unusual house buying question

aardvaak

tanith wrote: »

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?

Very well said.

bandraoi

If houses that you're interested in are £130K to £140K and you're on a joint income of £28K then I don't really see a house purchase as being totally out of your reach.

aardvaak

pinkshoes wrote: »

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.



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!

As tanith said "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 they can't save for the deposit how are they going to make repayments

Mrs_Thrify

I hate to be the one to say this but I don't think you should even ask, it will put them in a difficult position. If one asks it will open the door to other relitives all wanting the same deal. I recomend you look for another way.
Best Wishes ...Julie

shelly

I agree with Julie, I wouldn't even dream of asking. Its not a simple case of you don't ask you don't get, I'd be embarassed to put a family member in that position, millionaire or not. Also there is too much can go wrong that can ruin any relationship you currently have with this relative.

Tiglet

kitschkitty wrote: »

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

Yes.

But, more to the point, I think you'd be daft to invest at the moment. Whatever arrangement you could come to, you'd probably be into negative equity before you get the keys.

As well as the purchase price of the house, you'd have solicitors' fees to pay, survey fees, maybe mortgage arrangement fees plus, given the price range you're talking about, stamp duty. All of this is payable up front, and doesn't contribute to your equity.

Rather than buying now, whatever the arrangements, I would wait, try to save towards a deposit, and read as much as possible on the forum about what is involved about buying a house, and how to do it as cheaply as possible. In the meantime, prices are likely to fall while you are saving and if they fall below £125k, you will save the cost of the stamp duty too. At 1%, that's £1300-1400 saved straight away.

kitschkitty

Thank you to those who gave constructive input.

I thought that at the current time it would be better to wait to see if any price drop in the housing market occurs, though we live in an expensive area sadly, and I am not a believer that there will be a housing crash - and even if there was to be one, I do not think it will occur so soon as some people predict.

While I appreciate that we enter the next stamp duty price band above £125k, there simply are no houses in this area under this price. Even flats and apartments tend to be above this in our area.

I was considering a house share on a 50% deposit basis as the best for us, and thought it might make a safe(ish) investment of £65 for my relative, though I am concerned that one poster believes that buying a house at the current time will put us straight into negative equity.

To thosew who rather than answer my question want to probe into our private life and ability to make payments I guess I shall have to give some answers, though I do not like disclosing so much personal information to people who I do not know.

To those who are questioning the relationship with my relative - that was not what I was asking for advice on.

For the person asking if I just assumed my relative was a millionaire because of their lifestyle, well really now *sigh* maybe I should have been clearer and stated my relative is a multi millionaire who has just spend £5million pounds building their new house.

To those who berated us for having no savings, - the reason we no longer have any significant savings to fall back on is that we have just got married - weddings (even as frugal as we were) are expensive these days. I am proud that we are actually not in debt.:T

ixwood

Can i please have a house too? :-)

lady_noluck

I don't think people meant to berate you kitschkitty, they just seem to be pointing out that buying a house is expensive and maybe trying to save a little before you go to your relative would demonstrate how seriously you're taking the idea.

As a rough idea, I have 1 morgage for £110,000 and it costs £658 per month to pay back, and that's at a low rate. Can you afford to pay out more than you're paying at the moment?

Do you have any shared ownership properties in your area? (Which area are you in?) I started off in a shared ownership house and found it a great way to get on the property ladder.

As for approaching your relative, it depends on whether you're close to them or not I guess. My brother's just struggled to buy his first house and had he have come to me asking to borrow some money/out a share into it, I would have done. However, if my cousin asked i'd laugh in her face. I haven't seen her for years!

Good luck with whatever you do and congrats on the marriage/being out of debt!:T

takoo

Hi Kitschkitty

As a first priority check the need to rush into homeownership. Recommend that you do some research on the monthly difference on your:

• costs in the rented house
• prospective costs in a "mortgaged" house.

Assuming the latter is higher, once you have calculated the difference begin immediately to put that amount (if any) into the highest interest rate a separate account that you can find. Don't touch it until you need a deposit to buy your dream house.

This should prove to you that what you do is what you are - if positive you are a propspective home owner.

Really hope this helps you come to a decision.

Takoo