Can you provide a link to stats that demonstrate your claim that "the boomers own large amounts of investment property"? I know this is a popular generalisation. It's not something I've observed in reality.
It is certainly the norm among the people that I know to own at least one IP, by far the minority own just their PPOR.
No I'm not going to spend time digging up proof for you, take it or leave it, I really don't mind.
Certainly a small proportion of boomers own several IPs,
The number of IP's is not the main issue so much as the size of the generation, if on average they all only own one it is still a large supply... I actually doubt that the average is that high but that doesn't alter the fact that 50% of the working population own a lot of property collectively and are moving toward retirement.
but your claim here is in opposition to your earlier claim that boomers will have to liquidate or downsize their PPOR in order to fund the standard of living they want in retirement.
I never suggested that they will have to liquidate their PPOR, I suggested that they will, on average, downsize. That one you should be able to "see". I know many that have down sized, sea changed or tree changed.... and I know a good number of the latter two that have realized it was a mistake, the kids are too busy to come and stay/holiday etc and they now seek to swap the tree/sea change for a low maintenance townhouse near the grand kids. Looking that the relative stregths of some these markets I would s
Good point, and one which is largely overlooked in these discussions.
I doubt it will be a major thing, after all what lender really wants the property at the end of the day? If they are unsure of the prospects for liquidation they be more circumspect with their lending in this area. JMO
I can't see how you can compare the US property market, with all their subprime fall out, with that of Australia.
We are just as extended as they where, the level of debt is the key issue. Besides their issues started in sub-prime but they extended into all other areas of lending. We have bucket loads of "liars loans" etc and a hell of a lot of people that where prime that are now not... do you know any worried middle management... I certainly do! No matter the details it is the level of debt overall that is at an extreme and needs to contract... as sure as you breath in you must breath out.
I've just done a search to substantiate this figure and cannot find any such validation. Perhaps you can provide a link to it? Wouldn't at all be surprised if it's true, but would like to see where the percentage came from.)
No I can't, that number comes from a relation who ran a very successful investment firm. Now he is well and truly self-funded, he sold out to a much bigger operation.... for all the good that has done him as he is now fighting cancer.
Keep in mind that is a historic figure, it covers a period where we came from defined benefit pensions and have transitioned to defined contribution schemes. It will likely change, but enough to make a difference... I doubt it.
The thing with the boomer's is that whatever investment was popular among them, just due to the sheer size of the bubble in the population, has had a massive tail wind and conversely will run into the same head wind as they exit it... which they will,...even if it is only estate liquidation! Talk to a boomer about property, they all most all believe whole heartedly as it is the only sure bet that they have seen across their lives in this country. They are a self fulfilling bull and bear market, they will also be an issue when it comes to super liquidation... but that is probably an issue for the future.
take it... leave it.