If you don't own a home by your 40s, you never will. And you'll end up poorer than those who do.; Silly bears who think they can rent their way to wealth are only fooling themselves...
Tweet Topic Started: 10 Oct 2016, 07:29 AM (8,607 Views)
As discussed last week, although the bears refuse to admit it.
The truth is it costs far more to rent for a lifetime than it does to buy a home.
And homeowners end up vastly more wealthy than renters.
People like Crazy Ted and Steve Keen seriously damaged their financial futures by selling perfectly good Sydney homes just before the recent boom.
Life-long renters face financial stress in retirement, new report says
Oct 10, 2016
If you do not own a home by the time you are in your late 40s, you will probably never own one — and you will probably be significantly poorer than those who do.
That is according to a paper released on Monday by Swinburne University, which found more Australians are renting in retirement and facing financial stress.
“Housing is a probably the key way of generating wealth, but people who are unable to purchase or fall out of home ownership will find that they don’t have as much wealth in retirement,” research author Andrea Sharam said.
The paper showed if you had not purchased property by mid life (45-49 years old), there was a strong likelihood you would not purchase thereafter.
Financial experts have previously advised “generation rent” — the growing cohort of young people priced out of the property market — would find it difficult to retire as wealthy as a property owner, largely because Australia’s retirement income system is predicated on owning a home outright in retirement.
The study also showed that in the older age brackets, 65 to 69 year olds, the wealthiest segments were those who owned both their own home and other properties.
"The truth is that there are no good men, or bad men. It is the deeds that have goodness or badness in them. There are good deeds, and bad deeds. Men are just men."
Its their bear cubs that are brought up in the ideological rental caves that I fear for most.
Quote:
For Leigh Evans, 41, purchasing a property has never been an option. She is currently house sitting in Coburg, in Melbourne’s north, but sees her housing future as insecure.
“I grew up poor, both my parents never owned a home when I was younger … so I never had that expectation,” the business analysist and author said.
Ms Evans said the research made her retirement situation appear bleak.
Its their bear cubs that are brought up in the ideological rental caves that I fear for most.
Agreed. Despite the social stigma associated with admitting that their parents are still just renters, the offspring of renters often still end up following in their parents footsteps. It becomes a vicious circle of wealth erosion. Whereas homeowners tend to encourage further homeownership in their children, as well as passing down valuable assets to the next generation - a virtuous circle of wealth generation.
"The truth is that there are no good men, or bad men. It is the deeds that have goodness or badness in them. There are good deeds, and bad deeds. Men are just men."
A new study has found if you don’t own a home by your late 40s, chances are you never will.
A paper to be released today by Swinburne University has found that more Australians are renting in retirement, making them more likely to deal with financial hardship, Fairfax Media reports.
The authors suggested 49 was the ‘cut-off’ age for purchasing a home, saying there was a strong likelihood people would not purchase in their 50s if they hadn’t already.
While Gen Y is typically discussed as the cohort priced out of the property market, the research shows a growing number of older renters are experiencing consequences of long-term renting, including impoverishment and housing insecurity.
The study’s authors have called for the axing of caiptal gains tax and to reinstate a small ‘inheritance tax’ to reduce the gap between homeowners and renters.
I could be wrong but I think the could be an 'x' factor here. Missing from the article. The Possibility that the late 40 something might inherit a house. Odd that the arilcle doesn't consider this a possibility.
While I agree in principle with the article, about 30 to 40% of these late 40's house-less people will eventually end up with one, no matter how financially inept they are.
“Housing is probably the key way of generating wealth, but people who are unable to purchase or fall out of home ownership will find that they don’t have as much wealth in retirement,” research author Andrea Sharam said.
Is that a PPOR with no Yield......
Imagine what will happen when Interest Rates rise.........Surely they will stay at Record Lows Forever?
Love all these base assumptions about the future being perfect. What could possibly go wrong..........
Agreed. Despite the social stigma associated with admitting that their parents are still just renters, the offspring of renters often still end up following in their parents footsteps. It becomes a vicious circle of wealth erosion. Whereas homeowners tend to encourage further homeownership in their children, as well as passing down valuable assets to the next generation - a virtuous circle of wealth generation.
You're quite right on this one, generational wealth buildup is very powerful. It makes a heck of a difference to the outcomes of people.
As discussed last week, although the bears refuse to admit it.
The truth is it costs far more to rent for a lifetime than it does to buy a home.
And homeowners end up vastly more wealthy than renters.
People like Crazy Ted and Steve Keen seriously damaged their financial futures by selling perfectly good Sydney homes just before the recent boom.
Life-long renters face financial stress in retirement, new report says
Oct 10, 2016
If you do not own a home by the time you are in your late 40s, you will probably never own one — and you will probably be significantly poorer than those who do.
That is according to a paper released on Monday by Swinburne University, which found more Australians are renting in retirement and facing financial stress.
“Housing is a probably the key way of generating wealth, but people who are unable to purchase or fall out of home ownership will find that they don’t have as much wealth in retirement,” research author Andrea Sharam said.
The paper showed if you had not purchased property by mid life (45-49 years old), there was a strong likelihood you would not purchase thereafter.
Financial experts have previously advised “generation rent” — the growing cohort of young people priced out of the property market — would find it difficult to retire as wealthy as a property owner, largely because Australia’s retirement income system is predicated on owning a home outright in retirement.
The study also showed that in the older age brackets, 65 to 69 year olds, the wealthiest segments were those who owned both their own home and other properties.
"The truth is that there are no good men, or bad men. It is the deeds that have goodness or badness in them. There are good deeds, and bad deeds. Men are just men."
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