Renting while parents own over £1.4million in property

[Emmav2020]

Just after peoples thoughts. So myself and OH pay £1000 in rent a month aswell as having 2 kids and paying a fortune in childcare. My parents own the above amount in property. Now while ive spend over £50,400 paying rent i was thinking and kind of got myself annoyed that my parents are sat on that kind of money while im still renting. Even if they gave me a small deposit i would be forever grateful just so we can get ourselves a mortgage and onto the property ladder. my sister was given a hefty chunk my her in-laws to buy a house so shes find.
I mean we have save a bit ourselves but its nowhere near what we need
Would you be annoyed or do i have no right in thinking they could help us just a little.

You're not getting the point. The point being made in the post is it's good to help your kids if you can.. and why wouldn't you help your kids. You're just talking about your own situation. Good for you you did it all yourself but there's absolutely nothing wrong in wanting or needing your parents to help you especially if it relates to a genuine need. My parents helped me many many years ago and I'm very grateful to them.

👏👏👏

It is not irrelevant in many other parts of the world. I have heard so much bitchiness to your own kids only in the UK>

I found most of this thread quite psyhotic or simply from 1950s.

It's not like people can now have one person earning household on some low skill job and pay off a home in seven years.

I cannot imagine sitting on millions while my children struggle.
I want them to have better home than me.
To have bigger garden.
To be in a nicer area.
I just want them to have anything I can help them get.

It is quite simple.

Equity release?

If you can't afford a house then that's on you.

Nothing to do with economic policy? 😆

Ewww

So the parents should move out of their 1.4m home, rent it out, live somewhere cheaper and gift the OP with a deposit??!

What pile of cash?

Precisely.
I don’t know where they live, but if it’s London the house worth £1.4m could be a very modest house indeed.
They’re not necessarily well off.

Because that money is usually from savings or investments made from income, which was already taxed.

So it's taxing it again, for having the audacity to save it for your family.

@IpsyUpsyDaisyDoos Do you have a source for that? all my reading says the majority of it comes from rising house prices & the vast majority didn’t pay tax on that unearned increase did they?. I’m not sure why that counts as saving for your family?

Also the post I replied to said *Nobody is entitled to somebody else’s money or property or possessions So you are disagreeing & saying descendants are entitled to it & shouldn’t have to pay tax. Fair enough. *

I will help my DD as much as I can. But does that mean I have to sell my home?

Because of where we live, if house prices keep doing what they are, our home will be worth a stupid amount by the time she's ready to move out. But it's a small 2 bed. It's very difficult to downsize from that and live comfortably. It would mean moving to a worse area and changing our lifestyle, which is already quite simple because that's who we are.

In OPs case, she has a sister. So if her parents gifted her one of their rental properties, they'd likely have to do the same for the sister, in the interest of fairness. But they're still paying a mortgage on them, so how would that be fair to the parents? As it is, the are letting OP live there at a reduced rent, which is still support.

Depending on where in the country, 1.4million in property could be a modest home and one rental. It could be a massive home and three rentals. But at the end of the day, OPs parents would have to take a hit on their retirement to give her something, because they'd lose the income on the rental, or they'd have to downsize and lose equity. In the long term, it's better if they have a good income and assets to help pay for care if they need it. If they don't need it, OP is in for a lovely windfall later on anyway. If they don't have it, who do you think is paying for their care? With OPs attitude it won't be her, it'll be the tax payer.

Do you understand what an investment is? You can invest in property, the increase is a return.

And no, I'm not saying anyone is entitled to it. But if you have saved it with the intention of leaving an inheritance, yes you'd be pissed off at it being taxed. Especially if you earned the money, paid income tax and then got taxed for leaving your savings and home to your child.

You asked why people were upset about it. I gave you a reason. Not sure why you're now attacking me?

I don’t know where they live, but if it’s London the house worth £1.4m could be a very modest house indeed.

Even in London 1.4m will be a decent house though. I’m assuming the OPs parents don’t live in Kensington etc.

They’re not necessarily well off.

“ there are currently over 770,000properties that are valued at £1million or more. This is approximately 2.5% of all UK residential property”

"The worst that can happen is they say no"

I disagree

They could say no and it sour the relationship, both ways - OP even more resentful and parents concerned at DD's inability,ity to make her financial way in the world.

And if they say yes, that potentially opens a whole other can of worms - parental resent,ent at having to remortgage to free up cash. Or it being a loan and OP defaulting and never paying back

It's been found on other threads of the OP that they have a home and some rentals. So it's not one property at 1.4m.

Just thought you'd like to know, as you're so keen on asking for sources.

Your deleted post makes a lot of sense!

Not really. A pp mentioned OP's previous threads so thought I would have a nose 😊

AS can be useful in weeding out the threads that aren't worth engaging with.

Eta: as you can see, OP hasn't bothered to come back to the thread, which I think proves my point about the usefulness of AS. There are so many dubious threads on MN these days which seem designed just to get people frothing...

Alternatively- they could spend, spend, spend and enjoy life to its fullest!

@IpsyUpsyDaisyDoos How have I attacked you? I have responded to your post. The fact I disagree with you or asked for evidence isn’t an attack, why would you label it as such?

Do you understand what an investment is? You can invest in property, the increase is a return.

But as I already said unearned income from house price increases hasn’t been taxed, you are exempt from CGT on your main residence etc. So why would you class it as already been taxed?

And no, I'm not saying anyone is entitled to it. But if you have saved it with the intention of leaving an inheritance, yes you'd be pissed off at it being taxed.

Again if the money has come from equity gains how have you actually saved it? And how can you be pissed off about something that only applies to you when you are dead?

It seems mad to me they don't want to help their kids.

@IpsyUpsyDaisyDoos well that’s not actually a source as the information a random poster provides about themselves isn’t fact checked or verified is it?

In the long term, it's better if they have a good income and assets to help pay for care if they need it.

As well as people disliking IHT which imo has a pretty generous threshold (if you qualify for that maximum), many aren’t so enamoured with having to fund their own care.

I need more info to comment properly:

-how old are you?
-how long have you been working for?
-do you work full time?

Sounds as if you’re doing ok, plus you’ve got state pension to come on top of your large pension