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

[Julia]

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.

OK, thanks for acknowledging you would do the same. It just often comes across as though we baby boomers purposely set out to make life hard for the next generation. I'd genuinely suggest that we were the product of our parents who had weathered the Great Depression, had gradually experienced the affluence of the post-war era, and instilled in us the need to work really hard to achieve what was not wealth, but simply a sense of security with our own homes.

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.

I'm not sure that it's only baby boomers who enjoy the benefits of negative gearing etc. I think it's more likely that most of us don't have the energy to endure the frustrations of bad tenants, low returns etc, and have therefore put money into the share market, thus pushing up SP's to the benefit of all of you younger people who presumably are part of this forum because you are participating in the market.

Don't think that we do not acknowledge the reality of how hard it is for young people to afford home ownership these days. I really feel sympathetic in most cases.

Another factor which should be considered in this debate is that fewer of the baby boomers than today's generation in their late teens and early 20's were seeking/receiving a university education. Most of us began work as soon as we finished high school. I didn't go to university until I was in my 30's. So we had neither the expenses of a tertiary education or the loss of income because we were studying rather than working full time.

So, yes, we accept your situation is difficult. However, to constantly be the object of criticism that we have caused your problems becomes a little unreasonable.

I wish all of you lots of energy, determination, good planning, and a positive attitude.

Julia

 

[robert toms]

I bet that there statistics that show that the richest, say, ten percent hold well over fifty percent of this countries' wealth...what is it... lies, damn lies and statistics!

 

[theasxgorilla]

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

Whilst I don't have time to find supporting evidence, I really don't think it's the boomers who have geared themselves silly. Gen X and Y, particularly Gen Y seems to be the ones most comfortable with 5%/no-deposit/low-doc loans, credit cards, and interest free.

Even if what you describes manifests I expect the boomers will hold assets and the younger generations will hold the wrong side of IOUs.

 

[Kimosabi]

The best solution is buy Medical/Biotech/Nursing Home Stocks and get the money out the Boomers that way.

Also, we will inherit their wealth at some point and then the younger generations will be blaming us for making everything so expensive.

Me, I'm just going to become part of the problem.

 

[robandcoll]

Also, we will inherit their wealth at some point and then the younger generations will be blaming us for making everything so expensive

There is a saying amongst us Baby Boomers. SKI. Spend the kids inheritence.

 

[professor_frink]

Also, we will inherit their wealth at some point and then the younger generations will be blaming us for making everything so expensive

There is a saying amongst us Baby Boomers. SKI. Spend the kids inheritence.

I hear that one from my mum on a regular basis- I keep telling her if she manages to do it, I'll put her in one of those top quality nursing homes later on in life when she's broke- the ones you hear about on A Current Affair

 

[Judd]

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

Y'know professor, the thing that worries me most with that statement is that it is probably not the BBs which are/will be going under in regard to housing but younger people who went down the 95%+ route - and who aimed for the 5 bedroom, four car garage, sauna, spa plus the latest matching his/hers BMW bikes with room for the jet-skis.

Note: I'm 48 and just on the cusp of being a BB so I reckon I can make the same exaggerated, unrepresentative statements about Gen's X/Y/A/AAB/AO/M as those groups have a right to make about BBs.

 

[professor_frink]

Y'know professor, the thing that worries me most with that statement is that it is probably not the BBs which are/will be going under in regard to housing but younger people who went down the 95%+ route - and who aimed for the 5 bedroom, four car garage, sauna, spa plus the latest matching his/hers BMW bikes with room for the jet-skis.

I'd say you'd be on the money there Judd. Generally, I'd feel for anyone that gets themselves into trouble trying to put a roof over their head. The kind of people you've described above don't qualify for such sympathies though.
Thankfully, I can only think of one person I know that has carried on in the way you've described- and I wouldn't have the slightest bit of sympathy for them if they lost a lot of money when they sell(which funnily enough, they are trying to do now).

Note: I'm 48 and just on the cusp of being a BB so I reckon I can make the same exaggerated, unrepresentative statements about Gen's X/Y/A/AAB/AO/M as those groups have a right to make about BBs.

Na sorry mate, you don't qualify for BB status.No such statements are allowed to come out of your mouth at all

 

[theasxgorilla]

Also, we will inherit their wealth at some point and then the younger generations will be blaming us for making everything so expensive

There is a saying amongst us Baby Boomers. SKI. Spend the kids inheritence.

Thankfully for society there is a saying in government, GST.

 

[Smurf1976]

It would go an awfully long way toward easing the divide if the Boomers would simply acknowledge that their real estate profits have come at a massive social cost to younger generations.

Boomers paid 3 times their income for a house and then had the benefit of high inflation rapidly eroding the value of the debt. In practice they only ended up paying perhaps 1 or 2 year's worth of actual earnings plus interest for the house given the high rates of wage inflation in the 70's and 80's.

Now Generation Y faces paying 7 times their income for the exact same standard of house and lacks the benefit of rampant wage inflation eroding thier debt. They actually end up having to pay back much of that loan with genuine earnings rather than seeing inflation erode its value.

They may well be able to do it, and I agree with comments about wasteful spending, but they are clearly worse off than their parents were at the same age, buying the same type of house and working in a similar job.

The first step in solving any problem is acknowledging that it exists.

 

[The Red Baron]

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 guess you could say i'm waiting on the sidelines. I'm a 24yr old living in Perth with parents. Over the past 5 years saved $60k and now working 2 jobs 12hrs a day mon-fri trying to put away $400-500 a week. I'd say could be there another 2 years, trying to get to the $100k mark before I leave. Sure people could say i'm freeloading but I pay my board, get along well with the olds and if I was renting i'd be lucky to save $100-200 a week.

In a bit of an odd situation however. Parents have 3 investments properties, 2 in Perth, one just bought in Brisbane. The recent rates rises have made it all a bit tight. I was hoping they would sell one a few months back and put it into Super. But now they want to loan some money off me, or offer me a share in the properties (at current market value). As much as I want to help out. a.) I wouldn't consider buying in the Perth market and b.) Want to use the money for an opportunity if one arises

The scary thing at the moment is seeing my young brothers mates. 18yrs old, buying $50,000 utes and buying 3 year interest free plasmas, $150 a month mobile plans while earning their $20k a year. They can get loans easier than me and for as much as they like. I've got my brother saving $50 a week into an online account just to understand compounding interest and get on the right track.

Its all a bit crazy, I can't imagine these are going to be the people in a few years time trying to finance $600,000 for an average Perth house. I know I sure can't do it.

 

[insider]

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 only 20 and I'm studying to do real estate development and I'm kicking a*** in the share market... why? Because I'm no sheep and I choose not to go to the slaughter... Yeah we can all have our sob stories of how 60 years ago how I had to work at the factory at the age of 12 and blah blah and support this and that... (mind you I'm currently working 5 unpaid days a week helping my parents out and going to Uni 5 days a week doing 9 subjects (and getting HDs)) I'm not going to cry about it, but I'm proud of it... I soldier on and get the task done... I look at the current housing situation and look for solutions... I'm rubbing my hands together... What separates us is that we think laterally...

Hey I was just thinking a really good realestate opportunity would be to buy housing close to mines that are on the verge of opening... Imagine buying a shell of a house for $60,000 and then selling it at $200,000... nice

 

[insider]

Its all a bit crazy, I can't imagine these are going to be the people in a few years time trying to finance $600,000 for an average Perth house. I know I sure can't do it.

Neither do I that's why I think it'll come down to two things... housing market slumps or a very long time until the housing market picks up pace again.

 

[insider]

OK, thanks for acknowledging you would do the same. It just often comes across as though we baby boomers purposely set out to make life hard for the next generation. I'd genuinely suggest that we were the product of our parents who had weathered the Great Depression, had gradually experienced the affluence of the post-war era, and instilled in us the need to work really hard to achieve what was not wealth, but simply a sense of security with our own homes.

I'm not sure that it's only baby boomers who enjoy the benefits of negative gearing etc. I think it's more likely that most of us don't have the energy to endure the frustrations of bad tenants, low returns etc, and have therefore put money into the share market, thus pushing up SP's to the benefit of all of you younger people who presumably are part of this forum because you are participating in the market.

Don't think that we do not acknowledge the reality of how hard it is for young people to afford home ownership these days. I really feel sympathetic in most cases.

Another factor which should be considered in this debate is that fewer of the baby boomers than today's generation in their late teens and early 20's were seeking/receiving a university education. Most of us began work as soon as we finished high school. I didn't go to university until I was in my 30's. So we had neither the expenses of a tertiary education or the loss of income because we were studying rather than working full time.

So, yes, we accept your situation is difficult. However, to constantly be the object of criticism that we have caused your problems becomes a little unreasonable.


Julia

Once upon a time wasn't University free? It sure was... The average uni subject per semester today costs about $2500... Uni at full time is 4 subjects a semester which equates to hecs debt of $20,000 a year... Boy I just realized that young people have it really really hard... No wonder every one is complaining... So by the time we finish uni we are already in debt... lol... it's not funny :...

I wish all of you lots of energy, determination, good planning, and a positive attitude.

Julia

Thanks some of us are going to need some of that.

 

[wayneL]

Look to history, these things are cyclical.

OP had it right about letting the market come to you. You don't have to buy a house RIGHT NOW! They will become relatively cheaper at some point in the future.

Meanwhile, renting is a freakin' bargain, even with recent rises.

 

[nioka]

Good news on Perth prices. My daughter and son in law have just sold a Perth home for $500,000. They bought another in the same estate for $390,000. I asked the difference and the answer was "no pool or gardens". They will soon have a pool and a garden and a very small mortgage.They are a little out of town but that is the way they wanted it (room for a pony)

 

[2020hindsight]

http://www.abc.net.au/news/newsitems/200703/s1871864.htm
surprise surprise - the generation who make up one third the credit card holders also responsible for one third the defaults. My guess is that the super-oldies who make up 2% of the card holders are also responsible for 2% of the defaults (?)

Gen Y likely to be big users of credit: Those in the so-called generation Y are shaping up as the most active users of credit. The leading credit reference agency Veda Advantage says 18 to 27-year-olds were responsible for nearly a third of all credit card applications last year.

The agency's Erica Hughes says they made up a big slice of default listings too. "We're also seeing that this generation is also responsible for about a third of all defaults that were listed on our database in 2006," she said.

"We're seeing that it's a generation that's got an appetite for credit but is perhaps having a little bit of difficulty managing that credit appropriately." Ms Hughes says young adults need to think carefully about whether they can afford to repay any loan they take, or it may sour their credit history and prevent them from borrowing again. Ms Hughes says young adults have not experienced an economic downturn, so they do not realise how tough things can get.

"Losing your job, having difficulties repaying debt and that kind of thing," she said. "It's something they haven't seen in their lifetime and so they're not handling credit as well as some prior generations, we're finding."

PS _ I feel sorry for generation Y - as you say Smurf - trying to get into the housing market etc., paying for their education on the never never

 

[Buster]

Ahh those baby Boomer sob stories of "how tuff we had it" will never sound the same again.

Uuuughh.. So instead we are once again subjected to the "how tuff us we have it" thread... give it a rest.. Whilst I’m not entirely sure where I fit in, (certainly not old enough for the BB tag) these EMO threads are becoming tiresome..

We expect nothing..

Hmmm.. I find that very difficult to believe.. in fact if I have read these posts correctly it sounds like you (royal, not ‘you’ you..) want Government (Federal and State) fees and taxes abolished, and negative gearing tax benefit removed.

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..

Yep.. and I’m sure you are smart enough to see that development and infrastructure costs (you know, things like public transport, water, hospitals, schools etc etc..) are easier on the pockets of 300 Million people, like mainland USA, vice 20 million.. further examples are places like India and Pakistan, everything is cheap.. including life

We have a high standard of living here, and of course Taxes and Fee’s are required to support this..

As far as removing the Negative Gearing Tax Benefit, that was tried some time ago, didn’t take too long to reintroduce it.. Rather than spoon feed you I’ll leave it to you research the reasons why.. [HINT: Paul Keating] I note that you don’t seem too fussed about the tax dollars that go to First Home Owners or the Baby Bonus, the change to CGT and how these may have fuelled the property market. I’m tipping that if the government gave $14K to everyone to invest in the stockmarket you’d see a similar ‘boom’.

Your response to Julia at post #22 speaks volumes in regard to your present level of maturity. I can tell you for certain that you’re not likely to get far in life with a childish attitude like that..

And then theres this..

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.

Oh woe is us, how we suffer. Yet can’t wait to screw somebody over.. You guys crack me up..

Cheers,

Buster

P.S there’s a reason home ownership here in Australia, for as long as I can remember anyway, has been labelled the ‘Great Australian Dream’..

 

[ROE]

Every generation can make money and then some more....All you need is hard work, spend less save more.

 

[wayneL]

It's a fine line in a topic like this, but lets try to leave out the argumentum ad hominem (playing the man and not the ball)

Cheers