Lear Capital Group Report Announces That Bank of Mum and Dad Will Be Burdened by Financial Worry

July 24, 2012 - PRLog -- Lear Capital Group an innovative global investment house with a focus on the emerging markets of the Asia Pacific based in Tokyo, Japan; today released a report highlighting the struggles facing young people as they try to get onto the property ladder, the report says that these struggles are now  are impacting the financial future of their parents and families. In-depth research conducted by Lear capital group shows:

- 40% of 20-40 year olds think that Japan will become a nation of renters within a generation
- The reliance on the Bank of Mum and Dad leaves a 30% of parents concerned for their own financial future
- Just 10% of non homeowners between 20-40 years old are actively saving for a deposit
- Only 5% of parents believe first time buyers should borrow money for a deposit, yet 54% have, or have plans to contribute an average of  $15,000 USD to help their Children.
- 22% of parents have had their children move back home as adults due to the current market

Lear Capital Group’s Chief Market Strategist Jerome O’ Hanlon said: "Our research shows that one year on from last years report, young adults are still downbeat about their chances of owning their own house, and we're also seeing the impact this is causing on their parents' financial future. Even Though Parents think that their children could make cutbacks on vacations and nights out in order to save for a deposit. However, despite concern for their own financial future, parents continue to contribute or welcome their children back to their own home to allow them to save.”

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Lear Capital Group’s report went on to say that deposits continue to be the biggest challenge, the ever increasing size of a deposit, higher house prices and less job security are the top three barriers to home ownership according to Lear Capital group. In addition, 75% of parents believe that the current Japanese economy is discouraging first time buyers (FTB) from buying a property, in line with 70% of 20-40 year olds who fear that it is a risk to buy a home in today's economy.
- 28% have savings of less than $5,000 USD and 25% have no savings at all
- On average, people aged between 20 and 40 who have savings have an average of $15,000 USD
- Men have twice as much saved up as their female counterparts ($15,500 USD compared to $8,000 USD).

However, 75% admitted to spending money they could otherwise be saving for a deposit. More than a third (38%) spent this money on eating out, followed by clothing (35%) and holidays (33%).
Over a third (35%) of parents have made financial contributions to help their offspring get on the property ladder. The total amount of money family members are giving or lending to children has been estimated to have increased by 31% to an average of $15,000 USD in the past five years.

About Lear Capital Group: http://learcapitalgroup.com

Lear Capital Group’s focus and strength is on delivering an outstanding investment service to our clients through exceptional support, pioneering value-creation and wealth-building in the mid to long-term. Combining this with our boutique business model the incentive structure builds our corporate culture by closely aligning the interests of our clients with those of our team. We research and advise on a wide range of asset classes and apply a variety of investment strategies to leverage all of our resources for each and every one of our clients.

Our members of staff work in synergy with our clients and partners seamlessly as one single team. We have an industry-leading team of over 95 investment professionals specializing in global markets, ranging from established asset classes, investments and corporations, through to innovative securitized products. We have investment services for all our institutional and private clients around the world.

We have established a formidable reputation within the industry for delivering the highest levels of strategic advice, operational skills and market knowledge, while maintaining a stringent ethos of diligent professionalism. We are proud to be renowned for exceeding the highest expectations of every single one of our clients worldwide.