Citywire: I want to give my children their house deposits - here's my plan

dopester

silvercar wrote: »

I suspect its dependent on age. If you have bought and you see the difficulty that FTBs have in raising deposits and affordability now, you are more likely to want to help your children. On the other hand if you yourself are finding difficulty buying the idea of helping your children out is beyond a dream.

Alternatively, you could look around and wonder if the BOMAD money has already over-stretched the market position.

Now that easy mortgage credit has gone, great swathes of the former boom orientated economy is grinding up, and the property market itself is very sickly - with low volumes of property being sold compared to boom times.

Then you might wonder just what sort of consequences deleveraging values might have on the market going forwards.

On employment/pay-levels/unemployment circumstances, and over-stretched BOMAD, and their "home-owning" children they've already helped out with deposit.

You might wonder whether increasing numbers of BOMAD investors are now questioning if they are as secure in their financial position as they once believed they were - before helping their child out with deposit money.

Ask whether £500,000 homes and £100,000 equity released are thinking whether they should trade down, and if sufficient number are in this position... how will it impact on the market for values?

If you haven't already ponied up BOMAD money to help a child onto the ladder: "and you see the difficulty that FTBs have in raising deposits and affordability now, you are more likely to want to help your children" - to get them into the boom that could never end.... then you might see the tougher affordability of today as a warning siren that values are under pressure.

Then, you might think, now is not the time to risk your own position, and that of your child you want to help.... when not only would any new purchase risk losing value, but your own home-value as well. That if you want to help your children, that way, it might be best to wait for value correction.

I suspect BOMAD money, for the purpose of helping kids onto the ladder, is seriously going to drying up - if it hasn't already begun to do so from boom-time levels. (Except for crazy money like the property-worshipping Blairs)

sabretoothtigger

RenovationMan wrote: »

I've seen people on the pensions board talk about setting up pensions for their kids

My dad took time out to setup a personal pension for everyone down to the baby grandkids.
All of them got shares when the mutual pension company then went public. It was a pretty practical gift and obviously its down to people to continue the good work he started

Did he want to stay in the same place as the uni, though, afterwards?

Doesnt matter that much because the good thing here with a uni is the flat is a useful place near that uni stands pretty much forever.
Its the best kind of property one could have I think

Ive rented from someone in a similar case. It was the parent of the student and this guy had long since left and completed his studies. Nice little cash earner, I notice they sold up in 2008 also
Its very lucrative in theory

dopester

I think parent-money, or MEW, has pretty much topped out.

Those parents who've already done put down money to help child buy house, and those who still plan to do so at these levels, look set to be torpedoed, if market turns down substantially. Their own homes falling in value and the money into the child's home falling in value too.

silvercar wrote: »

The world has changed, there will always be a private rental sector because there will always be people who don't want, or can't afford, to buy. Therefore there will always be competition for FTBs from investors.

Personally, I have two teenagers, they may find it difficult to get on the property ladder themselves and I may decide to help them out. It may even be that I decide to buy a property and rent it out for a few years before they are ready to live independently. So yes I could be competing against a FTB.

It's my money and if I want to use it to help my children, rather than drive round in a brand new 4x4 and have flash jewellery and fancy holidays that is my choice.

Go right ahead. If you think now is the best time to do so. Cmon. There is a school of thought which believes flats worth around £190K today will be worth £550K in 16 years time.

Daily Mail.

Boomers to busters.

Quote:
A generation in denial: Millions face retirement poverty because they've remortgaged their homes and saved too little

By Becky Barrow
Last updated at 1:54 PM on 10th February 2010

silvercar

Amazed that you dug that out, it certainly isn't recent. Do you constantly search through to find old posts of mine?

marklv

Thank God I don't have any kids.

silvercar

neverdespairgirl wrote: »

I got a lot of help from mine. They paid for me (and my 3 siblings) to have a very good education. They bought me an elderly ford escort when I was 18, and a 5 year old Astra 2 years later, when my sister inherited the ford. They supported me at university, and paid my bar schools fees (which were £7,200 in 2000). They also gave me some support when I was doing pupillage.

They did not offer, I did not ask for, and I would never expect, money for a house deposit.

Another option, at the same cost, would be to let you take out all the student loans available and use that money instead as a deposit on your first home.

That then gives you a deposit and access to decent mortgages a student loan payable only when you are working and at a government subsidised interest rate.

Generali

neverdespairgirl wrote: »

Did he want to stay in the same place as the uni, though, afterwards?

He didn't want to stay in the same country as the Uni!

silvercar

dopester wrote: »

I think parent-money, or MEW, has pretty much topped out.

Big difference between parents MEWing and parents that are setting aside money to do this.

nollag2006

marklv wrote: »

Thank God I don't have any kids.

Given your recent remarks about admiring the Nazi's and your references to "hairy Asians" elsewhere - I would also welcome the fact that you will not be bringing more fascists into the world

nollag2006

This has to be one of my favourite posts from marklv:
http://forums.moneysavingexpert.com/showpost.html?p=36891904&postcount=3

Particularly the remarks about the working class being scum.

Why do we tolerate racist twits like this on this forum? Is there not a website called whitesupremecistexpert.com or some such where this sort of nonsense can be discussed?