Thursday, Aug 24, 2006

Forget about your pension Dad, I need a house

Firstrung: First time buyers expect 'as of right' parental contributions when buying for the first time

First-time buyers take it for granted that they will get parental assistance in order to get onto the property ladder, according to research from Abbey. Not only do many first-time buyers live at home for a considerable time in order to save money, but parents are expected to give generously from their savings to help out financially, and even lend a hand when moving in.

Posted by converted lurker @ 09:24 AM (517 views)
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8 Comments

1. P. O. O. R said...

What is going to happen to the next generation of children - Parents will not have the money to be able to help out, because they will still be paying for their 35 year mortgages. When I bought my first house, I remember the only thing my parents did to assist, was buy me a dinner service and suacepans - Oh yes, and they let me have the bed I had used for the previous 10 years. I guess the difference was that back in 1989 houses were affordable, even though I spent the first 3 years in neg equity. I borrowed 2.7 times my salary for my first house, for that same house today I would now have to borrow 4 times my current salary. Ouch! Someone doing the job I was doing in 1989 would now have to borrow 7.3 times based on current salaries - Ouch Ouch!!

Thursday, August 24, 2006 10:38AM Report Comment
 

2. The Bald Man said...

POOR Do the words unsustainable come to mind?

Thursday, August 24, 2006 12:57PM Report Comment
 

3. waitingfor hpc said...

yeah they do. i have not bought for just that reason. My mate bought a house for 86000 18 months ago up north, he wants to move back south now and the house has been 'valued' at 155000 to 165000 !!!!!!!!

That is not good money ... that is a lottery win for doing nothing!

Thursday, August 24, 2006 02:16PM Report Comment
 

4. P. O. O. R said...

I live down South - Currently renting as like many I believe prices are unsustainable - Interstingly the last Interest rate rise actually means that financially it is better to rent the house I am in than it would be if I bought, so long as prices do not increase by the rediculous levels they have been. Several of my friends who said I was crazy, are now starting to think that maybe it was the right decision. I am not so sure that it will be interest rates that kill the market, but job security - It is my belief that the big Job losses that are being announced is only the start of things to come - and this combined with increasing costs of living will force people to downsize, and in turn they will have to accept lower offers on their property to get themselves out of the financial mess. I lost my job two months ago, however have been one of the lucky ones - and it was only six weeks that I had to live without my income. I was told by a recruitment agency that on average it takes 9 months to find a new job, and thats at the moment!

Thursday, August 24, 2006 04:08PM Report Comment
 

5. indiablue19 said...

It used to be "a man's home is his castle," now "a man's home is the family casino." Take a bet and spin the wheel.

Thursday, August 24, 2006 04:12PM Report Comment
 

6. P. O. O. R said...

The thing about a casino, is far to many people get dragged into the culture, and whilst they might have a lucky start they end up getting greedy and losing the lot! Then it's all a different story, usually blaming someone else for their own misery.

Thursday, August 24, 2006 04:19PM Report Comment
 

7. Retiredbanker said...

waitingfor hpc-

Even assuming that the valuation of your friend's house is realistic, any "gain" will be negated by a similar
increase on the next property that he buys.

Thursday, August 24, 2006 04:40PM Report Comment
 

8. paul said...

Without a doubt the house price boom has turned financial morons into financial wizards for doing bugger all.

The gain won't be completely negated by increases as the desposit will be that much higher. They are still morons though.

Thursday, August 24, 2006 09:46PM Report Comment
 

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