in Student MoneySaving
5 replies 1.4K views
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?
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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?
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?
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.