That headline got your attention I’m sure!
Before I start, I need to get explain a few definitions. Different phrases are becoming more common in describing the different ‘life stages’ of our society. But when terminologies like this are used as often and habitually as these phrases – Generation X this, Millennial that, Baby Boomer the other – it is vital we have some practical idea of what these terms actually mean. The fact is that everyone uses these phrases, but often, like myself, they are not exactly sure where the lines are drawn!
So, for clarity …
Generation Z: Born after 1996
Millennials: Born 1977 to 1995
Generation X: Born 1965 to 1976
Baby Boomers: Born 1946 to 1964
Silent Generation: Born 1945 and before
My research shows there are 8,453 households in Burton owned by ‘Baby Boomers’ and the ‘Silent Generation’. It also shows there are 15,010 Generation X’s of Burton. Looking at demographics, home ownership statistics and current life expectancy, around two-thirds of those Burton 15,010 Generation X’s have parents and grandparents who own those 8,453 Burton properties.
Now, these ‘Generation X’ers may profit from one of the biggest inheritance explosions of any post-war generation to the tune of £1.739bn of Burton property or, £173,717 each but they will have to wait until their early 60’s to get it!
However, it’s the ‘Millennials’ that are in line for an even bigger inheritance windfall…
There are 11,831 ‘Millennials’ in Burton and my research shows around two thirds of them are set to inherit the 10,096 ‘Generation X’s properties. Those ‘Generation X’s homes are worth £2.077bn meaning, on average, each ‘Millennial’ will inherit £263,233; but not until at least 2040 to 2060!
While Burton ‘Millennials’ have done far less well in amassing their own savings and assets, they are more likely to take advantage of an inheritance boom in the years to come. This will probably be very welcome news, especially those from poorer upbringings who, in the past, would have been unlikely to receive gifts and legacies.
However, inheritance is not necessarily the magic weapon that will get ‘Millennials’ on to the Burton housing ladder or tackle growing wealth cracks in UK society, as the inheritance is unlikely to be made available when they are trying to buy their first home. Before all you Burton ‘Millennials’ start running up debts, statistics show that around 50% of females and around 35% of men are going to have to pay for nursing home care. To complicate the situation even further, I also read recently that a quarter of people who have to pay for their care, run out of money.
So, if you are a Burton ‘Millennial’ there potentially will be nothing left for you so don’t rely on it!
Of course, most parents want to give their children an inheritance. The thought that you have worked genuinely hard for over your working life won’t go to your children to help them through their lives is a really awful one. Maybe that is why I am seeing a lot of Burton grandparents doing something meaningful, and helping their grandchildren – the ‘Millennials’ – with the deposit for their first house.
One solution to the current national housing crisis is if more ‘supergrandparents’, if their personal circumstances allow, could help financially with the deposit for a house. Let’s face it, buying is cheaper than renting – we have proved it many times in these articles – so, it’s not a case of not affording the mortgage, the issue is raising the 5% to 10% mortgage deposit for these ‘Millennials’.
Could families be distributing a part of the family wealth now in the form of helping with house deposits, as opposed to waiting to the end? It will make so much more of a difference to everyone in the long run.
Just a thought?
If would like to discuss anything to do with the local property market in Burton, please give me a call on 07973 666229 or email me: firstname.lastname@example.org
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