Reply to: Wow never realised these times were so good!

[PurpleGorilla]

The small dip was the divorce.

Is that the definition of a banana split?

[DimPrawn]

Nice spot JB.

Truth is, the only thing keeping UK growth at or just above zero is HPI.

The politicians (mostly owners of multiple properties) benefit from a 'growing' economy, and their city mates and the '1%ers' are kept happy. Hell I think immigration is also kept loose, as well as foreign investment kept unchecked to keep the bubble inflated.

Seriously - when this puppy pops it's going to be epic [emoji41]

http://www.economicshelp.org/images/...nominal-67.jpg

Looks like a graph of my bank account. The small dip was the divorce.

[PurpleGorilla]

Nice spot JB.

Truth is, the only thing keeping UK growth at or just above zero is HPI.

The politicians (mostly owners of multiple properties) benefit from a 'growing' economy, and their city mates and the '1%ers' are kept happy. Hell I think immigration is also kept loose, as well as foreign investment kept unchecked to keep the bubble inflated.

Seriously - when this puppy pops it's going to be epic [emoji41]

http://www.economicshelp.org/images/...nominal-67.jpg

[Joe Black]

I agree population increases is pushing on demand. But so are Chinese investors buying in London (and letting the property sit empty).

No to BTL.

No to foreign investors.

Chinese/foreign investors buying up London? What makes you think that?

As you can see, with some of the newest developments, the locals come first:

[PurpleGorilla]

More BTL property for me.

I though your ex-wife had all your money?

[DimPrawn]

"Rising house prices mean that net housing wealth in the UK has grown by £1.22 trillion (58 per cent) since 2003 – and more than a third of property-based wealth is held by households where the household reference person is 65 or older. This increase in wealth for older people has fuelled the growth of the buy-to-let market – with older households looking to supplement their pension income by buying more property, aided by access to interest-only mortgages which are denied to most first-time buyers.

This is creating a perfect storm, with older and already privileged homeowners buying more homes to rent out to those who are unable to compete in the housing market. In 2013-14 almost half (48%) of all households aged 25-34 in England were living in private rented homes – a proportion that has more than doubled from 21% in 2003-4. The trend looks set to continue, with some 1.5 million extra people aged 30 or under ‘pushed into renting’ by 2020."

Okay, that's settled it for me after reading that.

More BTL property for me.

[PurpleGorilla]

"Rising house prices mean that net housing wealth in the UK has grown by £1.22 trillion (58 per cent) since 2003 – and more than a third of property-based wealth is held by households where the household reference person is 65 or older. This increase in wealth for older people has fuelled the growth of the buy-to-let market – with older households looking to supplement their pension income by buying more property, aided by access to interest-only mortgages which are denied to most first-time buyers.

This is creating a perfect storm, with older and already privileged homeowners buying more homes to rent out to those who are unable to compete in the housing market. In 2013-14 almost half (48%) of all households aged 25-34 in England were living in private rented homes – a proportion that has more than doubled from 21% in 2003-4. The trend looks set to continue, with some 1.5 million extra people aged 30 or under ‘pushed into renting’ by 2020."

http://www.cih.org/news-article/disp...housing_market

[PurpleGorilla]

interesting - how many 25-34 year olds back in 1991 lived with parents and saved money so they could buy a house rather than spending all their money on renting?

you are still not addressing the issue of what the 'youf' of today actually spend their money on.

In 1991 house were cheap.



Under 30's spend their money mainly on transport and housing (table 6.7);

http://www.ons.gov.uk/ons/rel/social...re-chapter.pdf

[original PM]

The Chartered Institute of Housing:

Housing news

"The extent to which housing is driving inequality and disadvantage is laid bare by the UK Housing Review 2015, published today (Monday 9 March) by the Chartered Institute of Housing (CIH).

Levels of homeownership are collapsing among young people but increasing among older people. In England, 66.5% of 25-34 year olds were homeowners in 1991 – a figure that dropped to 36% in 2013-14. Over the same period, the percentage of 65-74 year olds that own their own home has risen from 62.3% to 77.1%."

interesting - how many 25-34 year olds back in 1991 lived with parents and saved money so they could buy a house rather than spending all their money on renting?

you are still not addressing the issue of what the 'youf' of today actually spend their money on.

[PurpleGorilla]

Any proof that it's mostly boomers?

The onslaught of DIY shows on TV along with the complete lack of faith in the pension market has seen a lot of 30s/40s people investing in property as their pension fund, together with the flip trade of buying a fixer-upper, fixing it up and opting to sell or rent at the end.

The Chartered Institute of Housing:

http://www.cih.org/news-article/disp...housing_market

"The extent to which housing is driving inequality and disadvantage is laid bare by the UK Housing Review 2015, published today (Monday 9 March) by the Chartered Institute of Housing (CIH).

Levels of homeownership are collapsing among young people but increasing among older people. In England, 66.5% of 25-34 year olds were homeowners in 1991 – a figure that dropped to 36% in 2013-14. Over the same period, the percentage of 65-74 year olds that own their own home has risen from 62.3% to 77.1%."

[DimPrawn]

Any proof that it's mostly boomers?

The onslaught of DIY shows on TV along with the complete lack of faith in the pension market has seen a lot of 30s/40s people investing in property as their pension fund, together with the flip trade of buying a fixer-upper, fixing it up and opting to sell or rent at the end.

Yep, my peers are in their 30's and 40's.

They have no faith in pensions, many have lost their pensions, they seem to go missing along with the pension "trustees". Pension suck, fees, govt meddling.

TV - Location, Location, Location. Homes Under the Hammer, Sarah Beeny Property Ladder. To Buy or Not to Buy. Relocation, Relocation. Escape to the Country, it goes on. Normal couple buy house, following week they are richer than the Rothchilds.

So they have turned to property, and so far, they made the right call. Not boomers, just boomed with rising prices and rents.

[original PM]

No way a graduate will have saved £25k by aged 26. Not when graduating with a sea of debt and going into a £20-25k job. Also not convinced a non uni person could work and save that either...

ok 25k a year nets you £1673.93 per month

outgoings

rent to mom n dad - £100
communting costs - £200
there you go that leaves you saving £1300 per month even if you spend £73.93 a month in the pub

saving £1300 per month will mean in 5 years you save

£78,000

I am struggling with your problem here?

[LondonManc]

I get all of that on the demand side, but prices have doubled even tripled in 10 years. Quite a lot of this has been to massive speculation and BTL. Mostly boomers.

Any proof that it's mostly boomers?

The onslaught of DIY shows on TV along with the complete lack of faith in the pension market has seen a lot of 30s/40s people investing in property as their pension fund, together with the flip trade of buying a fixer-upper, fixing it up and opting to sell or rent at the end.

[Dark Black]

I'd forgotten the £50 thing.

Plus no cheap flights. You had to join some sort of club if you wanted a more reasonable price of ticket. Can't remember how that worked anymore.

Cars. Morris Marina. Need I say more?

And they all, regardless of make, rusted away in front of your very eyes.

The smell of Plastic Padding was forever in the air.

Plastic padding I remember that.. In fact I found a tube of it while sorting out a car spares box the other day.

P38 for me these days, sands better

I nearly bought a Marina as a first car, fortunately common sense prevailed and I got a Mk2 Escort instead.. the rest as they say, is history

[PurpleGorilla]

Look young people, us silver foxes took all the money and all the lovely big spacious houses with land in the best areas. It's been great and we're fooking loaded.

At least you show some honesty when you posted this. [emoji106]🏻