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

[Wardy's twin]

..........and we're safely out of the EU......................

Safely I can't see that happening as Boris is driving so bound to end in a crash.

 

[SollysLeftFoot]

Yeah and then the kids can buy cheap houses with the jobs they've not got any longer.

imagine taking that seriously..

 

[Wardy's twin]

And similar arguments about housing being out of the hands of ordinary people were being made then (late 70’s early 80’s).
I also remember taking a huge gamble on our present house in the late nineties worrying about negative equity because of the dip in the market then which lasted a couple of years. Obviously turned out well but things are very unpredictable in the housing market.

With a possible recession looming and uncertainty of Brexit, and loads of people wanting to get out of the buy to let market I can see a tumble in house values. I’d definitely wait a few years before committing any money to the housing market.

We bought a 3 bed semi detached house in need of some repair for £18k which was 5 times our earnings. My daughter might get a one bedroom flat for 10 times her income. So whilst things were bad they were better than they are today.

 

[hans kraay fan club]

I took the choice to do the house instead of University fees. Both my girls got whacked for the 'new' £9K a year + loans for accomodation etc. The youngest did 4 years for her Masters and now owes over £65K. Interest alone means that is going up by over £2K a year. She's got a good job on £30K and 'pays off' (before interest) about £50 a month. Obviously that will go up as she earns more but interest will roll the debt up quicker I suspect.

I didn't see any point at all ... many/most of these loans will never get paid at all so helping them with housing seemed a better option

Don't start me on the whole (value of) Uni fees and student loans set up .... it's a total mess imo

All good logic.

My lad took a very clever path though, and did his degree in Cork - Irish tuition fees are just €3k a year. Our contribution was to cover his living costs, and the fees were down to him, but as they are so much lower he could manage them without a loan.

 

[Tubby-McFat-Fuc]

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.

Sent from my Pixel 2 using Tapatalk

Yeah lots of sense voting Labour. Look what happen to the housing market in Brighton in 5 years when those idiots got in last time.

May 1997 May 2002 Change
Detached £129,043 £273,185 +112%
Semi £85,156 £186,367 +119%
Terraced £77,611 £187,757 +142%
Flat £47,637 £126,314 +165%
All £72,985 £164,652 +126%

Well over doubled in price in 5 years! And people still blame the greedy Tories for house prices. Staggering.

 

[BLOCK F]

I took the choice to do the house instead of University fees. Both my girls got whacked for the 'new' £9K a year + loans for accomodation etc. The youngest did 4 years for her Masters and now owes over £65K. Interest alone means that is going up by over £2K a year. She's got a good job on £30K and 'pays off' (before interest) about £50 a month. Obviously that will go up as she earns more but interest will roll the debt up quicker I suspect.

I didn't see any point at all ... many/most of these loans will never get paid at all so helping them with housing seemed a better option

Don't start me on the whole (value of) Uni fees and student loans set up .... it's a total mess imo

Likewise here, for the two of our three who went to uni; although it still cost us quite a lot to help them out whilst they were there.
We helped our eldest, who didn't go to uni with a deposit for a house she has bought with her other half. She is self employed and has a liitle boy of almost one.
We are grateful that we were in a position to do this for her. Many are not so fortunate.
I agree with you re uni fees; a dreadful shambles.
Number two son has just started a good job in London, but the hassle and cost of trying to find somewhere reasonably affordable to live is another story altogether.
Bloody nightmare! As far as I'm concerned, the younger generation have it far harder than we did in my day. We try to help as much as we can, without leaving ourselves potless!

 

[Green Cross Code Man]

imagine taking that seriously..

Not much point writing it then. [emoji38]

 

[SollysLeftFoot]

Not much point writing it then. [emoji38]

It's a forum, you're free to read comments at your will - but if you seriously think suggestions like that are serious. There's a fantastic book on amazon that I'm very happy to buy for you.

More so, you chose to pick that comment out of some of the shit that's posted? Stinks of a personal agenda, but hey ho. PM me if you want to know what the book is and want it.

 

[zefarelly]

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.

Thats difficult . . .I left home at 17 and got on the ladder @ 20 in '92 (a bit easier then, but not a doddle) . . . . with a £6k loan from my Gran . . . . I just needed somewhere to live, I had a job and made the effort. If I'd been slack arsed my Gran would not have helped, likewise I won't help my son if he shows no interest or effort. I'm not rich and life's not served on a plate.

 

[zefarelly]

Yeah and then the kids can buy cheap houses with the jobs they've not got any longer.

I was sweating at work late 91 and most of 92 . . . as were plenty of colleagues . . .I was just about to buy and we were all facing potential redundancies . . . . not a happy time, I did survive the cull and got my flat.
. No work now though, and little prospect of finding a job locally . . . .

My work situation locally is worse now than it was then

 

[Triggaaar]

It was a Nationwide 'Future Saver' if I remember correctly. Any withdrawls drops the rate for the rest of that year.

Thank you. I've just looked it up, and it says "3.00% AER/gross p.a. (variable) if you have a main current account with us; 2.00% AER/gross p.a. (variable) for all other customers". 3% is still good.

 

[Weststander]

But that wasn't "labour" in power during that spell, it was pseudo tories

Good point.

 

[Green Cross Code Man]

It's a forum, you're free to read comments at your will - but if you seriously think suggestions like that are serious. There's a fantastic book on amazon that I'm very happy to buy for you.

More so, you chose to pick that comment out of some of the shit that's posted? Stinks of a personal agenda, but hey ho. PM me if you want to know what the book is and want it.

Personal agenda? I have no clue whaty you are on about, don't be paranoid. My comment was written simply as you rightly say, so much rubbish is written, it is hard to see the difference sometimes between deluded comments and serious, especially on a thread like this. Feel free to whoosh me again but I assure you I bear you no ill will.

 

[southstandandy]

I assume you own your own home outright at age 48? And have enough put aside to give your kids £100k and leave a bit left in your pocket for a rainy day? If so all well and good. But many would say that is a very comfortable background for your kids to have come from. An awful lot of others will not pay off their mortgage till mid to late fifties and won’t have a nest egg to give to their kids all the time they are alive, the mortgage free house will be the inheritance, hopefully. No criticism intended of your situation, but others have spoken of a ‘duty’ to help kids onto the housing ladder, which is codswallop.

No, I appreciate I'm fortunate, and yes paid of our mortgage in 15 years by overpaying which we could afford to do. Used to work 80+ hours back in my 20's and saved and invested for years. My wife also has a good salary so between the two of us we are lucky to be in this position (even though I was the only 20 year old I knew who worked 3 jobs in their 20's). Always had a strong work ethic as my own attitude is that if I want to be able to have holidays, cars, season tickets etc then I have to put the hours in.

I don't think it's any parents duty to buy the kids a house or underpin them financially but as we could help them start with a decent deposit that's what we chose to do, as we feel investing in property a sensible way of increasing their own capital as the mortgage they both pay is on par with what they would pay in rent. With the interest rates so low they both got pretty good deals

If they didn't have a decent work ethic then we might not have been so charitable, but my youngest at 23 already works 60 hours a week and is determined to pay his mortgage off as soon as he can. They have had a leg up but must stand on their own two feet from now on. One or two of our friends have also helped their kids with deposits so I'm sure we're not alone.

 

[cloud]

I'd also add that if you are young and single then you have no ties and you don't need anything bigger than a one bed. If you're that desperate to own go and find a place with slightly cheaper property, start with a studio and work your way up.

Yep, and start with renting out a cheap bedsit rather than a one-bed, get a second job, and watch every last penny.

I was planning to say to mine that I would match everything that he managed to save, but I suspect he will have a much greater earning ability than I did.

 

[Madafwo]

I was fortunate enough to be able to move back in with my parents for a few years when I was in my early twenties, along with my then girlfriend (now wife), and was able to save up £1000 a month between us to save up a few grand for a deposit. Now we've got an 18 month old I've just been offered a new job at work with the potential for a lot of overtime so I'm going start doing as much as is reasonably possible to be able to have our mortgage paid off by the time he is 18.

Hopefully I'll be able to start putting some money away from then on to help him with university fees or a deposit when the time comes, even though it is a long way off I'm starting to plan for that now.

 

[SollysLeftFoot]

Personal agenda? I have no clue whaty you are on about, don't be paranoid. My comment was written simply as you rightly say, so much rubbish is written, it is hard to see the difference sometimes between deluded comments and serious, especially on a thread like this. Feel free to whoosh me again but I assure you I bear you no ill will.

You'd think, someone suggesting crashing the economy, shouldn't be taken seriously..

Yep, and start with renting out a cheap bedsit rather than a one-bed, get a second job.

My absolute favourite, let me guess. You're older than 50.

Cheap is relative to the location you're in. I work 37.5 hours a week and earn 50% more than the national average, moving to Hitchin where I deem renting to be reasonable and within good distance of my location of work; £1,100 a month rent is pretty decent value to me. However: https://www.zoopla.co.uk/house-prices/hitchin/ Average house price is just over £400,000. I could find cheaper, but I cannot venture to far from my job or London, where I spend 40% of my time working.

Assuming I want to buy a house for £350,000, cheap relative to my location. I need a deposit of 10% for an LTV of 90% £35,000. Let's say I can afford £500 a month savings. £35,000 / £500 = 5.8 years of saving in linear terms to buy a house that's a reasonable location for me.


And people suggest I should get a second job. The amount I can save is actually a little less than £500, which exacerbates the problem, it'll be more like 6.5 years.

 

[Green Cross Code Man]

You'd think, someone suggesting crashing the economy, shouldn't be taken seriously..

Yep, you'd think. But as i say, feel free to whoosh me, I am pretty literal at times. I am sorry for any offence I may have caused.

 

[Guinness Boy]

You'd think, someone suggesting crashing the economy, shouldn't be taken seriously..

I've honestly read stupider stuff than that on here posted in all seriousness by some users. I think it's time to re-investigate a standard sarcasm emoji.

 

[SollysLeftFoot]

I've honestly read stupider stuff than that on here posted in all seriousness by some users. I think it's time to re-investigate a standard sarcasm emoji.

Agreed.