To ask where all the money comes from?

[Whatsnewwithyou]

Mostly on these house buying/selling programmes with youngish couples in ordinary jobs and budgets of 750k. Is it almost all inheritance?

I have a friend who always seems to be going off skiing and another who has been unemployed/job searching for ages but still shops at John Lewis and goes on holiday. Both are single and have very nice houses. It turns out both have trust funds from grandparents but I knew then both for years before they ever mentioned it. I used to wonder why I couldn't afford all these holidays etc when they could and thought I must be really bad with money.

So are trust funds and inheritances quite common? They must be, right?

Did you just say you are a unicorn trainer, Duststar??

Some people are just a mystery.

Depends ... what is ordinary? I have what most people would consider an ordinary job, nothing special but I earn a lot. Perhaps their jobs are far better paid than you think.

Dustarr- how do you get into unicorn training? I fancy a change of career! 😀

Yeah it’s usually parental involvement id say.

I don’t actually know anyone who has any sort of lifestyle and owns a home without involvement of family money.

The only people I really know who haven’t spent a portion of adulthood on their arses are people who have had a lot of parental help, a lot.

A lot of families are getting legal advise these days to pass on wealth that would be a part of their estate early to avoid It.

My dh has receives quite a bit of inheritance from his parents having a ( very small) house in London to sell. We don't go on lavish holidays or spend much though as we are too worried about the longer term impact of dh's numerous health conditions and trying to work out how to help 4 teenage dc's through Uni. maybe if we didn't have those issues to concern us we would be doing 3 foreign holidays a year and throwing money around but after spending years struggling for money I am cautious.
In my job I see a lot of middle aged people suddenly struck down by devastating illness and the ones who struggle are those mortgaged up to the max with nothing to fall back on. It's heart breaking and I I never want to be in that situation.

Trust funds can't be that common, but perhaps it's becoming more usual to inherit from grandparents than it used to? - yes to this, I am looking round the small street I live in and this is the case in half a dozen households with grandchildren who are in their teens and early 20s inheriting upwards of £50k. My DDs will get that too but not until I am dead, as all grandparents died many years ago leaving only a few pounds.

We're in our early thirties and own our house outright thanks to a trust fund. Although it's not something we'd ever discuss outside of our closest friends in the real world as there does seem to be a stigma attached to having a trust fund or inheritance.

This is a pretty accurate representation of the home-buying shows here in the US.

there does seem to be a stigma attached to having a trust fund or inheritance

I think I'd cope.

They aren't real buyers, just doing it be on telly?

Almost everyone we know who can afford to do so has financial plans in place to help children with housing deposits. It's fairly openly talked about. We have moved out of london but kept our house in london with the explicit purpose of it being sold to divide among the kids as house deposits. I imagine our kids could end up being those with ordinary jobs but owning a house with big deposit. We could have sold the house in london and bought something fairly spectacular but I'll sleep better knowing I have a plan in place for the kids.

There's a lot more money around than you may think. I have family members who are very well off, yet you wouldn't give them a second look at all. Never spend on anything other than basics, yet have a very big pot stashed away (I'm talking upwards of a mill excl primary residence).
I myself was given a good amount around 23 yo to buy a flat with in London. I did, and when prices shot up I took just enough money out of it to buy two BTLs which are essentially paid off by the tenants anyways. At 32 I'm in the process of setting up a trust for the benefit of my DS and any future kids will be added on, so that it gets passed down without massive inheritance bills. I don't spend a lot though so unless I choose to tell someone my situation they wouldn't really know.

Also if you look at the ages of the people on these shows a lot of these people will have bought a first property cheap in the 90s before house prices went crazy probably traded up at some point, probably merged finances with a spouse in a similar position, house prices rose, then went bonkers and then suddenly they have a pretty huge chunk of equity.

Add a bit of inheritance and there you have it.

Bought a cheap house needing modernised at auction aged 24. Overpaid mortgage. Now almost mortgage free at 39 with two salaries. Lots of disposable income for holidays etc.

A lot if it could be crippling debt though.
Someone I know looks like she and her family are minted, new hot tub, lots of nice things. It's all on credit that won't be paid off, as they can't afford it.

We’re probably one of those couples. Seemingly average jobs, 30s, expensive house etc. I think people assume inheritance/family help but actually we had none and aren’t likely to get any. Also, I think people assume DP earns a lot (he’s 8yrs older) but actually it’s me- my job just pays way more than the mums in the playground might guess. Aside from my mum occasionally paying for a new outfit in Zara when we’re out shopping or a lunch out I haven’t had a penny from anyone.

Also not had any property luck as thanks to financially useless ex I didn’t but anything until this house 3years ago

Plenty of people have help from family that isn't financial too. Living at home after uni rent-free to save a large house deposit, free family childcare, etc, these are all things that can make a huge difference to family finances.

Also things that some people wouldn't consider cutting out - two cars, a smart lease car, expensive TV packages, smoking, pets, etc

There's a lot more money around than you may think.

^this. DH had a great aunt who died recently in her nineties. She was one of six siblings and her father died when she was three. The family were about as poor as it was possible to be and not die of starvation through the depression.

Great aunt got a job in the council during the war - nothing fancy, just clerical. She married a man in a similar job role. They bought a very modest house in what has become a very desirable town in Kent. They had no kids but worked all the way up to retirement for the council, retiring on decent final salary pensions. Her DH was an only child, so inherited his parents’ house.

She died recently and her estate is staggering. I have been helping PIL with the IHT forms. Her estate was worth £900,000 when she died.

It was a ‘perfect storm’ financially for her:

• Whilst born into real poverty, she was born at a time when relatively low-skilled jobs paid decent living wages

• They bought property at a time when it was affordable to anyone with a secure job

• She never had kids

• She always worked and had an occupational pension that she could live on

• Her husband was an only child of someone who owned their house

It is weird to think this lady was the daughter of a single mum who used to take her six kids hop picking in the summer just to be able to afford to feed them. I wonder how likely it is that the economic circumstances that enabled her to acquire such wealth from such a background will ever occur again.

I think I'd cope.

I rest my case

I have a family member like this.

Husband works, wife stays at home with the kids. She's out most days having lunch with the girls, spa days, kids have all the latest things etc. The husband inherited a large sum of money and used it to buy a few houses that are now rented out.

DS inherited some money from his DGM but nothing that would buy a £700k house, but will be very helpful towards a deposit for a small house, he got under £20k but still a very useful amount that he will not have to save. The people on the property shows seem to be awash with money, also have children or often expecting babies and usually only in their 30s, so that would not be a small inheritance.

I bought a very nice flat when I was a student and people wondered how. It was because my dad had died really suddenly, in his early 50s, and my mum had put money aside for my sibling and myself. I made a huge profit on it when I sold it to move in with my DP, but I would rather have had my dad.