Advice please

buttmunch

Thank you for the replies, this is no longer an issue.

blinko

house aprices are fine they have easily bottomed,
why are you selling the house
have you considered letting in 5 years time the housing market will be in alot better shape

30k at 3% is £900 pa which is nothing really compared to inflation

amcluesent

IMHO if your intention in setting the money aside is to maintain benefits then you'll fall foul of the deprivation of capital rule and your benefits will be cut anyway.

You could look at altering the inheritance of £20K so it goes to your child via a trust until they're 18, but then you probably can't use it as a deposit.

blinko

hence the 1 post

buttmunch

amcluesent wrote: »

IMHO if you're intention in setting the money aside is to maintain benefits then you'll fall foul of the deprivation of capital rule and your benefits will be cut anyway.

I've never heard of that rule so will look into it.

The intention is to maintain a deposit so we can improve our lot in life, better area with better a better school for our children.

The NHS bursary is the biggest issue here to us. Afterall she spends approx 30/40 hours a week working on wards doing the jobs they would normally pay a full time member of staff for and her only form of payment is a means tested bursary of £380 a month.

blinko

your problem here is you need to decide what to do with your house

the only other thing is a trust which would probably be in your childsrens name as far as i know good luck

buttmunch

blinko wrote: »

your problem here is you need to decide what to do with your house

the only other thing is a trust which would probably be in your childsrens name as far as i know good luck

I've just been looking into the deprivation of capital thing, and it does look like putting it into our current house would be the best as it is the house you live in, it makes a difference...

Can you explain what you meant in this post
"30k at 3% is £900 pa which is nothing really compared to inflation"

amcluesent

>"30k at 3% is £900 pa which is nothing really compared to inflation"<

So inflation is over 3% anyway, the interest earned isn't keeping up with the decline in buying power of the capital.

Of course if house prices drift down 10% in the next year, that won't matter so much.

Rob_192

blinko wrote: »

house aprices are fine they have easily bottomed,

You reckon? Probably depends where you are, but I sense they're dropping round our way (SW). There seems to be no confidence whatsoever in the market.

blinko

house prices are easily bottomed, i cant see them falling 10% more i would say they will remain stagnet though dont expect any capital gains on a house at the moment, it will take min 5 yeras for house hold debt to be reduced, mortgages to become less tighter, wages to increase and all that

now is agreat time to buy

this is certainly true for london but i cant see house prices falling much further but again i do feel that we are at the bottom of the cycle so i would sit tight, if you want you can rent out your property and wait till the market recovers

but with regards to OP i would sit tight in 5 yeras time your lady should be in regular employment, you too,

personally i woudl ivnest the money in the markets, at the moment the cheapest mortgage is around 2.5% which is nothing savings accounts are yielding more than this technically you could borrow 200k and make 0.5% on it in theory risk free


anyway i hoe this helps the OP

jimjames

I'm not personally sure we have hit the bottom for house prices yet. With the banks due to pay back a huge chunk of funding next year & after they could well be reluctant to lend or require bigger deposits which will stall the market. If the current ratio of sellers to buyers is maintained then prices could go down further.