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Bruce Banner

The Bank Of Mum And Dad

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The wife was just watching a program where Kirsty Allsop said that 80% of young people who buy houses now are helped by their parents.

I will go on record as saying that I will lend my children money to buy cars, give them money to spend at the pub, but I will absolutely not lend, or give, them money to buy a house.

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The wife was just watching a program where Kirsty Allsop said that 80% of young people who buy houses now are helped by their parents.

I will go on record as saying that I will lend my children money to buy cars, give them money to spend at the pub, but I will absolutely not lend, or give, them money to buy a house.

Ever, or just now?

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I will go on record as saying that I will lend my children money to buy cars, give them money to spend at the pub, but I will absolutely not lend, or give, them money to buy a house.

Please explain why not Bruce??

Enquiring minds need to know.

Spiney.

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…because these well meaning parents are doing their bit to inflate a bubble, a correctly balanced economy would have house prices at a level that young people could afford. The supply and demand argument is fallacious.

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Ever, or just now?

Now.

…because these well meaning parents are doing their bit to inflate a bubble, a correctly balanced economy would have house prices at a level that young people could afford. The supply and demand argument is fallacious.

Spot on :).

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The bank of mum and dad needs to be bailed out by the state to stop it going under!

Don't worry, it will be..... paid for with the blood of grandsons and granddaughters

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Don't worry, it will be..... paid for with the blood of grandsons and granddaughters

Isn't that the way governments do it? Forcibly collect money from people to fund their retirement, spend it now and fund their retirement from the money collected from future generations.

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The wife was just watching a program where Kirsty Allsop said that 80% of young people who buy houses now are helped by their parents.

I will go on record as saying that I will lend my children money to buy cars, give them money to spend at the pub, but I will absolutely not lend, or give, them money to buy a house.

.... another question, would your children want you to give/lend them money to buy a house?

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I thought this site started in 2004.

no idea when site started, but i've been waitng for the bubble to burst since around 2002.. bit of an ass really, hey ho.

i do wonder if retiremnt is part of the key to this propping up.. the govenment is relying on the baby boomers equity in ther properties to fund their care when the state can't afford to supply it for all the masses that are comming of age.

if they let the property prices slump then the money will have to come form somewhere else.. ie the young afterall/anyway

if rents and properties stay high, then this care is funded in a more backhanded way from rentals/transferral of indebtedness to the young who seemingly walked into it of their own accord, or have no ther choice but to pay the rent

however when propety crashes there are very few options but to borrow money.. wracking up more future debt, tax harder, upsetting the youth or other such.

Now it seems to me the bank of mum and dad is a nifty solution to this.... kids now own properties, therby taking on the huge debts to their parents, rather than financial institutions, keeping the bubble up that little bit longer. the baby boomers sell up to others able to move up as the market is being stimulated, into their smaller retirement flats.

Then when it comes to elderly care the state won't have to cough up because on the books when it comes to the means testing the elderly person is owed a lot of money, they can't right off that debt in order to get benefits, so it is left to the children to provide funds for care, or indeed the care itself.

it can onl stave off the crash so long, and once the ball is rolling the older generation don't loose so much in equity from their retiremnt flat, but their kids are lumped with massive negative equity, not negative equity they can walk away from as easily as declaring bankrupt and dropping a bank in it.. but with the guilt of righting off money they promised their parent they would pay back.

yes it'd mean the parent could recieve state care, but the animosity that care will envoke, even if equivalent to what they would have got if their kids could have afforded to pay them back, (and the guilt kids will feel at only being able to afford basic care if they don't go the bkr route) all leads to it being the kids not the states fault that the elderly arn't being looked after properly..

so less bad press from the middle classes at least.. who lets face it would be the ones up in arms at the govenments provision for them.

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Are you sure Bruce? :unsure:

People on this website have been saying propertee was in a bubble since 2002 and nine years later........

.............. we're in the midst of the deepest recession since the 1930s as a result of the bursting of the global house price and credit bubble.

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Parents are dumb asses (one myself but not the dumb ass variety). Lending their kids huge deposits meaning they'll be skint well after the kids have left home and not be able to retire!! There will be family feuds all over the show in 2 years time due to repayments.

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Parents are dumb asses (one myself but not the dumb ass variety). Lending their kids huge deposits meaning they'll be skint well after the kids have left home and not be able to retire!! There will be family feuds all over the show in 2 years time due to repayments.

Skint parents relying on a monthly income in return for the large sum of money they loaned to their skint kids who are in serious negative equity, a recipe for disaster.

Even if you give the kids a deposit, they will still be in negative equity in a few years time...... probably.

Kirsty and her VI friends are beneath contempt.

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no idea when site started, but i've been waitng for the bubble to burst since around 2002.. bit of an ass really, hey ho.

The site first came online on the 23 October 2003. No registration was required and I know I started posting one week later. Webmaster had a terrible job keeping control but it was fantastic fun. On the old Forum Trolls were played with, tossed over, and well and truly put in their place, the most famous troll was Uwish. Eventually Webmaster decided to create the Registered Forum in June 2004 and many of these Trolls who enjoyed their anonymity did not register. The new Forum was ridiculed by the Media over their Economic Predictions but their silence was deafening when the big Financial Crisis came about. Sadly for me all the great past posters have now left probably getting on with their lives but some like Only Me are still with us posting even better posts. To all those old posters I salute you. ;)

to burst since around 2002

A bit early there in most areas by 2001 they had only regained their 1990 prices. I personally found that prices from 2001 to 2004 had doubled which was total madness and August 2005 was the point when the bubble went out of control, no prizes what happened at that time which started the roller coaster off again. :rolleyes:

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Kirstie's the classic BOM&D beneficiary...

Telegraph June 2004

"Her parents lent her £30,000 to buy her first property in Battersea, but she lays claim to an upbringing devoid of too many frills. Both sets of grandparents managed to spend "quite considerable fortunes" before they died, so Allsopp's parents "didn't inherit anything and had to earn their living. They certainly didn't have enough money to give any to us; although they helped all four of us buy flats. You put a roof over your child's head if you can possibly afford to do so, but that is where it all stops."

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Kirstie's the classic BOM&D beneficiary...

No way, Kirstie was born with a silver spoon in her mouth and eventually probably inherited thousands, became a darling of the media due to her family ties. Without her birth right she would now be selling matches outside Waterloo Station. :rolleyes:

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snip

A bit early there in most areas by 2001 they had only regained their 1990 prices. I personally found that prices from 2001 to 2004 had doubled which was total madness and August 2005 was the point when the bubble went out of control, no prizes what happened at that time which started the roller coaster off again. :rolleyes:

IR cut?

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Correct, which King admitted later with hindsight was a mistake...

Like he didn't know.

And beccles is correct: house prices doubled after 2001.

Now can anyone remember anything significant happening that year?

The dots are so obvious they barely need joining.

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…because these well meaning parents are doing their bit to inflate a bubble, a correctly balanced economy would have house prices at a level that young people could afford. The supply and demand argument is fallacious.

No it isn't.

The housing market, like all other markets, is governed totally by supply and demand. Demand however, is influenced by many factors - principal amongst them being the amount of money available to those with the desire to purchase.

The Bank of Mum and Dad puts more money into the hands of potential purchasers, thereby stoking demand for houses, thereby exerting an upward pressure on prices.

It's ALL about supply and demand...

Edited by Mr Yogi

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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