[Finance] Do you charge your kids rent ?

[KZNSeagull]

I think most people haven’t a clue what’s going on in this country. There’s a very wealthy (all assets considered) middle class of possibly millions, toying with their BTL’s and/or vast sums in SIPP’s/ISA’s.

Having been out of the country for so long it certainly came as a surprise to me when I stayed with friends in Haywards Heath in 2016 when they informed me that the house up the road from them had been bought for £1m and was still empty 8 months later. The owners had just bought it as an investment with no intention of living in it or renting it out.
When you think about it though, what you are saying makes a lot of sense. House prices rising exponentially and family sizes falling mean large assets being passed onto 1 or 2 individuals. My niece (an only child) will be one, her paternal grandfather was a very wealthy business owner in Yorkshire with 2 kids who inherited a truck load of money, half of which will be passed onto her along with her parents assets at some point. She will become very wealthy.

 

[Live by the sea]

Having been out of the country for so long it certainly came as a surprise to me when I stayed with friends in Haywards Heath in 2016 when they informed me that the house up the road from them had been bought for £1m and was still empty 8 months later. The owners had just bought it as an investment with no intention of living in it or renting it out.
When you think about it though, what you are saying makes a lot of sense. House prices rising exponentially and family sizes falling mean large assets being passed onto 1 or 2 individuals. My niece (an only child) will be one, her paternal grandfather was a very wealthy business owner in Yorkshire with 2 kids who inherited a truck load of money, half of which will be passed onto her along with her parents assets at some point. She will become very wealthy.

If I had a million to invest in a property , I wouldn’t chose haywards heath . I’d look at the areas most in demand that have a long stable history of high prices . Hove possibly but more likely a posh area in London where I could buy a small 2 bed townhouse back in 2016 for a million .

 

[jonny.rainbow]

When I was in Year 7 at school, a friend of mine told me he spent his weekends working in a soup kitchen. He had to pay the money he earnt to his parents for ‘room and board’. This was the 90’s.

 

[Rdodge30]

Our eldest is now 26, graduated and working full time living in her university town. When she was year9 her understanding of money was a horror show - I want I need etc

I was working for market traders and said to her mother, that girl needs to understand money I’m gonna put her on the stall Saturdays and half term …oh no she’s far too young etc etc

Half term she rinsed her mother for a couple of hundred quids worth of shopping and came back for more !!

I THOUGHT YOU WERE GOING TO PUT HER ON THE MARKET!!!!

Two weeks working and she went from can I have, to can I have more hours

 

[Harry Wilson's tackle]

Economically/fiscally I’ve never been a socialist, hard to pin down, but probably centre right and wanting a decent safety net for the vulnerable etc.

But surprising myself, I minded that something needs to change. The UK is increasingly haves and have-nots. The haves go way beyond a few landowning Tory supporters. Southern England has imho many 100,000’s of folk in £1m plus homes, with a couple of buy to lets with very significant equity, and the best part of £1m in SIPP’s/ISA’s. Able to get their kids onto the property market when young, able to set up lucrative SIPP’s running for 18 year olds in the family.

Whilst the rest are destined to work to 70, unable to get on the property market and so bound to high rents for good.

Something’s got to give. I’d wager that Starmer won’t do anything significant about the above. Taking 0.5% a year in wealth tax from toffs will barely touch the sides.

I’d be interested to know what @1066familyman, @Machiavelli and @Harry Wilson's tackle think.

I agree, f*** all will happen.

I hope I'm proven wrong.

 

[Weststander]

I agree, f*** all will happen.

I hope I'm proven wrong.

The wealthiest 10% of UK households have a net worth of at least £3m, an average 20% of which is in non-pension investments. That’s 2.8m households, mostly in London and the South East.

 

[crookie]

Great thread. Sympathise with @1066familyman to an extent. Realities of life aren't exposed if you're given all that money back. Of course, who doesn't want to help your kids out given the fact house prices have risen out of all proportion to earnings. My parents bought a 6 bed house in Crowborough for under £40k in about 1980. Sold 20 years later and their current house is probably worth not much less than a million. Absolutely Crazy. 2 brothers, when my parents pass away, that's 1/2 BTL each for me and my brothers. Just entranches inequality unless there is a serious wealth/inheritance tax. People whose parents only rented end up with nothing

 

[KZNSeagull]

I think most people haven’t a clue what’s going on in this country. There’s a very wealthy (all assets considered) middle class of possibly millions, toying with their BTL’s and/or vast sums in SIPP’s/ISA’s.

I have just looked up the value of the house we owned in Burgess Hill before we went to South Africa. It is now worth 4 times what we paid for it 24 years ago. But hey ho, money isn't everything

 

[OzMike]

I don't charge them anything, but insist an amount every week goes into savings for the future or I will.
They all saved enough for deposits on their own properties.
I would rather they paid their own morgages than someone elses.

 

[chickens]

Every time I pause Peppa Pig to try to talk to my youngest about it, he bursts into tears.

Maybe I’ll give him a few more years…

 

[happypig]

Out of interest, did he know he was getting it back or was it a surprise?

Nope. He was under the impression that it covered the cost of food/electric etc.
Fortunately at the time I was in a position to put it aside for him.

 

[WATFORD zero]

Great thread. Sympathise with @1066familyman to an extent. Realities of life aren't exposed if you're given all that money back. Of course, who doesn't want to help your kids out given the fact house prices have risen out of all proportion to earnings. My parents bought a 6 bed house in Crowborough for under £40k in about 1980. Sold 20 years later and their current house is probably worth not much less than a million. Absolutely Crazy. 2 brothers, when my parents pass away, that's 1/2 BTL each for me and my brothers. Just entranches inequality unless there is a serious wealth/inheritance tax. People whose parents only rented end up with nothing

Just one last one on this. When my kids were paying us money they had no expectation of 'getting it back' and thought they were contributing to the household bills. It was only years later, when my son was saving to pay off his Uni loan and my daughter was saving to go travelling that we said to them you've got a couple of grand more than you thought from the housekeeping you paid (and I appreciate we were lucky to be able to do that).

It was a little bit of help with the things they were working very hard and saving up for.

I've told the kids that when we go, my daughter is getting my sports car (which she wants), my son my vintage instruments (which he doesn't) and the rest is going to the Cat's home

 

[robinsonsgrin]

As soon as I worked in my professon, I paid rent to dad... plus the phone bill - huge bone of contention, so if I paid, I coujld spemd as much time on it as I wanted... pre mobile days of course.

 

[Triggaaar]

Great thread. Sympathise with @1066familyman to an extent. Realities of life aren't exposed if you're given all that money back.

If you called your dad he could stop it, oh yeah

Re helping your kids out: that's basically part of being human, rather than some wild animal that ditches their offspring.

 

[Thunder Bolt]

If you called your dad he could stop it, oh yeah

Re helping your kids out: that's basically part of being human, rather than some wild animal that ditches their offspring.

Some parents aren't 'human' though and mistreat their kids. Some Dads walk out and don't give a monkey's what happens, and some Mums prefer their new partner to their kids from a previous marriage.

 

[Weststander]

Just one last one on this. When my kids were paying us money they had no expectation of 'getting it back' and thought they were contributing to the household bills. It was only years later, when my son was saving to pay off his Uni loan and my daughter was saving to go travelling that we said to them you've got a couple of grand more than you thought from the housekeeping you paid (and I appreciate we were lucky to be able to do that).

It was a little bit of help with the things they were working very hard and saving up for.

I've told the kids that when we go, my daughter is getting my sports car (which she wants), my son my vintage instruments (which he doesn't) and the rest is going to the Cat's home

 

[Triggaaar]

Some parents aren't 'human' though and mistreat their kids. Some Dads walk out and don't give a monkey's what happens, and some Mums prefer their new partner to their kids from a previous marriage.

Sure. What's your point?

 

[Thunder Bolt]

Sure. What's your point?

A pertinent one. It’s lovely to read such positive posts from good parents but there is a negative side.

 

[dazzer6666]

Just one last one on this. When my kids were paying us money they had no expectation of 'getting it back' and thought they were contributing to the household bills. It was only years later, when my son was saving to pay off his Uni loan and my daughter was saving to go travelling that we said to them you've got a couple of grand more than you thought from the housekeeping you paid (and I appreciate we were lucky to be able to do that).

It was a little bit of help with the things they were working very hard and saving up for.

I've told the kids that when we go, my daughter is getting my sports car (which she wants), my son my vintage instruments (which he doesn't) and the rest is going to the Cat's home

Told our kids we’re spending everything

 

[South Stand Bonfire]

Just one last one on this. When my kids were paying us money they had no expectation of 'getting it back' and thought they were contributing to the household bills. It was only years later, when my son was saving to pay off his Uni loan and my daughter was saving to go travelling that we said to them you've got a couple of grand more than you thought from the housekeeping you paid (and I appreciate we were lucky to be able to do that).

It was a little bit of help with the things they were working very hard and saving up for.

I've told the kids that when we go, my daughter is getting my sports car (which she wants), my son my vintage instruments (which he doesn't) and the rest is going to the Cat's home

My cat needs a home