unusual house buying question

kitschkitty

Hi, Please excuse this question if it sounds stupid, as it's actually a serious question, and I feel I can ask you all as there seem to be a lot of very knowledgeable people on this board.

My OH and I both have jobs but earn no where near enough to be able to buy a place of our own from what little I can understand, however I have a relative who is financially very well off. I have for some time wondered what would be the best way to approach them in regards to them assisting us in buying a house (to make it an attractive proposition for them rather than just a huge favour).

I have to point out here I know absolutely nothing about actually buying houses as we have been privately renting for 6 years.

So I guess it might help if I give you some info.

Our current rent is £560pcm.
Our joint income is about £28k (we are late 20's early 30's)
No savings (no deposit) and no debts, good credit history.

I think a house round here would be around £130k -£140k

Our relative is a millionaire (seriously) and a very practical business person.

What do you think would be the best proposition to put forward -we wouldn't want to ask them to buy a house and just become our landlord IYSWIM.

Or do you think that in the current housing market our relative would be daft to invest?

or are we on too low an income? i don't even know how much we should expect to fork out monthly on a house in that price bracket.


many thanks.

david29dpo

I think you have hinted at the possibility of your relative buying a house and you either renting it or buying it off him/her. You say he/her is very practical. I must say neither is very practical at the moment for an investor. He/she may offer subsidized rent or a low interest loan perhaps?

gingin_2

All I can say is "never mix family and business". Been there, done it and as well as getting the Tshirt it got unavoidably ugly .

Have they ever offered to help, because to me your post suggests they haven't? If not I think you would be putting them in an uncomfortable position.

timnicebutdim_2

As david said a low interest loan would be an idea, or how about shared ownership e.g. he pays a 50% deposit, you have a mortgage on the rest at a good rate (because of the size of the deposit)?? But considering the market at the moment would he get that much return on his investment (and you also) or should you both wait a bit and see if prices come down significantly??

poppy10_2

If you haven't been able to save anything at all so far, do you really think you will be able to cope with a £350 increase in your monthly outgoings (that's how much more expensive a mortgage will be compared to your current rent)

aardvaak

kitschkitty wrote: »

Hi, Please excuse this question if it sounds stupid, as it's actually a serious question, and I feel I can ask you all as there seem to be a lot of very knowledgeable people on this board.

My OH and I both have jobs but earn no where near enough to be able to buy a place of our own from what little I can understand, however I have a relative who is financially very well off. I have for some time wondered what would be the best way to approach them in regards to them assisting us in buying a house (to make it an attractive proposition for them rather than just a huge favour).

I have to point out here I know absolutely nothing about actually buying houses as we have been privately renting for 6 years.

So I guess it might help if I give you some info.

Our current rent is £560pcm.
Our joint income is about £28k (we are late 20's early 30's)
No savings (no deposit) and no debts, good credit history.

I think a house round here would be around £130k -£140k

Our relative is a millionaire (seriously) and a very practical business person.

What do you think would be the best proposition to put forward -we wouldn't want to ask them to buy a house and just become our landlord IYSWIM.

Or do you think that in the current housing market our relative would be daft to invest?

or are we on too low an income? i don't even know how much we should expect to fork out monthly on a house in that price bracket.



I am sorry to say this but why should they?

You say they are millionaires - do you actually know this or are you thinking it by the way they live.

They probably earned it the hard way and are now having their reward.

pinkshoes

No ask no get - so it might be worth an ask.

It doesn't really matter so much what the current market is like, as I presume you'll be buying this as your long term home?

Getting this relative to go 50% would be the best bet i.e. he/she pays a 50% deposit, and you pay the mortgage on the other half, so you both own half.

Add a clause that you can perhaps buy them out one day, either at the market rate if prices rise, or the rate they bought at if prices fall.

aardvaak

pinkshoes wrote: »

No ask no get - so it might be worth an ask.

It doesn't really matter so much what the current market is like, as I presume you'll be buying this as your long term home?

Getting this relative to go 50% would be the best bet i.e. he/she pays a 50% deposit, and you pay the mortgage on the other half, so you both own half.

Add a clause that you can perhaps buy them out one day, either at the market rate if prices rise, or the rate they bought at if prices fall.

This typical in todays thinking

"someone else has earned/got it why should'nt I have it"

aardvaak

Originally Posted by pinkshoes
No ask no get - so it might be worth an ask.


May I quote what is said to children that say " I want I want I want"

Those that ask/want don't get!

tanith

Do think you might get a better response from the board and your relative if you had made some effort yourselves to save towards a deposit. If you haven't had the discipline to even attempt to save then why do you think you could cope with part ownership and the responsibilities that go with it?

pinkshoes

aardvaak wrote: »

Originally Posted by pinkshoes
No ask no get - so it might be worth an ask.


May I quote what is said to children that say " I want I want I want"

Those that ask/want don't get!

Well that may be your stance on life, but those that sit quiet and don't ask when they see an opportunity will no doubt remain behind the others.

If children ask nicely and politely, then they might get what they're asking for!

If they ask this relative nicely, and put it forward as a business proposition, then the worst that can happen is he says no.

aardvaak wrote: »

This typical in todays thinking

"someone else has earned/got it why should'nt I have it"

Actually, they're not asking for him to buy them a house for nothing, they're asking for a LOAN or a BUSINESS PROPOSITION, which is exactly what anyone else does, but usually with a bank! They'll still have to pay the money back, or give up a 50% share in their home!