Dodgy investment

benood

Completely agree with Catblue - you FIL just wants to help out his daughter and get her somewhere to live.

Frustrating though it may be you'll probably be best to let it go and concentrate on making the right financial decisions for yourself and your wife. Ultimately there's probably no money coming to you from your wife's side of the family, but if you ever needed help I guess your FIL would try to help you out in the same way.

RabbitMad

CheeseOnToast wrote: »

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..

Nothing wrong with that, I know of many people that feel the same way.

CheeseOnToast wrote: »

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..

What my father gives to my siblings is not my business, what my FIL gives to my other half's siblings is even less of my business.

CheeseOnToast wrote: »

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..

Nobody knows what house prices will do. There are so many variables nationally and locally that this is perfectly possible. Lets say for example that this house is next to a fairly average school. Next set of league tables puts this school as the best state school ion the country. The value of the house would rocket relative to the local market conditions.

PasturesNew

Yes, you're right. She is a financial liability and FIL isn't thinking clearly in his desperate attempts to get her onto the property ladder before it slips further away in its every upward spiralling fashion.

Unfortunate as this may be, you have said your piece, now you have to shut up and try to bite your lip of "I told you so" in a year or two when it goes tits up.

Behind all of this is that she probably won't ever meet the payments, there will probably be family rows over the slippage on the loan/mortgage and it will end up with a possible relationship split and your FIL ending up with a massive debt.

Unfortunate, but he's not your dad.
You've done your bit.
He's an adult, is allowed to make his own decisions.

Now just walk away.

Vaux-Hall

Something you might want to point out to him...

If they buy it on a fixed/tracker rate mortgage, they won't be able to fully remortgage it if it loses value. In other words they may end up having to pay the lenders standard rate, which means their mortgage payment is a lot more. If they're already stretching themselves, will they be able to afford that? It doesn't sound like he's going to be in a position to help.

CheeseOnToast

Thanks for most of the posts.

Some of them I find a little patronizing especially the one suggesting I am worried about my "inheritance".

DGJsaver wrote:

sounds like someobodys worried about their inheritance...

Get a clue mate, if you had read my post properly, you would see that I have said he is aggressive and bullying, not to me, but to my pregnant fiance who is only 20 years old, and he always tries to belittle and bully the others into believeing what he has to say.
He insists on talking to me about these stupid ideas of his, and after a few days of nodding and saying no comment, I get sick of it and feel like I should say how I feel and rightly so- but then when we dont agree he starts picking at my OH.

Even after we left the other day after a big bust up, we weren't happy with him, my OH went there today on her own and he starts on it again!

I wouldn't accept a penny from HIM, although we did lend 4K from her uncle when we bought this place 3 years ago..

As for the other issue, why it is so important, I think you're right that he knows its a bad idea in principle and wants us to back the bad idea up so when it goes tits up he doesn't look the fool..

About 15 years ago he was a very successful insurance policy salesman and insists that all this stuff is his background, he even got his certificates of being an financial adviser of some kind out to use against OH today :rotfl:

Oh well - I'm just glad I'm not the only one that thinks its BONKERS! !

lynzpower

the thing is , I know what its like to have a sibling like this. They bail her out of everything,I paid back every penny i owed my parents, even some of it they are still refusing to accept ( 400 quid) she has rinsed them like mad, she still does, even though she is 27. IM 30.

Its galling to see your parents bankroll a sibling who does nothing to deserve it, but they are bailing and bailing. My parents lent me money to get through my degree. She walks out of jobs and they just give her money to live on :wall:

the only thing you can do is rise above that, if you do feel this way. Its hard though. it sounds like your dad just wants to "make everything ok" for your sister who cant pass credit checks etc, and he thinks that him getting into debt will make his little girls life better. and he probably means well out of it, hes frustrated because the rational ( this is a bad idea at my age etc) is getting too influenced by "the emotional" ( i need to help my daughter whatever I can do I will etc) which is why hes getting angry.

Thats the only way I can deal with it!!!!!

DGJsaver

CheeseOnToast wrote: »

Thanks for most of the posts.

Some of them I find a little patronizing especially the one suggesting I am worried about my "inheritance".



Get a clue mate, if you had read my post properly, you would see that I have said he is aggressive and bullying, not to me, but to my pregnant fiance who is only 20 years old, and he always tries to belittle and bully the others into believeing what he has to say.
He insists on talking to me about these stupid ideas of his, and after a few days of nodding and saying no comment, I get sick of it and feel like I should say how I feel and rightly so- but then when we dont agree he starts picking at my OH.

Even after we left the other day after a big bust up, we weren't happy with him, my OH went there today on her own and he starts on it again!

I wouldn't accept a penny from HIM, although we did lend 4K from her uncle when we bought this place 3 years ago..

As for the other issue, why it is so important, I think you're right that he knows its a bad idea in principle and wants us to back the bad idea up so when it goes tits up he doesn't look the fool..

About 15 years ago he was a very successful insurance policy salesman and insists that all this stuff is his background, he even got his certificates of being an financial adviser of some kind out to use against OH today :rotfl:

Oh well - I'm just glad I'm not the only one that thinks its BONKERS! !

he would probably appreciate it if you left him to do with his money what he likes.......

CheeseOnToast

DGJsaver wrote: »

he would probably appreciate it if you left him to do with his money what he likes.......

Are you ignorant or just plain !!!!ing stupid mate?

I couldn't give a !!!! what he does with his money, what I want is for him to stop railroading me and my fiance into agreeing with him.

Have I broken it down enough for you?

DGJsaver

CheeseOnToast wrote: »

Are you ignorant or just plain !!!!ing stupid mate?

I couldn't give a !!!! what he does with his money, what I want is for him to stop railroading me and my fiance into agreeing with him.

Have I broken it down enough for you?

Dont gob off at me chap , behind your screen

youre a money grabber , its obvious , every time i read the thread loads of people have posted what i did , just dressed it up better

Now , lets leave it at that yes

CheeseOnToast

Behind my screen? :rotfl: Scary.

I don't understand what you're talking about - how am I a money grabber?

The father in law is only 50, so even if the whole investment went tits up, it wouldn't affect my partners inheritance at all - so what are you talking about? I don't understand what money I'm trying to 'grab' exactly..

My previous post still stands.