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Parents Buy Btl For Children At Uni

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Today's Guardian Money section is devoted to students.

There is a long article about buying a BTL, renting out the rooms to your child's friends at uni, which in turn covers the child's rent.

Mostly, it's quite a depressing idea from our POV, but these two paras are interesting and worth quoting here:

However, before you rush down to the estate agents, consider a few other facts. Landlord Mortgages named Nottingham in its top 10, but we learned last week that property prices fell 13% in the city last year. It also acknowledges that yields (returns on investments) in the BTL sector have reached their lowest level for four years.

While the property market appears robust in London, it is much less so elsewhere. In many parts of the country, prices are flat or falling. Lots of professional BTL landlords have targeted university towns, and in many there is now an over-supply of property to let. Some areas in cities have become so saturated by "buy-to-let blight" that it is starting to bring down prices in its own right - and is blamed for mounting social problems.

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Today's Guardian Money section is devoted to students.

There is a long article about buying a BTL, renting out the rooms to your child's friends at uni, which in turn covers the child's rent.

Mostly, it's quite a depressing idea from our POV, but these two paras are interesting and worth quoting here:

A great example of how prices are self-regulating. If people can't afford to buy them they fall in price. Simple as that.

Edited by Casual Observer

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My friend's parent did this for her and her brother back in 1989 ish. Nothing new in it apart from even the poorer parents are doing it now.

I wished I'd done it when my son was at Liverpool in 1998-2001. Instead of paying £600/m rent I could have bought the house for about 20k!

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Great idea until the universities get involved with a big builder and put up a large accommodation block (as many are doing, realising the income they are losing out on) and the parents want their little Camilla and Toby in secure student digs with lots of other students then you get landed with a house you can't sell...... - but if you time it right and buy carefully enough you'll do OK on it....... - I know plenty of people who have done it and made a packet, I also know one or two that bought the wrong houses and are stuck with houses they can't sell and tenants who can be more trouble than they are worth and cost a fortune in repairs every year.... (none of them ever pay the last months' rent and a parental guarantee is hard to get a lot of the time. with so many people competing for the same market).

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Colleague did this for his son (who went to uni) in Norwich - was a new build, mortage is covered by the other students, he's taking a chance though at least his son will have a a nice start

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Why haven't the Unis wised up to the income opportunity earlier?

They chucked me out of halls after the first year as there was a 'shortage' of uni accommodation! :blink:

Mad!

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Fukc me, it must have been 'posh' for 20K and £600 per month. Nice yield too ;)

£600 sounds extortionate for a student place in Liverpool. Was he collecting cash from his mates and not telling you?

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This has happened in Swansea. 10 years ago all the HMO slum student landlords were mostly local. In recent years many of the locals have sold up to people whose kids have come to Swansea Uni and they have then become landlords.

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for everyone that made a 'packet' someone somewhere lost a packet. - or is about to.

what goes up must come down. 3 dogs fighting for one bone.

That pretty much sums up every kind of economic system, Communism included!

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I wished I'd done it when my son was at Liverpool in 1998-2001. Instead of paying £600/m rent I could have bought the house for about 20k!

I left the University of Liverpool in 1998 and a couple of parents were buyinh houses for their offspring during my time there. What did you son study?

Cheers

Bluechutes

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I left the University of Liverpool in 1998 and a couple of parents were buyinh houses for their offspring during my time there. What did you son study?

Cheers

Bluechutes

Computer Information Systems. How about you?

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Today's Guardian Money section is devoted to students.

There is a long article about buying a BTL, renting out the rooms to your child's friends at uni, which in turn covers the child's rent.

Mostly, it's quite a depressing idea from our POV, but these two paras are interesting and worth quoting here:

I think it is great idea. You can pretty sure of tennants for 3-4 years, and overall you'll probably save. Plus it ensures that your son or daughter lives in a decent house, not a pit like some student landlord let out. After 3 years it could be sold, or if there is a market for it, rented out to new students.

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There's nothing like a good start in life, and leaving Uni in 3 years time with £20k of debt and £30k of negative equity in nothing like a good start.

But no worry that 2:2 in media studies will ensure you earn an extre £1.5k pa with which to pile into a pension so you can retire before 85.

Pablo Silver or Lead?

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My previous student house had been bought by one guys parents who had decided to hang on while the going was good. They tried a kite flying sale, but I managed to find them some decent tenants, since nothing was shifting in the area.

I think it is a fantastic idea. All their children now know that however they muck up in life, mum and dad will be there to bail them out, as they have done in many a failed "business venture". I believe our rent was going towards their pot fuelled summer surfing holidays.

So, there are positives and negatives.

btp

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I think it is great idea. You can pretty sure of tennants for 3-4 years, and overall you'll probably save. Plus it ensures that your son or daughter lives in a decent house, not a pit like some student landlord let out. After 3 years it could be sold, or if there is a market for it, rented out to new students.

Wowee! Let's all do it.......we'll make a packet.....we won't ever have to work again.....no need to produce anything..all we have to do is sit on our arses while we grow rich......a fantastic idea!

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Computer Information Systems. How about you?

Aerospace Engineering. Wish that I had done something slightly less specialised, Mechanical Engineering would have been better. Computers even better.

£600 per month seems high for Liverpool.

Cheers

Bluechutes

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Aerospace Engineering. Wish that I had done something slightly less specialised, Mechanical Engineering would have been better. Computers even better.

£600 per month seems high for Liverpool.

Cheers

Bluechutes

Since a few people have queried it I double checked with my son. It was actually £420/month each (5 sharing).

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Wouldnt £200 a month be a student price in Liverpool?

There is VERY little proerty in Liverpool that is CARP enough to pnly ask that £400p.c.m. is regarded as fairly cheap. So devide that between the 2 or 3 that will live there and its not far of £50 a wekk but then that DOES NOT include the bills

TB

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Since a few people have queried it I double checked with my son. It was actually £420/month each (5 sharing).

£2100 pm then for the whole house.

:blink:

I've never seen a place that expensive outside of London. Round these parts (around norwich) you get, stables and indoor pools at £1100 upwards.

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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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