Just would like to know what people think will happen to property prices after the baby-boomer generation (BB) have bought all their investment properties, retired, keel-over, and we’re left with more properties that buyers?
I mean the demographic with the most amount of people is the BB generation. It’s been said that if you invest in what the baby-boomers want you’ll do well. i.e nappies in the 50’s & 60’s, McDonald’s in the 60’s and 70’s, Computers and IT in the 80’s and 90’s, stock trading in the 90’s and lifestyle & property investment in the noughties!
If so, once BBs stop buying properties, what will happen to prices? Will demand still be there to sustain the current price growth? I’ve heard in non-western countries (where the baby-boomer phenomenon does not exist) that property prices have stabalised, even retracted like Japan where their largest demographic is retired and have been for a while.
I’m sure there are many views on long-term property investment prospects…and probably many factors to consider – interested to hear them…
CameronCameron, you have brought up a damn good topic that is very relevant to our futures. I don’t know about the rest of you, but I am considered a generation “X”er who is supposed to be the one generation that is not producing enough babies for the future.
I heard a year or two in the government pipelines, they were thinking of giving incentives to young families to reproduce more children. THe incentives would be extra monetry help plus tax benefits. As I have been overseas for over a year now, I don’t know what has ahppened on that scene, but I can forsee that there is going to be a big problem house wise.
Baby boomers want big houses on small plots with no real gardens, whereas the younger families want the space for their kids and are being forced further and further out of the cities.
Finding a compromise is going to be difficult, especially seeing as teh baby boomers I think are going to be the most dependent on government support than any other generation. Houses will come back on the market, but because of recent trends, ppl are gonna want a million for them and there are not going to be the ppl to buy them!
That’s my thoughts anyway. As I read back over it, it doesn’t really make sense, but hey, that’s me. I don’t make sense….
Steph.Here for a good time not a long time, just do it!.
hi
yes great topic which i have thought about myself.
what has been said in different circles is that the baby boomers have lead the trends as you have indicated.
There is also a conflict of opinion one view is that the baby boomers are all cashed up and want to buy lifestyle and willing to pay for it.
The othere side is that most havent saved enough for retirement and only have there home to rely on.
Given the affordability statistics and average incomes and not enough super etc. i tend to see the latter as a more probable outcome.
I noticed in the paper that the cbd areas are going to be targetted to entice young people into the city.
I guess anyone that has an interest can study the abs stats.
regards
alfYou right alf.
Most have only got the house they live in with barely any savings at all. I look at my parents and they don’t have a great deal. THey are lucky enough to have two properties but the extra property is my dad’s superannuation!My mum has only gone back to the work force about 4-5 years ago, so she wont have a great deal saved either. Then again, if my parents ever need care, they are NOT going to go into one of those horrid homes!
We shall see….
Here for a good time not a long time, just do it!.
hi cremin
well at least your parents had the forsight for super and retirement.
The majotiry of people live week to week and fear retirement. I see pensioners in the supermarket and they really struggle.bbs still paying there house off.
Well the government is no help it only instills fear they wash there hands like pontious pilate and what happens to you is not their problem.YOU MUST FUND YOUR OWN RETIREMENT THEY SAY.
Meanwhile we pay tax so we can fund their lifestyle. Isnt it ironic services get cut the health system is in tattters people on the public system have to wait 12 years to get there teeth looked at.
Meanwhilke we fund the lavish living of these people that never seem to have money for the social good but for there own perks and salaries well its not our fault the renumeration tribunal has given it to us they say we have no control over that. THIS IS THE ONLY TIME ALL SIDES OF THE HOUSE AGREE please what a scam!
Judges arent far behind
well i had my say all the best
time to storm the bastille…lol
regards
alfYEah, I agree. It frustrates me a lot that there is so much pressure about retirement and bizzo. The in-laws are still building and paying off their PPOR!! They were a little unlucky though. They moved from South Africa when they were early 40’s so that their children wouldn’t have to grow up in a prison type environment. My hubby is greatful now, but it has taken him a few years to see how much they sacrificed for him to get to Aus.
Things ppl do for their kids. I wonder what I’ll do for my kids… Hee hee. what’s your family situation Alf?
Here for a good time not a long time, just do it!.
hi cremin
might have a chat to you on yahoo messenger one night.
you can pm me you can add me to your list and send so i can add you.
ubetido2au
regards
alfmaybe we should start investing in companies that make commodes…lol
Yeah or just start our own… Well that’s sorta what hubby and I are gonna do. Thinking of doing up houses for a specific market and retirees maybe one of the markets we gonna look into…
Here for a good time not a long time, just do it!.
Couldn’t help myself, have to say something on saving for retirement.
I agree with Alf. The greatest impediment to people creating wealth and being able to fund their old age is the tax system. The current tax system in Australia is designed to suck as much money out of income earners as possible – not just to fund necessary services such as health, education and policing, all of which are going downhill anyway, but to fund this enormous bloated bureaucracy, which very few of us want or need.
We have far too many politicians, far too many administrators in the public service, as opposed to people who ‘do’ things like nurses, policemen and teachers and a bureaucracy posited on – one form is OK, two forms are better and three forms plus a licence is best!
I had the pleasure, at one stage of my life, of living in a low-tax economy. My average rate of income tax was 12%. I was able to create wealth at a prodigous rate, because after tax I could meet my expenses and invest substantial amounts.
With an effective top tax rate here of 48.5%, which kicks in very early, after paying tax and meeting necessary expenses there is little if any surplus to invest and create wealth.
However why would a government want the population to be wealthier? Money gives people more choices and makes them more mobile – I have lived and worked in 5 countries – and government would then be more accountable for delivering on their promises, otherwise people would vote with their feet. Not a good outcome for the politicians!
Anyway, thats my rant for the day! Sorry Alf you touched a chord.
Cheers[
]Hi all,
Very interested to read everyones opinion about b/bs. My husband is a b/b and I am not far behind. We have 11 ips and are intending to fund our own retirement. I agree that many bbs are not prepared for the future and therefore a thought is that there may be a market for duplexes etc. in which they can retire to after selling there own home.(Less maintenance etc.)
PS new to the forum and have learnt so much already, thanks.
Theresa[]On the East Coast of the US all the boys study law and finance (in the article it didn’t talk about what the girls study) and nobody’s into studying science, so they import a lot of medical practitioners. In Germany in the 80’s no Germans wanted to do the menial jobs such as dustmen, Macdonalds night workers, so there were a lot of Turkish ‘gastarbeiter’ (‘guestworkers’) brought in to do those jobs.
So i think that in the future immigration will be the answer to the ‘gaps’ in the work-force. Probably, otherwise the place will go broke, kinda cutting a long story short…
On the East Coast of the US all the boys study law and finance and nobody’s into studying science, so they import a lot of medical practitioners. In Germany in the 80’s no Germans wanted to do the menial jobs such as dustmen, Macdonalds night workers, so there were a lot of Turkish ‘gastarbeiter’ (‘guestworkers’) brought in to do those jobs.
So i think that in the future immigration will be the answer to the ‘gaps’ in the work-force. Probably, otherwise the place will go broke, kinda cutting a long story short…
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