Investing in a residential mortgage

AshleyMS

I own my own business and want to use some funds to invest in my daughters first property with a view of developing the property and making a return... What's the best way to do this?
Thanks

fwor

The obvious best starting point is to persuade your daughter to buy a property that can be developed profitably. Although this appears to be stating the obvious, it doesn't matter how much you want to develop a property and make a return - on some properties this simply isn't feasible.

Sandtree

Your title says you want to give a residential mortgage but you then talk about profiting from renovations?

If you want to give a mortgage thats one thing but the companies return will simply be the interest it charges; mortgage lenders dont benefit from property improvements.

If you want to benefit from the improvements you’d be a co-buyer with your daughter and you certainly want to be talking to your accountant about the consequences (eg the increased stamp duty) and probably her mortgage broker to understand how her lenders will react to her co-buying with a cash buying corporate entity. 

Mickey666

Wanting to make a profit out of helping a daughter?  Nice.

Sandtree

Mickey666 said:

Wanting to make a profit out of helping a daughter?  Nice.

Seems more like wanting to avoid paying tax on withdrawing funds from the company to support daughter with it.