You may have read about how the Baby Boomers have stolen all the property in the capital cities and left the other generations – X, Y, Z and Millenials (collectively “Whatever”) – destitute.
Well, not quite but you can be forgiven for thinking that as a procession of Generation Y and Millennial reporters tell us this is the case. Here’s something most of them have missed that will change everything.
The transfer of wealth from one generation to the next.
While baby boomers may think that they’ll live forever, the reality is that they won’t. The early baby boomers are now in their seventies. If they haven’t started falling off the perch yet, they will in the next decade or so. I can hear the Generation whatevers yelling at their computer screens “that could take a lifetime” or “when’s that gunna happen?” Short answer, it’ll happen when it happens but it will happen. Unless of course the Generation whatevers are a candidate for a Darwin award…
We will then see the largest transfer of wealth we’ve ever seen. I suspect the Generation whatevers’ will then move on and find something new to whine about – perhaps a wealth tax that the government of the day will need to introduce…
Here’s something else that will happen. As the boomers all shuffle off this mortal coil, their lovely offspring – in the haste to get at their inheritances – will sell real property. This will usually happen because there is more than one sibling and they want their money now. While it’s unlikely that all boomers will sell at once, there should be a constant supply of property for a decade or two to temper price growth in our capital cities.
The thing that I love about the Generation whatevers is that they’re not willing to settle for any job. They’re quite entrepreneurial and have already set up successful businesses – so when they get their grubby little hands on some wealth, I think we will see some extraordinary business growth from these enterprises.
My message to all the wannabe homeowners out there is to be patient. You’re turn will come. However, not everyone will be a homeowner as the split in Australia has been one third each of renters, people with mortgages, people that own their homes outright. This will probably not change. Oh, and lenders will usually require you to be employed (in the main).
Disclaimer: The writer is from Generation X – WHATEVER.