Advice on what to do with parents house

Pixie5740

london21 said:

The deed will be in your name and parent’s name.

If you are ok with having your parent’s name in the deed with no financial contribution.

Alternatively find another property.

 

The OP’s name would also be on the deeds as the OP would be able to make a joint application with the tenants aka the parents. The tenants’ RTB discount would be their financial contribution. 

elloitsme

Thank you both for the advice.

I have considered other investment routes such as the various ISA accounts, via things like Vanguard and the S&P 500 etc but it isn't an area I feel comfortable in, I will need to learn a lot more.

I have thought about the risk to my parents home, I thought if it went wrong I'd be able to cover the repayments from the employment after I graduate. Maybe it is an unnecessary risk though and I would be better off getting a property at auction, it is certainly a route I have considered and if it makes more sense would go down.

Thank you both again, the advice is appreciated. 

GrumpyDil

Also if you did buy your parents house with them and ended up as joint owners any subsequent attempt to take out a mortgage would be based on their ages/incomes and you would lose any first time buyer stamp duty allowance if you subsequently want to buy your own property. 

Pixie5740

elloitsme said:

Thank you both for the advice.

I have considered other investment routes such as the various ISA accounts, via things like Vanguard and the S&P 500 etc but it isn't an area I feel comfortable in, I will need to learn a lot more.

I have thought about the risk to my parents home, I thought if it went wrong I'd be able to cover the repayments from the employment after I graduate. Maybe it is an unnecessary risk though and I would be better off getting a property at auction, it is certainly a route I have considered and if it makes more sense would go down.

Thank you both again, the advice is appreciated. 

Property auctions are not for the faint hearted. You really need to know what you’re doing or it could end up being a very expensive mistake. 

The forum has a savings and investments board where you can get some advice. I read “Smart Investing” by Tim Hale. The gist of it is don’t try and get too fancy. 

csgohan4

elloitsme said:

Thank you both for the advice.

I have considered other investment routes such as the various ISA accounts, via things like Vanguard and the S&P 500 etc but it isn't an area I feel comfortable in, I will need to learn a lot more.

I have thought about the risk to my parents home, I thought if it went wrong I'd be able to cover the repayments from the employment after I graduate. Maybe it is an unnecessary risk though and I would be better off getting a property at auction, it is certainly a route I have considered and if it makes more sense would go down.

Thank you both again, the advice is appreciated. 

Like any investment there will be risk, there is no 0% investment risks, even premium bonds will be eroded by inflation. 

Property imo is higher risk, maintenance of an ex social housing property is not cheap. New roof, boiler, repairs e.t.c all eat in your profit.

You said buying a house is for your mother and yet you talk about inheritance. Your parents would lose secured tenancy owning the home. If you get divorced, get into significant debt, it will be used as collateral

Your FTB benefits will be lost and you need to cough up extra stamp duty when you buy your own house if your the joint owner

When doing something for your parents, do not think about inheritance first. How will it benefit it them, and from your posts not much, apart from the large discount % which only you will benefit on selling of the home

elloitsme

csgohan4 said:

elloitsme said:

Thank you both for the advice.

I have considered other investment routes such as the various ISA accounts, via things like Vanguard and the S&P 500 etc but it isn't an area I feel comfortable in, I will need to learn a lot more.

I have thought about the risk to my parents home, I thought if it went wrong I'd be able to cover the repayments from the employment after I graduate. Maybe it is an unnecessary risk though and I would be better off getting a property at auction, it is certainly a route I have considered and if it makes more sense would go down.

Thank you both again, the advice is appreciated. 

Like any investment there will be risk, there is no 0% investment risks, even premium bonds will be eroded by inflation. 

Property imo is higher risk, maintenance of an ex social housing property is not cheap. New roof, boiler, repairs e.t.c all eat in your profit.

You said buying a house is for your mother and yet you talk about inheritance. Your parents would lose secured tenancy owning the home. If you get divorced, get into significant debt, it will be used as collateral

Your FTB benefits will be lost and you need to cough up extra stamp duty when you buy your own house if your the joint owner

When doing something for your parents, do not think about inheritance first. How will it benefit it them, and from your posts not much, apart from the large discount % which only you will benefit on selling of the home

It feels like you have gotten personal for little reason and with a tiny snippet of the information, for instance you have no idea about the conversations me and my parents have had. How they feel about the situation, or even whose initial idea it was. Yet you make comment insinuating that this is purely a selfish idea, with no thought for my parents. I have came here looking for advice, many things have been brought to my attention which initially I hadn't considered. I've also not spoken of anything in regards to inheritance from my parents, not once.

I appreciate the advice though and it has given me more information to make an informed decision, so thank you for that.

csgohan4

elloitsme said:

csgohan4 said:

elloitsme said:

Thank you both for the advice.

I have considered other investment routes such as the various ISA accounts, via things like Vanguard and the S&P 500 etc but it isn't an area I feel comfortable in, I will need to learn a lot more.

I have thought about the risk to my parents home, I thought if it went wrong I'd be able to cover the repayments from the employment after I graduate. Maybe it is an unnecessary risk though and I would be better off getting a property at auction, it is certainly a route I have considered and if it makes more sense would go down.

Thank you both again, the advice is appreciated. 

Like any investment there will be risk, there is no 0% investment risks, even premium bonds will be eroded by inflation. 

Property imo is higher risk, maintenance of an ex social housing property is not cheap. New roof, boiler, repairs e.t.c all eat in your profit.

You said buying a house is for your mother and yet you talk about inheritance. Your parents would lose secured tenancy owning the home. If you get divorced, get into significant debt, it will be used as collateral

Your FTB benefits will be lost and you need to cough up extra stamp duty when you buy your own house if your the joint owner

When doing something for your parents, do not think about inheritance first. How will it benefit it them, and from your posts not much, apart from the large discount % which only you will benefit on selling of the home

It feels like you have gotten personal for little reason and with a tiny snippet of the information, for instance you have no idea about the conversations me and my parents have had. How they feel about the situation, or even whose initial idea it was. Yet you make comment insinuating that this is purely a selfish idea, with no thought for my parents. I have came here looking for advice, many things have been brought to my attention which initially I hadn't considered. I've also not spoken of anything in regards to inheritance from my parents, not once.

I appreciate the advice though and it has given me more information to make an informed decision, so thank you for that.

we can only go on face value on your information given. All I am saying is to consider both sides and sadly the following posters did not

https://forums.moneysavingexpert.com/discussion/5789909/new-roof/p1

Also these are your own words:
'I could buy my parents council house with a massive discount, 61%, for a total of £46,800 which would leave a decent amount. I was thinking if I did this I could remortgage their property once I graduate and then use that money to 'flip' a property or two? I have plumbing qualifications and can do other bits and pieces and can call upon multiple family member who are tradesmen. Would this be doable? Would it even be worthwhile?


There is nothing about what your parents wants in your OP. 

lookstraightahead

Ok if I were you, I would hold back until you get a job after your Uni has finished and get a normal mortgage on a house. That's a lovely deposit for your own place. 

Just wait a bit secure in the knowledge that you have your deposit sorted.

I think you need to steer clear of trying to flip and flop and enjoy some nice, stress free things.

elloitsme

csgohan4 said:

elloitsme said:

csgohan4 said:

elloitsme said:

Thank you both for the advice.

I have considered other investment routes such as the various ISA accounts, via things like Vanguard and the S&P 500 etc but it isn't an area I feel comfortable in, I will need to learn a lot more.

I have thought about the risk to my parents home, I thought if it went wrong I'd be able to cover the repayments from the employment after I graduate. Maybe it is an unnecessary risk though and I would be better off getting a property at auction, it is certainly a route I have considered and if it makes more sense would go down.

Thank you both again, the advice is appreciated. 

Like any investment there will be risk, there is no 0% investment risks, even premium bonds will be eroded by inflation. 

Property imo is higher risk, maintenance of an ex social housing property is not cheap. New roof, boiler, repairs e.t.c all eat in your profit.

You said buying a house is for your mother and yet you talk about inheritance. Your parents would lose secured tenancy owning the home. If you get divorced, get into significant debt, it will be used as collateral

Your FTB benefits will be lost and you need to cough up extra stamp duty when you buy your own house if your the joint owner

When doing something for your parents, do not think about inheritance first. How will it benefit it them, and from your posts not much, apart from the large discount % which only you will benefit on selling of the home

It feels like you have gotten personal for little reason and with a tiny snippet of the information, for instance you have no idea about the conversations me and my parents have had. How they feel about the situation, or even whose initial idea it was. Yet you make comment insinuating that this is purely a selfish idea, with no thought for my parents. I have came here looking for advice, many things have been brought to my attention which initially I hadn't considered. I've also not spoken of anything in regards to inheritance from my parents, not once.

I appreciate the advice though and it has given me more information to make an informed decision, so thank you for that.

we can only go on face value on your information given. All I am saying is to consider both sides and sadly the following posters did not

https://forums.moneysavingexpert.com/discussion/5789909/new-roof/p1

Also these are your own words:
'I could buy my parents council house with a massive discount, 61%, for a total of £46,800 which would leave a decent amount. I was thinking if I did this I could remortgage their property once I graduate and then use that money to 'flip' a property or two? I have plumbing qualifications and can do other bits and pieces and can call upon multiple family member who are tradesmen. Would this be doable? Would it even be worthwhile?


There is nothing about what your parents wants in your OP. 

Fair enough there isn't mention of their thoughts in m post, while it doesn't mean they haven't been part of the discussions I see what you mean and this whole thread has given me a lot to think about and information I hadn't known. My parents do want the house to be bought, for various reasons, but they're not in a financial position to do so.

I think I definitely want to invest in property ideally but there is a lot I need to research and understand before making any decision.

Thank you for they help and advice, and pointing me to that thread, it is appreciated.

Nifty_Purse

Firstly, well done for making such positive changes in your life. 

I think it would be best to wait until you finish Uni and get into full time work before using this money.
Mortgage lenders need to see proof of income and expenditure before lending to anyone. Once you've finished your course and have a longer term work record the options for a mortgage will be better. 
Put the money in a savings account and keep for a deposit.