hart's shirt
Well-known member
The ladies from the rock band Heart can probably help you.
They're always asking 'How do I get you a loan?'
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[Finance] Best way to help kids get on property market
- Thread starter Wardy's twin
- Start date
The ladies from the rock band Heart can probably help you.
They're always asking 'How do I get you a loan?'
Stumpy Tim
Well-known member
That's an an excellent idea frankly.
One suggestion is you pay for the deposit on a flat, but own a % of the property. So if you put down a 10% deposit, you own 10%. That way your child isn't getting anything for free, but you are getting them on the ladder.
Dick Knights Mumm
Take me Home Falmer Road
Nick is a great lad. Many happy memories. Say Hi from us.
- Aug 7, 2003
- 7,795
Helped both my sons with their first properties and again when they made the move from 2 to 3 bedrooms. Best they get the benefit now rather than when I peg it.
Raleigh Chopper
New member
Just buy them a house, easy.
Or die early.
Or die early.
Green Cross Code Man
Wunt be druv
Except labour want to massively increase inheritance tax which will stop many people being able to help their offspring/grandchildren. Unless you mean that labour will mess the economy up even more than Gordon Brown and houses will become almost worthless?
Raleigh Chopper
New member
As opposed to the recent governments fantastic record of building very affordable, first time buyers homes.
dejavuatbtn
Well-known member
Don’t get me wrong - I have handed over thousands and thousands so that I don’t have a luxurious retirement. My comments are as a result of experience. My kids are not struggling and earn more money than I did after my working life.
Fitzcarraldo
Well-known member
- Nov 12, 2010
- 960
I think it's funny when stiffs say things like this. I would argue it has become an earned privilege. Previously access to housing if on a low income through council houses, also buying a house through price vs % of average income, was easier, however with RIGHT to buy coupled with local authorities not being allowed to replace housing stock this has meant that it has become an earned privilege. Seems unfair.
Green Cross Code Man
Wunt be druv
I assume that is sarcastic and if so fair enough. But I am in favour of helping both those sets of people!
As long as you don’t charge interest there is no tax implications of making a loan. If you gift the money outright and they divorce they may be entitled to a share but with a loan it would be a debt not an asset for them so would reduce the ex’s share not increase it.
If you charge interest on a loan it is taxable income for you.
Stiffs
A typically entitled millenial view.
Having a roof over your head is absolutely a right and I would actually prefer it if houses were seen simply as a home rather than an investment, but we are where we are. I'm in my 40s and when I was growing up there were people who owned their house (or at least had a mortgage), people who lived in council houses and people who rented privately. I house shared with friends for most of my 20s and only got my first mortgage when I was married and my wife and I could pool our savings and income.
The proportions of the above may have changed, with more private renters, and the cost increased but the basic fact is that not everyone can own a house and it shouldn't even be aspirational to do so.
In Europe, traditionally most people rented. The increase in private ownership has come about, ironically, due to Brits (and other foreigners) buying second houses.
Beach Hut
Brighton Bhuna Boy
Thanks, it will end up being a gift with no interest charged
Garry Nelson's teacher
Well-known member
I found that the 'game' moves to a new level when grandkids come along. Even if one's own offspring are not great with money (blame it on their parents!) the grandkids are a new level of obligation. This is not so much impacting on me, but my sister and husband shovel huge resources into their daughter and her children after she married a wrong 'un. They even downsized and bought the bloke out. They just can't bear to see the grandchildren (already pretty damaged) go without. This then creates tension with their son (and wife) who aren't themselves exactly rolling in it, but don't get anything like the same deal,
My parents didn't have two pennies to rub together and these sorts of things were never an issue. I don't know: you just what you can, I guess.
southstandandy
WEST STAND ANDY
- Jul 9, 2003
- 5,641
I was lucky enough to help my two kids out when wanting to set up homes of their own. They both have good jobs and can afford the mortgage repayments so I gave them each £50k for a downpayment on houses costing £200k and £230k. We have an informal agreement (nothing legally binding) that when they can they can repay part or all of this in time.
Personally I'm not worried if they do as in some respects I see it as passing on a little of my assets to avoid the potential burden of inheritance tax when I'm no longer around (assuming I live another 7 years), but at 48 years old I hope I have plenty more years in the tank. Both kids at the moment don't have partners as only just left university, and I just hope that if they marry and then seperate they don't lose what I've helped them with as a start. A risk I was willing to take.
Depending on your kids age the other good thing they could consider is the help to buy ISA if they are willing to save for a few years, but if you can afford it and wish to pass on some of your wealth to your kids (as I've done) that is surely your own choice. My gran left me a small amount back in early 90's which helped me get started on the housing ladder so for me it's like passing on her legacy. But only do it if you can afford it.
Personally I'm not worried if they do as in some respects I see it as passing on a little of my assets to avoid the potential burden of inheritance tax when I'm no longer around (assuming I live another 7 years), but at 48 years old I hope I have plenty more years in the tank. Both kids at the moment don't have partners as only just left university, and I just hope that if they marry and then seperate they don't lose what I've helped them with as a start. A risk I was willing to take.
Depending on your kids age the other good thing they could consider is the help to buy ISA if they are willing to save for a few years, but if you can afford it and wish to pass on some of your wealth to your kids (as I've done) that is surely your own choice. My gran left me a small amount back in early 90's which helped me get started on the housing ladder so for me it's like passing on her legacy. But only do it if you can afford it.
Until you have paid your mortgage, you do not own your house.
Thunder Bolt
Silly old bat
Stiffs
A typically entitled millenial view.
Having a roof over your head is absolutely a right and I would actually prefer it if houses were seen simply as a home rather than an investment, but we are where we are. I'm in my 40s and when I was growing up there were people who owned their house (or at least had a mortgage), people who lived in council houses and people who rented privately. I house shared with friends for most of my 20s and only got my first mortgage when I was married and my wife and I could pool our savings and income.
The proportions of the above may have changed, with more private renters, and the cost increased but the basic fact is that not everyone can own a house and it shouldn't even be aspirational to do so.
In Europe, traditionally most people rented. The increase in private ownership has come about, ironically, due to Brits (and other foreigners) buying second houses.
100% this.
I keep being told babyboomers were so lucky but we lived with our parents (even though I was serving, I still went home on leave) until we married, and had two incomes to put towards getting a house.
My parents split, both lived in council properties all their lives, and I've worked for every penny.
My kids worked hard at school and both have very good jobs. I haven't been able to give them any handouts, but they're both richer than me, now. They've made their own way in life.
Raleigh Chopper
New member
I'm not arguing with your post, first time home buyers have been let down very badly for a long time, just giving the alternative argument.
Many kids still living with their parents up to 30 is the indicator, they can't afford a deposit and rent is stupidly high, and a rip off from letting agents.
Thousands of empty homes lay abandoned, 10 years they have had to do something really positive and they have done virtually next to nothing.
- Aug 7, 2003
- 7,795
But you have the equity accrued.