Buying house/flat for student daughter

JANE.T

We have some savings that we could use as a deposit for a student house/flat for our daughter when she goes to uni this year but would probably buy for year 2 and 3. Is this completely mad? What sort of mortgage should we get and what are the tax implications?

We would probably want at least a two bedded property to let out a room to another student to help cover mortgage costs.

Any advice welcome:)

PinkPeonies

One concern I have is that she might not want to live in that area after she graduates as there might not be any job opportunities there and she/you might struggle to sell it?

Other than that, what nice parents! If she *deserves* it because she's appreciative etc then I think it's a lovely idea. However, if you want return from your savings it's probably not the best way to go. I'm sure other people will be able to advise better.

ACG

There are a few ways arond doing this....
You may be able to remortgage your existing home to free up some capital to allow you to purchase it outright and not have to worry about getting a mortgage on it.
You could take out a mortgage on the new property.
There are also a couple of other options.

Personally if you do it right, i dont think your mad. You can be more confident it will be looked after, if its a large enough property you could rent out some of the rooms and maybe even make a return on your money.
A lot depends on your daughter i think, if you trust her and shes responsible then it could well be worth doing.

dimbo61

You talk about a 2 bedroom flat OK you dont need HMO but if you buy a 3 bed house and have 3 unrelated people living in the property it would " MAY" need HMO licence depending on where in the country .
Oxford is a total nightmare for student landlords but Cambridge is not!!!
As the house market is flat and looks like being for some time if you bought a flat today you would do well to sell at a profit in 3 years.
It all depends on which part of the country and local demand for student property.
I have 2 boys at 2 universities in Liverpool and Lancaster ( both cheap areas)
One wants to spend his second year in halls ( close to town/uni/nightlife/train station ETC)
Other one cant wait to move out into house share with others and save money ( more beer)
If you buy a house be aware of all the things you have to do as a landlord ( gas safety checks, electrical safety certificate, EPC, smoke alarms, CO2 alarm, landlord insurance, ETC)

d-b_2

We have done this (in Bristol) and are in our third year with no problems, even going thru the licensed HMO route. If your daughter has a share of ownership of the flat it is more complicated. She will be taking in lodgers not tenants - less security of tenure both ways, don't have to put security deposit with a protection service, but not as easy to get insurance as with regular landlord insurance as insurers like ASTs.