Are home owners happy that prices rise and price out young

wotsthat

zagfles wrote: »

I'd leave my kids the estimated value of my house at the time they bought their house upped by RPI inflation. I'd leave any remining property value to my grandkids. That would make clear that my only intention is to pass the benefits of HPI onto those will suffer because of HPI.

The chances are that when you pop off your kids will have houses that are bought and paid for and, unless there's a particularly large spread of ages, will have suffered or gained from HPI equally. No matter how you sell it your kids are going to see it as favouritism towards the youngest probably and they will have only suffered because they've had less compounding years.

Trying to right the wrongs of HPI from beyond the grave will just ensure your kids get to argue about house prices and which index is the best etc. It'll have a good chance of damaging their relationship.

You wouldn't need to have a complicated will by the way. You do the calculations in excel with dates of purchase and reference your preferred HPI index and then in the will you'd have something very simple like ...

Child one 8%
Child two 10%
Child three 9%
Grandchildren equal shares of remaining estate

You just revisit the will every few years to see if the % split changes rather than leaving your executor with the hospital pass of having to do the calculations.

My kids will likely just get equal shares. I see no need to balance any luck they've had in life by giving them a smaller share. I'd prefer to help them while I'm alive with things like house deposits which will smooth out some of the HPI effects anyway.

ukcarper

floridaman wrote: »

Same as what they did 15 years ago - everything was fine pre 1997

What makes you think that

CreditCrunchie

Generali wrote: »

Out of interest, how could someone accumulate £20,000 of debt and have no credit history?

My student loan isn't on my credit file, is anyone else's?

CreditCrunchie

AndyGuil wrote: »

The rest of Europe don't have such an obsession with owning. Renting is normal.

Most countries where renting is the norm have far more stringent tenant rights and longer tenancies. In the UK rents are higher, 6 month ast's are the norm, and buy to let landlords rule the market.

CreditCrunchie

CLAPTON wrote: »

if you are in your 30s why haven't you already saved for a deposit?

why don't you have a credit history : all you need is a simple credit card and use it a bit and pay in[/QUOTE
Because we had no wish to buy. We've always been better off renting in terms of choice if area and type of house. However after having to move 3 times in short succession due to landlord's deciding to sell or raise the rent a ridiculous amount, we now feel forced to buy just to have some stability! As as mentioned above, at least we have the ability (hopefully) to do this, but it is certainly not as easy as ooh let's go and buy a 100k house!

Owning may not be a basic right, but until the government steps in to bring the rental market in line with the rest of Europe, it's going to remain a very strong desire. Being stuck in the rental trap is not a good thing.

ukcarper

CreditCrunchie wrote: »

Most countries where renting is the norm have far more stringent tenant rights and longer tenancies. In the UK rents are higher, 6 month ast's are the norm, and buy to let landlords rule the market.

Lots of complaints about BTL but no one else seems willing to invest in rental property.

CreditCrunchie

What do you mean?

floridaman

For example what was average house price in 1997 and way was average wage

Now look at it in 2014

ukcarper

floridaman wrote: »

For example what was average house price in 1997 and way was average wage

Now look at it in 2014

Prices in relation to average wage were higher before 1997 and interest rates were a lot higher.

marathonic

Neither my parents or grandparents refer to the purchase of their first home as being easy. It takes sacrifice.

The older generation frequently refer to sleeping on the floor and using plastic pallets for living room seating in their first homes until friends or family were upgrading their own furniture.

Today's youth feel that they have a basic right to own their own home and, for those that do make the sacrifice necessary, you couldn't dream of moving in without going to DFS and other stores to rack up a load of more debt so that they can avoid losing face at the house warming party (you'd get laughed in the face if you asked some of the older generation how big the house-warming they threw was).