Indecisive on renting opportunity

mattih5

I need some help or pursuasion.

Recently my grandmother was moved into a home as she had suffered a stroke. As a consequence her house has become available to either rent to myself and my girlfriend or sell.

I suppose what I am trying to do is gain some thoughts on the subject of renting. I personally would not like to see the house disappear out of the family because it is in a excellant location (surrounded by fields) with quick access to the rest of the town. The rent is £500 a month plus rates etc, the property is worth something in the region of 180,000 and I will be sharing the costs 50/50 with my partner. i think the council tax is 120.

I am 22 and have recently graduated (8 month ago) and have been employed on graduate salary for 6 month. A lot of people are telling me that I am too young to be thinking of doing anything like this, but then other people are saying take the opportunity because the rent is being offered at a substantially lower price than what it should be. Also, the house will be kept within the family, the potential to buy the house further down the line is available (at a discounted rate), the house is already furnished, excellant area etc.

I suppose what I am trying to ask for is perhaps reasons to go through with the opportunity or reasons to not take the opportunity and stay the way I am. I have family saying take the opportunity whilst it is available and potentially a way onto the property ladder by having the opportunity to buy the property at a favourable rate but I also have people telling me renting is dead money and that I should wait. I know i'll look back in a couple of years and kick myself for not taking the opportunity whilst it was available.

Could anyone voice their opinions and if they need more information I will provide more.

Old_No.7

I think renting is a good option: you're still young, so might be moving around for job (buying means you are much less flexible) and cheap rent means you can save up a lot for a deposit. That's what I've been doing in the last year with my partner: it was also a good way to see if we got on living together. Everything worked out well, so now we are buying, and we have managed to save a deposit way beyond anything we had expected! Renting is not dead money as long as the deal is good.

That said, I'm not sure who owns the house now: your nan, or the council? Who would you be paying the rent to, basically: if it's the family, it might get a bit tricky perhaps, what is another person in the family wants to take up the same opportunity? If it's the council, will you be allowed to move in (assuming there is housing need/a waiting list in your area, as there is in most parts of the country).

BobProperty

Old_No.7 wrote:

That said, I'm not sure who owns the house now: your nan, or the council? Who would you be paying the rent to, basically: if it's the family, it might get a bit tricky perhaps, what is another person in the family wants to take up the same opportunity? If it's the council, will you be allowed to move in (assuming there is housing need/a waiting list in your area, as there is in most parts of the country).

And if your nan owns the property, is the LA going to come after it to pay the home fees?

mattih5

Hi,

Thanks for your replies.

It is my nan that owns the house. The money collected from rent is going to be used to fund her residency in the home.

mattih5

BobProperty wrote:

And if your nan owns the property, is the LA going to come after it to pay the home fees?

My nans pensions, dividends and savings interest plus the rent is going to pay for her fees.

BobProperty

I think you are going to have to rent the property as you would have to buy it at market value, which I assume is unlikely on your earnings. Otherwise both other relatives and the taxman (and LA) will want to know why you got it at a discount.