Is anyone else holding off from buying until they inherit?

[sigletty]

We currently rent a small flat in a naice area. Because of interest rates, a mortgage on a place in this area of London would cost a fortune. Likely double what we pay in rent.

As awful as it is to say, we have decided we won’t look at buying until we inherit. Obviously nothing set in stone, but it’s not unlikely we’d inherit a significant sum in the next 5-10 years. We’re both only children and the only grandchild to two very elderly and dear family members.

You wont build equity in negative equity though, mortgage is double their rent, that money is much better in a diversified stock/bonds portfolio (always DYOR though) than thrown at a collapsing housing market where you wont get it back.

You sound quite entitled and a bit idle. If you want to buy a house in a naice area what’s wrong with working for it? Or moving somewhere that allows you to save?

Maybe it’s because I’m from a long line of brassic ancestors but having an assumption about other peoples’ money and essentially waiting for people you love to die so you can improve your lot is very alien to me.

I’d rather my loved ones spent every penny on their own needs and enjoyments than see them as a ticking clock to a better life.

The money is not guaranteed until it’s in your hands. Whether it’s care fees or left to the cats home, you have no right to assume until it’s in your account.

It’s a long time to wait and no guarantees, but if you’re happy with that then it is what it is. A lot can happen in that time.
I think a few people are probably in the same boat!

Yes there is no guarantee of getting a certain amount of money or a house, but what is guaranteed is that doubling your housing costs with a mortgage in this climate would be a total disaster.

£4,750 per month in care home fees. There certainly isn't enough left to buy anything, so I'd say, don't wait, make your own way.

They already are making their own way by renting at half the cost of a mortgage and potentially saving/investing that saved amount for their future.

@CrashyTime and if buying is something they want to do, buying something within their current means in a less flash area would also be an option, rather than seeing their only living relatives as ticking piggy banks who will facilitate an easy ride.

Gambling their future on money that isn’t theirs and not guaranteed isn’t a foolproof plan.

Maybe have it as a plan, but don’t rely on it so have a plan B! As with some others on here, my mothers eyewateringly expensive care home is taking care of my inheritance all on its own….

If you feel that your parents could help you with a mortgage now and loan you the money they can do it through a springboard mortgage. They get their money back whilst you are paying your mortgage. Here with a helpful diagram at the bottom too

https://www.barclays.co.uk/mortgages/family-springboard-mortgage/

Waiting for an inhertiance is madness, sheer madness, unless your parent is on end of life care. Dh's grandad died at 88, FIL is 77, my Dad is 82, our Mums are both dead. If we had to wait until either of our Dads died we would still not be on the property ladder at nearly 50 years old.

And where would they have lived?
This isn't cash it is 2 modest houses in London and their ongoing pensions- both working people.

Or maybe the grandparents are happy they had good quality care in their later years.

@Aldicrispsareshit

not everyone wants to scrimp and save when they get older in order to give their adult kids an easy ride! They can get what’s left then they die

@Aldicrispsareshit

well no because if they had done that how would they then fund the care they now need?
or does the physical and emotional wellbeing of elderly people not matter?

Blimey I wouldn't rely on inheritance ! It could be used for care home fees or as others have said a lot of people are living to a great age. just this week I have visited ( as part of my job) a 93, 94 and 99 year old !!!

Or maybe the grandparents are happy they had good quality care in their later years.

Honestly if I had the strength I would chew through my own oxygen tube to ensure that my modest assets would go to my son rather than being used up on care home fees to prolong my declining years. I am not wearing the same coat for the fourth year running so that some stranger can profit from my financial prudence.

You're right. But in the same breath some are in a position to be able to do both, I got the impression from the OP their families were in that situation.

Don't wait for something that may never happen but also anyone thinking of spending their parents house money on care costs do look at inflation linked care annuity packages.

@Pammela2 even if elderly relatives don’t go into a home, there are still care costs like private care visits, cleaners, gardeners etc that can absorb capital.

@TheYearOfSmallThings

omg buy yourself a new coat !!

don’t be a martyr, it’s YOUR money you’ve earned

I’m sure your son won’t begrudge you that and if he does well… you’ve got bigger problems

It's not about his expectations (he is 8), it's about my wishes. And it's not about a coat, it's about a lifetime of financial decisions and the level of security and stability they give me and my family.

I suspect we would all make much less responsible decisions if wealth could not be passed on, and it would not benefit society as a whole.

I agree. None of my parents/grandparents owned their own homes. I am proud that I managed to buy under my own steam.

@TheYearOfSmallThings

i still think you should buy yourself a new coat if you want one. You may be a mum but you matter too!

I agree, buy the coat!

My grandparents were invited to a wedding at a hotel but rather than book a room and stay, they were planning to do the long drive home same day. I was really frustrated that they cannot bring themselves to spend money they can afford on enjoying themselves and making life a bit fun/comfortable.

There's no inheritance worth having if you have to watch people you love be so miserly to themselves while they're alive.

Yes, but there is a minimum provided- 4 per day where we are that can then be topped up. And family can obviously help, if possible.

This certainly would not add up to the amounts that a care home does.

Of course money is taken through care but there is a crazy amount of focus on this considering the reality is quite different- just 4% of those over 65, rising to 15% over 85. But these are still small numbers- the majority of people will not require this and the drive to force people to believe they have to hoard money for this is insane.

Here in the UK if a person has more than approximately 23k they pay for their own carers which are around £25 per hour.