First Time Buyer - Buying with Father... Good or Bad Idea?

Phill_1981

Hi guys,

Just been to see a 2 bed flat way above my budget at £185 which I really liked.

Now as I can't afford this on my own my Father has said (as an investment for himself) he will buy a share in the place with me...

For example I put down the deposit and pay 60% of the mortgage and he pays 40% and then share any equity in the property when I sell or am able to buy him out.

Is this a good idea for me? Anyone else done the same?

DrFluffy

Remember to cover yourself for the deposit cost... Can be quite substantial.

Otherwise - this is very common now. A lot of my friends part own with their parents, without issue as far as I am aware. You are the best judge of your fathers character, and if anything concerns you about his past behaviour, deal with it now, rather than ignoring it 'because he's your dad'...

Phill_1981

DrFluffy wrote:

Remember to cover yourself for the deposit cost... Can be quite substantial.

Otherwise - this is very common now. A lot of my friends part own with their parents, without issue as far as I am aware. You are the best jusge of your fathers character, and if anything concerns you about his past behaviour, deal with it now, rather than ignoring it 'because he's your day'...

thanks for the post :beer:
Nothing concerns me about my father, he would do anything to help me (and his 3 other kids) out.

DrFluffy

Cool - I woud go and get a legal view first, just so that you ae aware of any potential issues when you come to want to buy your dad out - such as capital gains tax. Otherwise, why look a gift horse in the mouth (never really understood that phrase!)

Phill_1981

DrFluffy wrote:

Otherwise, why look a gift horse in the mouth (never really understood that phrase!)

Exactly what I thought :rotfl: Shall try and have a second viewing of the flat and then decide for sure :beer:

Anyone else have any opinions?

clutton_2

""why look a gift horse in the mouth "" - possibly something to do with the Trojan Horse episode ?

go for it, buy with dad, but get separate legal advice for yourself - one solicitor cannot advise you both in an impartial way.

Mrs_pbradley936

DrFluffy wrote:

Cool - I woud go and get a legal view first, just so that you ae aware of any potential issues when you come to want to buy your dad out - such as capital gains tax. Otherwise, why look a gift horse in the mouth (never really understood that phrase!)

The term relates to the fact that you can tell the age of a horse by the condition of its teeth. Thus if it is a gift why would you care about the state of the teeth/age - you are not paying anyway.

DrFluffy

pbradley936 wrote:

The term relates to the fact that you can tell the age of a horse by the condition of its teeth. Thus if it is a gift why would you care about the state of the teeth/age - you are not paying anyway.

Cool - someone once told me it was related to the Trojan horse, but that never made any sense to me, as I can think of lots of reasons for looking a gift Trojan hourse in the mouth

Anyway - sorry, I seemed to have hijacked the thread, back to fabby fathers helping you buy your first home...

Mrs_pbradley936

Good advice from clutton. Helped my son in a similar way but place not registered in joint names due to capital gains. We have a trust of some sort, I know the gist but not the details so see a solicitor. Basically we have provided funds to enable a purchase but the place does not belong to me or my husband, to belongs solely to my son.

Mrs_pbradley936

Forgot to mention how capital gains works which would help. Your only property/home is exempt from Capital Gains Tax. Any other property is not. Assumming your father has his own home if he owns another property any gain is taxed at 40%. There are allowances but that is it in a nutshell.

gallygirl

Only concern I have (assuming you sort out CGT issue) is teh fact taht you have 3 siblings. Is there any possibility your dad might want to help tehm out at some stage? Would he be able to help all of you at the same time?