And boomers wonder why millennials are bitter towards them..

Housing can't keep going up. It just can't.
How many of us can afford our parents houses? None of us could.

So it will get sold and divided. That's going to happen again and again. Unless internationals buy up these, when the boomer generation is over there won't be enough high earners to absorb them.

The times of big price rises are over.


I had no help.
I have a friend who is on an income slightly lower than mine. But his house is amazing.

Inheritance.

The biggest gift to not have to save up for a deposit. To never pay rent.
Most people I know earn similar amounts. But the wealth is varied so to inheritance. Inheritance should be taxed more. Its a massive wealth divider


I got no help from parents.
 
The average UK savings for adults is around £10k I believe although 25% have less than £1000 saved and 6.5% have no savings at all. There aren't that many people in a position to hand over £5k+ deposits to their children.

Also, a £5k deposit is scraping the barrel for a property, even in rough areas.
 
413x said:
The biggest gift to not have to save up for a deposit. To never pay rent.
Most people I know earn similar amounts. But the wealth is varied so to inheritance. Inheritance should be taxed more. Its a massive wealth divider


I got no help from parents.
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Actually I don't think that would be the biggest gift because it will create a sense of entitlement! People like you, should have to work for your deposit.
 
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My parents live in a 500k house with lots of other properties, I'm in a 150k flat, neither of us have mortgages, I work and they don't.

They asked me for money last week, for something non essential, their reasoning is they paid to raise me!
 
Ayahuasca said:
Careful, @Psycho Sonny will be along shortly to tell you how your marriage is doomed because of that.
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Haha, maybe it was already doomed when I got married? ;) Although my wife earns a lot more now, I feel my 19 years of saving hard has given us a massive leg up on the property ladder. I am 4 years older too so I seem to get left to make all the decisions :(
 
413x said:
Housing can't keep going up. It just can't.
How many of us can afford our parents houses? None of us could.

So it will get sold and divided. That's going to happen again and again. Unless internationals buy up these, when the boomer generation is over there won't be enough high earners to absorb them.

The times of big price rises are over.


I had no help.
I have a friend who is on an income slightly lower than mine. But his house is amazing.

Inheritance.

The biggest gift to not have to save up for a deposit. To never pay rent.
Most people I know earn similar amounts. But the wealth is varied so to inheritance. Inheritance should be taxed more. Its a massive wealth divider


I got no help from parents.
Click to expand...

People with money would work around it.i.e they would put 10k a year as a gift to their children starting age 50 if they had to circumvent inheritance laws.

Why shouldn't you be able to pass down money?
 
The Running Man said:
Why shouldn't you be able to pass down money?
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You should, but it should be taxed. And more crackdowns on trusts, abolish the leasehold/freehold system.

Why should one line of sons own a large chunk of central West London/Mayfair over several generations for example?

I've got no issues with someone trying to accumulate whatever they can within their lifetimes, but there should be a decent toll to pay when it gets transfered. This notion of someone being wealthy a couple of centuries ago and owning a load of property and that property being passed down a male line... well that's pretty dodgy and they're certainly not having to pay 40% IHT on it each time it's passed down a generation.
 
The Running Man said:
People with money would work around it.i.e they would put 10k a year as a gift to their children starting age 50 if they had to circumvent inheritance laws.

Why shouldn't you be able to pass down money?
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It creates a growing wealth divide. And it's unfair.

You should be able to pass down something. But it should be more heavily taxed. A system like income tax. No tax on the first £xk then an increasing tax

No one should get 1 million for being born lucky.
 
Quartz said:
How about doing the maths? That's an annual growth of 2.66%. Welcome to the world of cumulative growth. And inflation. That house price has barely kept pace with inflation.

Hey, the price of my flat has dropped; are you going to rant at me?
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5.53% annual growth.

2.66% would be a value of £1,155,334 after 14 years, not £1.7m.

Inflation has averaged 2.24% over the last 14 years, which would suggest a current value of £1,090,892.

So it has actually grown at almost three times inflation.
 
413x said:
Housing can't keep going up. It just can't.
How many of us can afford our parents houses? None of us could.

So it will get sold and divided. That's going to happen again and again. Unless internationals buy up these, when the boomer generation is over there won't be enough high earners to absorb them.

The times of big price rises are over.


I had no help.
I have a friend who is on an income slightly lower than mine. But his house is amazing.

Inheritance.

The biggest gift to not have to save up for a deposit. To never pay rent.
Most people I know earn similar amounts. But the wealth is varied so to inheritance. Inheritance should be taxed more. Its a massive wealth divider


I got no help from parents.
Click to expand...

House prices can and will increase, because government will do everything in their power to ensure that they do. This includes not building anything.

We'll soon see higher salary multipliers, government itself buying and insuring mortgage securities (so banks continue to lend unaffordable mortgages, like Japan or now the US), and with low and negative interest rates, we'll see longer term mortgages (maybe even lifetime mortgages - see Sweden who does 100+ year mortgages).

We'll continue to see a 5-7% growth in the property market for the foreseeable future once we return to political and economical stability. We'll get to a point where you can be a top 1% earner, and can't afford to buy a bottom 10% property in the UK. This is by design.
 
Houses that don't require major work before moving in, that go on the market under £175k in Southampton, are almost as rare as hen's teeth.

Flats with private gardens, outside the less desirable parts of the city, rarely go for under £150k.

2-bed flats for rental rarely go for under £750pcm now.

An awful lot of the cheaper market is owned by landlords to rent to the huge student population and low income earners, effectively trapping those around minimum wage from getting on the housing ladder locally.

In some respects it's like how payg electric meters used to be, those on lower incomes are paying more in rent than monthly mortgage repayments would be on a property they would be allowed to get a mortgage on.
 
dowie said:
I've got no issues with someone trying to accumulate whatever they can within their lifetimes, but there should be a decent toll to pay when it gets transfered
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Why? I'm saving so my kids will have a decent future - why should I have that money I earned be taxed more than if I'd spunked it all on cars, hookers and cocaine?

(Edit: reading this back maybe my priorities are wrong :D)
 
Em3bbs said:
Why? I'm saving so my kids will have a decent future - why should I have that money I earned be taxed more than if I'd spunked it all on cars, hookers and cocaine?

(Edit: reading this back maybe my priorities are wrong :D)
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Yes they are wrong indeed :D

Estate tax is simple, the easiest people in the world to tax are dead rich people. They're not around to complain, and their inheritors are still getting a lot of money without having worked for it. win, win, win for everyone. How much estate tax is reasonable is the big question, and I think it should be focused those with estates worth in tens of millions or more, rather than those in the hundreds of thousands or even a couple of millions. I'd totally be for something like: zero for estates under £10m (probably your kids will get all your money), maybe marginal 50% on states over £10m, and maybe marginal 80% on estates over £100m.

The problem is those with £100m or even £10m have financial products and structures at their disposal to evade estate taxes while someone with a £500k does not. So the burden has fallen on the middle class, the people who shouldn't be paying estate tax.
 
Tax is the cost of having a civilisation. Look at the quality of life of people in the US in the bottom two deciles, it’s significantly worse than here. The price of low taxation. The rentier class are ripe for further taxation, but doubtless many of them vote Tory. The Tories won’t always be in office though.
 
HACO said:
House prices can and will increase, because government will do everything in their power to ensure that they do. This includes not building anything.

We'll soon see higher salary multipliers, government itself buying and insuring mortgage securities (so banks continue to lend unaffordable mortgages, like Japan or now the US), and with low and negative interest rates, we'll see longer term mortgages (maybe even lifetime mortgages - see Sweden who does 100+ year mortgages).

We'll continue to see a 5-7% growth in the property market for the foreseeable future once we return to political and economical stability. We'll get to a point where you can be a top 1% earner, and can't afford to buy a bottom 10% property in the UK. This is by design.
Click to expand...

Governments have less power than you think. They can’t stop recessions, never mind housing prices. They can try (and are trying). They have some levers they can pull. But most governments are powerless versus market forces (without issuing diktats regarding limits on new homes built, which wouldn’t happen for obvious reasons- least of all limiting the profits of the big housebuilders).
 
Fusion said:
Governments have less power than you think. They can’t stop recessions, never mind housing prices. They can try (and are trying). They have some levers they can pull. But most governments are powerless versus market forces (without issuing diktats regarding limits on new homes built, which wouldn’t happen for obvious reasons- least of all limiting the profits of the big housebuilders).
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Agreed.

You can only do so much.
You can't literally make everything great. Otherwise world would be a much better place.

If our population goes down for example houses will get cheaper. If no one can afford to rent then the rent has to come down.

Saying house prices are going to continue to grow forever is silly.

If the majority of the voting public were in renting you'd soon see a new set of politicians voted in that would curb the trend.


Inheritance.
Just set a cap on the inheritance limit. It would right a lot of the western world's wrongs
 
413x said:
Housing can't keep going up. It just can't.
How many of us can afford our parents houses? None of us could.

So it will get sold and divided. That's going to happen again and again. Unless internationals buy up these, when the boomer generation is over there won't be enough high earners to absorb them.

The times of big price rises are over.
Click to expand...

If I was doing the same job as my dad was at my age I'd have to be on twice the income it pays now to afford the house he bought at around my age (and more like 3-4x to be able to afford it comfortably). This is the bit I find crazy - I would not say his generation had it easy but the reward was much more commensurate with the money and sacrifices made - the reality is for many the same kind of position and sacrifices as their parents made won't get them on the property ladder or only gets a pretty poor place for their efforts.
 
Fusion said:
Governments have less power than you think. They can’t stop recessions, never mind housing prices. They can try (and are trying). They have some levers they can pull. But most governments are powerless versus market forces (without issuing diktats regarding limits on new homes built, which wouldn’t happen for obvious reasons- least of all limiting the profits of the big housebuilders).
Click to expand...

I agree they're not that powerful at making things better, but they're pretty powerful at making things worse.

Of course they can manage housing prices if they wanted to. The problem is, they don't want to. They want them to increase. They've created a system where it's incredibly difficult to get planning permissions, just as the market enters a downturn, they do something to stimulate it (like stamp duty holiday they just did this year). Decreasing interest rates, loosening lending criteria, super high LTV mortgages, schemes such as HTB and LISA, etc make sure prices continue to be inflated. These are all government doing their absolute best to inflate the market, by any means necessary including literally giving people money.

Look at what other countries do, land value taxes for example. It's been shown in many studies that it has a significant effect in making sure property values remain affordable. We don't do it not because we can't , but because we just don't want housing to be affordable.
 
413x said:
Agreed.

You can only do so much.
You can't literally make everything great. Otherwise world would be a much better place.

If our population goes down for example houses will get cheaper. If no one can afford to rent then the rent has to come down.

Saying house prices are going to continue to grow forever is silly.

If the majority of the voting public were in renting you'd soon see a new set of politicians voted in that would curb the trend.


Inheritance.
Just set a cap on the inheritance limit. It would right a lot of the western world's wrongs
Click to expand...

They can do a lot more than they do now, look at what other countries do. Affordable housing schemes, rent control, land value taxes, second home taxes, taxing rental income at income tax rates, etc etc.

We don't do these things, not because we can't. But because we don't want to.
 
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