Theme 2: Paying for property: The bank of mum and dad At least 30% in 11 countries got monetary help from friends or family when buying their home

Transcription

1 Theme 2: Paying for property: The bank of mum and dad At least 3 in 11 countries got monetary help from friends or family when buying their home Homebuyers often get monetary help from loved ones to get a deposit for their home using what is colloquially referred to as the bank of mum and dad. In,, and, the numbers are particularly high. Even in,,,,, and, the figure topped Did you receive financial help when buying your home? Yes, at the time of buying the property Yes, during the repayment of the mortgage loan No Have you ever received monetary help from friends or family to help you buy a house/property? 10

2 Theme 2: Paying for property: The bank of mum and dad Is help from family becoming more common? Younger homeowners are more likely to have had financial help from loved ones when they were buying their property, our figures show. It may signal that this method of buying a home is becoming more popular. However, even 31% of owners aged 55 + got this type of assistance suggesting that it has been a way of getting on the property ladder for many years. 10 Did you receive financial help when buying your home? years years years years 55+ years Yes, at the time of buying the property Yes, during the repayment of the mortgage loan Have you ever received monetary help from friends or family to help you buy a house/property? 11

3 Theme 2: Paying for property: The bank of mum and dad Returning to the nest Moving in with friends and family is a common response when financial difficulties strike. More than 1 of respondents in (18%), (15%), (14%), the United States (13%), (12%) and (11%) have done this. 2 Percentage of respondents who returned to live with friends or family because of financial difficulties 18% 16% 14% 12% 1 8% 6% 4% 2% Yes, I have considered this and have returned Have you ever considered returning to live with friends or family because of financial difficulties? 12

4 Theme 3: Is it better to rent or buy? Most survey respondents own their home: more than 5 are owners in 11 countries is the only country in which more of our poll respondents rented than owned. also stands out for the relatively high (42%) proportion of renters. The other category in the chart includes people living with friends and family and those who refuse to answer. Do you own or rent your home? 7 65% 6 55% 5 45% 4 35% 3 25% 2 15% 1 5% Own Rent Other Which of the following situations best describes your housing situation? 15

5 Theme 3: Is it better to rent or buy? Buying is still popular despite falls in house prices Asked if they thought it was better to own a house than rent, respondents strongly preferred homeownership. This was particularly strong in (87%), (83%) and and (both 82%). From a financial point of view, do you think it is better to own a house than to rent? Agree Disagree Neither agree nor disagree From a financial point of view, it is better to own a house than to rent. 16

6 Theme 3: Is it better to rent or buy? Housing costs are relatively high in,, and The proportion of take home pay spent on accommodation (mortgage or rent payments) offers some fascinating insights when compared with responses elsewhere in the survey. In, where respondents are most likely to see homeownership as better than renting, the median mortgagees spend of take home pay on mortgage payments is 5. Compared with attitudes to whether homes are too expensive (page 6), we see ers strongly feel homes are too expensive but mortgagees there spend only 26% of their take home pay on the mortgage perhaps reflecting earnings strength. Median percent of monthly take home pay spent on housing Mortgage Rent How much of your monthly income after tax is used for paying mortgage/rent? 17