Opportunity to buy first house at 16

zebidee1

I hope this doesn't come across as offensive in any way, you seem to have good financial sense at 16...enough to have a good savings pot behind you.

Your sister at 23 for whatever reasons, is not in the same position. She has no deposit and half the mortgage payments are to be paid by someone other than her.

How will her position change? How confident are you that she will actually want to move in 5 years time? What if she is never in a position to move? Your money will be tied up in a flat and you wont be able to access it.

I think the personal aspect to this, is of the same importance as the financial aspect.

I'm speaking as someone who lost thousands of pounds through helping out a family member.

Try to think of all eventualities before you commit.

G-G_4

Addy1 wrote: »

Good luck with whatever you do, like I have said before hard work gets you everywhere.

Couldn't agree enough... I have always flitted from one job to the next and never really worked my a$$ off, so to speak.. and look what happened to my finances

Work hard, save hard, don't waste you money and you will be ok.. :cool:

Also, good point about uni. You might need that money..

BTman

wiseman405 wrote: »

wow, thanks for all the replies.


Well we were going to go 50/50 with the mortgage...She is silly with money doesn't have a clue!!!

Sounds like a great investment

Running_Horse

If your sister cannot afford to buy at the moment, then that is a shame, but not your responsibility. If the market crashes you might even be hurting her by helping buy a flat she cannot afford. Please do not feel pressured into doing this. If it was not bothering you, you would not be here asking for advice.

affordmylife

what job are you doing?

wiseman405

Well i will never flutter from job to job G-G, i work for my dad. He is hopefully passing the place down to me when he retires. I am lucky really. But he doesn't pay me stupid money far from it in fact, so i have to learn how to control my wages, might pay off one day like you all say

Tom

jonesMUFCforever

Sorry to put a damper on things but you cannot enter into a contract until you are 18 years old.
So anything you do will have to be done on an off the record basis - a recipe for disaster.

By all means save for your own flat or property but helping your sister looks like trouble to me.
What if she does not keep up repayments and the flat is repossessed?
You lose out big time without any recourse.

I would stay clear of this to be honest.

wiseman405

Don't be sorry! I have asked for advice

And i appreciate it all Thanks to you all, now i just need to get my parents off the idea! ha!!

pinkshoes

Having saved £5k at the age of 16 is pretty impressive!!

The property market is a little unstable at the moment, so if you do intend to invest in property, tread very carefully!

Choose a property in a fabulous location. If you sister wants a flat, I'd advise her to go for a flat on a very small development of less than 20 flats (maybe a small local builder rather than a mass production builder!), with no other flats within the area, and no space around for any more flats to be built. 2 bedrooms is better than one, as a 1 bed flat limits your market to singles and childless couples, whereas a 2 bed flat can be rented to singles, couples, families and sharers. "Mass production" new build flats are loosing value quite quickly, especially 1 bedroom ones!!

The bigger the deposit, the better... 10% at least!

maninthestreet

Surely you legally can't have a mortgage until you are 18?