Buying flat to rent to daughter

kingstreet

agrinnall wrote: »

You will need a regulated mortgage rather than a normal one, which is more difficult to come by. A broker should help you to find one if you decide to go ahead.

Can't know that until we get an answer to my question in #5.

melb

thanks so much for all your replies, advice and personal experiences. Please don't shoot me when I say this but my daughter is only 18 and just starting out on the world of employment but is very keen to move out. We don't want her to but accept it will h
appen in the next year or so.
We have just seen the money our son is having to pay out for what is essentially a large room in a victorian terrace house which has been sub-divided into a living/sleeping area, separate kitchen and shower-room and he is paying nearly £400 a month. We would be raising the mortgage using our own home as collateral but could raise a few thousand pounds for the deposit.

yes my partner is taking advantage of the 25% tax free draw down on his pension but at the moment we are using this to pay for an extension on our own home.

I know exactly what you are saying about imposing our will of somewhere to stay for our daughter but some of the dives she is looking at are unreal.

We haven't discussed our ideas with her at all at the moment as we don't want to get her hopes up. She is training for what will ultimately be a well paid job but no way will she be able to get a mortgage although she has saved up about £4000 herself during her relatively short working life thusfar.

our thinking is that if we buy a flat in the right area, there will always be someone wanting to rent it as there is a shortage round here, hence the high rental prices.

Red-Squirrel_2

I definitely 100% wouldn't be buying a house for an 18 year old!

If she wants to try living independently let her rent, she's so young that the chances of her bouncing back to home are really high and then you'll be left with a flat you need to rent out when you didn't ever have any intention of being professional landlords. Its not something you should 'fall into'.

Support her through her training, don't jump the gun! There's no hurry.

steampowered

Your daughter is only 18. It is very possible that she will want to move somewhere else - whether that is a different part of the area or a different part of the country - in a short space of time. If she left, you would either have to sell the property or rent it out as a landlord.

I think you should let her leave home and settle down a bit before trying to do something like this.

I think your daughter would be better off if you saved some money and helped her with a deposit when she is ready to buy, rather than this plan which is effectively giving her money through subsidising her rent. She will not have to pay the additional rate of stamp duty and will be eligible for help for first time buyers.

AnotherJoe

You seem confused.
Is this for a daughter who likely will move away from the area anyway at least for a time, as that's what kids tend to do ?
Or is it to rent out because you think you can make a good profit,better than what you'd get borrowing money on your house, in which case what do the numbers on your calculations look like ? Or haven't you done any in which case start there first. And consider the substantial risks.

pinklady21

What about your son? Will he feel a bit peeved if his little sister gets bought a house when he had to rent in a hovel?

melb

no I don't think so as we wouldn't be able to afford anything in the particular area he wants to live.

lynz68

I wouldn't be buying a property for an 18yr old. She could move out then after a few months or so find out it's not all its cracked up to be and be looking to move back home. If you bought a property she may be feel obliged to stay there when she isn't happy at least if she rents somewhere she can walk away after the tenancy is up.

You also risk alienating your son if it looks like your prepared to do that for her and not him.

need_an_answer

Who is going to retain the ownership of the property?
You and your partner or will your daughter have an involvement too.

What about future plans for her when she meets someone and suddenly the property becomes of interest to that person too.

At 18 it's about saving for property in the future,renting and finding what you like or indeed just seeing if you can live away from home.

I would be wary of making that commitment to such an inexperienced child
(said as both a LL and parent to a young adult)

HampshireH

At 18 I went to uni. As much as I would have loved to have bought a flat I didn't sit still. I moved away then came back home and moved out within 6 months to a place with a friend.

Had I have had a place bought for me I would have felt trapped.

Had my parents bought somewhere in a student area and I left they would have run the risk of an irresponsible student potentially moving in and destroying the place.

Not saying they would. Just saying they could.