I think it would be fair to say that the man knows a thing or two about personal finance! I have been subscribing to his monthly email for many years. Maybe more than 20. I'm not sure. I've been reading his books since the first "Making Money made Simple" came out in 1986. Anyone else here subscribe to his material? In this months email he has a bit to say about all the incentives available to first home buyers today, which he seems to be horrified by generally. Since I've been thinking of helping my son get a start on the ladder I can see how vulnerable the first home buyer is in the market at the moment if they are to buy with a very low deposit. What to do eh? I know it has never been easy for any generation but I don't recall there ever being so many incentives for the first home buyer?
It all depends. It seems to be all about being able to afford the repayments (with a healthy buffer). Our son took advantage of the 105% mortgages available about 15 years ago to buy his first house. He was good at paying but not much good at saving. Worked well for him, he moved on to subsequent houses and now lives mortgage-free. Quite a few of our friends’ kids did likewise, and in all cases it went well, though as always I am sure there were some that didn’t.
Great post! Thanks Marg, I think my son is a bit similar. He earns a low wage but is a very good saver He works two part time jobs but after a chat with a broker he probably does not have much of a show of getting finance. Even if he could I'm not sure it would be wise without our help.
