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Realistbear

F T Bs Dependence On Relatives Up 400% In Just 10 Years

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http://investing.reuters.co.uk/news/newsAr...AIN-HOUSING.xml

Half of young first homebuyers need extra cash

Thu Feb 16, 2006

4:24 PM GMT

REUTERS

LONDON (Reuters) - The percentage of first-time homebuyers under 30 needing extra help from parents or relatives to shore up a deposit has
quintupled in 10 years to about half
, the Council of Mortgage Lenders said on Thursday.
Soaring house prices have meant first-time buyers are often unable to afford a down payment.
From 1999 to 2004, peak property prices rose about 125 percent while average pay rose just 15 percent.
Average pay rises have slowed in recent months while house prices, still at record highs, have begun to climb again.

This is Brown's "miracle": house prices rise 125% while wages rise 15%. Just like that....

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http://investing.reuters.co.uk/news/newsAr...AIN-HOUSING.xml

Half of young first homebuyers need extra cash

Thu Feb 16, 2006

4:24 PM GMT

REUTERS

LONDON (Reuters) - The percentage of first-time homebuyers under 30 needing extra help from parents or relatives to shore up a deposit has
quintupled in 10 years to about half
, the Council of Mortgage Lenders said on Thursday.
Soaring house prices have meant first-time buyers are often unable to afford a down payment.
From 1999 to 2004, peak property prices rose about 125 percent while average pay rose just 15 percent.
Average pay rises have slowed in recent months while house prices, still at record highs, have begun to climb again.

This is Brown's "miracle": house prices rise 125% while wages rise 15%. Just like that....

I can personally back this up.

I am lucky enough to have parents who have a bit of money themselves, and the other day my mother told me that if I wanted to buy a house, then she and my Dad could help me out with it. I said no thanks, after thanking her profusely for the kind offer. I told her that if I, after getting a PhD in a technical subject, and a good engineering job, cannot afford to buy myself a place (and I cannot) then that is an indication of something that has gone faulty in society (IMO) and it certainly is NOT the role of my parents to make good this fault with their own hard-earned cash. I realise how lucky I am to have parents who have the ability and wherewithal to help me out should I need it. But I don't want them to, because I have foolish pride to uphold, and I genuinely believe that given my education etc., the fact that I am unable to buy is a shocking indictment of what is happening in this country (high house prices and maybe a little bit of engineers not being paid enough ;) ! )

I also told her that if I had a million pounds I still would not buy in the current market.

I think it is terrible that well-meaning parents are slashing away their cash to help prop up this ludicrous bubble. I can imagine there are more than a few out there who have refinanced themselves in order to help their youngsters up onto the ladder - the net result when the crash comes is that the banks (eternal scum that they are) will end up owning EVEN MORE of the nations housing stock. A terrible situation.

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My parents don't have much to give us unless they, er, MEWed. Still, my mother has been keen for us to buy until recently. I told her someone would need an income of around 70k to buy their small house (my Dad never earned more than about 25k before retirement and years of service). She's coming around, I think.

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There is a long history of parents helping their off-spring to acquire their first home. Often this financial help took the form of a dowry.

Strange how we used to think of this as an out-dated tradition, more usually associated with a perception of repressive, backward-looking cultures.

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How much of this parental help is a result of MEW? what are the ramifications of this? Do you like my new avatar (it's Cpt. Thomas the famous British organiser of French Resistance in WWII - codenamed 'The White Rabbit')? In a way we're all Thomas's - organising resistance...

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My mum & dad kindly offered to lend us (my & girlie) money towards our first house last summer. Thankfully I found this site before we got too serior!

Instead we so window shopping in show homes looking at the poor quality of the build & design!!

Personnal Info: I am 27, been working 5 years now, in a well paid engineering job (Circ £35k plus bonus +£2K), i am really a project manager now! Live in east anglia.

Instead I have paid off all my debts and saves £5K in the last 8 months.

THANK YOU HOUSE PRICE CRAP!!

Second point for today:

I have been reading most days since then, and now find myself able to argue with senior managers about the countries and world economics - work keep talking about a pending trough this year! They mean significant drop in sales.

Example, older equal positioned project manager today started talking about BLT properties and how he was thinking of getting one!

My comments NO - don't be a fool, I currently rent a house for £474pm, the house next door (slightly smaller) sold 5 months ago for £135K. Even with the 15% deposit required you wont get the 7% monthly gain you should have a min target.

He got his calculator out and estimated that the mortgage wouldn't even be covered.

He desided it was best to wait for a drop in house prices, I then pointed out that even the crash of the early 90's didn't bring house prices down that much, the real crash came from inflation.

Sadly I had a meeting so missed the end of what I had started, but the discussion was still going on when I popped back 15min later!

Thanks again for all the posts & the education I have gained from them.

Cheers

JJ

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  • 301 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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