Should I buy a property for my Son in Uni?

10 Posts


My Son is looking to rent a house with 2 friends at the moment as he has to move out of halls this summer but competition for properties is fierce and he has lost out on at least 4 houses in the past few weeks.
For what he will have to pay to rent a student house (£1,650/mth) it's now occurred to me that a mortgage wouldn't cost that much so should I buy a house for him to live in and he rents 2 rooms to his friends.
Not sure of how it would all work but we could afford a 20% deposit and our current mortgage is very small and my wife and I are both working with a decent joint income.
Has anyone else done this? Other thoughts?
Cheers
Rob
For what he will have to pay to rent a student house (£1,650/mth) it's now occurred to me that a mortgage wouldn't cost that much so should I buy a house for him to live in and he rents 2 rooms to his friends.
Not sure of how it would all work but we could afford a 20% deposit and our current mortgage is very small and my wife and I are both working with a decent joint income.
Has anyone else done this? Other thoughts?
Cheers
Rob
0
Latest MSE News and Guides
Childcare budget boost
More support for children from nine months and those on Universal Credit
MSE News
Replies
If he/his friends don't pay the rent, are you happy to evict them? Will he/his friends be willing and able to pay rent for the vacation periods? Will they be moving back into halls in subsequent years and will you be wanting to keep the property on as a buy-to-let? The fixed costs of buying/selling probably mean it isn't worth while doing this for just one year.
He could always get a part time job to help fund his lifestyle and would give him very useful stuff to put on his CV. Also he would have less time to spend money. Maybe he already has a part time job... apologies if so.
Only if it sells at a profit
Income tax on the rent too, though. Only limited deductions allowed for expenses.
Seriously???? What part of the country is this? My son was paying £450 a month only a few years ago.
One of mine went to uni in Reading a few years ago and we were humming and haarring about the same thing. Turns out we didn't because of the hassle.
Prices then rocketed because of Crossrail. If my daughter had done this with a student mortgage , she would be well set up now. Times are different now and not much capital growth to be had and a lot of hassle and a lot of regulation
This! Even in London it's perfectly possible to find places for half what you're suggesting it will be. Perhaps he's just set his sights on very fancy accommodation? Unless that £1650 / month is for the entire 3 bed flat, and not per room?
I think what the OP is saying is that it is £1650 for the whole house , ie £550 each which is realistic
If you are set on this then take advice whether it is best to structure as your son owning the property with you as guarantors, you owning the property as a second home or some combination.