I don’t know what the figure would be here, but It does happen.
John McGuire, of “I’m An Adult” fame seems to have a problem with peole living at home, but has no problem with them taking their parents money to buy a house.
Last week the girl he was helping didn’t just leech off Mammy for the new house, she got Mammy to pay of the loans she had.
And this despite the fact that Mammy made it pretty clear that she liked having her around and didn’t want her to move out.
So no mammy has less company aroudn the house, and less money, and John McGuire has another customer for his mortgage business.
What a result.
Speaking of which, he recently made his recommendations for FTBs for 2008.
To be fair, this is more cautious than the typical VI “buy now or lose out” rant that we see in almost every property supplement at the moment. However, I still can’t abide the TV show, and its philosophy that you need to leave your family and buy a property, any kind of property at all, to prove you’re a functioning adult.
This is disingenuous and dangerous. Neither can I, which is why I wouldn’t be buying now and will buy in 10 years time. Time value of money ignored, but the majority of people won’t realise this.
It’s more of the “buy now and don’t worry about prices”, cue the FTBs burning money in the backyard of their new houses as they obviously don’t care about money.
I was pleasantly surprised to see that he brought the client to see an apartment that was available to rent. €1400 in Dundrum near where she works. This was the first episode I’ve actually managed to sit all the way through. I made a point of forcing myself. I don’t know if he does this every episode.
She rejected it out of hand, and he didn’t make any attempt to point out the logic of it, but it was a welcome touch.
She ended up buying in Tallaght under the affordable housing scheme.
I’m almost sure she paid 295K perhaps someone can confirm.
And I’m almost sure I heard him mention an 8% deposit.
That would leave 271400 borrowed over 30 years (I think, might have been 35), plus she had to tap up mummy for the guts of 40 to 50K to clear her loans and cover her deposit (she had €3000 in savings but something like €28K in debt)
That means at least 1500 a month in a mortgage, plus hopefully some attempt to pay back mammy her money. Plus she has to somehow get from Tallaght to Dundrum every morning. M50 Carpark?
And for all that she doesn’t even own her house.
She should have stayed at home, kept mammy company. Let mammy her keep her money. And try to pay down her own debts.
But she seemed happy at the end, so fair play to her.
You can’t ask much more than being happy with your decision.
Ask yourself a the question as follows;-
If this guy was to advise people to hold off buying for a year would he be on tv or not? Answer No
2nd Question does this justify him saying what he is saying about buy now and the value of property in 10 years will be higher ? Answer No
There is also the possibility that this guy doesnt know the time value of money or even if he did do you think he cares as long as hes coming out on top? I dont think so.
Hes a puppet of the VIs unfortunately he may be causing hurt to people over the next few generations who wont know what hit them until they are over their heads in debt.
I didn’t see that episode, but at least she was given alternatives. It is this episode, about the sisters who were encouraged to buy in Carlow to commute to Sandyford, which particularly comes to mind when anyone mentions that show.
Yep, there’s a “Revisited” episode that I wan’t to see.
And don’t forget that one of them got rid of her car in order to qualify for the mortgage.
I think they were offered an alternative to rent in Ron Atkinson’s Village in Stepaside.
lots of equity in them thar parents.
its all about druming up business for John.
That man is scum, yes i said it. The buyers should sue RTE for millions down the line due to that man.
I think i was the first to have mentioned his antics last year in tv/radio thread. Watching a UK program a few weeks ago and guess what they didn’t pump a ‘experienced property investor’ to give advice to FTB’s’
He puts Liz in 2nd place for outlandish sheer lies in his advice.
Back in 2006, I think the figures were…
Average Age FTB = 30
Average gift in receipt from parents = 30k
Nevermind the credit union loan…
Nevermind all that though, apparently everbody does it, they lie on the applications and apparently it won’t matter because when everybody throws keys through the letterbox they can’t deal with everybody…
I have to laugh, because I know what Irish people are like in a struggle generally, they need leading by the nose and haven’t struggled in decades…
Water charges are a distant memory…
Is this really news? I know people in their late thirties/early forties that were given a helping hand after getting married for example to get “set-up” ie buy their first home.
This would have been a long time back before the bubble started.
Plenty didn’t of course and this is only what i’ve seen so is anectodotal.
It was probably an easing of the pain then but would be essential now to a lot of folks. Come to think of it they wouldn’t have been buying glorified flats either.
It’s not new, and I don’t have a problem with parents doing it, it’s their money.
But the point is that “It’s THEIR money”.
I do have a problem with banks making advertisements that try to portray this gifting as the right things to do.
I have a serious problem with RTE (the public service broadcaster) airing shows that ridicule people who live at home with their parents and portray them as leeching or sponging, while at the same time showing parents donating 10, 20, 40, 50K to their kids to “help them” move out.
This is compounded when the gift is not just for a deposit, but a deposit AND clearing the 10’s of thousands of euro in debt that the has been racked up.
The fact is that it can make sense to force people to pay off their own debts, and save for their own deposit, and if necessary rent a place until they can afford to buy, even if they can’t afford to buy until they’re 50.
Economic Outpatient Care is the phenomenon of hindering people by making them dependant on hand outs. RTE would be better servied making shows about what EOC is doing to this generation of Irish people, rather than helping to perpetuate it.
How can it be that after a few years where the gift giving of wealth from one generation to the next was at it’s highest, that we have created the most indepted generation in the history of the state?
It is possible for parents to help their kids with money, as long as
It’s clear that the gift/loan is at the parents discretion.
It’s clear that it’s a once off move to enable the receiver, not
part of a pattern that will jurt them if it continues.
It’s clear that the gifting of money is not the best solution, and not
a duty that parents should feel is part of the normal way of the world.
Oh! and for what it’s worth I don’t think John McQuire is as bad as Liz O’Kane. I find his show boring and have only managed to make it all the way through one full episode. But… he clearly believes that owning a house is the be all and end all.
He’s not alone in that. At least he mentions the possibility of renting. And at least he has actually bought a house recently.
I’d prefer if the show was presented by someone who wasn’t involved in arranging mortgages.
Lis O’Kane on the other hand is a hypocrit who peddles simplistic wisdom gleaned from watching tv, and who doesn’t even follow her own advice.
Has she sold her house yet?
And this is the woman who’s advising people on how to sell their houses…
So how many months is it now Liz ?
Get rid of that ‘U’ and you’ll have the comic store guys will be falling over themselves to buy it.
Maybe her house is made out of Kryptonite - it sure looks radioactive !!
Liz should be fine early next year when demand hots up after the population hits 8 million…
How anyone could take the silly bitch seriously is beyond me.
As noted in the price drops forum, it’s now been reduced by 5%
What type of design is that? Is Art Deco,Bau Haus or Dog House?