It's all well the old uns (40+) on here harking on about how they gave their old dears 9 shillings a month and what not but back then you could but a house for 40p and get a mortgage so long as you could spell your name and half tie your shoelaces.
The average house price in London (incorporating out to zone 6) is expected to be £1m within the next 15 years (extrapolate backwards the value of your house 15 years ago compared to it's value today and that figure doesn't seem pie in the sky). A 20% deposit in 2030 would buy you a flat now in or a house up north or a couple of ferraris. No way are wages going to inflate at the same rate and certainly not for the vast majority of working and middle class youngsters who are just starting out in the world of work.
Any parent that likes their kids and can afford to ought to be doing what Len and Brendan suggest ie take proxy rent to put in an ISA for example to then be bequeathed back to them as a deposit when they're in a position to fly the nest and hopefully get on the ladder. They'll also learn about financial responsibility this way too.
It's nigh on impossible to save for a deposit when renting in London for the average youngster unless they're on footballer's wages and live off beans on toast for years.
Breaking my "don't post after a few beers" rule here. So there might be a cheeky edit or two come tomorrow. But... When us 40+ers bought our 40p houses back in the day, RTC, we were quickly faced with a roughly 15% interest rate thanks to the very clever plan of Maggie Thatcher. I do not think any young person today will ever face that?
I am not denying the incredibly difficult task the young face in trying to get on the ladder, but us old farts had a few years when in order to maintain our 40p houses, we had to sacrifice a lot of socialising and jolly ups to maintain the roof over our head, thanks to Mrs T.
The generation I most admire is from the WW11 era. The young people, who generally speaking, had absolutely nothing, still managed (through their true grit, determination and optimism) to rebuild this country and present my generation with a much better life.
I actually feel rather guilty that my generation has not been able to do the same. I can’t put right the wrongs of Thatcher’s selfish society, but I’m sure most parents try to redress the balance a bit. We (parents) now have our kids at home a lot longer at heavily subsidised rates, sponsor them through university and shove a few quid their way when they set up their homes and marriages.
The upside to today’s situation (as I see it) is that the delay to mortgage and marriage has led to much more rounded young people - who are far better educated are well travelled, have seen the World and had a lot more fun in the process.
I write this after ‘liking’ both RCT and AA’s conflicting comments. Sure, at the age of 22 I was fully married and mortgaged up. But as AA pointed out it wasn’t an easy gig. There was never a spare penny and life was very limited. An aeroplane to me was just a big silver bird that flew over my house.
Hold on a minute though surely it depends on what the kids are like. so there bringing home £400 a week giving you £50 and spunking the rest why should parents put the money away for the future when they can't do it themselves. fair enough to a certain age but I know of a 26 year old paying silly rent to his mum dad and just lives for the weekendccome Monday skint.
You have to charge your kids board and lodging once they've started proper work, make it a sensible proportion of what local rents are. If they're on the social, charge them half of what they get. You could encourage them to save by giving them a refund of, say, 25% of whatever they manage to put aside on a regular basis.
Raith Algarve my post was tongue in cheek to a degree about the 40p stuff and I regularly enjoy winding my step dad up with the "woe is my generation" stuff when it comes to getting on the ladder which soon turns into a monty python sketch as to how tough he had it.
I do maintain that if parents can afford it then it would be sensible to take rent but save it to give a deposit as whilst interest rates are not horrendous like they were in the 80s it's the deposit that is a huge barrier anyone whos parents are not minted and able to bequeath a substantial amount of money from getting on the property ladder in London and much of the south east.
It's also the fact that the rate of inflation in property prices is moving at a much faster pace than even the most prudent saver can squirrel away the meagre amount of disposable income they may have after council tax, rent, food and travel which makes it nigh on impossible for many in and around the smoke particularly if they are youngsters starting out in the world of work and not likely to be earning a lot.
And on top of that you're supposed to be putting away £500+ pcm for your pension so they tell us.
Many politicians and mouths on sticks have spouting on the airwaves over recent years that we need to change our mindset about property ownership and be more continental in terms of renting. Disregarding the fact that the rules and rights on renting are far more protective of renters in many countries they cite the question that bothers me is what happens if you rent and after a life time of work slogging your guts out when you retire your meagre pension doesn;'t cover your rent? Your landlord will move you out asap.
Owning your own place is not a right of course but I'd take a lot more heed of what politicians say when they encourage us to be a nation of renters if they sold up they places which represent their pension pots and children's inheritences and stop selling most of London's properties to Russian, Arab and Far eastern investors to the detriment of it's own citizens.
Idle Jr (who I hope doesn't see this) has just begun his first full time job after college.
He wont be paid a fortune, but it'll be more money than he's ever seen in his life. We intend to let him keep the whole of his first pay packet, but it's time (at 19 and a half) that he made a contribution to his keep.
It's not something I've thought about previously, having assumed he'd spend the rest of his life having lie-ins and smoking dope, but does anybody have a guide for what is a fair contribution to the vast quantities of food that he inhales every time the fridge door is opened?
All contributions gratefully received.
mine is same age wife charges £100 pm i'd charge double but she wont let me lol
I have friends whose son got into the first team at Ipswich Town when he was an 18 year old in 1996. Ipswich Town were in the premier league and his salary was £3,000 per week. This was made up of various bonuses including league position, and the size of the crowd at Portman Road but I was told was usually around £3,000 per week.
His gave his Mum £100 per week which she thought was extremely generous.
I have friends whose son got into the first team at Ipswich Town when he was an 18 year old in 1996. Ipswich Town were in the premier league and his salary was £3,000 per week. This was made up of various bonuses including league position, and the size of the crowd at Portman Road but I was told was usually around £3,000 per week.
His gave his Mum £100 per week which she thought was extremely generous.
That's fair enough though, when your son is a professional footballer, you don't want him going to any old brass house, he needs his money for the high end slags
My partner is trying to call his daughter in the UK and she doesn't answer his calls, He has texted to ask when he can call her and guess what? She hasn't answered! A charmer!
Do it on a formal footing with a tenancy agreement; you can then keep £7,500 tax free of the rent you receive. This will also enable you to have sensible clauses about noise, lateness of rent (eg interest is added if it's more than 3 days late), notice to leave from either party, and anything else that's reasonable.
I have friends whose son got into the first team at Ipswich Town when he was an 18 year old in 1996. Ipswich Town were in the premier league and his salary was £3,000 per week. This was made up of various bonuses including league position, and the size of the crowd at Portman Road but I was told was usually around £3,000 per week.
His gave his Mum £100 per week which she thought was extremely generous.
I have friends whose son got into the first team at Ipswich Town when he was an 18 year old in 1996. Ipswich Town were in the premier league and his salary was £3,000 per week. This was made up of various bonuses including league position, and the size of the crowd at Portman Road but I was told was usually around £3,000 per week.
His gave his Mum £100 per week which she thought was extremely generous.
When I started work in 88 I paid 60 quid but salary was only 7500 (and 3600 of that was London weighting)
you sgould think yourself lucky """
when I started work in 1983 & earnt around £4k pa (I remember my first monthly pay was £280) and my parents starting taking £100 pm from me - this increased to £125 a year or so later & by the time I left home in 88 I was paying £150 pm.
I think the idea of you giving him some back years down the line is an excellent one - as a financial advisor I have often citef this to my clients, even if they didn't need the money themselves I said it would be a good way of him to start learning to budget & to value money
I remember my first monthly pay was £280 and my parents starting taking £100 pm from me, 40 quid got spent on Charlton, 40 quid on Doors LPs, and the other 100 quid went to The Railway Tavern, Bexley Village.
Comments
I am not denying the incredibly difficult task the young face in trying to get on the ladder, but us old farts had a few years when in order to maintain our 40p houses, we had to sacrifice a lot of socialising and jolly ups to maintain the roof over our head, thanks to Mrs T.
But todays young adults in Greater London have no chance.
A 1 bed flat in Bromley would be a minimum of £300K.
So you'd need an income of about £60K per annum to get a £240K mortgage & have saved up £60K plus as well.
It's pretty much an impossibility without financial assistance from someone.
We will now have a generation that won't be able to "leave home".
There are not enough properties and never will be with an extra 300,000 people adding to the housing shortage each year.
15 People (usually immigrants) living in intolerable conditions, in 3 bed houses is not uncommon.
People living in garden sheds !
It's crazy and I can only see it getting worse.
Never mind there's plenty of room for 300,000 more people to come to the UK each year.
http://www.msn.com/en-gb/money/personalfinance/housing-crisis-means-15m-adults-living-with-parents-is-this-a-good-idea/ar-BBtyehA
http://www.msn.com/en-gb/money/personalfinance/house-prices-rise-to-61-times-average-earnings/ar-BBtyiqF
I actually feel rather guilty that my generation has not been able to do the same. I can’t put right the wrongs of Thatcher’s selfish society, but I’m sure most parents try to redress the balance a bit. We (parents) now have our kids at home a lot longer at heavily subsidised rates, sponsor them through university and shove a few quid their way when they set up their homes and marriages.
The upside to today’s situation (as I see it) is that the delay to mortgage and marriage has led to much more rounded young people - who are far better educated are well travelled, have seen the World and had a lot more fun in the process.
I write this after ‘liking’ both RCT and AA’s conflicting comments. Sure, at the age of 22 I was fully married and mortgaged up. But as AA pointed out it wasn’t an easy gig. There was never a spare penny and life was very limited. An aeroplane to me was just a big silver bird that flew over my house.
so there bringing home £400 a week giving you £50 and spunking the rest why should parents put the money away for the future when they can't do it themselves.
fair enough to a certain age but I know of a 26 year old paying silly rent to his mum dad and just lives for the weekendccome Monday skint.
I do maintain that if parents can afford it then it would be sensible to take rent but save it to give a deposit as whilst interest rates are not horrendous like they were in the 80s it's the deposit that is a huge barrier anyone whos parents are not minted and able to bequeath a substantial amount of money from getting on the property ladder in London and much of the south east.
It's also the fact that the rate of inflation in property prices is moving at a much faster pace than even the most prudent saver can squirrel away the meagre amount of disposable income they may have after council tax, rent, food and travel which makes it nigh on impossible for many in and around the smoke particularly if they are youngsters starting out in the world of work and not likely to be earning a lot.
And on top of that you're supposed to be putting away £500+ pcm for your pension so they tell us.
Many politicians and mouths on sticks have spouting on the airwaves over recent years that we need to change our mindset about property ownership and be more continental in terms of renting. Disregarding the fact that the rules and rights on renting are far more protective of renters in many countries they cite the question that bothers me is what happens if you rent and after a life time of work slogging your guts out when you retire your meagre pension doesn;'t cover your rent? Your landlord will move you out asap.
Owning your own place is not a right of course but I'd take a lot more heed of what politicians say when they encourage us to be a nation of renters if they sold up they places which represent their pension pots and children's inheritences and stop selling most of London's properties to Russian, Arab and Far eastern investors to the detriment of it's own citizens.
How about leaving London ? That's kinda a better option than living with your folks until ur 40
Why would they refuse to pay board to their parents though ?
Many people do not wish to move away from their friends and families.
His gave his Mum £100 per week which she thought was extremely generous.
I remember my first monthly pay was £280 and my parents starting taking £100 pm from me, 40 quid got spent on Charlton, 40 quid on Doors LPs, and the other 100 quid went to The Railway Tavern, Bexley Village.