18 year old saving/buying property

lexiloo

Edit...

I think my post has been misread around my daughter buying somewhere. That's a maybe but if it DOES happen what I want to understand is the best places for her to put her savings in that she MIGHT want to access before a year is up! Thanks

Good morning all. My DD is 18 in June, she will be able to access approx £24000 from savings that are currently locked in a gov funded account. I'm looking at LISA options as she wants to use this for a deposit on a flat when she goes to uni but will pay for halls in her first year. If she wants to buy something in time for sept 2027 she won't have her LISA in for over a year so will have to pay a few. What's the best savings option for her to get some good interest but also access it with less than a years notice please?

Exodi

I think she's setting herself up for disaster if she doesn't have a plan B alongside moving directly from halls into her first house, regardless of the LISA situation.

Aside from the fact the timeline is already strained, I can't imagine the stress this will cause without planning a contingency, especially as how long it takes to complete a transaction is different every time.

I think she should get her savings in June, open a LISA and put in £4k (£1k bonus) and then in April 2027 put in another £4k (another £1k bonus) with a view to start making offers in June 2027. She will earn interest on this too, so I certainly wouldn't turn down £2k in free money for the sake of moving a month or two earlier.

She may, or may not have bought something in time for September 2027, 4 months means there's goods odds she should, but she should have a clear backup plan - whether that's moving back in with parents, or staying at friends, or even just staying in an airbnb/B&B for a few weeks. But she definitely needs this backup plan as she will plunge herself into misery and probably stress everyone out if she's insisting on a date the transaction must be completed by.

Albermarle

Is she planning to stay in the same location as the Uni when the course has finished? Otherwise she will have to sell up maybe 18 months after buying the flat, or rent it out from a distance. Not a responsibility I would have wanted at 21.

Most likely she would be better to wait until she is settled in a post Uni job. Also as said in the previous post, buying property can be stressful, so therefore probably will not help with her studies.

Emmia

Aside from her student loan, what income will she have as a student to fund the mortgage she'll need to buy the flat with a £24k deposit.

Personally I'd shove it into a LISA and look at options post uni, depending on where she gets employment.

GrumpyDil

Exactly what others have said. My daughter finishes uni and managed to get a job in the same city (Nottingham) but even after a few years she is still not convinced about remaining in Nottingham and doesn't want to use her first time buyer status until she is sure she wants to stay in the location she buys in.

Jemma01

How easy is it to sell an apartment in your area? Is it highly sought after? Is it 3 year course? How much would she need to pay if she was to go to a hall? Or rent a room in a shared place? Can she commute from your place? How much roughly would the mortgage be assuming current rates? First time buyers still get a good deal on sdt, do you really want that wasted on a flat?

The answers to these questions could make this a good or a bad idea, even if she was to move out after uni. Three years is long enough to make buying worth considering. She can still rent it afterwards while she roams around finding her long term location (took me 15 years roaming the country for work before I settled and bought my first home).