Rent Private or Buy from Family?? Help!!

Robert_Sterling_3

Thank you for your reply to my post.
I have re-read your original post.
I note that you say you can easily afford the rent of the best house in the village. So the best of luck to you and I am now out as they say in Dragon's Den.

Geenie

I would check the history of this 5 bed house before jumping! Find out how long it has been a rental and if ever on the market for sale in recent times, as this might show the owners cannot sell in the current market, but may well wish to do so in a few years and get you out.!!

Research before you do anything you may regret in the future, as at least you know you have security at present. And remember that apart from the rent, a 5 bed house will have all the equivalent Council tax, heating and bills associated with a larger place, so find out what these would be!

McKneff

To be honest as a parent, and if i had a few properties, I would presume with rent coming in i would be living pretty comfortably, then i would be giving my child the house, not selling them it. Hey, but thats just me.

gaz_jones

anniehanlon wrote: »

To be honest as a parent, and if i had a few properties, I would presume with rent coming in i would be living pretty comfortably, then i would be giving my child the house, not selling them it. Hey, but thats just me.

They didn't say the father own lots of properties though. And if you can afford to give your child what could potentially be a £200,000 property then well done to you. I don't know many people in a position to be able to do that!

McKneff

Vness81 wrote: »

Oh just to add...The Inlaws own the house we are in now outright, they have a few other properties in the area which they own outright, so they have no mortgages or loans on this property.

Hi gaz, I know they didnt say the father owned lots of properties, they said they had a few properties.

No, i am not in a position to be giving properties away, (i wish)
my earlies post said 'if I had a few propeties'

Vness81

Thank you all for your comments, it has helped a lot.

Either way we want to move from here, if we buy from parents, I don't think we would sell this anytime soon with the market how it is, but even if we got full value for it, we would still need to borrow more money to be able to buy a bigger property. Which may not be a problem in a year or so when I'm back in full time work, but isn't an option at the moment.

Obviously in terms of investment & getting on the ladder, buying this would be the logical thing to do. We get the biggesr mortgage we can, buy this, sit on it until I'm working full time, then up or our mortgage to be able to buy a bigger place, which all in all could take 2 years or more if no one wants to buy.

We gave the idea to inlaws of them selling this, and we find a bigger house which they put a share of the price in, and we get a mortgage on the rest, so we both own a share, we pay them part rent, & our mortgage, similiar to the shared equity scheme thing?
Their response was not too willing...saying that it is too much hassel and too long winded, although I think that would be a great idea & the best help we could have. It made me think that clearly they would not be benefitting as much from that as they would if we bought this off them???? They are not short of a few bob, and the income they get from us on this place now is pocket change to them, I know they are thinking of their own investment, and to be fair I probably would, but when I spoke to my mum, she said if it was her, she'd let me have it, or at least only pay a small amount in rent, or sell for a lot less if it meant us having our own place. But everyone is different.

I think we will speak to a mortgage advisor today, find out what mortgage we can get, and with what the amount is, see if the inlaws will sell to us for that. If so, we buy and wait til our joint earnings are higher & we can afford to buy the bigger place (whether or not we can afford to pay fees etc in the meantime I don't know!)

If they won't sell for that amount, we go and rent the big house, (which I know will cost more to run, but not that much more, I have checked out the council tax etc, so we're ok for those things) Although I will do some research into the background, and take some advice from here regarding what questions to ask the landlord & agent.

If we do go for this option, would it be best all round to do everything through the agent? Ask them all the questions?

I don't have anyone close by who I can talk to about this, so all comments welcome, Inlaws are in Spain til thursday so we can't really speak to them til fri.:rolleyes:

penguine

If the house you're living in isn't suitable at present, I don't think it's worth actually buying it. House prices are likely to fall for several more years at least, because they were over-inflated by mortgages being too easy to get. Also we've just entered a (very serious) recession -- in past recessions property prices fell for several years then remained level for several years before starting to go up again.

I don't think you'll be "getting onto the ladder" by buying this house, instead you risk ending up in negative equity. And paying rent isn't dead money when house prices are falling by several percentage points every month.

simpywimpy

Would the inlaws consider you doing a rental purchase?

To be honest, it sounds as if you don't want the house you are in now anyway. If you suddenly came into money for example, would you buy it or something else? If the answer is something else, then don't buy under any circumstances.

Catblue

You seem a bit unsettled having your finances linked to the in-laws' finances at the moment. I would be too.

I would try to sever the financial link between yourselves and your husband's family. The current house is unsuitable for you and you don't really like it, so no point in buying it and then scrimping and saving to do it up.

I would rent for a bit (not from family) and try to save up for a house when you are able to increase your income in a year or two.

Vness81

What about this idea?

We buy 50% (or whatever %) of this house, say if inlaws would sell it to us for 100k, we get a mortgage for 75k, we have the 50k for th ehouse and 25k to build an extension. We pay rent to inlaws for their half, or if they accept we buy their half from them but monthly.

That way, we build a bigger house, we don't need to get the biggest mortgage, and once it's built it will add value to the house, which means inlaws share grows as well as ours, although there will be difficulty in selling and affording even bigger or judt different, if the inlaws will want their 'new share' paid back when we move.
If this house was bigger we'd probably more than likely stay here.
If they say no to this, does this prove that they're not at all selling this to us because it's best for us, it's so they dont have an empty property if we rent somewhere else? And to say stuff it, & go rent the other place and look at saving our butts off and looking at buying in a few years?