It forces speculation, witness Zimbabwe's stock market against its trashed economy. An extreme example but the mechanism is the same. Dividend payers with pricing power will be highly sort after.
The future of Australian property prices
- Thread starter Joe Blow
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It forces speculation, witness Zimbabwe's stock market against its trashed economy. An extreme example but the mechanism is the same. Dividend payers with pricing power will be highly sort after.
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The Biggest Housing Bubble in the World Is in ... Canada?
http://www.theatlantic.com/business/archive/2013/01/the-biggest-housing-bubble-in-the-world-is-in-canada/272499/?google_editors_picks=true
http://www.theatlantic.com/business/archive/2013/01/the-biggest-housing-bubble-in-the-world-is-in-canada/272499/?google_editors_picks=true
Julia
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You must move in affluent circles. I don't believe that is typical.
Thank you. I appreciate the response.take it... leave it.
I'll largely leave it because you seem to be taking anecdotal situations from your own observations and milieu and asserting these constitute facts on a more general basis.
With this, however, you're obviously correct. The only redeeming feature is that the boomers have on the whole looked after their health pretty well, so hopefully this might offset some of the inevitable disease processes.
Governments are - as far as I can tell - failing to adequately plan for the situation a few decades on.
That I think is questionable...
Julia
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Of course you do.
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Here is another reason why I think baby boomers will start divesting themselves of their IPs. If they still have them negatively geared and they stop earning then the negative gearing no longer applies and IPs just become an expense for them so naturally they will want to offload them, especially if they don't forsee any decent capital gain in the short term future.
No, it is darn right hilarious and denialist.
More to the point. They'll stop going up 10% a year on year and the baby boomers won't like it because for once, they'll actually have to WORK for something. Rather than having it handed to them.
Of course you do.
I dunno where you live or who you meet Julia but the boomers I see socially, and there are many, seem to have turned health concerns into an Olympic sport, mind you they are competitive on every other front so why not!
Just a quick google and the first link...
http://www.fitness.org.au/article.php?group_id=1528
They are falling to pieces, the only people that they are relatively healthier than is their children.... sadly.
tech/a
No Ordinary Duck
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Wow
Bit of anger there.
I employ some of you guys
I'd back a baby boomer on efficiency/punctuality/reliability/
Work ethic/willingness to go the extra mile and longevity in a position
Over those younger.
I have 4 who have taken long service and 2 close to their second lot.
Biggest turn over of staff are in the 20-24 age group who are either
Suffering from delusions of grandure which the other staff pick as quick
As look at you---or they want everyone else to make them look good.
The rest of the guys 20 - 50 pick that quick smart as well.
We pull our weight!
By the way
To afford the chance to take up opportunity banks need collateral
And serviceability. Neither comes from sitting on your arsse.
erm. people leave when you pay them a lot less than they can get elsewhere.
Employers will just want you to work for nothing forever and it is worse if you are seen as a "youngster" because that means you do not deserve to get paid for the work you do.
I found this in my travels...
The orange square covers the boomers...
They are the wealthiest generation in terms of assets held period, I have never seen a stat that says otherwise! Although I believe a greater % of the older generations own homes they are smaller generations BUT the same argument applies them and they are far more likely to divest than invest going forward, that much I would think is self evident.
I really can't see the logic in being on the same side of the boat as boomers when it is obvious that as a group they will need to raise funds going into retirement. I really looks to be a no brainer, ignoring demographic turning points like this and the lessons of other similar markets globally seems to me to be foolishly optimistic!
I'd concede that we have some mitigating circumstances so I expect an easier time of it but...
The orange square covers the boomers...
They are the wealthiest generation in terms of assets held period, I have never seen a stat that says otherwise! Although I believe a greater % of the older generations own homes they are smaller generations BUT the same argument applies them and they are far more likely to divest than invest going forward, that much I would think is self evident.
I really can't see the logic in being on the same side of the boat as boomers when it is obvious that as a group they will need to raise funds going into retirement. I really looks to be a no brainer, ignoring demographic turning points like this and the lessons of other similar markets globally seems to me to be foolishly optimistic!
I'd concede that we have some mitigating circumstances so I expect an easier time of it but...
Attachments
This is a major part of the problem that the boomers pose, there is little follow through in terms of economic muscle to adsorb these assets as the boomers need to liquidate. There is literally a pot hole following these generations in many ways, skills, wealth etc... much of it due to the size of the generations, some of it due to the nature of the generations.
tech/a
No Ordinary Duck
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Err My people leave when they are told to leave.
My staff sort out the shirkers not me.
I have site supervisors who are 26 on $35/hr (46 hr week av) With a car and Fuel Card. They dont leave nor are they poached!
They are often called because they are damned good.
How did they get there?
They put in the hard yards on $18/hr for a few years and impressed their PEERS.
They adopted the qualities of stability and knowledge.
They didn't hop job to job looking for $$$$s
They bought enthusiasm,organisation and leadership commitment and respect to the table.
This is valuable to any employer. So when the Wannabe's roll up demanding top $$ my boys
and girls who are on top dollar sort out the chaff.
They demand equality and bludger's wont be tolerated.
tech/a
No Ordinary Duck
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ZZZZ your not thinking are you!
(1) Under 40 people haven't accumulated a great deal of Collateral and they are working toward the Accumulation of Investment and hence wealth phase which the baby boomers are now in---the younger they are the longer the road.
(2) Those over 60 have retired and those 70-80+ have been retired for years.
They dont have the same (In General terms) required cashflow to accumulate wealth.
When they did accumulate their wealth (Take my own Father now 90) At the time of retirement the average wage was 10-14K a year. Now its $65K so they dont have the clout and never will of those who are younger.
The SAME will happen in years to come when those in their 20s reach retirement and are compared with the holdings of the baby boomers. The average wage in 30 yrs time is likely to be $250K + a year.
Makes the $1.2 million used as a bench for retirement these days look sick!
That is just insulting.
Taken into consideration... THEY ARE OUT NUMBERED SIGNIFICANTLY, it would take a herculean effort for them to bridge the gap to the boomers in aggregate.... DEMOGRAPHICS, DEMOGRAPHICS, DEMOGRAPHICS! While individually what you say is true as a group they would all have to exceed the average boomer performance significantly to bridge the gap in numbers.
Your point is? In most cases they will still have to divest to make ends meet! Have you priced a retirement home recently? We did the exercise a few years ago for a relative.... 300K bond and 60K a year!
Again it is the SIZE of the generation that is the issue, one that cannot be easily overcome. You point out simplistic dynamics... all other things being equal what you say is correct BUT all other things are not equal!
That is not enough today, it may take a few years for folk to work that out.
Wait. You think $35 an hour is top dollar ? Please tell me you pay them overtime as well. Annual leave, sick pay ect too ?
You pay your workers $18 an hour ? Wow. You could get a job at Coles earning more than $18 an hour. That is barely 37k a year. Not surprised you have trouble retaining people.
I knew things in the employment market had dried up a little but I didn't think it was that bad.
If hard working people are still only earning $18 an hour, what hope do they have to buy a house. That must influence the market at some point.
tech/a
No Ordinary Duck
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Time to go again
Had enough of romper room after a few posts
Leave you to it kiddies.
Had enough of romper room after a few posts
Leave you to it kiddies.
