Horns of a Dilemma

wageslave

I have some money coming. It's a complicated family thing, the details of which I won't go into.

I expect to get the money around the end of the year and it should be somewhere between 40 and 50k. Nearer 50 according to my brother but he is the eternal optimist when it comes to cash.

Lets say 40 and anything over that I will spend on shoes or heating or something.

I am not particularly well off, I have a daughter who has just finished her first year at uni and two small girls. All three are frighteningly expensive.

I own my home (no mortgage) and am petrified of debt. I am divorced:(

The brat at uni spent the first year in halls (food included, I didn't trust her to cook). It cost a kings ransom and she hated it. Room too small, en suite shower/bathroom ditto. Food disgusting. Internet access too slow. Ad bliddy nauseum.

What I would really like to do is buy a flat in Edinburgh for the brat, sell it when she graduates, and hand her the dosh to start her off in life. Only given that we would be talking a fairly short term investment and the precarious house market (particularly flats) I am really nervous.

I have other options. I could buy a flat or most of an ex HA house in my town, let it out and use the rent to fund the brat at uni. Or I could just invest the cash.

Whatever I decide, I intend cashing up when my daughter finishes uni.

I am really stuck here. I regard the cash as a way of securing my daughters future, I just don't know how best to go about it.

I cant afford to make a mistake.

Help........

1984ReturnsForReal_2

Every time the market crashes buy.

When it goes up by 20% sell.

Repeat for 4 years.

You will be a millionaire.

Pimperne1

In the current climate I don't think I would be getting into property. I certainly wouldn't be giving the dosh to the older girl when I had two others on the way up either (although I might subsidise her a bit for the next two years)! Don't think I can say more than that (except if you are risk averse perhaps you should just try and invest it longer term in an account that will hopefully keep up with inflation).

tartanterra

wageslave wrote: »

I am not particularly well off..........

am petrified of debt.......

I would really like to do is buy a flat in Edinburgh for the brat, sell it when she graduates, and hand her the dosh to start her off in life.....

talking a fairly short term investment.......

I am really nervous..........

I cant afford to make a mistake.

Help........

Everything is screaming "DON'T TAKE A SHORT TERM GAMBLE ON PROPERTY".......

HAMISH_MCTAVISH

tartanterra wrote: »

Everything is screaming "DON'T TAKE A SHORT TERM GAMBLE ON PROPERTY".......

I wouldn't have thought 36 months is a viable term for ownership in about 15 years out of 20, by the time you factor in transactional costs.

But if you can find a bargain 2 bed, charge a decent amount for a flatmate, and hold it for 5-7 years, it could turn a tidy profit.

Pimperne1

From my perspective, not that I have held one, but owning a property which is remote from where you live (is it?) is not the ideal situation to be in as a landlord. I suppose you could easily manage it for a year or two but much longer than that and it could become more than a chore.

ViolaLass

Are you being sarcastic or do you not like your daughter?

wageslave wrote: »

The brat at uni spent the first year in halls (food included, I didn't trust her to cook). It cost a kings ransom and she hated it. Room too small, en suite shower/bathroom ditto. Food disgusting. Internet access too slow. Ad bliddy nauseum.

Does she have a student loan? Why are you paying for everything? Why can't she learn how to cook?

wageslave

It is family money and the bratlets aren't family. Regard them in the light of adopted children.

That sounds harsh and horrible but I have thought long and hard about this. My Da, although he would totally approve of me taking on the little ones, would expect me to spend his money on his grandchild.

Plus I think it would be very wrong of me to make my daughter suffer financially for my choices.

I own my house and I have a little put by which I will divide between all three of my children. I have sufficient earning power to keep the girls in hairbands

To put all this in context, I have £135 in my current account until the end of the month. Fortunately I have a full freezer

Oh and my kitchen is falling to pieces:o

Pimperne1

wageslave wrote: »

It is family money and the bratlets aren't family. Regard them in the light of adopted children.

That sounds harsh and horrible but I have thought long and hard about this. My Da, although he would totally approve of me taking on the little ones, would expect me to spend his money on his grandchild.

Plus I think it would be very wrong of me to make my daughter suffer financially for my choices.

I own my house and I have a little put by which I will divide between all three of my children. I have sufficient earning power to keep the girls in hairbands

To put all this in context, I have £135 in my current account until the end of the month. Fortunately I have a full freezer

Oh and my kitchen is falling to pieces:o

Oh no. Really sorry to hear that. You are right though to look after your blood relatives first (but I think your father would expect you to look after yourself first).

wageslave

ViolaLass wrote: »

Are you being sarcastic or do you not like your daughter?



Does she have a student loan? Why are you paying for everything? Why can't she learn how to cook?

I am her mother it is my job to pay for everything. Hello parent with a cheque book here.

When she was nine years old she flung herself between her father and me and his fist.

I like her just fine

robmatic

I studied in Edinburgh and have lived here ever since, spent a long time renting and recently purchased. Like other people have already said, you're talking about a pretty short timescale for owning a property, and it's a city with relatively cheap rent compared to purchase prices. The big shared flats in the studenty areas (Newington, Marchmont, Bruntsfield etc.) can be a pretty good deal.

By all means give your daughter a helping hand with her first property (she will be fortunate relative to her peers) but realistically it might be a better idea to do this after graduation when she knows where she might be living long term.