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

[nioka]

Denial is the first sign of guilt

Shame on you.

No guilt or shame here. I'm not ashamed that I was born in the great depression, That my father died when I was 2 leaving my mum with 3 kids. There was no social security. I started work at 9 delivering milk in a horse and cart before and after school. When I was old enough I had no choice but to start work. I,m not ashamed about that BUT I NEVER COMPLAINED EITHER.
Rented, paying half my wage, for 5 years after I married, still saved a few bob each week towards a block of land. By working an extra job and building my own home brick by brick I finally got ahead. It took me 20 years to get there

IT IS YOU WHO SHOULD BE ASHAMED.

 

[chops_a_must]

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.

Is anyone else in their early 20s actually rubbing their hands together over this? I'm hoping to snap up property (along with a few I know) after just about everyone in Perth goes bust. This will all be insignificant in another few years. There is opportunity in the misery of other people.

 

[Kimosabi]

Well, I thing the term Baby Boomers is quite appropriate, we might have to call them Baby Busters once the current Asset Bubble gets deflated and they see the value of their Retirement funds disappear in a puff of smoke.

Now as far as Gen Xer's and Yer's are concerned, they need to avoid debt, and get some cash in the bank so they are ready to buy up big in the Over-Leveraged Baby Busters Asset Fire Sale.

 

[professor_frink]

Is anyone else in their early 20s actually rubbing their hands together over this? I'm hoping to snap up property (along with a few I know) after just about everyone in Perth goes bust. This will all be insignificant in another few years. There is opportunity in the misery of other people.

Chops, I'm on the east coast, so we've been tanking for quite awhile now. And yes, hands are being rubbed together, as I start to notice houses in the lower end of the market in my area going for 5-6 times the average wage
Hopefully that will continue, and Mrs Frink and I will be able to find something at a fairly resonable price later on this year

 

[nioka]

Well, I thing the term Baby Boomers is quite appropriate, we might have to call them Baby Busters once the current Asset Bubble gets deflated and they see the value of their Retirement funds disappear in a puff of smoke.

Now as far as Gen Xer's and Yer's are concerned, they need to avoid debt, and get some cash in the bank so they are ready to buy up big in the Over-Leveraged Baby Busters Asset Fire Sale.

Maybe it is the other way around with the Gen Xers and Yers deep in debt with credit cards and leveraged loans seeing their ambitions pushed further into the distance. The older generation may have saved a little better and are not so inclined to panic but to adjust.

 

[Kimosabi]

Is anyone else in their early 20s actually rubbing their hands together over this? I'm hoping to snap up property (along with a few I know) after just about everyone in Perth goes bust. This will all be insignificant in another few years. There is opportunity in the misery of other people.

I'm in a difficult position at the moment, the woman that owns the apartment I'm living in at the moment is thinking of selling after June 30, which would probably mean either paying more rent (Which is really cheap for where we are living) for the place we are in or getting kicked out, depends on new owners.

So the options are keep renting or Buy. If I'm going to buy, it needs to be in the next two months because I think we may see some Panic Selling from Baby Boomers trying dump Properties to put funds into Super. The other option is keep renting on the premise that there will be a Real Estate Bust in Perth in the next year or two.

 

[krisbarry]

numbercruncher, I understand your thoughts.

But you are wasting your time...a few similar threads thrashed out all these thoughts over the past 2 years.

This thread is getting the same results. zilch!

Same people taking the same sides, and the merry-go-round continues.

Look I am just as pis_sed off as the next person, but I am taking all my frustrations and turning them into a positive outcome.

Just do what I have done and pi_ss off the baby boomers by not buying their over-priced houses and trade on the market instead and dump your profits into a super fund.

At some point if enough young people are wise enough not to buy all this over-priced housing, then the prices will fall and fall hard.

 

[Lucky]

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.

I'm an X'er mate. The world doesn't owe you ****, stop complaining, get off your ass and do something about it. All your moaning about how boomers have this and X and Y's don't have that just make you sound like a prig.

Mate you're on a stock forum, it's about the purest form of capitalism you will find. If you're so concerned about the planet join Greenpeace and save the whales or better still if you're concerned about your fellow X and Y'ers financial well being, start a club or support group to educate them on Finance 101.

 

[Smurf1976]

And you think a young person starting out should be able to afford an *average* home right away? Start from *average* and where does one go from there?

That pretty well says it all.

I remember my boss buying a house roughly 8 years ago that cost 4 times his income at the time. I am now doing the exact same job and it would cost 7 times my income to buy that or a very similar house in the same area at current prices.

Housing is less affordable than it was for the previous generation - that's the issue. Something has been taken back and that is never popular.

 

[numbercruncher]

Have you guys noticed how the plethora of Realestate shows (reno rescue etc) that beamed one after the other through every TV channel have now vanished? After they fanned the realestate bubble, every single one has quietly vanished into a puff of smoke.

Thats a ominous indicator that the scam is up!

 

[Julia]

Doctorj, number cruncher, and others who are expressing such personal antagonism to baby boomers:

what, exactly, would you like us to do?

Julia

 

[Sean K]

Doctorj, number cruncher, and others who are expressing such personal antagonism to baby boomers:

what, exactly, would you like us to do?

Julia

Can I have a loan?

 

[doctorj]

Doctorj, number cruncher, and others who are expressing such personal antagonism to baby boomers

It's not personal and I'm sorry you've taken it as such, that is definately not my intention. Boomers are simply taking advantage of the opportunities afforded to them. I'd be a liar if I said I wouldn't do the same. It's just unfortunate that the following generations are copping the negative effects of it.

what, exactly, would you like us to do?

Nothing. Overall, I'd like to see negative gearing, stamp duty and first home owners grants abolished so the free market can do its thing. As a boomer, these things aren't you fault, however they exist today to win/retain votes from a number of your generation who have significant pecentages of their net worth in property and would be much worse off without such laws.

 

[numbercruncher]

Doctorj, number cruncher, and others who are expressing such personal antagonism to baby boomers:

what, exactly, would you like us to do?

Julia

The antagonism is a direct result of the boomers whom are in denial. It takes a wage of 110k to afford the average home in Melbourne and worse in other states. Only 10 years ago it was 43k.

We expect nothing. We request that you recognize the obvious, that there is a serious problem/imbalance in Australian housing and its pricing.

We know its the Governments fault as much as anyones, each new block of land has more than 50k in State Government fees, its a joke.

Australia is a continent virtually the size of mainland usa, we live on less tha .5pc of the land, current house/land prices are obviously the largest scam pulled over Australians in history.


A Generation of renters is what is being made, Xers and Yers are realising that home ownership is not financially viable.

I beleive this is eventually going to put an enormous strain on the tax system, the government loses Billions to negative gearing whilst a growing number of young drop house ownership in favor of salary sacrificing effectively having a tax rate of 15pc. Another enormous and growing number of young people start familys and disengage themselves from the workforce because its financially more effective to get parenting payments rent assistance, free medical and the likes and take cash jobs.

This boom is creating more and more problems for the wider community.


Just recognise it.

 

[Prospector]

Have you guys noticed how the plethora of Realestate shows (reno rescue etc) that beamed one after the other through every TV channel have now vanished? After they fanned the realestate bubble, every single one has quietly vanished into a puff of smoke.

Thats a ominous indicator that the scam is up!

I absolutely agree with you there! We were only saying on the weekend that we think one of the reasons why real estate prices soared is because of programmes like 'Hot Property' etc, and the Real Estate agents telling people they could expect to pay/receive values 000's in excess of what they may have originally thought.

So between the two of them, prices soared and people just expected they would have to pay that, and mortgaged themselves to the hilt, or couldnt buy!

Sooooo, doesnt it therefore mean that it wasnt Baby boomers fault that prices surged? I am betting a few of the lucky ones who bought, remodelled with a lick of paint and then sold, are more likely to be people in their 30's, not their 60's!

 

[Kimosabi]

I absolutely agree with you there! We were only saying on the weekend that we think one of the reasons why real estate prices soared is because of programmes like 'Hot Property' etc, and the Real Estate agents telling people they could expect to pay/receive values 000's in excess of what they may have originally thought.

So between the two of them, prices soared and people just expected they would have to pay that, and mortgaged themselves to the hilt, or couldnt buy!

Sooooo, doesnt it therefore mean that it wasnt Baby boomers fault that prices surged? I am betting a few of the lucky ones who bought, remodelled with a lick of paint and then sold, are more likely to be people in their 30's, not their 60's!

They had exactly the same thing happening in the US and look where it's got them so far.

It's time to pay off the debt's, get as much money in the Bank as you can, sit out the storm and start picking up the bargains when everyone else is in the depths of despair.

The most important thing to be doing at the moment is identifying the bust indicators so you know when to get out during the next Boom/Bust Cycle.

This will keep happening time and time again, everyone thinks that the boom will never end, that it's different this time or panic that they will miss out if the don't get in now.

I'll be getting into Property and Shares in a BIG way when every else says that I'm mad to be getting into Property and Shares, the hardest trick will be trying to identify bottom of the Market.

 

[nioka]

I'll be getting into Property and Shares in a BIG way when every else says that I'm mad to be getting into Property and Shares, the hardest trick will be trying to identify bottom of the Market.

What if this IS the bottom of the market?

 

[theasxgorilla]

What if this IS the bottom of the market?

What a wonderfully thought provoking question...indeed, what if? It's not a possibility that gets explored very often.

 

[numbercruncher]

What if this IS the bottom of the market?

But what if its the absolute peak, and despite the signs people remain indebted, geared and illogically optimistic like chickens waiting for the slaughter?

 

[Julia]

Can I have a loan?

Kennas,

Certainly. I have my image of greed to maintain, however.
The interest rate will be 10%

Cheers
Julia