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kathf

Ideas?

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Hi been watching this forum for a while thought I'd post as I've got a couple of options for getting on the property ladder as ever pros and cons to both.

1. Spoke to Redrow this week and have registered my interest in purchasing one of their new Debut homes (one bedders starting at £56000) and essentially they are pre-fabs. Thrown up and sold cheap as chips. No idea as to the quality etc but thought as my brother is a surveyor that if I go and have a look at the build I will take him with me to advise on quality and durability etc.

2. i live with my parents (I'm 32) and unfortunately instead of saving for a deposit I've used my money to help them maintain their property. Why because they're pensioners, retired and have fallen into the pensioners poverty trap and really don't want to let the house go. As a reward for all my efforts they've offered me the house for £65k (market value about £140,000) I took some legal advice and decided its feasiible. The downside - well parents have to live somewhere don't they so they will be living with me and paying me some rent. The house will be held in both my name and my brother's.

I think Option 2 is the best idea. The prefabs don't hold much appeal and I saw a property the other day (I am in Oldham Greater Manchester) manky terrace on the edge of a bit of a dodgy area MIGHT have been all right but six months ago a house on the same row went for £69,000 this is on the market for £80,000!! Not to say it will sell at that price but even so.....the house prices round here seem to be getting higher and higher. My brother bought his for £60,000 five years ago now he is selling its back on the market at £160k. he bought his first flat for £32k (new build) twelve years ago now they are selling for £90k! Good news if you're on the ladder crap news if you're not.

Any of you guys think my options are good options?

Edited by kathf

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Option two is better IMHO, but it has tax implications, as the sale is below market value. Get expert advice on gifts and the rents and don't try to avoid any tax.

Your parents sound lovely selfless souls - like mine. (With me it's skipped a generation.)

When I spoke to a solicitor ( I work for a law firm!) as the property is our main residence it avoids capital gains tax.. At the minute (!) its below the threshold for inheritance tax. We would normally have to pay stamp duty as this is calculated on full value but for some reason we are stamp duty exempt round here. Finally with regard to the tax on rent paid, this will be done under the rent a room scheme whereby rent paid by a lodger which falls under the sum of £4,200 a year is tax exempt. I think 2 is a better option than a prefab and after all I have paid for things in the house I would like to get the enjoyment out of.

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Hi been watching this forum for a while thought I'd post as I've got a couple of options for getting on the property ladder as ever pros and cons to both.

1. Spoke to Redrow this week and have registered my interest in purchasing one of their new Debut homes (one bedders starting at £56000) and essentially they are pre-fabs. Thrown up and sold cheap as chips. No idea as to the quality etc but thought as my brother is a surveyor that if I go and have a look at the build I will take him with me to advise on quality and durability etc.

2. i live with my parents (I'm 32) and unfortunately instead of saving for a deposit I've used my money to help them maintain their property. Why because they're pensioners, retired and have fallen into the pensioners poverty trap and really don't want to let the house go. As a reward for all my efforts they've offered me the house for £65k (market value about £140,000) I took some legal advice and decided its feasiible. The downside - well parents have to live somewhere don't they so they will be living with me and paying me some rent. The house will be held in both my name and my brother's.

I think Option 2 is the best idea. The prefabs don't hold much appeal and I saw a property the other day (I am in Oldham Greater Manchester) manky terrace on the edge of a bit of a dodgy area MIGHT have been all right but six months ago a house on the same row went for £69,000 this is on the market for £80,000!! Not to say it will sell at that price but even so.....the house prices round here seem to be getting higher and higher. My brother bought his for £60,000 five years ago now he is selling its back on the market at £160k. he bought his first flat for £32k (new build) twelve years ago now they are selling for £90k! Good news if you're on the ladder crap news if you're not.

Any of you guys think my options are good options?

Hmmmm....why change the status quo at all, just so you can feel part of the property owning generation?The house as you say would still be in both childrens names. They then pay you rent after selling you their property for an 85K loss. You refer to them continuing to live with you as downside. Have all "your efforts" amounted to such a discount? Presumably you then get a mortgage on the now 65K property, new debt on something that was presumably debt free. Your imput amounts to what was called paying keep in my day when living with parents. They have already done enough for you housing you up to the age of 32, why could you not have moved out perhaps 7 years ago? Some could translate your post as scheming and taking advantage of your parents, I would not be so presumptious ;)

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that's exactly the first thing i thought. (See Losing Faith's post - two posts while i was typing!)

scenario later on.......what happens when your parents kick the bucket and your now lovely brother get's greedy and you have to move out (or come up with the dosh) to let him realise the equity of his inheritence. this sort of thing breaks families apart.

wouldn't it be more likely that your brother should get half of the difference between your mortgage and the value of the house when it becomes an inherited item? you could easily mortgage for this later on. you also have to consider the fact that it is you who has been maintaining the property recently.

Edited by Dancing Bear

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that's exactly the first thing i thought. (See Losing Faith's post - two posts while i was typing!)

scenario later on.......what happens when your parents kick the bucket and your now lovely brother get's greedy and you have to move out (or come up with the dosh) to let him realise the equity of his inheritence. this sort of thing breaks families apart.

wouldn't it be more likely that your brother should get half of the difference between your mortgage and the value of the house when it becomes an inherited item? you could easily mortgage for this later on. you also have to consider the fact that it is you who has been maintaining the property recently.

sorry should have explained he is not going on the mortgage because he has just got a new job and does that plus works self employed - not good considerations for a mortgage app!

Parents had very serious debt problems and are not living mortgage free at the moment - long story but essentially bills not being paid etc and have paid some of this debt off for them.

also didn't move out several years ago as unfortunately due to illness requiring a long period of hospital care was unable to work and had to delay my education - didn't do A-levels whilst I was 21- ideal world would have bought eight years ago but other circs dictated. Just bad luck I guess.

With regard to brother wanting his share later long term as part of retirement planning I would consider selling anyway to something more low maintenance.

with regard to taking advantage of parents this idea is not mine - they approached me when I was having a look around for options.

Finally I fear that i must do something to get on the property ladder as alternative options do not appeal

thanks for your advice guys I will have a look at the Redrow development and take it from there

Edited by kathf

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sorry should have explained he is not going on the mortgage because he has just got a new job and does that plus works self employed - not good considerations for a mortgage app!

Parents had very serious debt problems and are not living mortgage free at the moment - long story but essentially bills not being paid etc and have paid some of this debt off for them.

also didn't move out several years ago as unfortunately due to illness requiring a long period of hospital care was unable to work and had to delay my education - didn't do A-levels whilst I was 21- ideal world would have bought eight years ago but other circs dictated. Just bad luck I guess.

With regard to brother wanting his share later long term as part of retirement planning I would consider selling anyway to something more low maintenance.

with regard to taking advantage of parents this idea is not mine - they approached me when I was having a look around for options.

Finally I fear that i must do something to get on the property ladder as alternative options do not appeal

thanks for your advice guys I will have a look at the Redrow development and take it from there

Kath, sorry just re-read my post of this morning, It read as a bit harsh, no offence meant. I`ll blame it on a combination of beer last night and Everton being bottom of the league having scored one goal :(

Paul

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Kath, sorry just re-read my post of this morning, It read as a bit harsh, no offence meant. I`ll blame it on a combination of beer last night and Everton being bottom of the league having scored one goal :(

Paul

:lol:

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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