PLEASE READ BEFORE POSTING
Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.Gifting a Property to Children
Comments
-
Sadly I don't quite have the funds to buy them a house each!
The rent elsewhere is a bit of red herring as it's cost neutral.0 -
Sadly I don't quite have the funds to buy them a house each!
The rent elsewhere is a bit of red herring as it's cost neutral.
> That may be so but you could sell or mortgage the spare property you already have to finance it along with the future rental income. It's pretty normal for people letting properties to have mortgages. This is a choice but you were asking of ways to reduce their debt - this would achieve that by reducing their outgoings.
> I don't know what you mean by the second bit0 -
Getting a mortgage on the 2nd property is something we are looking at as well yes. I think we can get 70%of the value which we'd use to buy another rental property.
What I mean was wherever our children live it's more or less cost neutral. If they have a room in a property we own, we lose that income. If they live elsewhere they pay rent but we get rent. Outside London, student rents don't really vary that much in our experience0 -
-
It's bit hypothetical now as I'm persuaded that the loss of 1st time buyer benefits and access to the long term savings scheme probably outweigh the tax benefits, but to answer your question, the risk of something going wrong is there irrespective of ownership and I'd deal with it.0
-
It's bit hypothetical now as I'm persuaded that the loss of 1st time buyer benefits and access to the long term savings scheme probably outweigh the tax benefits, but to answer your question, the risk of something going wrong is there irrespective of ownership and I'd deal with it.
What if the thing that goes wrong is that you aren't there to deal with it?0 -
Blimey....What if we never did anything for fear of something going wrong?
If I've gone under a bus, they'd know who to call.0 -
ghostBUSters0
-
Blimey....What if we never did anything for fear of something going wrong?
If I've gone under a bus, they'd know who to call.
It just seems more like a burden than a gift for two university age young people, and with property, especially rented out property, you do have to consider various possibilities.0 -
Hi,
Slight tangent but if you are consider taking further mortgages to finance future rentals make sure you understand the effect of recent tax changes on buy to let.
If you are a higher rate tax payer, or the income from your rental properties makes you a higher rate tax payer, income tax relief will only be applied to your mortgage interest at the basic rate.
Basically if you have mortgages (and are/become a higher rate taxpayer) you can find yourself with tax bills to pay even when there is no profit made, money which you then have to find yourself.
Tlc0
This discussion has been closed.
Categories
- All Categories
- 343.2K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.3K Work, Benefits & Business
- 608K Mortgages, Homes & Bills
- 173.1K Life & Family
- 247.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards