How To Play It?

[hedgefunded]

She's got 100k, I'm prepared to lend her another 50k at 5% for cash. She's happy, I'm happy.

So I figure that we don't look at anything that's new to the market, we sees a few houses at once so the agents don't think we've got one specifically in mind. We show no interest, even in the perfect house, and we put in an offer at around 30% off, get rejected and then go to 25% discount as a final offer.

We make it plain that we are well aware of where the market is going, that we don't need a mortgage, that we are cash buyers with no chain and that our offer only stands for that day.

We don't buy anything new, or anything obviously flipped. Flats are out and something with potential for improvement, and a good location is certainly in.

Sound about right?

[chichi]

Why does she need a house? Can't she rent with you? If she's over 75 you don't pay for the tv licence any more

[cells]

why do you need to ask a fourm of people you dont even know?

simply ask yourself

what do i gain/loose if i dont buy now and buy in x years time.

even in this market and the real possibility of 30% or more drops there are times when buying isnt a bad idea

[hedgefunded]

I was after strategic tips for going through the process of viewing and buying.

Even the biggest clown knows not to offer full asking price for a place that has been on the market for a year. I was looking for more subtle and considered ideas along those lines.

That's all.

[huw]

She's got 100k, I'm prepared to lend her another 50k at 5% for cash. She's happy, I'm happy.

So I figure that we don't look at anything that's new to the market, we sees a few houses at once so the agents don't think we've got one specifically in mind. We show no interest, even in the perfect house, and we put in an offer at around 30% off, get rejected and then go to 25% discount as a final offer.

We make it plain that we are well aware of where the market is going, that we don't need a mortgage, that we are cash buyers with no chain and that our offer only stands for that day.

We don't buy anything new, or anything obviously flipped. Flats are out and something with potential for improvement, and a good location is certainly in.

Sound about right?

A single day is not a reasonable deadline IMO, and makes you look like someone who will be hard to do business with. Of course, it depends on how desperate the vendor is. But you might try saying the offer stands in principle for a week, but that you have several other properties in mind...

[right_freds_dead]

She's got 100k, I'm prepared to lend her another 50k at 5% for cash. She's happy, I'm happy.

So I figure that we don't look at anything that's new to the market, we sees a few houses at once so the agents don't think we've got one specifically in mind. We show no interest, even in the perfect house, and we put in an offer at around 30% off, get rejected and then go to 25% discount as a final offer.

We make it plain that we are well aware of where the market is going, that we don't need a mortgage, that we are cash buyers with no chain and that our offer only stands for that day.

We don't buy anything new, or anything obviously flipped. Flats are out and something with potential for improvement, and a good location is certainly in.

Sound about right?

save your leg work.

you can call local EAs on the phone and tell them this speech above first, before even going to look.

saves time.

[Dubai]

She's got 100k, I'm prepared to lend her another 50k at 5% for cash. She's happy, I'm happy.

So I figure that we don't look at anything that's new to the market, we sees a few houses at once so the agents don't think we've got one specifically in mind. We show no interest, even in the perfect house, and we put in an offer at around 30% off, get rejected and then go to 25% discount as a final offer.

We make it plain that we are well aware of where the market is going, that we don't need a mortgage, that we are cash buyers with no chain and that our offer only stands for that day.

We don't buy anything new, or anything obviously flipped. Flats are out and something with potential for improvement, and a good location is certainly in.

Sound about right?

Are you really going to charge your own mother interest on a loan? I am truly gobsmacked and glad I left the UK if this is what the New Britons are made of.....

[electricblue]

Are you really going to charge your own mother interest on a loan? I am truly gobsmacked and glad I left the UK if this is what the New Britons are made of.....

I thought the same thing. I hope my children don't behave like this as they age. Greed.

[Dubai]

I thought the same thing. I hope my children don't behave like this as they age. Greed.

Truly horrifying and a sad reflection on current culture; perhaps an indication of the causes of the state of the western economies. Everything has a dollar price... and a value of nothing.

[hedgefunded]

Truly horrifying and a sad reflection on current culture; perhaps an indication of the causes of the state of the western economies. Everything has a dollar price... and a value of nothing.

Sadly I can't afford not to.

Having been made redundant recently I need the interest on the redundancy payment as income. I'd love to be able to just give her the money, really I would, but I can't afford to do so.

The fact is that she is desperate to buy a house rather than carry on renting, despite my continual well reasoned arguments.

She want's 'something to leave to her children' and despite my suggestion that leaving the 100k is a far better move than leaving a house right now, she cannot see renting as anything other than dead money.

So, she's going to buy a house, and for something half decent around here that means about £140-£150 after a bit of haggling. She only has 100k, and so she needs more money.

Borrowing it from anywhere else will cost her more than borrowing it from me , and for the reasons stated I can't afford to just give it to her.

This isn't a 'sad reflection on culture', it's a sad reflection of how the housing boom means that you cannot buy a modest little terraced house in a grubby little town for one hundred thousand pounds.

[OscillatingWildly]

Sadly I can't afford not to.

Having been made redundant recently I need the interest on the redundancy payment as income. I'd love to be able to just give her the money, really I would, but I can't afford to do so.

The fact is that she is desperate to buy a house rather than carry on renting, despite my continual well reasoned arguments.

She want's 'something to leave to her children' and despite my suggestion that leaving the 100k is a far better move than leaving a house right now, she cannot see renting as anything other than dead money.

So, she's going to buy a house, and for something half decent around here that means about £140-£150 after a bit of haggling. She only has 100k, and so she needs more money.

Borrowing it from anywhere else will cost her more than borrowing it from me , and for the reasons stated I can't afford to just give it to her.

This isn't a 'sad reflection on culture', it's a sad reflection of how the housing boom means that you cannot buy a modest little terraced house in a grubby little town for one hundred thousand pounds.

Well done for sticking up for yourself. However, if money is tight and looks like remaining so, this idea to buy a house if just plain wrong. Keep the money and let your Mum rent a little more. Give it two or three years and maybe she'll be able to buy the type of house you both have in mind while you still have your redundancy payment in the bank!

Most importantly, relax - prices have stopped shooting up. You have nothing to lose by waiting a few months to see how things are going. In three months time I am sure you will be glad you have not just completed on a falling asset.

BD

[electricblue]

Why don't you get another job where you can earn as much as your mother will pay you in interest rates? I mean this is your mother you'll be taking money from...Surely, she has paid enough for you throughout your lifetime already? Redundant doesn't mean you can't find new work and if you're willing to lend your mother $50,000 you must be sure that you will get it back, interest or not. So, she wants something to leave to her children, with which you will have put $50,000 into, and not only will you get some of that, but you will get interest along the way. Sometimes, I think people have been spoiled by their parents to ruination.

[Minos]

Are you really going to charge your own mother interest on a loan? I am truly gobsmacked and glad I left the UK if this is what the New Britons are made of.....

ditto.

[Cinnamon]

Are you really going to charge your own mother interest on a loan? I am truly gobsmacked and glad I left the UK if this is what the New Britons are made of.....

He is loaning her the money in the first place, without guarantees[1], and 5% won't replace what is eaten by inflation anyway. It also may well be a matter of pride for his mom, you know, to pay her way, and all that.

If someone lends you a hand it's rather rude to demand the entire arm, no?

[1] Not a smart thing to do, if something bad happens and your mom is kidnapped by social services who will happily fleece her estate to pay for 'care', you can kiss your money goodbye.

[dreamOn120k]

As a cash buyer you should buy at auction. There is a two tier market at present, one is offering discounts up to 40%.

[huw]

Are you really going to charge your own mother interest on a loan? I am truly gobsmacked and glad I left the UK if this is what the New Britons are made of.....

When money is losing purchasing power every day, an interest-free loan becomes more than a loan, it becomes a gift. Would you expect him to donate the income to his mother, if the money were invested to generate a return?

[babesagainstmachines]

Do yourself a favour, and don't lend it to her. In fact, rent a nice house for her and take the money off her hands slowly in a tax effective manner. That's the best thing she can leave to you at the moment.

[hedgefunded]

Thanks to all, even the critics. I can get another job, but the one I got dumped from was paying 57k, and that ain't gonna happen again.

I really posted for hints about how to get a house for minimum money, but cheers anyway.

[BufferBear Bitcoin Bull]

FWIW, I think the unfair comments regarding you lending your mother money and charging interest are unfair. No one but you know your circumstances. It sounds as, if you could afford to give her 50k you would or at least not have her pay interest.

What people should be saying is isn't it great that you know the importance of looking after your mother, where possible. My mother sees her role as supporting me, including financially and would not even consider taking money from me, no matter how creative I am in trying to do this. She often says that parents, where possible, should support their children throughout adulthood, as they chose to have them (I don't plan on doing this!) When I return money to her that she has sent, she simply returns it stating that it is for "my grandchildren as you don't want it".

My mother has also been 100% supportive in us not buying an overpriced property, unlike some other friends and family. She has seen it all before, and does not have a short memory. As a resident of West Palm Beach, she is now seeing another asset bubble pop from a very safe (apart from hurricanes that is) position.

[The Masked Tulip]

The fact is that she is desperate to buy a house rather than carry on renting, despite my continual well reasoned arguments.

She want's 'something to leave to her children' and despite my suggestion that leaving the 100k is a far better move than leaving a house right now, she cannot see renting as anything other than dead money.

How old are you? How old is your Mum? Read again what you have typed above and see if you can read into it what I am reading?

Your Mum is getting old. She is getting to the end of her life by the sound of it or, at the very least, is begining to think about what happens when she dies. I read a lot of anxiety, worry and concern in those words.

I think you need to pause for breath, stop and think about what is actually going on here.? What is your Mum really saying to you?

Depending on your Mum's age there are an awful lot of things that you both need to begin to start thinking about, and talking about, rather than buying a house.

I hope this helps.

[hedgefunded]

How old are you? How old is your Mum? Read again what you have typed above and see if you can read into it what I am reading?

Your Mum is getting old. She is getting to the end of her life by the sound of it or, at the very least, is begining to think about what happens when she dies. I read a lot of anxiety, worry and concern in those words.

I think you need to pause for breath, stop and think about what is actually going on here.? What is your Mum really saying to you?

Depending on your Mum's age there are an awful lot of things that you both need to begin to start thinking about, and talking about, rather than buying a house.

I hope this helps.

I'm 44, Mum is 67. She's got a lot of longevity in her family. She's fit and healthy and I seriously expect her to live another 20 years.

This isn't about inheritance and it isn't about making a few quid out of her. I just cannot afford to give her 50k without charging interest, and she can easily afford that interest.

It's purely about how to get the best price for a house in a slowly falling market when emotionally she really wants to own one.

Even though the interest on her 100k pays her rent, she cannot get past the mental hurdle that she doesn't own a home and wants to. I can see her side of the coin of course, but my money is at stake too.

The fact is that we could go and buy a place for cash tomorrow, but I know it would be lunacy to buy such a place. I also know how she'll feel when in 2 years time it's worth 20-30% less than we paid for it.

I don't want to do "I told you so", I want to spend her money and my money wisely, buying the right property at the right price.

The good point about what happens if she needs to go into a home is also something that I will be researching, and there will a legal agreement in place to cover my investment (which she insists on).

It's not easy, it's family.

[The Masked Tulip]

I'm 44, Mum is 67. She's got a lot of longevity in her family. She's fit and healthy and I seriously expect her to live another 20 years.

This isn't about inheritance and it isn't about making a few quid out of her. I just cannot afford to give her 50k without charging interest, and she can easily afford that interest.

It's purely about how to get the best price for a house in a slowly falling market when emotionally she really wants to own one.

Even though the interest on her 100k pays her rent, she cannot get past the mental hurdle that she doesn't own a home and wants to. I can see her side of the coin of course, but my money is at stake too.

The fact is that we could go and buy a place for cash tomorrow, but I know it would be lunacy to buy such a place. I also know how she'll feel when in 2 years time it's worth 20-30% less than we paid for it.

I don't want to do "I told you so", I want to spend her money and my money wisely, buying the right property at the right price.

The good point about what happens if she needs to go into a home is also something that I will be researching, and there will a legal agreement in place to cover my investment (which she insists on).

It's not easy, it's family.

I strongly advise you to go and get the advice of a really good solicitor who deals in Wills, Probate and what happens when people become ill and elderly and Social Services step in.

I have former neighbours of mine who are in a right pickle now because the wife's 88 year old mother became ill, had to go into a home and the social services now wish to sell her home to pay for her care - 600 per week. The thing is that my former neighbours had been giving the mother cash rent for 20 years when they moved in to look after her. They have no proof of this and now potentially will lose their home.

You really need to seek the advice of a solicitor who has expertise in this area re your local social services department.

One other point, there is a BIG difference between being a sprightly 67 and turning 70. It is shocking how even the healthiest 60-something can become an infirm 70-something. Not trying to worry you, just be sensible about this.

You need to ask a good solicitor about property trusts, shared property ownership. Your Mum needs to make a will and also write codecils to any will stating her intentions. At the same time your Mum needs legal protection should the situation ever arise when her kids want to kick her out of a property and cash in - it happens more often than people realise - and leave her penniless.

What I am trying to convey to you is that you are entering a legal and financial minefield and you should not be seeking advice on here. You need go talk to a solicitor. A good one!

[Bloo Loo]

Truly horrifying and a sad reflection on current culture; perhaps an indication of the causes of the state of the western economies. Everything has a dollar price... and a value of nothing.

well, she could borrow from a bankster at 8.5% unsecured!

And the poster will inherit it back someday.

[huw]

I strongly advise you to go and get the advice of a really good solicitor who deals in Wills, Probate and what happens when people become ill and elderly and Social Services step in.

(snip)

This sounds like excellent advice to me.

[BecksMyCat]

Are you really going to charge your own mother interest on a loan? I am truly gobsmacked and glad I left the UK if this is what the New Britons are made of.....

Yes, quite, make the b1tch pay 7%, there is a credit crunch going on after all