Buying a house of flat

loulou41

Helping daughter to get on the property ladder. Cannot decide whether to get a house or a flat. Our budget allows us to buy a house, this will be in joint names for daughter and son but she will be the only one living there. At least two bedrooms so that son who wants to work in London can live temporarily there whilst he is looking but will not be living with her. The problem is whether to buy a flat in London where she works or buy a house in Harrow where she is living now and she can catch the fast train to Euston which is convenient for her. Ideally as she is single, a flat will be more appropriate for her but she is concerned about the management fees etc which could be as much 2k per annum, I am not sure what she will get get for that but she will be more secure in a flat amd will be able to cope better. The flat will have to be near where she works in zone 2 preferrably, currently she is paying £180 a month for train fares but she can travel anywhere in London. I think even if she lives in central London compared to where she is living now in Harrow, she will still spend more than 15 mins on the tube, at the moment, it takes less than 15 mins for the fast train to reach Euston. She works in Russell Square. I would rather buy a house for her in Harrow, but she thinks a family house will be too big for her to look after. There is also the option of renting a room if the house is too big which she is not too keen.

My main concern is, I cannot predict what will happen to her in a few years and if I bought a family house, it will be difficult to shift as the one I had in mind is about 325k in Harrow whereas for the same price I could get a flat in London 2 beds, and it will be quite easily to rent or sell, that's what I think. I would very much appreciate some advice on this. I am torn apart, her friends and my son are tellling me to get a flat in London, but I do not think she will be able to afford the expensive management fees + her tube fares. She does not have to worry about anything, she just has to live there,it's just I do not know what to do. I have been looking since Feb and still have not found anything. The house I have seen in Harrow is nice but a big family house with shower room downstairs etc., and deep down I know it is too big for her but it is ideally suitated only 0.2 miles to Harrow & Wealdstone Station and at 325k a bit above my budget but I could strecth if necessary for the right location. Somebody mentioned you could always give your house to a Housing Association to rent. I have to think ahead as I do not want to be lumbered wih a big house if ever she decided to move to another part. I would appreciate some advice, please. Thanks

clutton_2

what a great thing to do !

Where does your daughter want to live and what sort of place does she want ?

loulou41

She does not mind living in Harrow, but it takes her about 1 hr from the time she leaves her place in Harrow to get to work. She is renting a room there from her godmother, she has access to a big house. She has to catch the bus to the station and get the fast train which takes 15 mins to Euston and then she has to walk about 10 mins to get to the University where she works. She would like a flat but as I am helping her to buy, I would rather buy a house so that she does not have the management fees etc to worry about and I am not keen on leasehold. I would rather help them now whilst I am still alive, basically I am giving them their inheritance now instead of having to worry about inheritance tax. Hubby said ideally if we can get a flat in London, it will have to be near where she works so that she does not have to pay a lot of tube fares. That's why we are looking near Harrow & Wealdstone Station so that she does not have to travel by bus. If I have to buy a flat, I would rather buy in London not H & W. Thanks for asking

LeanneF

Dear Loulou,

I remember you posting on this question a while back & you're clearly no closer to resolving it.

I get the sense that you'd prefer to buy a house, whilst everyone else you've asked is advising a flat. I guess that a house in Harrow seems like more bang for your buck than a flat in London. But if I was young, free & single (which it sounds like your kids are) I'd be biting your arm off for a flat in London.

If you want to be objective, prepare a thorough comparision of costs. Management fees are expensive, but not all flats have them & besides other costs like council tax, heating etc are much higher in a house. Having the numbers laid out in black and white will allow you and your daughter to make a decision based on affordibility.

Also, and personally I think this is a very important issue & possibly why you're no further in making any decisions, who will actually own the house/flat & who will be paying the mortgage? You start by saying it will be joint-owned by your son and daughter and finish by saying you don't want to be lumbered with a big house should she decide to move. If you're unclear about who will own the property, then undoubtedly your daughter is and is perhaps unwilling to state exactly what she'd like because you'll have the final decision anyway, so what's the point. If it's a gift to your son and daughter then it needs to be just that, a gift with no-strings-attached & they must make these decisions, otherwise how will they feel responsible for it. If it's not a gift & you will ultimately own the house, then you need to think what would be best long-term when they move out

Leanne

loulou41

Thanks for your good advice Leanne, the house will be owned outright by daughter and son, it will an unconditional gift and it will be in their own names. I did have a chat with my Solicitor and he said once it is in their names, they could do what they want with it and I will have no say in the matter. I do trust my two children. and hope they will not do the dirty on me. Personally I would prefer a house but deep down I know a flat will be more suitable. And like you say a house will cost more to run electricity etc. I suppose I am really imposing on them since we are the only who will pay for the house. I do not like flats and I can afford to buy a house,we have saved hard to get the money and I want to make sure I make the right decision. Thanks for your advice, I will take them on board.

LeanneF

LouLou,

I answered your question because I recognised parts of mine & my Mum's relationship & wanted to give a daughter's point of view because I have dearly wished someone would do this for me with my Mum

My Mum is very generous with gifts & frequently picks things up she thinks I'd like. However, what she thinks I like/need and what I actually do like/need are not necessarily the same thing! I don't say anything, because I know the pleasure for her is in the buying and giving and even when she's asked what I'd like & I've been very specific, she still gets me what she want to get me rather than what I want. For example, she asked me what I'd like Christmas years ago...I said an electric juicer...and I got a food processor. The processor costs loads more than a juicer would have done, but because my Mum thinks juicers are a waste of money she got me the processor. Which I very rarely use. And so I bought my own juicer.

A quick straw-poll of my mates in the pub reveals this phenomemon is not just isolated to me and my dear Mum, rather it's endemic among all Mums! So whilst costwise houses in Harrow & juicers are poles apart, I feel that the fundamentals are the same

Good luck, Leanne

UK007BullDog

As you want it to be a gift and as it is for your kids with the money you have quoted you could buy 2 flats in London, not right in central London but in zone 2 or 3, you should let the kids decide what they want as they will have to live in it and will be stuck with it for quite a while.

Also for the future it would be easier for renting out 1 or 2 bedroom flats. Not all service charges are outrageous. There are still lots of gems out there.

House usually equals a garden. Do your kids like gardening? Do you? Will you be able to do gardening work in the future when you are older, if the kids have no interest what so ever? Can you manage two gardens, yours and theirs?

Personally I have the same plans as you have in the future but I would always keep my foot in the door by being on the mortgage. No matter how good and nice kids are now they could go off the rail though bad influences etc. I am not going to risk my hard earned money on some crazy idea my kids might have. They will have to be well settled and grounded (probably in their mid 40's LOL) before I let them have full control of the property. Of course yours might be good like gold and never do anything to harm your investment, I on the other hand have seen a lot of goodwill go bad through external influences, so my judgement might be a bit on the negative.

Jorgan_2

As the property is an unconditional gift to your son & daughter, why not ask them what type of property they would like & in what location. That way no one can complain over running costs, management fees etc if it was their decision to live their.

EdInvestor

How about splitting the money in two bits and giving half each to your son and daughter so they can each buy their own flats or houses with the benefit of a very generous deposit

They would of course need to exercise their choice in the context of having to get mortgages and pay them off. This tends to encourage a sense of responsibility, which a conditional gift, especially one with strings attached which so far this appears to be, does not.

clutton_2

if you give a house to them - they may change jobs, or not want to live together, if one gets engaged, or any number of scenarios - where will that leave the property you have bought?

i totally agree about mums buying what they want rather than what the kids want !! i wanted some new tyres one year, mum bought me two jumpers !!

anyway, i think the best possible solution of all the answers on here is for your kids to find their own homes/flat whatever they want, and you to pay the deposit directly to their solicitor - they then have their foot on the first rung of the ladder and can start on the property ladder, you have given them a most valuable gift, and they are starting the responsibility of adult-hood by managing their own mortgages and homes

good luck

[Deleted User]

I would buy the house instead of the flat. There is a little bit of future proofing in this because if her circumstances change and she falls pregnant - she does not have to start thinking of moving to a more child friendly place.

Also, a house is more animal friendly than a flat if she should wish to have a pet. Some flats don't allow pets.

Houses generally may be quieter than flats in terms of hearing the neighbours. At least with a house, even a terrace, there will only be noise from either side - with a flat, there may noise from upstairs and downstairs as well. With the trend for wooden floors these days - it's definitely worth considering this aspect alone.