We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Dodgy investment
CheeseOnToast
Posts: 357 Forumite
I'm just looking to see if anyone else thinks this is as ridiculous as I do as it's an argument I've had with the father in law and at some points it has got pretty heated and I'm just looking for re-assurance that I've not been out of order in my thinking lol
Father in law is wanting to help sister in law get foot on housing market as they couldn't rent due to her boyfriend not passing credit check..
They have no deposit, she is also in debt so he has firstly rolled her debts into a loan in his name to the tune of 7K which she will pay off - this is so it's better managed and so she can get a higher % on the mortgage.
This I find pretty mad as it is as she was already bailed out of 10-15K at no charge a few years back which left the parents with a big financial dent..
Now on top of that, he wants to put 20K down deposit on the house to enable her to buy it.
But he doesn't have this 20K, so he is going to get a 20K loan to do it...
The house purchase price is 84K - I have told him that if he factors in the interest on his loan, then the house needs to rise in value to approx 100K+ to even break even with his money back!! He thinks this is perfectly feasible in 3-5 years, and even said we'll see when it's worth 120K etc!
Personally, I can see what is happening in the markets, and think that this is just not going to happen..
On top of that, he tries to explain to me that even if the house DID lose value, e.g. drop to 60K, then she could move up the market to a bigger house which would e.g. cost 150K now but only cost 110K if the market drops .. so she would be saving 30K!! lol
I have tried to explain that no, they would lose 20K+ - and his "25% stake" would just be 25% of a mortgage... ??!
It's annoyed the !!!! out of me though as he's been really pushy trying to make us agree with him, but I refuse, and so does my OH and then he gets quite pushy and aggressive about it. Said my piece but had to really hold back as I was so wound up with the way he spoke to the missus about it..
Anyway.. what do you think? lol
Father in law is wanting to help sister in law get foot on housing market as they couldn't rent due to her boyfriend not passing credit check..
They have no deposit, she is also in debt so he has firstly rolled her debts into a loan in his name to the tune of 7K which she will pay off - this is so it's better managed and so she can get a higher % on the mortgage.
This I find pretty mad as it is as she was already bailed out of 10-15K at no charge a few years back which left the parents with a big financial dent..
Now on top of that, he wants to put 20K down deposit on the house to enable her to buy it.
But he doesn't have this 20K, so he is going to get a 20K loan to do it...
The house purchase price is 84K - I have told him that if he factors in the interest on his loan, then the house needs to rise in value to approx 100K+ to even break even with his money back!! He thinks this is perfectly feasible in 3-5 years, and even said we'll see when it's worth 120K etc!
Personally, I can see what is happening in the markets, and think that this is just not going to happen..
On top of that, he tries to explain to me that even if the house DID lose value, e.g. drop to 60K, then she could move up the market to a bigger house which would e.g. cost 150K now but only cost 110K if the market drops .. so she would be saving 30K!! lol
I have tried to explain that no, they would lose 20K+ - and his "25% stake" would just be 25% of a mortgage... ??!
It's annoyed the !!!! out of me though as he's been really pushy trying to make us agree with him, but I refuse, and so does my OH and then he gets quite pushy and aggressive about it. Said my piece but had to really hold back as I was so wound up with the way he spoke to the missus about it..
Anyway.. what do you think? lol
0
Comments
-
I just ran your scenario through my head casting MY in-laws in the the story and it did my head in so much I need to go and get some caffine. Sorry I have nothing more constructive to add!0
-
Absolutely bonkers.dolce vita's stock reply templates
#1. The people that run these "sell your house and rent back" companies are generally lying thieves and are best avoided
#2. This time next year house prices in general will be lower than they are now
#3. Cheap houses are a good thing not a bad thing0 -
I think you should just let him get on with throwing his money away. Just make sure you don't get drawn in when his finances are a mess.0
-
a fool and his money....
But why is it so important(to him) that you agree with him?
Let the daft old fool get on with it if he's so insistant...you have already said what you think.0 -
CheeseOnToast wrote: »as they couldn't rent due to her boyfriend not passing credit check..
They have no deposit.
she was already bailed out of 10-15K at no charge a few years back which left the parents with a big financial dent..
so he is going to get a 20K loan to do it...
He thinks this is perfectly feasible in 3-5 years, and even said we'll see when it's worth 120K etc!
Personally, I can see what is happening in the markets, and think that this is just not going to happen..
the clues are all there aren't they?
if he cant see it now better let him get on with it.......0 -
dolce_vita wrote: »Absolutely bonkers.
Exactly. Nothing to add0 -
sounds like someobodys worried about their inheritance...0
-
tell you what, if Mr Cheese On Toasts's Dad is anything like Mr. Phirefly's, he's NEVER going to see it from your point of view so you may as well resign yourself to it.0
-
(puts on theo paphitis voice)
I would rather........... violently insert a pineapple up my back pipe without lubricant than invest in this property0 -
Sounds like your father-in-law knows in his heart that this is a daft idea, and he's just looking desperately for someone to validate it for him.
He's looking for face-saving insurance, so that when she doesn't pay it back (and we all know that she won't - even he knows that she won't), he can say "Well xxxxx agreed that it was a good idea".
He'll give her the money anyway, whatever anyone says, and he'll never see it again.
He'll be paying the 20K back for years and be so sheepish that he won't mention it again to you or your OH.
Don't get involved is my advice.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.3K Spending & Discounts
- 247K Work, Benefits & Business
- 603.7K Mortgages, Homes & Bills
- 178.3K Life & Family
- 261.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards