An idea - buy a house for myself and other grads

neverdespairgirl

You and friend would both have to be prepared to lie about the deposit, and potentially commit fraud.

spence

HI,

You've thought about it, you've researched it, you seem intelligent and know what you want. Most significantally you are not prepared to skint yourself to get it.

I would be much more sceptical if you had mentioned "my dream house" which I always see as a normal house that said person can't quite afford but uses this phrase to justify the purchase to themselves.

If the sums work out go for it! Your wages I presume will be heading upwards before BOE interest rates.

Good luck.

Spence

Lokolo

neverdespairgirl wrote: »

You and friend would both have to be prepared to lie about the deposit, and potentially commit fraud.

Hi thanks. So you can't say it's a gift? I assume things like deposit from parents is the same then and you should state your parents gave you the money?

madeupname1

Assuming you qualify for a reasonable mortgage and you can fund it yourself, then I would go for it. Ideally you want to be able to fund the mortgage without having to rely on rent receipts because lodgers may not pay on time or at all or move out on short notice. I don't think age has much to do with it.

Mouseman

A residential mortgage is presumably your only option with limited deposit capital? This will be determined on your salary/income alone and as has been mentioned above, the prices you're talking about would involve huge multiples from the mortgage company, which is unlikely.

A perfectly good idea but the numbers don't work as far as I can see. Of course if house prices were more "reasonable", it'd be a goer

NyimaR

I don't know if this will help with fixing up your ideas at all but this is my experience of a similar situation. When I was still at university (in my first year in fact) I bought a property rather than renting for the rest of my time at the university (was in halls for 1st yr). I then let out rooms in my house to people who I'd shared with in halls. I was able to avoid tax on this as I came in under tax allowances when the rent-a-room scheme was also considered (if you're working this won't be possible but you should still look into teh rent-a-room scheme to reduce tax payed). I mortgage and most of teh bills wth teh rent and now I'm looking to sell and buy elsewhere I'm very glad I did that as I would be in a much tougher financial situation otherwise.
BUT... This was back in 2003 then markets were very different. I was able to get a guarantor mortgage on my mum's income and only had to put down a 10% deposit. I guess things will be very different these days.
In short - if you can get the finances together to do it then it's worthwhile!

neverdespairgirl

Lokolo wrote: »

Hi thanks. So you can't say it's a gift? I assume things like deposit from parents is the same then and you should state your parents gave you the money?

if it is a gift, you can say it is. They are likely to want both you and friend to confirm it's a gift. If it's not, and you lie about it, that's fraud.