Some advice on house buying and house price offers

ces59

Hi everyone - I am new to all of this having not bought a house in 17 years. My youngest daughter is in her mid twenties and has no chance of buying a house on her own. So I have decided to buy a place with her which she will live in and pay some rent to me (and hopefully eventually own it outright). As my part will be cash and I will be giving her a deposit also (to match what I did for other kids) she will need quite a small mortgage as we have set a ceiling of about £130k for this first property. This does not buy a lot in our neck of the woods and she has certain tastes. She does not want a modern flat preferring an older property. So the questions are:

Firstly - Is this the right time to buy - should we wait a little longer - are prices likely to get lower?

Secondly:

1. Buy a modern flat with a service charge in a better area (no chance of house here) OR
2. Buy an older (and larger) property with more character in not such a good area? Also will need work which will have to be saved for.

Also - they say it is a buyers market and as we would have nothing to sell how hard should we go in with our offer (when we eventually find somewhere). We thought we had found something at £140k and I thought to offer £125k but we did not pursue it when it became clear it was very overpriced and needed nearly everything of substance doing. How hard should you be of making offers?

Lastly - are there any issues I should know about in planning to buy somewhere with my daughter? is there a better way to do it?

hazyjo

I presume she actually wants to buy something and is in a secure job and isn't likely to want to go travelling, or move away...

Have you both talked about what happens if/when she meets someone? What if he moves in, say they get married... what happens if they split up? What if she wants or has to sell to buy somewhere else? What if it's in negative equity? What if she loses her job? Gets pregnant?

So she has no deposit saved, but you think she'll afford her half of the mortgage and rent?

I think you're being very generous, and very kind... but there would be far too many uncertainties for me to do anything like that. You'd be better off just gifting her a large sum of money to put towards a house (if that's what she wants).

I've no idea if you could claim rent off her (especially being your daughter) if you both own the property - would that then not be a BTL? But then she'd own it too, so probably not... it's all very confusing. I think there are other legal issues to consider with her being your daughter, but someone else will have to go into those.

Jx

ces59

hazyjo wrote: »

I presume she actually wants to buy something and is in a secure job and isn't likely to want to go travelling, or move away...

Yes she has had enough living at home and feels it is time to get started on her own. She has a secure but challenging job.

Have you both talked about what happens if/when she meets someone? What if he moves in, say they get married... what happens if they split up? What if she wants or has to sell to buy somewhere else? What if it's in negative equity? What if she loses her job? Gets pregnant?

There is someone around and that is part of the issue. He does not have a job and lives at home. This way he is likely to move in with her. Even though he is nice guy he understands it would not be fair for him to move in with us as he would be around all day.

So she has no deposit saved, but you think she'll afford her half of the mortgage and rent?

The deposit will come from me and so with the half we are also providing her mortgage will be very low. Not sure what the position will be regarding her boyfriend in legal terms.

I think you're being very generous, and very kind... but there would be far too many uncertainties for me to do anything like that. You'd be better off just gifting her a large sum of money to put towards a house (if that's what she wants).

In effect that is what I am doing but I am not sure about the wisdom regarding the house market. I cannot afford to gift the whole lot as I would have to do that for my other children and cannot afford to do that. This way it is equal.

I've no idea if you could claim rent off her (especially being your daughter) if you both own the property - would that then not be a BTL? But then she'd own it too, so probably not... it's all very confusing. I think there are other legal issues to consider with her being your daughter, but someone else will have to go into those.

Jx

Thanks for your advice. The other alternative is I buy a flat that she can rent and that gives her great flexibility. This might be the best option if we cannot find what she likes.