Sunday, September 7, 2014
And how do you pay rent when you retire?
Buyers who never own all their home: Soaring house prices mean generation will only be able to buy a fraction of property
Just marvellous. Think forward in time. On this course Gen Y and the Millennials will never own a house and never be able to retire because they need income for rent. With savings yielding nothing, there is no way out of this trap unless 1 - there is a large and permanent drop in house prices - possibly by requiring owners to be citizens 2 - there is giant wage inflation but not in house prices 3 - the government finds enough money to pay everyone's rent once they hit 65 4 - generations start moving in together, cramping four-to-a-bedroom Yep that's right folks, this is the wonderful UK economic "recovery" at work! Everything is fine if your an offshore oligarch washing your ill-gotten cash throughout a London property and stuff everyone else!
Posted by sneaker @ 05:01 PM (2064 views)
3 thoughts on “And how do you pay rent when you retire?”
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Streamingfreedom says:
Yes it is a dire situation indeed. I am just coming around to the idea that house prices may not fall as much as they should because this time the new norm is higher inequality. I always looked at house price trends and calculated they will return to the ‘norms’ of previous decades but it seems governments will stop at nothing to ensure our money goes to banks through mortgage payments and to landlords through rent rather than allowing people to have more disposable income to spend in the economy. As for the retirement rent trap I just hope I’m not one of the ones stuck in a 4 couples to one house setup when I retire.
khards says:
Judging by the rest of the third world several generations will all be huddled together in a bedsit. We are already experiencing this in London.
The only thing that will change this is the power in Westminster being broken by something like the EU.
Euro wide planning system anyone?
enuii says:
Simple answer is you won’t retire until you physically can’t work.
Seeing this already, 10-15 years ago you would never see mechanical/electrical/process engineers working past the age of 65. They are now quite numerous, with the main reason being large mortgages and second families and insufficient ‘pension’ income to cover retirement.
Also frequently see 70+ year old Americans coming over here to work for the companies America owner, but only for less than 2 years so the tax man can’t get them.