Buying or renting house after grandparent has passed away

G_M

Deleted_User wrote: »

I suppose it depends what deal they are offering you. If they are offering to let you rent it cheaply it might be worth it but agree that theres no point buying it if your only going to sell it in a couple of years.

Another vote to add to all the others:


* don't buy just to sell in a year or two
* don't buy planning to let it out yourselves in a year or two unless you understand what being a landlord involves, want to be one, have researched the rentalmarket, and know it makes financial sense
* don't rent it from (her parents? the Beneficiaries?) if it's not a property you'd choose to rent anyway unless you are being offered a big incentive eg low/zero rent to allow you to save)
* be aware of downsides:
- loss of FTB status
- difficulty claiming benefits when renting from family
- time and stress 'doing it up' (whether DIY or paying contractors)
- costs of purchase, renovation etc against any (uncertain) gain in value

dansarath

G_M wrote: »

Another vote to add to all the others:


* don't buy just to sell in a year or two
* don't buy planning to let it out yourselves in a year or two unless you understand what being a landlord involves, want to be one, have researched the rentalmarket, and know it makes financial sense
* don't rent it from (her parents? the Beneficiaries?) if it's not a property you'd choose to rent anyway unless you are being offered a big incentive eg low/zero rent to allow you to save)
* be aware of downsides:
- loss of FTB status
- difficulty claiming benefits when renting from family
- time and stress 'doing it up' (whether DIY or paying contractors)
- costs of purchase, renovation etc against any (uncertain) gain in value

Thank you! I've been personally leaning towards no but without having much knowledge of homes, property, etc. I needed to know more before committing one way or another. All this info has been very helpful.

silvercar

I'd be wary. If you buy it and then sell at a profit, I would be wary of family members putting pressure on you to share the profit. There is also the risk that some people would be unhappy that you are making changes from how granny left it. If you let it out and tenants don't treat it respectively, you could find yourself being blamed. People can get sentimental and grief can be expressed in many ways.

AdrianC

dansarath wrote: »

My girlfriend and I are looking to move in together. A few months ago, her grandmother passed away. Her parents have asked us if we would be interested in living in her old house, either as tenants or buying the house from them.

So her parents own the house currently.
And it's been empty for how long?


Do they WANT to be landlords, with all the legal obligations and responsibilities that contains? Doesn't matter if they're related or not - those don't go away... Nor would the tax man.

It's not a bad little house. It's small; estimated around 80-100k. However, we would probably need to make quite a few refurbishments. Nothing major but almost all the decor, appliances, etc. are all very old-fashioned. It's also not exactly where we initially wanted to live; it's on the outskirts of a small town as opposed to near a city which is where our friends are, as well as my job. As such, we would probably only consider living there for a year or two at most before hoping to move elsewhere. We'd either rent it for 12-24 months before looking to buy somewhere as our first home, or buy this as our first home and sell it after 12-24 months to move to another.

Your first "home" can be rented, y'know... "Home" is where you live.


Anyway, if it's not what you want to own, and not where you want to live, and needs a load of work which is not going to give any kind of sensible financial return... why are you even considering this?

e.g. what would the cost of the renovations be for something like this?

I think I'm missing the photos...


But one thing's for sure - there WILL be surprises you can't see. Never mind a lick of paint everywhere, price up a kitchen and bathroom, and carpets. Then think about the electrics and heating. And roof. And gutters. And windows.


And then there's the surprises like blown plaster or rotten floor joists or...

paddy's_mum

What happens if you spend months investing every spare minute into getting the house into some sort of respectable condition and then the pair of you split up?

Mojisola

dansarath wrote: »

My girlfriend and I are looking to move in together.

Rent something in an area that suits you and see whether you still get on when you live together.

Don't tie yourself in to buying together immediately or renting from her family and doing the house up at your expense.