Pi Attitude Zone: Affiliation & Cohesion
Buy A House? Whoa, You’re On Your Own, Kid
In the last 35 years, house prices in the UK rose twice as fast as homes in France, Germany, Japan and the USA. Britons went for home-ownership with the same zeal that Americans brought to the buying of stocks and shares.
Over time, the rising value of bricks and mortar fueled a British epidemic self-indulgence, as home-owners re-mortgaged their properties and went on spending sprees with the proceeds.
The casualties of this rather egocentric behavior were younger first-time house purchasers. Young couples (and also increasingly young singles) started finding it well-nigh impossible to get their feet on the first rung of the property-ownership ladder.
As a result, they turned to their parents. Britain’s Council of Mortgage Lenders recently noted that over 40% of first-time buyers were dependent on financial help from their mothers and fathers, aka The Bank Of Mom & Dad.
When the family couldn’t, or wouldn’t, help out, the kids simply got left behind in the home-ownership race. Skinflint parents who preferred spending their money on themselves were ruefully dubbed “SKINS”, for “Spending the Kids’ Inheritance”.Zone: Affiliation & Cohesion Country: Europe Product – Financial