Parents who buy their kids houses.

lynzpower

mortgage mamma I really just could not agree with you more in that post

My parents lent me 5k, which Im paying them back ( struggling) but I think they believe it was the right thing for them to do. I was crippled in debt from uni, they wanted to give me a break.

Im selling my Shared ownership to rent.. I might make some equity, i might not make much at all. I overstretched myself with parental support, and I have since found MSE and thought, you know what, An IO So mortgage is a rip off, Its not value for money so Im off. Lovely flat, I hope someone will love it as I did.

BUt I agree with MM, theres more to life than debating how much a new bathroom will add to a property....

Doozergirl

Beautiful Rant MortgageMamma :T

You're absolutely right. When you're blessed enough to have children, you don't spare a second thought to wanting to make life as easy for them as you can. It may come as a surprise to some, but sometimes parents may even :rolleyes: consider the money to be an investment in their child's future, rather than one in the property market.

MortgageMamma

Good luck with your move Lynz, I hope your money situ improves, but I think from some of your previous posts I have seen it will do!

MortgageMamma

Thanks Doozer,

I can honestly say, of all the parent assisted mortgages I have done in my time, I have NEVER heard a parent say "when you are on your feet you can give me that money back" - parenting is such a selfless activity in itself that you go onto an autopilot of "do all to help all" and sometimes it doesn't just stop with your kids.

But it works both ways. How many of us have got an elderly parent or relative to look after? I will probably end up footing the bill for carer assistants and nurses for my mother before long but I won't be complaining about it. Plenty of us will have to go out of our way at some stage in life to support our elderly parents and relatives financially, emotionally, and physically because the state is not able to/is unwilling to look after our elderly.

The helping hand of families works both ways, which brings me back to MissK_ensingtons post about the asian communities having collective goals. Whilst in western culture our goals are less collective, allowing for more freedom of choice and beliefs amonst families, the majority of us do mostly still have a strong family sense of responsibility, hence the parent assisted purchases, gifted equity, and returned care and attention to our elders.

I should shut up now as I'm off topic!

nearlyrich

I would happily help my children onto the property ladder rather than have money incurring IHT in the future, I never got any financial help from my parents but I got all the love and support I needed including free childcare for 2 toddlers when I needed to get a job to keep the roof over our heads when my marriage broke up. I agree that being part of a family is not about investment it's about hoping your children have an easier ride than you had and that they get on a bit further than you in terms of job and acheivements. It's OK to bask in reflected glory from your offspring...

pandas66

My parents gave me a leg up onto the independant living! I didn't earn enough to get ex off the mortgage so they paid a lump off the mortgage so I could say it was mine all mine! best present ever.........but the kids now say its theirs all theirs!

ahhh love em so much I won't chuck em out!...........

sarahlouise210

As an example - give your kids £50,000 now towards a house ...or wait 30 years or so until you die? The £50,000 you give them now will buy more than it will in 30 years (even with interest) With regard to the Asian community helping their children to buy a house.... I think they have a wonderful sytem. I have several Asian friends ..each of them has had a house bought for them when they married. Each guest at the wedding put money in a box (each wedding had between 500 and 800 guests!) after the weding money has been counted the remainder of the money needed for the house comes from the "community" each putting in a certain amount - then when their children get married the community does it again! This way they can each be regularly paying out say £1000 each but their children receive £100,000 for their house! It is like pyramid selling! It works because they all pull together and support each other.

loulou41

We are one of the parents who are loooking to buy a house for the adult children. We have already put on offer on a house but seems very regular to come across cash buyer usually Asians. I am a cash buyer myself although not Asian but not uk born and I have similar values like them. Most of us will work hard and will break our backs to help the children. Hope I am not offending some of you. It does have its advantages and disadvantages, my daughter admits that her friends think she is spoilt as both chlidren left Uni without any debts. They have never asked me to help but I feel it is my duty to do so, better give them the money now whilst I am still alive. My son is young and carefree and could not careless if I put the house in his name, on the contrary he told me to just put it in her sister's name as he competely trusts her but I said no, if she gets married, her ex could put a claim. My son is quite happy for me to give him that money now so that he can spend it on travelling. Really it's us who are pressuring them to let us buy a house in their joint name. They feel guilty of me spending all that money on them instead of myself. It's something I want to do and can afford to. My children are not spoilt, they have worked since they were 16 yrs doing part-time jobs etc. We are not rich, we both worked very hard in the NHS and we did not earn big bucks whereas some of my friends went on annual holiday we did not and prefer to save. We have managed to save that much due to investments and maturity of insurance etc. Now, we are both retired, my children says we could go travelling as we could afford it but I do not enjoy travelling. My daughter says she is embarrased to tell her friends her parents are buying a house for them. She does have some savings about 50k. My parents did not give me a penny because they could not afford it and it is my pleasure to give whatever I can to my children. I am sure some of you will not agree with me. I do not think it is fair to blame parents who buy houses for their children. We are very ordinary working class people.

Jorgan_2

I keep hearing about the high level of renters in some European countries. Can anybody shed any light on who actually owns the properties that are rented out, is it wealthy individuals or the state or a HA type of set up?

F_T_Buyer

Here's another article about relatives helping out:

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2006/08/12/cmfirst12.xml

This just smacks of desperation by the lenders trying to keep the whole bubble going. All it will do is punish those helping out when the enevitable happens.