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?

Inheritance, bank of mum and dad, even relatively youngish couples still possibly having been able to buy while you could get a 100% self cert IO, and done that in 2007 in what was then a shithole in London but is now really dear.

Not everyone who has a big house or nice things has inherited it. DH and I have never, ever been given any money by anyone. We both left uni with debts and lived in a shared house when we first moved in together. Our house is worth over a million (SE England) and we paid cash for our house. We were able to do so because we lived abroad for 17 years, saved most of our money and worked 6 days a week. We were able to buy our house in our early 40's. We consider ourselves very lucky, but no one gave us that money.

Sure, but OP is primarily talking about couples younger than you. If you're early 40s, you're also easily old enough to have purchased in say 2003 and thus have rode the property Ponzi that way. So, having a large deposit and budget is something that isn't so surprising when the buyers are in their 40s. They're of an age to have climbed the ladder. One wouldn't watch and think I wonder how they did that. For people in their early 30s or late 20s, ie OPs 'youngish' that wouldn't be the case.

I feel like I should clarify we live in one of the cheapest (house prices) areas of the UK, definitely the cheapest in Scotland! I’m not Imelda Marcos!

DH reckons they have inheritance plus huge mortgage.

If they do have a huge mortgage,but will be because they have a huge Nicole

The days of huge multiples of income are long gone.

Nicole should read income!!

There are some very wealthy people around
Some people don’t like to show their wealth

We're doing fairly well, early 30's and almost paid off the mortgage in the south east. We were one of the last to get a 100% mortgage. When the interest rate dropped we overpaid, and when nursery bills ended we overpaid. Not many people know the position we are in as it's our business.

Yeah you're the bracket I was thinking of kamiel. Bought in maybe 2007 when you were 22, that sort of thing. It wasn't the norm but there are enough of you around to make a bit of a dent, especially considering only one of a couple would need to have done it to potentially have got masses of equity. You're unusual enough to raise interest, but typical enough to realise how you did it after a minute thinking!

Inheritance, loans/gifts from parents, shares?

DH and I have a reasonably expensive house for where we live, and put down 25% deposit. Most of it was from my inheritance from grandparents, some was a gift from my parents, the rest was shares of DH's and some savings. We've recently had expensive house renovation work done and to the outsider they would probably wonder how we could afford it (we have reasonable salaries but hardly millionaires). My parents lent us the money as we'll be able to pay them back in less than 2 years from my husband's shares.

We also don't spend a fortune on holidays though, and have one (cheap) car between us. If you make sacrifices in one place, you can afford to splash out in another.

Oh look, a poor peoples' thread.

The more they 'flash the cash', the more it's on the 'never, never'. Real wealth is never bandied about.

What is "bandying' it about though? There is a difference between showing off and simply living within ones means, even when this means a nice house and car.

I would say bouncy castles, hot tubs, chocolate fountains, chocolate hot tubs, that would be bandying it about.

Yeah, only the proper rich get chocolate hot tubs.

The better off people I know are those who either had the gift of a mortgage deposit to start them off, or a parent as a guarantor, allowing them to buy instead of rent in their early 20s.

It's really hard to see how other peoples finances are. In my twenties I thought that I was doing it all wrong because I couldn't afford the nice stuff that others were having. So many people didn't understand why I was living so poor. In my thirties I learnt that some people have inheritances but a lot just get into debt. It does creep up on them eventually and they will have to deal with that. The people who start out simply but trying to make some progress a little step at a time tend to go the farthest in the end IME.

So basically the person who buys the fixer upper studio in the bad neighbourhood for cheap with a huge commute is probably going to end up the richest.

chocolate hot tubs

Ew.

I think sometimes it's about having received some much needed help (inheritance, loans etc) and sometimes it's about budgeting.

I go on what may appear as extremely expensive holidays a lot ( over 5 times a year) and people always ask me how I can afford it and while I sometimes wonder myself as I genuinely don't earn much at all, it's mostly about prioritising traveling over other things (dining out, doing expensive activities etc...) and knowing how to find extremely cheap deals and paying 100 for what people would usually pay a thousand.

I am in my 20's and have no financial help nor credit card so I budget and put the money I manage to save towards what is of value to me, in my case traveling.

I am very far from owning a 750k home and not even sure if I would ever make it there (nor if I necessarily care much about owning such an expensive house) but my plan for the coming months is to buy an apartment in a specific country whose market I know well that has a massive growth potential but was unfortunately badly affected by the economic crisis meaning buying flats or houses with low to no mortage is easily doable and buying a flat upfront instead of having a massive mortage in my hometown would mean being able to make money out of it much quicker and hopefully once the market pick up again, upgrade to a bigger/better flat or house.

If I had to wait for an inheritance I would never get anything done. 3 of my great-grandparents are still very much alive (as was the mother of my great-grandma just a few years ago!) So by the time any kind of inheritance would reach out to me I would probably be half-gone.

In my case all I have is about budgeting and sacrificing in other areas which of course is harder if you have children and dependents.

This thread has been so interesting. It seems that in order to be well off in your twenties you would have needed financial help (or a lottery win). For those who are well off in their 30s/40s it could also be done either by sacrificing a lot when young or stretching and buying early and having been very lucky with the economy.

I do think those who have inherited and then say things like "it's all about budgeting and sacrificing in some areas..." need to take a good look at themselves before offering financial "advice" to others. Of course most of us could have saved up some fraction of a down payment like you did! 🤣

DH and I are doing ok, not great but we luckily don't have to worry too much. We're mid-40s and have paid off half our mortgage on a house that maybe isn't a dream home/750k home but is one we're happy with. We also have defined benefits pensions and a small amount of savings in case something goes wrong. I guess we're about average maybe for those in our age range who didn't get anything from anyone, didn't buy early or hugely sacrifice when young but we're fortunate enough to get an education and a decent job.

I really do worry and wonder about the next generation - those who inherit will of course be fine but for those who don't ...they face huge house prices, student debt, poorer job prospects than when we graduated. It's not right, is it? 😐

With cars 80% of cars in the U.K. are on some sort of lease agreement, which enables people to have new cars costing far more than they could pay with cash/hire purchase.

It is still debt.

I think house money is from relations, grandparents leaving property which the parents use to help children

Also with most people having 1 or 2 children more money to go around.

DH and I are mid 30s with average paying jobs, a nice house and a BTL flat. This has only been possible because of DH inheriting from 2 grandparents, I have no doubt that we'd still be renting otherwise.

It's not always financial help from others. Me and my partner have just bought a house with a 95% mortgage. We were both first time buyers. Yes it is detached and top of our budget but the idea is we will save by not having to move in a few years time.

I went to uni and then lived with parents ( no rent/board) everything else paid for myself. What I saved in rent went into an account for the house deposit. I lived with them for 2 years after graduation and managed to save over £10,000. I have a decent job but nothing special and not particularly well paid for what I do.

My partner has a good well paid job which he had worked hard for since leaving school.

I have a new car on finance so yes we have debt but we are comfortable and not having to worry about payments for anything. We can go on holiday if we wish.

No children yet but we have talked about the possibility and what will happen if we do.

It's difficult to get a real perspective as only certain people will post on here. I have only posted as I fell you are getting one sided information that all 'young' people have been given hand outs/ups