, even if that does not make commercial sense.
Wiltshire says:
I wonder if any of the retirees can see the irony in releasing equity in their property just so they can help their children onto the most overheated housing market in history?
bluebeach says:
I think the yanks will pull it off………..