How much rent do you charge your children?

[Herr Tubthumper]

It's about helping them learn the value of money, too many young adults work hard but waste all their salary on booze and socialising until they get to mid 20's and realise that a deposit for a house is in the region of £20,000.

I'll be encouraging my children to save for their futures and not to live beyond their means but I hate to be old knowing they'll pay an inheritance tax on my wealth so intend to pass it on to them wherever I can and if taking housekeeping and giving it back to them will help then it seems an obvious choice

Jeez. You should be blowing all your cash on booze and nights out when you're in your 20s. Save the boring stuff for later years.

 

[Beach Hut]

£30 a week which in my view is too cheap and we put it away, to rub salt in the wound Junior has run out of money this week already so needs a loan.

 

[narly101]

Well bully for you two growing up in an era when housing was affordable. Assume you're happy to sell your property, give the money to charity and buy again without any deposit?

Don't be daft. The OP was asking opinions on whether you should charge your kids rent. I gave him the benefit/disbenefit of my experience as he asked.

After talking to the wife about it this evening though, she has a different outlook which is similar to those on the "pay rent, and give it back for deposit" ideals.

I think it depends entirely on your circumstances.

 

[Trufflehound]

£200 a week each.

Of course I'll have to raise that when they reach puberty and start demanding their own bedrooms.

 

[GOM]

40 years ago you could buy your first property for around double your annual salary or so. 20 years ago it was more like 3 times your salary. Now it seems it's more like 7 or 8 times or beyond.

How can anyone in their 40's and older who own a property not feel some form of responsibility for helping their kids to buy a home? Most of us have had cheap mortgage deals and housing growth beyond recognition. The housing market is f*cked for the younger generation. £200k 1 bed flats around Brighton, Hove and Portslade is just ridiculous. It's not their fault the mortgage industry is crippling first time buyers as well as prices. They've not done anything to deserve it, it's us, living it large off the property booms.

Wow, let me get my hairshirt and apologise for being born when I was.

And 40 years ago a house didn't cost twice your annual wage, at least not my wage as a young earner.

 

[Bold Seagull]

Wow, let me get my hairshirt and apologise for being born when I was.

And 40 years ago a house didn't cost twice your annual wage, at least not my wage as a young earner.

Just talking about how you'd feel toward your own kids ability to get on the housing ladder. No need to feel guilt about it, it is an economic fact. End of the '70's a flat would have cost you around £8-12k, average earnings were around £6k.

 

[KingstonSeagull]

My ex used to have to pay £400 a month and then received an allowance of £500.

I found the whole process very confusing...

 

[GOM]

Just talking about how you'd feel toward your own kids ability to get on the housing ladder. No need to feel guilt about it, it is an economic fact. End of the '70's a flat would have cost you around £8-12k, average earnings were around £6k.

Average earnings, not the wage of young persons in their first job. My salary was about 2k.

My kids have done fine getting onto the housing ladder, all by their own efforts thank you.

 

[Bold Seagull]

Average earnings, not the wage of young persons in their first job. My salary was about 2k.

My kids have done fine getting onto the housing ladder, all by their own efforts thank you.

You should be proud rather than arsey then.

 

[Thunder Bolt]

40 years ago you could buy your first property for around double your annual salary or so. 20 years ago it was more like 3 times your salary. Now it seems it's more like 7 or 8 times or beyond.

How can anyone in their 40's and older who own a property not feel some form of responsibility for helping their kids to buy a home? Most of us have had cheap mortgage deals and housing growth beyond recognition. The housing market is f*cked for the younger generation. £200k 1 bed flats around Brighton, Hove and Portslade is just ridiculous. It's not their fault the mortgage industry is crippling first time buyers as well as prices. They've not done anything to deserve it, it's us, living it large off the property booms.

Well bully for you two growing up in an era when housing was affordable. Assume you're happy to sell your property, give the money to charity and buy again without any deposit?

I got married in 1969, when building societies would only lend 2.5 times the man's salary. They wouldn't take women's wages into consideration as they were going to leave work when the babies came along. At best, women would only work part time when children were born.
Even then, houses in the southeast were too expensive, certainly on one salary. That's why when my other half left the forces, we moved north to buy a cheaper home.

There was a period in the 80s when housing was relatively cheaper, but generally it has nearly always taken two salaries to pay for a mortgage.

The biggest difference now, is that kids are expected to receive further education, whereas then you left school at 15 or 16 and were expected to work. Only the very top 2% went to university.

 

[ATFC Seagull]

Average earnings, not the wage of young persons in their first job. My salary was about 2k.

My kids have done fine getting onto the housing ladder, all by their own efforts thank you.

I genuinely don't see how anyone starting out at zero can save to buy a property of any sort in the South East whilst putting a roof over their head in the meantime.

 

[French Seagull]

40 years ago you could buy your first property for around double your annual salary or so. 20 years ago it was more like 3 times your salary. Now it seems it's more like 7 or 8 times or beyond.

How can anyone in their 40's and older who own a property not feel some form of responsibility for helping their kids to buy a home? Most of us have had cheap mortgage deals and housing growth beyond recognition. The housing market is f*cked for the younger generation. £200k 1 bed flats around Brighton, Hove and Portslade is just ridiculous. It's not their fault the mortgage industry is crippling first time buyers as well as prices. They've not done anything to deserve it, it's us, living it large off the property booms.

Wow, let me get my hairshirt and apologise for being born when I was.

And 40 years ago a house didn't cost twice your annual wage, at least not my wage as a young earner.

You are not doing them any favours not charging them something, if you can use some of it to help them in the future so much the better. It has always been tough buying!

My first place in Sussex 1984 was £34,000 I was earning £9K, I can remember going round the shops with a calculator and having next to nothing at Christmas. Don't you remember the high interest rates? It was horrendous at times. Was it late 1980's or early 1990's when interest rates went from 8 per cent to 13 per cent in six months – The repayments were massive.

I don't feel responsible, it might help if society was more proactive with house building keeping more for part rent/buy, some for rent (which was the way until this is now being reversed) and society (big business) was not allowed to be not so money grabbing. House prices will only get worse if the Government forces social housing to be sold off on the cheap, with the result that more and more young people will have to rent privately unfortunately and perhaps never own.

 

[Notters]

Average earnings, not the wage of young persons in their first job. My salary was about 2k.

My kids have done fine getting onto the housing ladder, all by their own efforts thank you.

In Yorkshire? I don't think it'd be great for sussex if all young people left.

 

[GOM]

In Yorkshire? I don't think it'd be great for sussex if all young people left.

No not in Yorkshire

 

[dazzer6666]

Got one at Uni, so paying out a bit, and one at college only earning pocket money so situation hasn't arisen yet. If it does, think we'll be in the charge them but put it away for later camp. Need to instill some discipline about budgeting, but at the same time will want/need to support them, particularly if they are in the South East. Fully expecting to help out with large deposits as and when the time arises - can't see how either will get to a position where they'll be able to do it alone.

Sent from my D5803 using Tapatalk

 

[Triggaaar]

I totally agree that it's really tough for youngsters today and I'm not having a dig at those in a position to help their kids. My point was that to dress that help up as a lesson taught about working hard and being careful with money is just not accurate. The lesson anyone with their eyes wide open will gain from it is how lucky they've been to have parents in a position to help them, whilst others their age may have worked just as hard but may never get enough for a deposit of their own.

I disagree, it is accurate. Of course you're right that some children will me much luckier than others and they will be well aware of that. Others will work hard and still not be able to buy anywhere. But if a parent can afford to help there kids, do they just give them cash as a deposit when the time comes, or do they charge them rent early on and later give it back - if they do the latter, that is teaching them to live within their means and budget, rather than let them live rent free and still pay for their deposit.

 

[virtual22]

I used to pay my parents a third of my income when I started work and didn't get any back when I moved out. I blew the rest on going out, a car and all the other usual stuff. I'll be charging my kids the same when they start work full time and will save it for them without them knowing to help them when they leave.

I see way too many people charge their kids nothing (often into their 30's now) and all they spend it on is holidays, clothes etc then wonder why they have no deposit to put down. We all love our kids and want the best for them and sometimes that means saying no, you can't have that. I think there's too many parents not willing to say that these days though sadly.

 

[biddles911]

£200 a week each.

Of course I'll have to raise that when they reach puberty and start demanding their own bedrooms.

Thanks for the light relief! This thread is getting way too serious and turning into an inter-generational/class discussion.

If you've got the money, parents will usually help their kids. That's a fact of life. If they haven't, they won't.

Simples!?

 

[BBassic]

My parents charged me £200 a month which seemed extortionate on my wages at the time. Being that little bit older now and paying c£900 for my mortgage I can see now that £200 to house me, feed me, wash me clothes and all that was an absolute bargain.

 

[biddles911]

Thanks for the light relief! This thread is getting way too serious and turning into an inter-generational/class discussion.

If you've got the money, parents will usually help their kids. That's a fact of life. If they haven't, they won't.

Simples!?

P.s. You should think yourself lucky. My 18 year old stepdaughter hasn't worked since Christmas, spends all day in bed and refuses to even sign on for Jobseeker's Allowance but we continue to fork out hundreds for driving lessons, Spotify, mobile phone etc. as well as bed and board, much against my better judgement but her mum insists that the poor lamb can't survive without them....

Give me strength!