To worry how my children will buy a house

[Biggiebiggiecantuc]

I’ve been working in the head office of a large retail bank for the past 10 years.

I’ve worked with a bunch of slightly older colleagues who will blush when we discuss house prices. They mostly started working in the mid/ late 80s, after leaving school at 16/18, and were able to buy a property within 2-3 years of starting work.

Many have multiple BTLs and will head off into retirement in their late 50s with large final salary pensions.

I look at them with envy. I will need to find away to earn till I am in my 60s

However, I am terrified of what future my children will have. I jut don’t see how the will get into the property ladder. They, like me, are average. They won’t get into top city firms and earn £100k 2 years out of uni. Hopefully they will prove me wrong but I just see a future of misery, running just to stand still.

I have managed to save around £10k for them. A housing deposit. Is there anything else I should be doing to help them?

Given the level of inheritance tax today and cost of housing, the best way of helping your kids is to sell your family home at 70 years old and move into a low maintenance flat and give the surplus to your kids but only for them to buy a property.

That only works if you’re happy to live in a flat, likely with no access to a garden, after living in a house for decades. It’s not a scenario that most people would find enticing.

Also, if the homeowner/s are in good health, all well and good. But if not then down the line your local authority may investigate you for deliberate deprivation of assets.

Am already in a flat in my fifties. Wheres my medal? 😁

Absolutely this! I wish older people would consider this. However, I understand why not - it's not most people's dream to live out retirement in a flat, especially if they've been lucky enough to have a large property with space. I personal wish the narrative would change around supported living/warden housing. It's a social way to live. Surrounded by people if you choose to interact. Yet many older people I know think they're "old people's homes" and the stairway to heaven. I guess noone ever thinks of themselves as old/older.

I mean everyone on MN hates people, doesnt want to see anyone but their DH or DP, despises socialising and you want them to live in supported housing? 😀

I very much doubt all the young people here would choose either a flat or supported housing. I have chosen the first and will happily choose the second, but then I have a different upbringing to most.

People immediately think flat life is always in run down areas with no facilities.This is far from the truth. There are flats with immaculate grounds surrounded by mature trees & also in my retired friends case she has this plus a top floor with a huge balcony & a view of the sea in the distance. She was a keen gardener as was her DH so they've filled the balcony with pot plants & greenery. They said as much as they loved their house they'd never move back. They love their flat & I can see why. I would love to live high up in a flat like this. The views are spectacular.

@Keepingitreal9 you've told us multiple times about your friend's flat now. I'm sure it's perfect for them and you're clearly enamoured with it but no matter how hard you sell it some of us are not interested in living in a flat. Doesn't matter how nice it is.

Quite honestly, I'd be talking to them about how they maximise their earning potential.

I know people who very deliberately went into commercial law/banking to ensure they'd be on big salaries very quickly for this reason.

I also have a cousin who skipped uni altogether to get into trade so he could be earning immediately with no debt. His skills also meant he was able to buy a doer upper and renovate for very little.

I had that talk. One listened and one didn't! DH and I both went into high earning professions. Didnt have a choice as immigrants.

It's a thread with a huge amount of posts. If I reply with the same topic it's for the people who missed it. FWIW I'm not trying to 'sell' the concept of a flat like the one I've described. I'm making the point for those people who think a flat is inferior to a house when in many cases it is far better & afabulous way to live. In fact it's now my ambition going forward as long as it's similar to the one I've fallen for.😁

Need way more than 10K for a deposit. It’s not just that, it’s the type of job someone has, mortgage application these days pretty much do everything but shove a probe up your butthole. If they have stable ‘careers’ such as nursing or teaching, then they should be able to get a mortgage if they keep their credit clean etc. they’ll just have to pay a horrendous amount back in mortgage repayments.

I'll take the lovely flat @Keepingitreal9 😂

So would I,in a heartbeat 😂

Are you still on about that flat 😂
Goodness me. You and your friends crack on with your flats, fabulous, but the rest of us don't want noisy neighbours, or the lack of a private garden. Thank you.

"Is there anything else I should be doing to help them?"

@Biggiebiggiecantuc do you live in London? Do you own a house? If so, how much is it worth? How old are you? Are you a single income or dual income family?

We do live in London and have a 4 bedroom house. We are in our early fifties with DCs aged 18 and 20. We have prioritised paying off our mortgage and paying into our own pensions, but have been able to gift the DC's money into ISAs for a few years which is intended for housing deposits. They know they are welcome to live with us as long as they want while they are saving up. At some point we will down-size our home and gift them some of the proceeds. As well as helping them onto the ladder, it will reduce any inheritance tax when we die - we see it as giving them their inheritance early.

Btw, I read recently that the average first time buyer deposit in London is £100k. 😞

Between 1960 and 1980 over 5 million homes were built.
Between 2000 and 2020 only 2.6 million homes were built.
House building has not kept up with population increases and demand.

Of all the post-war housing built up to now, approximately 80% is owned by Generation X and baby boomers. There appears to be a lack of critical thinking regarding the housing issue.
What worked in the past isn't working it's broken forever.

I wouldn’t mind a flat with a sea view. DH and I have considered moving to a flat on the waterfront of our city. Not ready yet though.

I think home ownership is one of those things that is 'supposed' to become less realistic as time goes on -

"You'll own nothing and you'll be happy", a phrase originating in a 2016 video by the World Economic Forum (WEF).

Are you still intent on wind up replies? 😂Absolutely no noise, they are all either retired,semi retired & young professionals, has lived there for two years & rarely bumps into anyone. Its very private. The balcony with beautiful plants & tremendous views makes up for a high maintenance lawn & weeding. Next! 😂

@Keepingitreal9 Christ on a bike, give it a rest will you. Start your own thread dedicated to that chuffing balcony 🙄

Not to worry it was my last post on the subject. OH! Did I say I loved my friends flat😂😂😂

Canada is similar to the uk this this respect, perhaps with less emphasis on being able to buy as a young adult. We don't have great rental protections here so not the same safety net for life long renters as some European countries.

If the siblings get along maybe they could buy a place together? I know this has some risks if one changes plans or gets a partner. I think as a pp said, multi gen living will be more common. Even just staying home a few extra years to save up can make home purchase possible depending on where you live.

Most people on this site don't live in Massachusetts

My DS and DiL just bought their first house at 42 in Wales where it's cheap. It's taken then 15 years to save the deposit.
They were living in Surrey but buying a house there is out of the question.

If I hadn't managed to buy a house I would have bought a houseboat. I'd still love one but Im a bit old for watery living now.