How much will you be giving your DC for a house deposit?

[purplecrayons1]

Mine are only little, buy we live in the south east and this is worrying me already. I'll never be able to give my kids the kind of money my parents did to help me on the ladder.

This is the issue. People are worried about clap back. There’s nothing wrong with trying to provide your kids with your life saving which you have already paid enough taxes on!

I’ve got quite a few mortgages recently and I can assure you it is the case, with the exception of a student loan which I grant you would impact. You don’t need to live at home because all living expenses will be replaced when you buy and move into a bought property. I have a dependant and got 4.8x on my last mortgage (no student loan though).

Currently nothing. We don't own. We may inherit at some point although obviously no guarantees. When we die they'll inherit what we have

Nothing. We helped two of them through university and bought furniture for the third one when he moved out into his own (rented) place. Don't have the money to be able to do anything else.

What people are missing here is that there the biggest wealth transfer between the boomers and millennials going on right now. And the point is not the slam down people who individually trying to help their kids. What we should really be debating on is whether inheritance tax is high enough and what are the incentive to work hard if inheritance tax are too high etc.

(note I got 0 from my parents I came from low income family but that is not to say I don’t want to work my socks off and help my own kids with a leg up in the future if I can)

You do realise the same group of people struggling to give their kids deposit is the same group of people who are likely to have very high debt from student loan right. So your kids are lucky.

I got £10k and then £5k inheritance when my grandad passed away. The £10k came out of my parents inheritance from my grandad passing away. It actually covered the deposit and my partners family gave us £5k which we used to start renovations. Had pretty much zero savings before as were renting and struggling to save, so would still be renting now. So really thankful even though it came in a negative circumstance

You are correct. It is absolutely doable to borrow 200ish on 45k. Why would it be necessary to live at home? Your rent won’t affect the affordability as you won’t be paying it when you move into the purchased home. Student loans do, granted, and any debt. Half the problem I think is a lot of first time buyers completely discount the 200k one bed flats because they want something bigger in a trendy area, and equate that with not being able to afford anything at all

For 200k maybe that I wouldn’t know. But my colleagues are all shocked how low the ratio gotten as you go higher up the pricing ladder for example.

there are also banks providing first time buyers 0% deposit deals.

We got £5k toward deposit for ours, with the caveat of paying it back when we moved. No rich people in our family but it was hugely helpful.

We’ve saved enough for uni fees but he doesn’t go then it could be toward a house instead.

In the unlikely event that the grandparent’s homes aren’t lost to care fees we can pass some money that way, but I’m not expecting to inherit anything but paperwork from either side.

Yeah that’s also true. I didn’t want to say it. But I haven’t seen a 200k flat anywhere remotely close to where we live.

Both DD's have LISA's with £10k each in and we'll probably give them each another £50k. They need the money now/soonish to buy not when we pop our clogs (hopefully a long time away). No help here from either of our parents, times are so very different now.

This is the issue. People are worried about clap back. There’s nothing wrong with trying to provide your kids with your life saving which you have already paid enough taxes on!

There is an issue that what your parents have/what they can give you will determine your financial security more than your job/income.

I live in the South East...I didn't receive a penny from my mum, my dad died when I was young. There was no way she could afford to give me anything and if you cant afford it then you can't and shouldn't stress over it. Do what you can do comfortably for your children. BUT I can tell you, having to support myself entirely financially is the biggest adult learning curve, and that is a very important one

Is this the done thing? I never got anything from my parents for a house deposit. Neither did they buy me driving lessons or a car.

MN is sometimes like glimpsing into a different world.

I lived at home for cheap rent & DH got 6 fig help.

Well DC have got a little each, but it'll probably be used for driving lessons and first cars, or uni living costs.

What I can provide is a roof over their heads for as long as they need it to save up. (Might not be hugely useful due to location!)

I actually don’t know any of my peers (millennials) who didn’t have some form of help.

I’ve got nothing either. But if you google wealth transfer from boomer to millennials you will see why this is such a big thing. Extending the wealth gap.

Nothing. They can live with me for free and save up. I'll help them when our mortgage is paid off.

We didn’t get any help and we are mid thirties with young DCs. We have a 4 bed in the south east. There are cheaper areas in the south east than £250k for a 1 bed flat. Your DC may just have to look at different areas, they may move for work anyway or prefer a different area of the country. To answer your question, we have 2 DCs and are aiming to save £50k for each of them for house deposits.

I have saved all child benefit for my kids, plus when start working they pay rent which also goes into an account for them.
My eldest is about to buy her first home, with the child benefit, rent saved and also child trust fund which did really well in Asda shares she has 27k, we r topping that up to 35k

There’s plenty in SE London but not trendy desirable areas so some people are immediately snobby about them and don’t consider them. In fact I think parts of SE London are cheaper than the Home Counties commuter belt now

We are in the South East. dC are 9 and 11 now. We plan to be able to give them each around 75k and encourage them into high relatively earning careers. If they want to live round here when they are older then it'll be needed.

I see. Then the parents need to explain what is an investment. They can still buy the 200k flat and make some money on them as they become more popular. In the meantime rent it out to cover the interest service.

in the meantime the interest-only equivalent rent is almost equal to mortgage payment at moment so they can still rent / flat share in trendy areas. I understand that. They are young. They want to experience things. So let them.