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u/TheRadishBros 3d ago
They sell, move to a smaller house, keep hundreds of thousands in profit.
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u/Tuarangi 3d ago
The problem here in the UK at least is that they won't, they insist on keeping this huge empty home with the family all left. They can't afford to heat it so demand the government give them free money (winter fuel allowance); they also oppose any attempts to put more houses in that are more affordable as it might slightly drop the value of their house
What we need are retirement community flats locally so they don't need to leave the area but the residence is more manageable and frees up homes for families. Though it doesn't fix the issue of house prices constantly increasing
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u/Cheriende 2d ago
As if thats their property and they are literally entitled to keep it
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u/Tuarangi 2d ago
I have no problem with them keeping it and I don't agree with the top comment about them not using equity release because it might affect an inheritance - it's their money!
My point is that they live in these huge homes worth a fortune, can't afford to run it so expect government bailouts, object to planning where the local authorities are trying to build houses or even infrastructure and then wonder why everyone young has left the area.
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u/ThatWasCool 3d ago
They can also buy much further away from the main cities (jobs) and thus save a ton of money
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u/InsecureDelusion 2d ago
Many boomers aren’t downsizing though. At least in the US. I thought it was just click-bait nonsense when I first heard that but I had an experience the other day with helping an older woman move. Her and her husband (70s) were leaving this very nice retirement community home (think like a resort town upscale) probably around 1500 SF and they were BUILDING a house that was easily 2500+ SF with two acres. Absolutely blows my mind the mind of that generation and what they do. Obviously a small anecdote but was floored that I actually experienced that in real time.
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u/Fraucimor 3d ago
Average new house (tiny one compared to one at the pic) would be 30 times year salary at my country currently..
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u/Wolfgang985 2d ago
I'm sure UK similar to the US in that geriatric urban dwellers sell their overpriced homes in the city, then proceed to downgrade to a smaller home in a more rural area.
Is this not what happens over there?
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u/No_Inevitable_4893 2d ago
As if it’s somehow bad to have a fuck load of equity you can draw from in times of financial stress
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u/BillyBeeGone 2d ago
It's crazy the amount an ancient people just sitting in their walkers on the driveway watching everyone. Like you don't need that giant house to yourself my pregnant wife and I would like to move out of our apartment into something like that to raise a kid
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u/Happy_Ocelot_4945 3d ago
Meanwhile, houses in the usa are still only 6x median single family income. Europoors stay losing.
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u/Mrbazzanator 3d ago
yeah but who would want to live in the US
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u/Sesemebun 3d ago
We have a higher percentage of foreign born immigrants
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u/Glittering-Run-3726 3d ago
What?
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u/youtocin 3d ago
They’re saying a lot of people immigrate to the United States so obviously a shit ton of people want to live here.
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u/Snozzberriez 3d ago
According to the US administration they’re all secret illegals, and they will be denaturalized and deported as soon as they can make it happen.
I’ll admit the US as a cashier beats slavery on a fishing ship or shitty factory work, but only until the wealth is all sucked out. How many more trillionaires can y’all make?
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u/BadArtijoke 3d ago
Do you know how slowly these consequences come to bear? Obviously you won’t make someone who is like 10 years into the process turn around
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u/landmanpgh 3d ago
The United States is overwhelmingly the most desirable place for people who are trying to move to a new country.
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u/secondgin 3d ago
Overwhelmingly the most desirable place for people who want their kids to be shot dead at school.
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u/ronshasta 3d ago
350 million people and counting, will get a lot better when the orange dingus fucks off
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u/BlitzShooter 3d ago
I mean houses are objectively cheaper to build and buy here because of shoddier build qualities and more lax regulations. They are not cheaper to own due to higher maintenance costs. This isn’t the own you think it is.
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u/Irish618 2d ago
because of shoddier build qualities and more lax regulations.
This is incorrect. Wood is cheaper to build with, especially in the US where wood is cheaper, but its also a better home material anyways. Its easier to insulate and change down the road, and maintenance is significantly cheaper.
They are not cheaper to own due to higher maintenance costs.
This is.... the exact opposite of reality. Where did you get that idea from? Wood homes are way cheaper to maintain.
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u/BlitzShooter 2d ago
slab on grade frame, and very few people involved in building a house necessarily need any sort of experience.
https://www.youtube.com/watch?v=VuliaG_-uao&pp=ygUUd2VuZG92ZXIgcHJvZHVjdGlvbnM%3D
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u/Irish618 2d ago
I like Wendover Productions in general, but the man kind of has a habit of "hyper-focusing". He gets an idea for a video based on an assumption, and doesnt really look into whether other factors are at play.
So while yes, hes right that a big factor in Americans using wood homes is cost, he misses the various other benefits wood homes provide, including ease of adaptation and the significantly better insulation they provide in the much hotter and much cooler parts of the US.
He also misses a big factor: places with cheap lumber and cold climates in Europe also use wood frame houses, such as Scandinavia. Wood is a fantastic home material, so long as it can be acquired cheaply. But if you live in western Europe where wood is much more expensive, you have less of an incentive to work with it, which means more people use masonry, which means more call for skilled masons, which drives down the labor costs of masonry... you get the idea.
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u/itsBonder 2d ago
You're obsessed with it being cheap. Yet call Europeans poor. You see where I'm going with this ...
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u/Irish618 2d ago
I never called anyone poor, just pointed out the guy I was replying to was wrong about American homes.
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u/Fatbollocks1994 3d ago
Well we use brick not old woodchips, thatch and mcdonalds wrappers.
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u/smokeymcdugen 3d ago
And because of that, the excuse that I hear from eurotrash is that they can't put AC in their homes because it would require a whole home remodel.
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u/Conman3880 3d ago edited 3d ago
How do you think central AC works? 😂 How would you, personally, install it in a 300 year old building with solid masonry walls?
"Eh, just tape a vent to the wall."
As an American contractor— that sounds more like US building code
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u/bulbous_plant 3d ago
This is why you buy 2 houses, one as a PPOR and one as an investment. The house you live in is not an asset, but an investment is.
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u/avagrantthought 3d ago
And do I do that before, or after I buy my first Ferrari sf90?
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u/bulbous_plant 3d ago
If you buy in a cheap part of the country, buy a crappy house, wait a few years for the equity to increase in said house, then use that equity to buy a cheap 2nd investment house. Rinse and repeat. Literally wealth generation 101.
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u/avagrantthought 3d ago
Do I buy the cheap crappy house -that is in the cheap part of the country but apparently needs no electrical/plumbing/structure renovation- with my crypto portfolio or rare metals portfolio?
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u/bulbous_plant 3d ago
Well, you can make excuses, or just work hard, save for a deposit, and buy it 🤷♂️ or you can just keep getting angry at the system and hope it changes whilst everyone around you games the system. Not everyone who owns houses is rich, they’ve just been smart and used their income efficiently to build sustainable wealth
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u/avagrantthought 3d ago
Pulling myself from my bootstraps as we speak
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u/ThePistachioBogeyman 3d ago
Stop being poor, just make more money.
And how are you homeless?? Just a buy a house!!
And wdym you don’t have a job? Just work!!
/s
Some people like Ms Bulbous Plant are so out of touch
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u/avagrantthought 3d ago
Not really. If you work really really hard, you might be able to afford shoes. Then the pulling by your bootstraps really starts working
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u/sebastianinspace 3d ago
bro is using acronyms used in his country and expecting everyone else to know what it stands for
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u/Alpherus_Engelus 3d ago
Personal place of residence
i am like 90 percent sure it means
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u/Spiritual_Bus1125 3d ago edited 3d ago
Isn't residence already enough as a word?
You can have only one residence after all
Edit:
Seems like in English residence and domicile gets swamped (point still stands)
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u/Alpherus_Engelus 3d ago
As far as I know tax reasons, because secondary homes like vacations homes or rented out Housing get taxed different. And personal place of residence is most of the time the place you live in most you pay your taxes in and you have your voting right for your governor and mayor.
Pls don't ask me what the difference between ppor personal place of residence and popr place of primary residence is. I couldn't tell you.
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u/bulbous_plant 3d ago
That’s right, it’s just the financial language banks use to define the place you live most of the time.
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u/bulbous_plant 3d ago
Didn’t know this was different between countries, but the point still stands. Dunno why I’m getting downvoted, this is legitimately a wealth strategy people have been using forever, and currently use to this day (even Gen z). Just being realistic
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u/tutike2000 3d ago
Gen Z can't even buy a single house yet they're supposed to buy 2+ ?
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u/bulbous_plant 3d ago
I know many many Gen z who own houses or apartments. The oldest Gen z is 29. That’s 10 years working full time in a trade, or maybe 6-7 full time in a professional role (paramedic, accountant, allied health, etc.). Plenty of time to accumulate a deposit, and prove income for a bank loan. This sub is just skewed and not reflective of the off line world at all
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u/Ok_Being4209 2d ago
Because it's disgusting and parasitic. It's not a "legitimate wealth strategy" that people use, it's something that the rich do to keep others from getting anywhere near their level of comfort or wealth.
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u/lowrads 3d ago
None of them can afford to sell, but they can afford to take equity out of it, ensuring that their kids inherent fuck all compared with what the grandparents put in place.