Right to buy help! Living with parents!

Sam1471

You plan on paying a £40k mortgage off in 3-4 years so keep saving for another 3-4 years and you'll have £40k to put towards your own place. More if you take advantage of the LISA. Consider moving to a less expensive area and you could buy your own place even sooner. Many first time buyers don't end up in their number 1 choice area

This would be great for me however paying 40k may cost £700 per month. Saving 40k would mean putting a side £700 per month and still paying rent...thats my income gone before paying anything else.

There's more to home ownership than paying the mortgage though. Property is a highly illiquid asset. All your money will be tied up in this property until your parents are either in care or have shuffled off this mortal coil. Meaning when you do eventually move out you'll be paying private rent which will be higher than the rent you are paying now whilst having to save up a deposit to buy somewhere which is exactly the same situation you will be in if you just moved out now.

This is partly the reason I have looked into this. Because I thought it would be a chance to own a property before getting stuck in the situation where it becomes even more difficult.

Your parents have a secure home. If you buy it then they will be less secure than they are now.

And I dont disagree with that at all. There is a definate risk involved for both them and me which is why I havent jumped into it. Obviously on the face of it the discount does look like a great investment. And this forum has outlined certain drawbacks such as if they went into care etc...I am trying to consider all my options which is why I started this topic. And it is only going to get more difficult with the help to buy scheme ending in a couple of years (so I've heard).

Cakeguts

How much rent do you pay for this council house? Could you rent a room in a shared house for less? If you could then the answer is to rent a room in a shared house and save as much as you can. You then have the deposit for a flat of your own. Best of all your parent's future is secure because they will have a secure tenancy for life.

One of your problems at the moment is that you don't have a home of your own. So you can't say " this is my home." Your parents may say that you can treat where you live at the moment as your home but actually it isn't your home it is your parent's home.

The normal thing for adult children to do is to move out of their parents home and get their own home. What most people have to do when they move out of their parents home is to move into rented accommodation. this is normal. What is also normal is that people don't always stay in the area that they grew up in because they make new friends wherever they are.

Apart from the risk to your parents of buying their house all your money will be tied up in that house. You can't get any of it out unless you sell the house. If you find that you want to move out you won't be able to because you won't have any spare money. Remember you have to buy your father's share if you want to prevent the house being sold to pay for his care.

What people are trying to tell you is that you will be stuck living with your parents until you are past the age where most people get a partner. A partner will not want to share their accommodation with your parents. You will be limiting your lifestyle by doing this and you will be putting your parents future housing at risk.

Sam1471

Picture this: You get married. A couple of years in, you find out she's bonking the postman, mailman and everyone else. You have a massive fight and break up. On your way to a hotel, you crash your car and die. Half your parents' house now belongs to this woman.

By buying the house, you're making your parents less secure and limiting their options if they need to downsize in the future. The only person who gets an upside from this is you. Don't do it.

How did I get the 'upside' in this scenario?...I'm dead! Lol. All joking a side I see what you're getting at...I am really hoping that isnt my future though lol

Cakeguts

Sam1471 wrote: »

How did I get the 'upside' in this scenario?...I'm dead! Lol. All joking a side I see what you're getting at...I am really hoping that isnt my future though lol

Everyone hopes that they will have a long happy life but not everyone gets that. Some people get life changing illnesses. MS is something that people can get young. I met someone once who was completely disabled with MS in early 30s. You have to plan for what you don't want to happen especially if it affects someone else.

Red-Squirrel_2

Sam1471 wrote: »

How does this affect my parents...I would pay it off and they would continue to live in it. It will hardly change their circumstances. As said before It was a suggestion from my father.

It would completely and drastically change their circumstances! Do you not understand how fortunate they are to have a secure tenancy for life?