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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.Helping grandchildren purchase their own home.
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steampowered wrote: »A gift of cash sounds like a very nice idea. And it is tax free (assuming you survive 7 years).
......If you gift from excess income, even IHT doesn't come unto play.
IHT is not relevant till the op has saved at least another £200k0 -
Are you in a position to help out as a mentor and cash for the business the GS is setting up?
Feeding income into their savings is potentially a good option keep the cash back till they are ready to take the ownership move.
I can see where you are coming from for the GS that is renting but that has major issues with your current thinking.
I would look at the bigger picture on that one as one advantage of renting is mobility and for younger people that can be a significant benefit as life is still developing.0 -
Not living together no. Just sharing the costs to purchase a property which will then go onwards to help them both have their own.
I don't think you've thought this through at all.
Please explain how you think it would help..
So one of them would live in the house. The other wouldn't.
How is the one that doesn't live in it being helped??
They would have lost their ftb status when they come to buy their own house, that is worth thousands of pounds. They will not be eligible for HTB, again, potentially thousands of pounds.
They still have to live somewhere so have to pay rent or continue with m&d
The one that does live in the house is being helped by not paying rent. How do you equalise that?
The one that doesn't is equally liable for the costs of the house they don't live in and for paying the mortgage should the one that lives there get into difficulties.
When the one that doesn't live in the house wishes to buy their own, they will need to force a sale evicting the one that does, or the one that does will need to raise a larger mortgage in order to buy out the share of the one that doesn't.
If the one that does live in the house brings in a partner or lodger how are the expenses shared so it's fair to the one that doesn't?
I suspect you have some old style thinking here that house prices are rising so get on and buy and gain from the rise but that's not happening now plus there's a raft of additional costs and benefits to a first time buyer that they would be losing.
However you help them, getting them to buy a house together is absolutely not helping at all , will raise their costs when they do buy houses , and may cause conflict if the timing if buyinga Nd selling can't be agreed between them. Nice intentions, terrible idea.0 -
If either of you need residential or nursing home care in the future it is likely the council will see it of deprivation of asserts and treat the money as still yours. My mum was fit and had a stroke at 70. Her home was sold to pay for her care0
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Wow. Seems to be open a can of worms and finding its a can of rattlesnakes. Just read that back and need to comment that is not aimed at the responses but the situation that can/could arise from my initial (ill conceived) thoughts.
Thank you.
Granddaughter is saving and her goal is buying a house. Currently single. A help to buy ISA would work and help 100%
Grandson on the other hand has a partner and renting. At the moment he works for someone and mentioned about buying into that business. I am not so sure its a good plan, have an uneasy feeling he maybe taken for granted. Will he be any better off being a partner in the business or just a way for his employer to offload some costs?
Currently he only gets paid for the jobs he does. He has been doing the odd job himself and buying the tools required for each job.
A little apprehensive on whether it is all above board.
My son (his uncle) has just given him his old car after being offered just a few hundred at trade in. That could double as a family car and van.
Thank you all for your suggestions.
PS. Where is best to find out about those ISA's? £250 per month and the £4000 per year? Read something is stopping later this year, but you can still take advantage now?0 -
PS. Where is best to find out about those ISA's? £250 per month and the £4000 per year? Read something is stopping later this year, but you can still take advantage now?
https://www.bbc.co.uk/programmes/p02pc9xt/episodes/downloads
Last Monday's clip - 5 minutes in - Martin talks about this.0 -
PS. Where is best to find out about those ISA's? £250 per month and the £4000 per year? Read something is stopping later this year, but you can still take advantage now?
Have a read of MSE's guides to "help to buy ISAs" and "lifetime ISAs" here: https://www.moneysavingexpert.com/savings/lifetime-isas/ https://www.moneysavingexpert.com/savings/help-to-buy-ISA/
You would probably need to get your grandson and granddaughter to open the ISA themselves, and then pay into it.0 -
Catswhiska wrote: »If either of you need residential or nursing home care in the future it is likely the council will see it of deprivation of asserts and treat the money as still yours. My mum was fit and had a stroke at 70. Her home was sold to pay for her care
deprivation is often overplayed.
A large chunk out of the cash asset base could be an issue but as long as there is no visibility of care and there is a good primary reason to dispose as in this case deposit for a grandchilds house that mitigates the risk.
The other thing is OP has surplus income and that is untouchable as you can use that for whatever you like.
The council cannot retrospectively say you should have saved more.
A combination of giving away income and spending some of the capital(more holidays) would be very difficult to class as deliberate deprivation.
It is upto the OP to decide what levels of wealth they want to keep should more resources be needed for say care and we are not privy to any help that may be provided by family.
if they are happy with the levels they have then further accumulation is not needed and untouchable if given away.0 -
How about you open some sort of savings account in both their names and put money into it so that it is there if they need it and if they don't it can sit there and they will eventually get a nice little nest egg?
The important thing is not to take away their pride in doing their own housing without help from grandparents/parents even if that housing is renting.
Times have changed and some young people prefer to rent because it takes away the saving for repairs and maintenance of their own property plus they can afford to rent a bigger property than they could afford to buy and they can move if they want to without all the hassle of buying and selling.
Those of us who are old and basically had to buy because there wasn't enough good property to rent (rent acts etc) are actually now out of date with what many of the young want in the form of housing.0 -
Do they want to buy houses? Perhaps give them some money and let them make their own choices - a property isn't on everyone's bucket list.0
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