When Baby-Boomers depart, What happens?

[Smouch]

Hello,

I am not sure about where this one should go...

I read a lot of people saying that you property is a long term investment which I think is a very valid comment. Now I am not one who is fully swept up on the demographics/statistics but everything seems to say that as a nation we are getting older (eg no pension because there will be too many baby-boomers etc) and so on etc. If the hype about the baby boomers is true, what happens when they all pass on? Assuming that they are taking up a lot of % of society now and many own their own home, does that mean at the end o that generation there will be housing surplus? Are there links that anyone is aware of that discuss such matters?

I guess the worst case scenario is buy now, in time the boomers move on, more houses are on the market, supply surpasses demand, properties lose some value, I wish I had thought about my investments a lot more in the mid to late 2000s (or naughties as some would say)...

Any thoughts

Smouch

 

[buzzlightyear]

People whether BB, Gen X & Y's, will still have to live somewhere. The passing of the BB'ers alone will not end population growth, so I can't see there being a housing surplus. Don't forget immigration.

As been discussed before, GenY's are more likely to rent than own, whether a lifestyle choice or through financial constraints, but that means demand for rentals will be higher and rents should be as well.

Of course, when BB's pass away, who is going to inherit these properties? Gen X & Y's and they are either going to keep them or sell. If they sell it wouldn't be unexpected that they would use the funds to purchase another PPOR or invest or both. The wealth will be recycled.

 

[oc1]

They get buried, right?

 

[Glenn]

I will tell you what happens...

It will be like the week after you get married....you think, "what has changed? I feel the same as I did a week ago!".

Over the long term, Liberal and Labor politicians will alienate the aged and the nuclear family so that they can favour Melbourne arts graduates with rectangular framed glasses that have high disposal incomes but f*&^ all money and are hanging out for their parents to die so that they can receive the inheritance that they will squander all too quickly.

If this is not dark enough, consider this....every civilization has failed. Mankind implodes due to their own bravado, excess and arrogance.

Imagine being an Aboriginal warrior in Australia 300 years ago....you kill your dinner, tear it apart and share it amonst adoring children and women....you shag any woman you like and kill your enemies with a spear and club....hell, we may be back to that in less than 100 years....imagine a world with no electricity, no internet, no mobile phones and no cars that can drive...imagine that world for more than 48 hours

Glenn

 

[buzzlightyear]

I will tell you what happens...

It will be like the week after you get married....you think, "what has changed? I feel the same as I did a week ago!".

Over the long term, Liberal and Labor politicians will alienate the aged and the nuclear family so that they can favour Melbourne arts graduates with rectangular framed glasses that have high disposal incomes but f*&^ all money and are hanging out for their parents to die so that they can receive the inheritance that they will squander all too quickly.

If this is not dark enough, consider this....every civilization has failed. Mankind implodes due to their own bravado, excess and arrogance.

Imagine being an Aboriginal warrior in Australia 300 years ago....you kill your dinner, tear it apart and share it amonst adoring children and women....you shag any woman you like and kill your enemies with a spear and club....hell, we may be back to that in less than 100 years....imagine a world with no electricity, no internet, no mobile phones and no cars that can drive...imagine that world for more than 48 hours

Glenn

Gees Glenn, I didn't realise that BB'ers were the glue keeping civilisation together

 

[Glenn]

Hi Buzz,

Even though I am a gen x, I believe that the family values of the BB's are the glue that can keep a civilization together.

Once we are all thinking for ourselves only, we are doomed...look at ants, they work as a colony and have power way beyond that of the human race.

Glenn

 

[Nathan]

Labor are in, they will allow more immigrants as per usual and they will buy our property and rent.

as per ususal.

 

[beekay]

Labor are in, they will allow more immigrants as per usual and they will buy our property and rent.

as per ususal.

Nathan, your ancestors were immigrants too at one stage (unless you're an indigenous Australian) so I'd imagine they'd be in the same situation as today's immigrants when they started out here.

If you feel threatened by their presence its an obvious admission that you're not working as hard as they are. This country has plenty of opportunities, if you're not pursuing them, other people will.

 

[rkordic]

What happens when Baby-Boomers depart?

We will come back to haunt you!

RK

 

[Novar]

after we have spent the inheritance!!

 

[alexlee]

There are countries that are worse off than us in terms of demographics (Japan and Italy, for example). Those countries will feel the effects of too many old people sooner than we will. They will be object lessons in how to deal with the situation.

In practice, I think a number of things will happen: more immigration, more kids (Gen X and Y may be maturing late but mature we will, eventually), the boomers working for longer (most boomers won't have enough money to last their lifetime, given that they have longer life expectancies), and if that doesn't turn the tide, a cut to pensions or higher taxes.
Alex

 

[rkordic]

What inheritance? Some of us like to SKI!

RK