Buy your first home by 29 or your children won't get on the ladder.
Fri 07 Feb 2014
Buy your first home by 29 'or your children won't get on the ladder.'
It's hard enough as it is for young people trying to buy their own home.
Now major bank has ramped up the anguish - by warning that if they do not get the keys to a property by the age of 29, they are jeopardising their own children's future chances.
HSBC said that first-time buyers with affluent parents who can act as a 'Bank of Mum and Dad' typically buy at the age of 29 .. but this rises to 35 for those who do not get a handout from their family.
For those who do buy at the age of 29, they typically move into a 'family home' at the age of 35, are mortgage-free by 60 and in a good position to help their own children to buy.
Those without a 'Bank of Mum and Dad' buy at 35, do not move into a family home until the age of 42 and are not mortgage-free until 67 which might be too late to help their own children.
Pete Dockar, head of mortgages at HSBC, said buying later has 'long-term implications not just for their future property ownership, but their ability to help their own children step onto the ladder.
'It creates a cycle where the children of today's "property haves" become the "property haves" of tomorrow.'
The report comes as homeowners in London who are selling their properties are getting a 'jackpot price' due to 'extraodinary conditions' in the capital, a leading estate agent reveals today.
The average price of a two-bedroom home in 'outer prime' London has jumped by nearly 100,000 in just 12 months to a record 675,000 according to the agents Marsh & Parsons.
'Outer prime' is not even the exclusive areas such as Kensington, Chelsea and Mayfair, but districts further out such as Clapham, Balham, Battersea, Barnes and Fulham. To buy a two bedroom home in 'prime central'London, such as Notting Hill, the average price is 1.4million.
Earlier this week experts warned of the risk of a housing price bubblein London.
Becky Barrow, Business Correspondent