[Finance] Best way to help kids get on property market

[Wardy's twin]

Hi,

Has anyone done any research into this or can point me to any good sites? I want to help them get on the property market, can afford to lend/give them some money BUT not sure what is the most efficient legal way?

 

[Driver8]

Nothing illegal about giving or lending them money. You can lend it interest free if you wish.

 

[Stat Brother]

Move them up north.

 

[Geestar]

Move them up north.

Spot on.

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[Harry Wilson's tackle]

A case close to my heart....musing on spaffing some of my pension pot. But....he's not showing any great interest....computer games, mates.......decided to be a musician at age 19 (dropped out of school)...now working for peanuts for a law firm, age 33...tricky. Meanwhile I have a new family, young nipper and some intention to swim in lifes rich pool till the arthritis glues me to the football on telly chair.

Tricky when the offspring don't engage.

 

[LlcoolJ]

Spot on.

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Yep.

 

[Ernest]

Vote for a Labour Government

 

[Wardy's twin]

Vote for a Labour Government

will think about it when Jezza and McDonnell have gone.

 

[Bakero]

A case close to my heart....musing on spaffing some of my pension pot. But....he's not showing any great interest....computer games, mates.......decided to be a musician at age 19 (dropped out of school)...now working for peanuts for a law firm, age 33...tricky. Meanwhile I have a new family, young nipper and some intention to swim in lifes rich pool till the arthritis glues me to the football on telly chair.

Tricky when the offspring don't engage.

I'll willingly engage if your son isn't interested

 

[dejavuatbtn]

My experience is that giving away your wealth to your kids, inheritance tax issues aside, means you end up poor and annoyed at the way their priorities end up different to yours. There’s nothing quite like making your own way as much as possible because you learn to appreciate it more.
Even lending money can cause issues when their lives change and they can no longer afford to pay you back - unless, of course, you are minted.

 

[timbha]

Most efficient way is to “gift” your hard earned cash to (help) pay the deposit because this is usually to major stumbling block. BUT you must consider who they might invite to live with them (eg a partner) and the implications if they split up and have to sell the property. In this case half of your gift might end up with the partner, or more if children are involved.
Best to get some legal advice and a legal document to ring fence/return your gift on the sale of the property (if you choose to enforce it).
Also need to consider what you’d have to do to help your other kids.

 

[Weststander]

Wow. Just wow.

Obviously a baby boomber, not realising how lucky you've had it and now shit young people have it today.

If I had grown up kids today I would feel it was my duty to help them out financially, given that the boomers were lucky enough to be born at the right time to have incredible accumulative wealth (and not entirely earned, relatively speaking, let's be honest). Many of them are practically millionaires, only as they were lucky enough to enter the property market at the right time.

Feel sorry for your kids to be honest. Enjoy your luxurious retirement, while your kids struggle to make ends meet for their entire lives and have barely no retirement pot when they're your age, in all likelikhood.

Very true, especially in property hotspots throughout southern England. The relentless drive upwards in underlying land values, means houses in Brighton, Hove and Lewes (for example) are worth 5x or 6x their 1995 values.

Allied with the end of 100% mortgages and similar, it’s virtually impossible for young adults to buy a decent property, without the help of their parents.

 

[Stat Brother]

Most efficient way is to “gift” your hard earned cash to (help) pay the deposit because this is usually to major stumbling block. BUT you must consider who they might invite to live with them (eg a partner) and the implications if they split up and have to sell the property. In this case half of your gift might end up with the partner, or more if children are involved.
Best to get some legal advice and a legal document to ring fence/return your gift on the sale of the property (if you choose to enforce it).
Also need to consider what you’d have to do to help your other kids.

Are you suggesting he can get a make-believe stand from his investment, as well?

 

[LlcoolJ]

A case close to my heart....musing on spaffing some of my pension pot. But....he's not showing any great interest....computer games, mates.......decided to be a musician at age 19 (dropped out of school)...now working for peanuts for a law firm, age 33...tricky. Meanwhile I have a new family, young nipper and some intention to swim in lifes rich pool till the arthritis glues me to the football on telly chair.

Tricky when the offspring don't engage.

I know it's your kid HW, but at 33 he can walk on his own.

Save the money for when/if he really screws up/has a horrific life situation and actually needs it. Not to help someone out when they don't have what they want, just because they haven't earned it.....

And yes, you could say that you've been extremely lucky in comparison. Age, job, pension etc. But to cut into that when it's just for shits and giggles, rather then when he might actually NEED it, is a mistake.

To me anyway.

We've benefited from a few quid here and there from (her) parents. But only stuff that's made things sightly easier rather than buying our house/car etc.

But when the shit hit the fan and we needed legal representation, they stepped up and saved us.... Not a huge amount of money, but that was actually life changing (and we're paying it back).

Not everyone needs to own their own house nowadays. Keep your hand in your pocket. You never know when you might REALLY need to dip into it for your wastrel offspring!

Mine will have no excuse btw. He's getting his "child trust fund" thing at 18 with a letter from me ending "Screw that up and you're on your own sunshine!". [emoji23]

 

[timbha]

Are you suggesting he can get a make-believe stand from his investment, as well?

What?

 

[Dick Head]

I gave my children hundreds of thousands of pounds and they seem to be doing quite well. They're not happy though. They're jealous of poor people's happiness and are always trying to find ways to **** them up. Kids, eh?

 

[LlcoolJ]

What?

"Ringfenced cash". Palace. Their £100m stand.....

 

[Weststander]

I know it's your kid HW, but at 33 he can walk on his own.

Save the money for when/if he really screws up/has a horrific life situation and actually needs it. Not to help someone out when they don't have what they want, just because they haven't earned it.....

And yes, you could say that you've been extremely lucky in comparison. Age, job, pension etc. But to cut into that when it's just for shits and giggles, rather then when he might actually NEED it, is a mistake.

To me anyway.

We've benefited from a few quid here and there from (her) parents. But only stuff that's made things sightly easier rather than buying our house/car etc.

But when the shit hit the fan and we needed legal representation, they stepped up and saved us.... Not a huge amount of money, but that was actually life changing (and we're paying it back).

Not everyone needs to own their own house nowadays. Keep your hand in your pocket. You never know when you might REALLY need to dip into it for your wastrel offspring!

Mine will have no excuse btw. He's getting his "child trust fund" thing at 18 with a letter from me ending "Screw that up and you're on your own sunshine!". [emoji23]

I’ve been saving in shares ISA’s for my 2 kids for quite a few years. Not large sums, but it will help them a bit.

I deliberately took them out in my name, so that I’ll decide when to pay the money out. When they’re mature and sensible enough and plan to spend it on something meaningful. Age 18 will be far too young for them.

It could be called control freakery, but it’s been my money invested and my effort in finding good funds, so I don’t want it blown.

 

[Tesco in Disguise]

Vote for a Labour Government

There's some sense in this. The unaffordability of houses comes from speculation from wealthy Russians and Chinese, who then never intend to sell them on (or even rent them out in lots of cases). The Tories are never going to do anything that upsets the free market, no matter how badly this is disadvantaging countless British young people.

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[timbha]

"Ringfenced cash". Palace. Their £100m stand.....

Oh, ok