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Milton

'experts' Have Concluded Your Grandparents Should Pay For Your Home.

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A £21k FTB home in 1983, adjusted for inflation would/should be under £55k in today's money....instead its £137k..

http://blogs.telegraph.co.uk/finance/ianmcowie/100009968/grandparents-urged-to-help-first-time-buyers-cope-with-high-house-prices-and-beat-iht/

The average first time buyer paid less than £21,000 for their home in 1983 but the equivalent today is nearly seven times higher at £137,000, according to Nationwide, Britain's biggest building society. Even allowing for inflation – which the Bank of England calculates would make £21,000 back then equivalent to £55,000 now

Andrea Rozario, director general of SHIP, said: "Many homeowners have unrealistic ideas about what to do – or not to do – with wealth locked up in bricks and mortar but one thing is certain; they cannot take it with them.

"These housing figures highlight the struggle that young people now face to take those first steps onto the housing ladder. House prices have risen far faster than incomes have done since the older generation bought their first homes.

"They could well help their children by releasing a lump sum from their property, providing the funds for a first time buyer's deposit, while using the rest to supplement a retirement income for themselves. Equity release can act as a form of pre-inheritance, an opportunity to pass on their wealth to their families while still able to see the benefit it brings."

I am in my thirties. My Grandparents in their mid Eighties. They have never owned their own property.

Edited by Dan1

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Hehe. Funny stuff.

If Briton's weren't so pathologically greedy and thick maybe we would live in a fairer nation.

Get used to being p1ss poor and going into serious debt to be part of the 'nouveau-middle' debt class.

All that us non-boomers will pass on to our children will be is a costly funeral and death tax bill, as everything else goes back to the banks.

Banks their Kleptocrat minions 1, chav Britannia 0.

Edited by cashinmattress

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"Problem: We need to keep the ponzi going and want someone else to cushion the risk but the bank of mum and dad has run out.

Solution: Lets pretend rising prices are a phenomenon entirely independent of increasingly lax lending and guilt oaps into spunking equity into it instead."

If that internal email doesn't come out on wikileaks in a couple of years, I'll eat my hat.

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Now the equity release group Safe Home Income Plans (SHIP) claims this type of loan, which enables older homeowners to borrow against their property and continue to live there, offers a solution.

I'll bet they do.

Edited by billybong

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How many grandchildren will they have, 6 or 7?

£170,000 / 7 = £24,285

Yeah, lets throw granny and grandpa' out on the streets and you could own 20% of a 50% share in a part rented slavebox. :rolleyes: These people really are clutching at straws.

What's next?

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How many grandchildren will they have, 6 or 7?

£170,000 / 7 = £24,285

Yeah, lets throw granny and grandpa' out on the streets and you could own 20% of a 50% share in a part rented slavebox. :rolleyes: These people really are clutching at straws.

What's next?

Me great granddad said his parents were enslaved by their own aspirations, to the banks before he bought that house after his parents had had it repossessed, and after he had it repossessed, my grandparents bought it too, and my parents bought it after them, now, me, my wife, our kids, my brother, his wife and kids, our younger sister and her 2 children live there now, were not being as foolish as our parents and have gone for the 10% shared ownership option, maybe our children can buy a further 10%!

Legend has it, an ancestor of ours bought it with disability benefits, cheap as chips courtesy of some goddess called thatcher. (Back then chips were a luxury!)

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Hmm, the 'experts' is singular and runs a MEW outfit.

Although I enjoy some of what he has to say, I think this article belies p*sspoor judgement. Remember that article praising 'Irresponsible lending' because he did alright Jack? Why on earth would a longtime 'serious' financial journo publish a puff piece for an outfit like that, when it's so obviously a bad idea?

As a wider point, I regard this as great bear food. Bank of Mum and Dad cash is obviously on the wane.

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Some people were very lucky with their house purchases!

My great uncle purchased a huge 5-bed edwardian semi with a crazy amount of land front, side and back for £13,500 in 1987. A 2-bed terrace cost £15,000 in the same year. He's been living in it since and hasn't had much work done to it except the roof and double glazing and very modest decoration. Every time I visit I feel I am stepping into the early 90's with the way the house looks inside.

The house next door sold for...wait for it...£130,000 in 1995 and it was in the same condition i.e livable and had half the amount of land.

He had it valued in 2005 and it was valued at £320,000 in its current state. It probably needs close to £100,000 spending in it for modernisation.

Edited by Kazuya

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EXCELLENT!! Thanks for pointing this out, OP.

I think we can all conclude, that a reasonable offer for a £137k house, should be no more than £55k.

And when the Estate Agent vomits down the phone, you can explain in inflationary terms the reasoning behind your offer.

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All this BOMAD stuff is a load of crap. The bank of gran and grandad, that's current, but you need to be ahead of the curve.

The bank of great gran and great grandad is where it's all happening at the moment.

Lol.

Why should any of us be born into debt?

We live on a small blue rock, orbiting a third rate star, in a vast endless universe.

Every Human being should be automatically awarded their own piece of land at birth.

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“They could well help their children by releasing a lump sum from their property, providing the funds for a first time buyer’s deposit, while using the rest to supplement a retirement income for themselves. Equity release can act as a form of pre-inheritance, an opportunity to pass on their wealth to their families while still able to see the benefit it brings.”

Go easy on them, they are just placing a spire on top of the pyramid..

Edited by GinAndPlatonic

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Some people were very lucky with their house purchases!

My great uncle purchased a huge 5-bed edwardian semi with a crazy amount of land front, side and back for £13,500 in 1987. A 2-bed terrace cost £15,000 in the same year. He's been living in it since and hasn't had much work done to it except the roof and double glazing and very modest decoration. Every time I visit I feel I am stepping into the early 90's with the way the house looks inside.

The house next door sold for...wait for it...£130,000 in 1995 and it was in the same condition i.e livable and had half the amount of land.

He had it valued in 2005 and it was valued at £320,000 in its current state. It probably needs close to £100,000 spending in it for modernisation.

Where was this?!

My parents paid £80k for a modern 4bed det in 1986 in rural cambridgeshire, valued at 1989 peak at £180k, sold in 1992 for £120k, now might go for around £350-400k at most.

Just shows some areas undergo far greater boom-bust cycles than others

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Some people were very lucky with their house purchases!

My great uncle purchased a huge 5-bed edwardian semi with a crazy amount of land front, side and back for £13,500 in 1987. A 2-bed terrace cost £15,000 in the same year.

This is just not possible. 1987 was boom time, and my first house in 1992 after a crash cost me £80K No way a 5 bed Edwardian Semi cost that. Maybe in 1977 but not 1987.

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Every Human being should be automatically awarded their own piece of land at birth.

It's a lovely idea, if all the land wasn't already allocated.

As it is, when a single mum on benefits has their fifth child, which piece of land exactly should they be awarded?

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  • 284 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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