Student property 27 March 2019 at 12:02PM in Student MoneySaving 5 replies 1.4K views

olaugsir

Our daughter is studying in Edinburgh, and will start her 2nd year in the autumn. We are thinking of getting a flat for her. Will it be smart to buy the flat in her name, and is there any benefits for her as a student if we do?

Mr.Generous

Stamp duty surcharge avoided for a start. Disadvantage to her will be any first time buyer incentive she might miss out on in the future.

I'd sacrifice that for a flat while still a student.

I wonder if she could let a room to a fellow student and help cover the costs too?

agrinnall

I'd only buy in her name if she intends to stay in Edinburgh long term (i.e. past the end of her current study) so that she's not really losing out on first time buyer benefits. And unless you're wealthy enough that money is no object I wouldn't buy in your name at all, just give her the money to rent.

olaugsir

We are not that wealthy, so money are an object We are just trying to see what is the best option money wise.

agrinnall

olaugsir wrote: »

We are not that wealthy, so money are an object We are just trying to see what is the best option money wise.

OK, so unless you intend to go into the landlord business after your daughter leaves Edinburgh I don't think buying in your name makes sense as the cost of buying (with additional LBTT) and selling probably outweigh any saving.


If buying in her name would you in effect be giving her the money, or loaning it to her in the expectation that she would pay back the principle when she leaves Edinburgh and sells the flat? If giving it could be sensible from her perspective because she'll then be in a very good position when looking to buy elsewhere, but it's less clear cut if you're lending.


The other question is what is her view? Does she want a flat of her own, or does she want to live with her friends in a student area, which might not be where you'd want to buy?

olaugsir

Thank you
If this happen we would get a two room flat, so there is one room for rental, and it would be in the student area.