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Original poster

Helping kids on property ladder

110 replies

Lm1981 · 26/11/2023 17:52

All signs are that house prices go up over the long term. As mortgage/rent make up a huge portion of wage are you planning any help for kids? Even if kids are still very young does it cross your mind of something to start now?

OP posts:

MrsSkylerWhite · 30/11/2023 11:09

Paintmybathroom · Today 11:00
**
I'm always a bit confused about people downsizing to release cash for the kids - are people really leaving their 3/4 bed semis to move into terraces or flats? Which quite often will become problematic as you get older.
**
I know my parents recently sold their 5 bed to move into a 3 bed bungalow and had to find extra money to buy it 🙃”

We’re leaving our 5 bed detached for a 3 bed penthouse. Will release significant funds as we’re moving from an expensive area to a much cheaper but we think nicer area in a different country. Our flat will not become problematic. Our current house would.

Geneve82 · 30/11/2023 11:36

Dingledanglebangle · 30/11/2023 10:11

Please look back through my posts - I’m slightly bewildered at the disbelief that we all did do it without help!

@Twiglets1 the examples I posted are from
close family or friends - I know the circumstances. If you see my initial post, I was just genuinely surprised and interested at the comments here as it’s not my own experience and we all managed without it. I then gave more detailed examples due to subsequent disbelief. I’ve stated clearly that I do know it’s hard and that I obviously lovely when parents who do help can help.

Show quote history

No one is denying that it’s possible

We are saying that being able to buy a £200-300k property by your mid twenties on £25k-£40k with zero financial support is very very uncommon in present day.

(and 3 bed terrace in commuter town in Surrey 😂 . I take it you don’t live in the vicinity of Surrey!)

Geneve82 · 30/11/2023 11:44

OldTinHat · 30/11/2023 09:41

DC1 left home at 19 into rented with his GF. No financial help from me, I wasn't able to. Nor did GF receive any help.

They saved for the rental deposit, both had NMW jobs, paid for their rent, bills, etc. They are both 24 now and have owned their own house with a mortgage for almost a year. They saved for the 10% deposit for the mortgage by working hard. The mortgage is a 40yr term, but they've done it themselves. And they're in the SE.

I don't understand the angst about young people not being able to afford to buy. It absolutely is possible. It just takes determination, hard work and saving. As it did for me.

how much was the property they purchased and how many bedrooms?

Twoshoesnewshoes · 30/11/2023 12:23

@Dingledanglebangle thanks for that, I think it’s helpful to remember it’s not all doom and gloom. My friends two eldest DCs have just bought their own places with no additional help and modest incomes.

you’re correct I think that being in a couple is a serious advantage! My DD would be be fine financially if she was still with her ex, and could have saved by sharing a room as you did.

sugarandsweetener · 30/11/2023 16:43

I don't understand the angst about young people not being able to afford to buy

grab yourself a weekend broadsheet supplement on any weekend, go to the Financial section, have a read, and that will help you “ understand the angst about young people not being able to afford to buy”

Heatherbell1978 · 30/11/2023 19:20

Kids are 6 and 9 and I have a few thoughts but whether they pan out, who knows. Saving regularly for them which should result in around £15k each when they're 18 but hoping they use this money for driving lessons and car (they don't have to but we won't fund otherwise).
We will draw tax free lump sum from my DC pension to repay mortgage and anything left over will go to them.
Likely I will get some inheritance which we probably won't need so will go to kids.

ionlywantto · 30/11/2023 19:23

sugarandsweetener · 30/11/2023 16:43

I don't understand the angst about young people not being able to afford to buy

Also - look at a graph of average wages against average house prices, fairly easy to understand the issue when looking at them.

Those who say it's all about doing 'what I did in the past' completely ignore the change in multiples of wages needed to buy and it's unhelpful.

sugarandsweetener · 30/11/2023 19:59

ionlywantto · 30/11/2023 19:23

Also - look at a graph of average wages against average house prices, fairly easy to understand the issue when looking at them.

Those who say it's all about doing 'what I did in the past' completely ignore the change in multiples of wages needed to buy and it's unhelpful.

Show quote history

they completely any financial news!

sugarandsweetener · 30/11/2023 20:05

ignore

DiaNaranja · 30/11/2023 20:07

LittleMrsPretty · 26/11/2023 21:17

does how much you are able to save affect your decision on many kids you have. i think I could comfortably save a hose deposit for 2 kids but 3 would be a push (however I would like 3 children)

I am 32 and have 1 x 2 year old. I think my children (and others i their generation) will not be able to buy a house unless they have help.

I also worry about what if the NHS isn’t there doe my kids like it was for me and if I newd to pay for braces and other expensive non life saving treatments not available on the NHS?

does anyone else worry about this or factor this into the decision of how many kids to have and the long term future costs.

Massively so for us. We would have both liked a third, but felt it wouldn't be fair on the two we already have, as we know we wouldn't be able to save the same amount a third way, so ultimately what we have saved for them (20k for them so far, which will hopefully be at least double by the time they need it) woud have to then be cut in three, and that's obviously not going to go as far. Same with uni fees (if they choose to go) helping out two will be doable, helping out three, would be a huge stretch financially. And even at the young ages they are now, they get to do lots of after school activities, holidays, days out etc, with a third, things would have to become far less frequent for everyone, and I want to be able to give my kids a fulfilling upbringing with lots of opportunities. If we were richer, we would have probably had a third, but we aren't 😄.

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