Saturday, Apr 21, 2007
Mum&Dad suddenly realise they can't afford deposit gifts anymore
Firstrung: First time buyers finding the 'Bank of Mum and Dad' need it paid back with interest
Almost four in ten (39%) graduates would not be able to get on the housing ladder without their parents helping them fund a deposit according to new research from Scottish Widows Bank. However, some parents are no longer willing to give their money away, instead expecting the money needed for a deposit to be paid back...
Posted by converted lurker @ 12:03 PM (174 views) Add Comment
5 Comments
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1. paul said...
So lets get this straight. The baby boomer generation sacrifices our pensions so that they can live in style, sacrifices our right to affordable housing so that they can live in style and when younger generations go cap in hand to ask for some of it back they offer it as a loan to be paid back.
Euthanasia never looked so attractive an option.
2. converted lurker said...
Ha ha nice one Paul =;¬) This 'boomer never having it so good' urban myth is entirely due to house price inflation IMHO, strip out that and pensioners would be in soup kitchens (god love 'em). Perhaps parents are getting wise, would you remortgage to give you child a 20K dipper in this climate? I wouldn't. This is also good news as it makes FTBs stand up on their own two feet or/and sit out the madness. Overall that was the message in the Scot Widows press release their graduate mortgages are popular but increasingly parents are not 'tilling up' money, or benig prepared to guarantee the loans. Perhaps a lot of these parents have seen it all before and are better clued up at seeing the tip of a market than we give them credit for...
3. Ruth said...
If parents are not going to stump up the cash then perhaps this is a good thing. Why should people have sell their 'gold fillings' for a house which you couldn't give away 10 years ago?
If people stop paying stupid prices then house prices will fall. So stop pushing this crazy market up further and hold on to your cash mum, only then will the housing 'adjustment' come. (By the way, I also think 'babyboomers' have had it all their own way for too long.)
4. sirgoogle said...
This is great.
FTBs will become even more scarce. And - to attact buyers, sellers will have to be much more realistic about what people can afford - If they really want to sell .....so......
DROP the F@%&!ing ASKING PRICE NOW !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Maybe the penny will drop in the mind of the sheeple -
HIGH HOUSE PRICES HURT EVERYBODY - From FTB upwards, inc Second Time buyers (that extra bedroom is costing more and more) and also the boomers (Please note that your children are having to work their nuts off - and therefore cant afford to have kids - ergo - no Grandchildren for the bommers).
HIGH HOUSE PRICES ONLY BENEFIT THE BANKS, BUILDERS, ESTATE AGENTS, SOLICITORS AND GOVT (Council Tax, Stampduty, VAT, new build profits, Mortgage repayments and Death Duties) i.e. all the institutions that leech cash from the common working person when they enter the housing market.
5. Diddad said...
Credit tightening at the Bank Of Mum & Dad.