More than half of Irish people believe ‘Bank of Mom and Dad’ should support first-time buyers
Buying a house in Ireland ain't cheap these days.
Over half of Irish people believe parents should provide financial assistance to their adult children to purchase their first home, when they can afford it.
According to a survey commissioned by Lotus Investment Group, a Dublin-based investment management firm which lends money to property developers, 51% of Irish people believe that parents should provide financial assistance to their children whey they are buying their first home.
34% of respondents to the survey (carried out by iReach on 1,000 people throughout the country) said that financial support from parents can only be determined on a case by case basis, while a further 15% believed it was not a good idea to varying degrees.
Breaking down the figures further, a higher percentage of men (19%) than women (11%) felt that their parents should “support their children, whenever they can, no matter what.”
Older adults (over 55), meanwhile, who are likely to be parents with grown-up or nearly grown-up children, are more supportive of the idea (59%) of parental financial assistance than middle-aged adults between 35-54 (48%).
Also interesting is the regional divide, which Lotus Investment Group say likely relates to the cost of housing in urban areas compared to rural areas.
Only 10% of respondents living in Dublin believe that parents should always support their children whenever they can, compared with 25% in the rest of Leinster.
Commenting on the survey, David Grin, Chairperson of Lotus Investment Group, said: “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.
“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.
“But 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.”