More than half of Irish people (51%) believe parents should provide financial assistance to their adult children to purchase their first home when they can afford it.
This is according to a survey commissioned by Lotus Investment Group, a Dublin-based investment management firm which lends money to property developers and carried out by iReach on 1,000 people throughout the country.
The survey results saw 51% of people voice their support for financial parental assistance, while 34% said it can only be determined on a case by case basis, and a further 15% believed it was not a good idea to varying degrees.
The Lotus IG survey reveals that while 51% are broadly in favour of parents helping out their children to get their first home, a large portion (36%) of this group are cognisant of the fact that the parent’s financial future should be taken into account before making any big decisions in this regard.
Lotus Investment Group report that property price growth has slowed considerably with the market now close to equilibrium, which is good for buyers. However, as evidenced by recent reports, the fact remains that affordability is still a challenge for thousands of would-be First-Time-Buyers all over the country.
The Central Bank of Ireland mortgage lending limits continue to preclude some people from taking those first steps onto the property ladder, with recent research pointing to the amount of deposit required as being the biggest stumbling block in many cases. Lotus say high rents and high property prices are making that elusive ‘10%’ a challenge, as those in their 20s and 30s struggle to budget for monthly expenditures and the savings required.
Speaking of the survey, Chairperson of Lotus Investment Group, David Grin said, "Is the ‘Bank of Mom and Dad’ an option for financial assistance or should it be? This is certainly a delicate topic. While some families are fortunate enough to have the financial means to help their children out if they so wish, there are many others for whom it’s simply not affordable. In many cases, sons and daughters would know the finances of their parents and so would never approach them for assistance, but in some cases the financial situation may not be as clear, and parents may feel under pressure to come up with the cash from somewhere – though they too might be finding their finances tight."