Buy a house for student Son?

Slicksliider

My son is off to uni in September for a 2 year course. Looking around it would be cheaper to buy than rent (isn’t it always) Should I help him buy it (he has 1 year Lisa) should I buy it and rent it to him, or should I set up a company and buy it and rent it? I’m a normal rate tax payer, but could get close to the threshold in the next couple of years. Property value £60-£100k.

Emmia

https://forums.moneysavingexpert.com/discussion/6674065/buy-a-house-for-student-son

I think you'd need to factor in the costs of buying and selling, plus living in halls (if that's what he'd do otherwise) is good for meeting other students and making friends. Is he likely to stay in the area and want the property after he graduates?

Plus, do you want to be a landlord? Are you familiar with all of the obligations that entails?

BikingBud

You only get to be a first time buyer once - Is it worth burning that benefit on a low cost student house when down stream the benefit might be much more significant.

WIAWSNB

2 years will go in a flash. Where will your son live after Uni? And what will you/he do with the property should he move away from that area?

As said above, if you factor in buying and selling costs, you will almost certainly make a loss if you choose to sell.

If he's confident he'll remain in that area, then fair do's. Or, presumably it can be rented out successfully to future students too.

GrumpyDil

I wouldn't buy in that scenario unless you (not son) wanted to become a landlord and were happy to comply with all the regulatory requirements etc imposed on landlords.

silvercar

I wouldn’t. With buying and selling costs, 2 years isn’t long enough to cover the costs of this. Students don’t make good landlords and in the first year they are better placed being sociable in halls to gain from the full student experience. In subsequent years they generally prefer to share large houses.

flaneurs_lobster

Unless you've managed to find a property in central Cambridge or St Andrews for £60k, I'd agree with all the sentiments above.

theartfullodger

I offered this a couple of decades ago when number 2 son was at Hull uni, houses from £4k...

Sadly he said no...

artyboy

Did that last year for 2nd daughter, but it was a good price, it's in her name, was bought cash, and we were always going to help her get on the ladder, so it was just a case of moving things forward a few years…

SarahB16

https://forums.moneysavingexpert.com/discussion/comment/82049912#Comment_82049912

Was that done after she had graduated and had secured a graduate job or whilst she was still a student?

If she is a student then her first job on graduating may not be in that location but as long as you don't mind being a landlord then fair enough.

artyboy

https://forums.moneysavingexpert.com/discussion/comment/82050006#Comment_82050006

1st year student. And how would I end up being a landlord when she is the owner??