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Buy to Let for Our Daughter
Padsaver
Posts: 11 Forumite
Our daughter has just finished Uni and looking to move into rented accommodation with her Uni friend. Due to recent inheritance we are in a position to buy a property to let them live in and pay rent to us. The question is: Should we buy the house outright or put a deposit down and get an interest free mortgage?
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Comments
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many lenders won't consider you if you are renting to family. do you also want to be a landlord? What if her friend turns flaky? what if she moves town?
option c) give her a deposit and wish her well to make her own choices? seems cleaner.2021 GC £1365.71/ £24000 -
If you already own your home you do know you will be up for an additional 3% stamp duty. You have factored that in to your funding haven't you?
Cheers fj0 -
Interest free mortgage?"You've been reading SOS when it's just your clock reading 5:05 "0
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Did you mean interest only mortgage?0
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as alluded to by others what comes across in your post is uncertainty as to the objective of doing this?
- you have inherited money. Do you regard this as your money which you may at a later date want to spend on yourselves so you will need it back eventually? If yes, why put it into a house you have no idea how long your daughter will occupy. If no, why buy a house with it, keep it in a more liquid investment asset class
- you actively need to increase your regular income? You think rental income is the best source of such additional income compared to other forms of investment (or just plain spending it)?
- why does it have to be let to your daughter? If you want to become landlords then let the property to whoever will pay the "best" rate in terms of balancing maximum income with minimal voids. If that is your daughter then you are fleecing her.
- if you simply want to help your daughter then give her the money and let her get on with it?
so what is your objective?0 -
sammyjammy wrote: »Interest free mortgage?
I want one....:footie:
Regular savers earn 6% interest (HSBC, First Direct, M&S) Loans cost 2.9% per year (Nationwide) = FREE money. 0
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