Baby Boomers are 25% of the population and control over 50% of the wealth!

[nioka]

I sure do think that young people should be able to afford an average Home, 100pc i believe that ...

Obviously you dont believe young people should be able to afford an average home?

Tell me when you where in your 20s could you afford a average home? I sure could, each generation SHOULD be better off than the previous generation, You and your parents got to ride the Post War dream, the average young Aussie now gets to Surf one of the largest asset bubbles in History.

Can you seriously not see the imbalance, only 10 years ago a wage of 43k would service the average home, its now 110k, Xers and Yers on average have been denied what you took for granted.

I can forsee boatloads of animosity and anger in Australian society in the coming decades from Xers and Yers, average wages aren't going to go up to 110k ever, and imagine the Inflation if they did, it would actually be hyperinflation.

Only one solution, pop this Realestate bubble just like its popping in the US now, and increase lending standards to take speculators out of this over inflated market and ideally increase interest rates to 10pc +.


That pretty well says it all.

What a lot of rot.

 

[numbercruncher]

Oh dear, Number Cruncher, you poor thing! How disadvantaged and miserable you are.

I am? Oh i am !! Of coarse if your not a boomer you must be right? Do you guys still smoke 100 dollar bills?

I'm a baby boomer. I won't bore you with the hardships I've overcome, as did most of my friends. .

Thank god for that, weve heard it all before, baby boomer bread butter and water people.

What I will say, is that we had a hugely different attitude than your generation. .

You HAD or you DO? I think you HAD!

We understood that standing around whining wouldn't get us anywhere, and I'd support the member who suggested some of us actually got involved in the building of our own homes. We did when I first got married..

Did you have a home Builders permit? Bet you got a good price for ca$h on that plumber and sparky did yah?? Huh Did yah??

Damn them freeloading Xers for not taking a year off work and building their house themselves on that 300k block of land!

And I simply fail to see what's different about baby boomers as a generation in terms of this report. My parents, grandparents, and great grandparents all, in their 50's, owned their own homes outright and had some savings..

Isnt that sweet, so did mine come to think of it!

The difference might be that they didn't go through their young lives throwing money around on Ipods, designer clothes and expensive entertainment..

I bet boomer Business owners profit from this waste of financial resources dontyahthink?

Sorry, folks, I didn't intend to get on the "things were better in my day" routine, but I'm just mightily tired of some of the Gen X's and Y's constantly whining about how tough their lives are. Get over it and get on with it.

Julia..

Maybe you should just kill all them nasty freeloading Xers and Yers before they get the chance to save up some cash to afford to have babies?

Glad to see some, e.g. Professor Frink, have a more realistic attitude.
Wouldn't mind betting this individual is taking steps to provide for his future.

They sure do, you guys should hook up and smoke some $100 bills together and ponder what the poor people are upto today huh?

 

[moses]

I sure do think that young people should be able to afford an average Home, 100pc i believe that ...

Obviously you dont believe young people should be able to afford an average home?

When young people have an average wage, borne from average experience and average skills, they will afford an average home. But they won't be young people anymore, most will be of average age.

Tell me when you where in your 20s could you afford a average home?

No way in the world.

I built my average home in my early 30's. My first house was an old one bedroom cottage that badly needed renovating (which we did).

I sure could, each generation SHOULD be better off than the previous generation, You and your parents got to ride the Post War dream, the average young Aussie now gets to Surf one of the largest asset bubbles in History.

Can you seriously not see the imbalance, only 10 years ago a wage of 43k would service the average home, its now 110k, Xers and Yers on average have been denied what you took forgranted.

Sorry, we didn't take owning a home for granted. It was a major challenge, requiring major sacrifices. And incidently, the average home then was half the size of the average home today, with half the bathrooms.

I can forsee boatloads of animosity and anger in Australian society in the coming decades from Xers and Yers, average wages aren't going to go upto 110k ever, and imagine the Inflation if they did, it would actually be hyperinflation.

Only one solution, pop this Realestate bubble just like its popping in the US now, and increase lending standards to take speculators out of this over inflated market and ideally increase interest rates to 10pc +.

Ho Hum.

Other solutions include:-

1) live in the country, buy a cheaper than average house
2) buy a smaller than average house
3) buy a cheaper than average house
4) buy a grotty old house cheap and renovate when you can afford it
5) work harder; take on a 2nd job, run a business, work night shifts
6) rent out your first home
7) live longer with parents

But while ever GenX/Y will settle for nothing less than average then average prices will go up and up and up to match their greed.

Everybody gotta start somewhere, and not even GenX/Y get to start at average.

 

[numbercruncher]

What a lot of rot.

Can you do any better than a Boomer one liner, maybe some facts, obviously you disagree with everything i wrote, care to explain why, do you hate the fact that Xers and Yers aren't holding up there end of this realestate Pyramid selling scheme and actually earning 110k to keep it going?

Come on just what is alot of Rot?

Remember Xers and Yers will be your custodians once you age disgracefully and need looking after 24/7 whilst wearing a nappy and dribbling! You really do want these people to be your friend.

 

[nioka]

Come on just what is alot of Rot?

Everything you have said on this thread so far.

 

[numbercruncher]

Everything you have said on this thread so far.

Denial is the first sign of guilt.

You and your buddies have all but destroyed the worlds ecosystems and caused Global Warming for money, and in your quest for more money youve enslaved your children with debt by taking advantage of the basic Human instinct of seeking shelter. Youve transformed Australia into one of the most expensive countries on the planet for real estate yet you live in denial. You dont even realise youve done all this, but you have, you just rode and stoked the wave.

Even the Goverment is realising the problems but you guys dont?? Dont you guys even remember revolution in the 60s Air, have you changed that much? Freelove and Peace was your mantra, but now it seems its just Money Money Money, even worse than the Greed is good 80s.

Shame on you.

Its just as well the average Australian doesnt consider you an average Australian for your views.

I think Johnnys days are coming to a close, not that the other Major party is much different now, but none the less change is in the Air.

 

[insider]

Well I'm studying to do real estate development... I think that for at least the next two years the market will be be stagnate but usually booms occur in seven year cycles... There are still bargains out there just look for them... I've got my eyes set on a few suburbs... I expect to own my own house fully paid for by 25... that's my reality... Heaps of my mates spend heaps and heaps of cash yet they don't have a single saving... Than they're going to wonder how I was so lucky... It's a matter of prioritizing... But put it this way Most my mates have heaps of fun spending their dough, but what's the worst that can happen, they die without owning their own house... who cares... you started in the world with nothing and you'll finish in the world with nothing... That's reality

 

[Kimosabi]

We've been through these cycles before, we are just going through an Asset Inflation Bubble at the moment which seems to have started deflating in on itself with the US sub-prime housing market imploding in on itself.

The current Asset Inflation Bubble has been caused by Interest Rates being too low for too long and irresponsible lending to people who shouldn't have money lent to them. Most people have way too much debt, so it has fed on itself going upwards. Now at some point people are going to run out of equity to take out of their homes and the banks won't provide them with any more debt.

So we are at a point now where things have to start giving. This is either Asset prices start deflating or Inflation and Wages start going up to make things affordable again.

When this happens the Asset Bubble will start deflating and asset prices will come back to to a realistic level again or Wages are going to have to go up.

 

[doctorj]

I built my average home in my early 30's. My first house was an old one bedroom cottage that badly needed renovating (which we did).

Just out of curiousity, I had a look at the worst suburb I could think of within a reasonable commute of Perth (50min commute). The cheapest house I could find in this cheap, dangerous & dodgy housing commission type suburb was $240,000. Interest on that alone is approximately $19kpa. Your average office worker type is earning, say, $40kpa gross. I don't know of a bank that will lend even enough money to buy what is the cheapest home in the dodgiest suburb (I put some numbers thru some home loan calculators to substantiate that).

Sorry, we didn't take owning a home for granted. It was a major challenge, requiring major sacrifices.

Renting is becoming harder and harder too. The majority of people in the 18-28 age bracket have been priced out of the market, meaning the demand for rentals has been going through the roof. Even if you do manage to find one, expect to be paying a hefty premium for it.

And incidently, the average home then was half the size of the average home today, with half the bathrooms.

Irrelevant. The baby boomer generation holds the votes and hence forces the governments to restrict the supply of land to maintain elevated housing prices (as all the baby boomers wealth is generally tied up in property). I can't speak for other states, but there are generally people camping out for blocks in/around Perth or some kind of auction/raffle system held. All the land is taken or being held by the government. Current home buyers cannot control what houses were built on these blocks...

Ho Hum.

Other solutions include:-

1) live in the country, buy a cheaper than average house
2) buy a smaller than average house
3) buy a cheaper than average house
4) buy a grotty old house cheap and renovate when you can afford it
5) work harder; take on a 2nd job, run a business, work night shifts
6) rent out your first home
7) live longer with parents

1) And teleport to work?
2) Size isn't the issue. Cost is. People are at the stage where anything they can afford in being quickly snapped up.
3) See above.
4) See above.
5) Many people already do this. I know of many young professionals that take on retail jobs on nights/weekends to make some extra pennies.
6) It's baby boomers that own multiple homes. Most Gen X/Y types would settle for one.
7) That's what happening. Doesn't stop being labelled as freeloaders by baby boomers in popular media. In there day, they were out of the house the day after leaving the womb and it was much harder back then and they survived on but a morsel a day to make ends meet, rah rah...
But while ever GenX/Y will settle for nothing less than average then average prices will go up and up and up to match their greed.

Everybody gotta start somewhere, and not even GenX/Y get to start at average.

Without exception, everyone here from Gen X/Y are here at ASF because they want to a good start and manage money effectively from an early age. I haven't seen any gen x/y's demanding laws to bring down property prices or anything like that. But I'm also yet to see any baby boomers suggest that with the likes of negative gearing they're mortgaging their children's future for their current lifestyle.

To my mind, the baby boomers have benefited greatly from a number of laws/tax rulings that have built them wealth more than might have otherwise been profitable. The economy, at least when it comes to tax, is a closed system. The Gen X/Yers have worn the cost and get whacked on the other side with elevated housing/rental prices.

My folks paid approximately 3 times their annual salary for their house/land in an average suburb. For me, at a similar age to them when they bought that house, will have to pay approximately 5-6 times my annual salary (and I'm not earning anything near 'average') for that very same house today.

 

[numbercruncher]

Thanks DoctorJ

I was beginning to think i was alone here lol, I had actually given up on trying to describe the Woes to this poster.

The thing that Bugs me with boomers is they have zero sympathy for their Childrens generation whom they have effectively robbed financially to support their lifestyles.

I myself have made profit from realestate but think no more of Realestate than a Scam and Bubble, but boomers ride it as their retirement fund and bugger the Xers and Ys.

Boomers simply dont understand how long it takes to save the deposit required to start into a home whilst paying todays exhorbitant living costs, thousands of people have now waited to long to even have familys for this housing scam, my advice to average young Australians is forget the house and have a family other wise the boomers will have us virtually extinct by the next generation.

Fancy that, boomers eliminating their unborn grandchildren to continue their realestate pyramid retirement scheme!

 

[numbercruncher]

When young people have an average wage, borne from average experience and average skills, they will afford an average home. But they won't be young people anymore, most will be of average age.

Can you not fathom that the Average Wage the Average Age the Average Aussie can no longer (officially) afford the mortgage for an average home?

Until you and your brethen understand this undeniable truth Xers and Ys will be pissed off.

 

[REA]

What an interesting forum, I sit here and read that real estate is the worst investment and then wow the tide changes all the boomers are hanging on to these so called bad investments and controlling over 40% of the wealth.

Well these properties will be sold over the next few years and when we do sell where will the poor live(I mean the really poor not the BMW one overseas trip a year poor) do you think Government will pick up the tab I think not. Then you will get social upheaval.

It costs $100,OOO+ in NSW in government costs to develop before you buy the land, that is before the farmer is paid ,there is heaps of land developed that is not being sold because it is too dear . Talk to the governments involved.

Anyway the wealth will pass on to the next generations governments permitting.

 

[macca]

BB have 25% of the wealth, seems about right.

I should certainly hope that anyone who has been working for 40 years has accumulated some assets for their retirement.

I can understand that those who are retired and drawing down on any accumulated assets would have less.

I don't understand why those who have been working for 5 years would expect to have the same assets as those who have been working for 45 -50 years.

I would hope that once the next generation has been working for 40 years that they have accumulated some assets for their retirement .

Looking at the next generation in our family, some will be OK and some will have just a house but only if they change their habits .

When we look back through history in European societies it is probably more egalitarian now than any time in history. Just 50 years ago in Oz it was common for bank managers, post masters, etc to have house maids, rarely see that now.

Right now, anyone can start a business and if successful climb to the top of the tree without any prejudices to hold them back, great country

For those looking to buy real estate, just be patient, this is a bubble caused by low interest rates, save your deposits and wait a bit, prices could well come off about 20%, gives you time to save your deposits.

You will need two incomes though, why ? because those that you are vying with to purchase that property, have two incomes and you must pay as much as they will.

 

[professor_frink]

Glad to see some, e.g. Professor Frink, have a more realistic attitude.
Wouldn't mind betting this individual is taking steps to provide for his future.

They sure do, you guys should hook up and smoke some $100 bills together and ponder what the poor people are upto today huh?

Good to see you're making some well informed comments and aren't getting personal about it

Maybe instead of getting upset, you should be contemplating what you can do about it. Look at the forum's resident boomer knocker, Stop_The_Clock- He spends heaps of time on here complaining about the greedy boomers, and about how unaffordable housing is, yet even he is doing something about it- He's building up quite the impressive super nest egg for somebody his age, and if he continues on that path, will be able to provide for his retirement. There are quite a few people on this forum in their early to mid 20's that have built up pretty substantial share portfolios, and are doing just fine without HAVING to buy a house right now.

The fact that housing is overpriced, and average income earning young people are struggling to get into the market today doesn't mean we will be poor forever. At some stage in the future, the boomers will sell their homes and downsize(and their wealth will start to go down with it), housing will be more affordable, and the young people that are looking after their future financially today will be the ones that can benefit from that.

The fact that shares are so easy to access now, compared with previous generations seems to be lost on some of the younger people today- it provides a whole new set of opportunities that weren't available to the baby boomers, and an alternative way of building wealth outside of the housing market. If your smart, you won't go without. If you spend all of your time complaining about how bad it is for our generation, and aren't doing anything to help yourself, you'll be left behind. Pretty simple really

 

[Lucky]

numbercruncher were you unloved as a child? didn't you get enough attention from mummy and daddy?

If you want to blame someone for all your ills and woes blame your folks mate, cause it certainly sounds like they're the root cause of all your problems.

 

[Kimosabi]

Well I think we should lead a revolution and refuse to buy the Baby Boomers over-inflated assets. Don't go after the prices, let the prices come to you...

I think NSW and Vic are about six months to a year behind the US Property Bust and WA, Queensland and NT will be about 1 - 2 years.

If it wasn't for the commodities boom, Australia would be in recession.

 

[numbercruncher]

numbercruncher were you unloved as a child? didn't you get enough attention from mummy and daddy?

If you want to blame someone for all your ills and woes blame your folks mate, cause it certainly sounds like they're the root cause of all your problems.

Here we go, another uninformed Bubble Surfin Boomer playing psychologist.

Have a long hard word with yourself mate.

And dont assume for one minute that my personal financial situation is reflected in my opinion about the realestate Bubble and the predicament you have placed Xers and Ys in.

I have a genuine concern for Australias younger generation unlike a growing number of you boomers whom care about nothing other than stripping society down to its last dollar, and leaving everyone else to clean up the mess.

 

[Prospector]

Well, when I started working many light years ago, my employer certainly didnt put an additional 9% of my salary away for me for my retirement. I also worked a 40 hour week, no paid maternity leave, and parenting leave? What was that?

The number of improvements made to entitlements over the last 15 years have been huge - and I was told old to get the benefits of most of them.

Dont tell me the Baby boomers get it all their own way!

As for global warming, well, that is a pet subject of mine. There has always been global warming; always. Mother nature has way more influence than mankind ever will. Next thing you will be blaming boomers for the extinction of the dinosaurs.

 

[numbercruncher]

Well I think we should lead a revolution and refuse to buy the Baby Boomers over-inflated assets. Don't go after the prices, let the prices come to you...

I think NSW and Vic are about six months to a year behind the US Property Bust and WA, Queensland and NT will be about 1 - 2 years.

If it wasn't for the commodities boom, Australia would be in recession.

Exactly. The property Pyramid scheme is slowly but surely unravelling.

If and or when this commodites boom ends unfortunatly Australia is in for one hell of a recession. A deflationary Recession will help inject fairness back into Australian realestate.

 

[krisbarry]

I am not going to buy into this thread, those that have been long-term members of this site know my feelings about some baby boomers.

These some baby boomers that I am talking about make me sick...got to have 98 homes...at whatever cost, while 97 families live in tents.

Its filthy, its sick, and its nothing but damn greedy

....off course there are many who have just worked damn hard and own a pretty average wealth, thats kewl with me, and well done!