Buying property jointly with daughter.

[sam7]

My son is in exactly the same situation as your daughter, he is single, so looking to buy on his own, so its only X times his wages. He has a nice deposit saved, but how much a mortgage company will lend him on X times his wages only puts him in the price bracket for the houses that are attracting all the buy to let purchasers.
I feel so sorry for him, every house he put an offer in on he is getting out bid as the investors have more money than him.
I have also wondered if I could jointly buy with him.
In a few years time people in the next price bracket of houses will have the money to move up, but wont be able to sell because all low bracket houses are rented.

[Sew109]

Originally Posted by sam_b

Many people are predicting a house price crash in UK with rising inflation, cost of living and recession looming…. So maybe it will get a little easier for her soon. House prices are unsustainable in many areas at the moment given the price v average earnings ratio.

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Whilst this is possible tread with care, in around 2000 we sold our house I thought that there would be a crash and as a result stayed in rented for 9 years ! I them managed to buy and put 25% down in 2010 and paid the mortgage off in 7 years.

The 8 years were tough we were paying far more in rent than a mortgage (twice what the minimum mortgage payment would have been) .

I think if you have perfect rental payments for 2 years this should be used as a tool to show how much you can afford to repay.

[sam_b]

Originally Posted by Sew109

Whilst this is possible tread with care, in around 2000 we sold our house I thought that there would be a crash and as a result stayed in rented for 9 years ! I them managed to buy and put 25% down in 2010 and paid the mortgage off in 7 years.

The 8 years were tough we were paying far more in rent than a mortgage (twice what the minimum mortgage payment would have been) .

I think if you have perfect rental payments for 2 years this should be used as a tool to show how much you can afford to repay.

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Indeed - I wasn’t suggesting that as investment/buying advice… just trying to offer some hope that it may get easier soon if she doesn’t manage to get on the housing ladder right now.

[daytonababe]

Originally Posted by SquishTheWhale

When we tried to sell my MILs house the bank devalued it by the tune of 40k (on a £220k house!). She lost her buyer as neither them nor their bank were willing to pay the offer price anymore. Apparently it's happening because the banks have cold feet about the bubble bursting and don't want to end up in negative equity.



It must depend on circumstances but this was the opposite of our case. My mum lent us £10k towards our deposit, but we had to pretend it was a gift or the mortgage company starts getting really itchy about the repayments for it. We all had to sign a legal document saying it was a gift and not a loan. And she just has to trust me to pay it back haha (which I do obviously!).

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That’s the case for someone i know too .. Her dad gave her £25k towards the deposit and he had to have a solicitors letter drawn up saying it was a gift not a loan.

[lizzie145]

Originally Posted by 123

Whilst it obviously isn't as lucrative as it was a couple of years ago, the mileage allowance that HMRC sets is generous. The only way those journeys are actually costing more than she gets back is if she is doing the whole journey in first gear...

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but those 60 miles are not part of the business miles and taken off any claim before they will pay mileage.

NHS are not so good with mileage costs - there are so many community nurses who are actually paying to visit patients currently

[Sew109]

Originally Posted by louiseybobs

My accountant was telling me you can no longer offset the cost of the rental mortgage against the income from it anymore (not sure if thats how you word it sorry)

But yes I totally get you. I have no pension so was thinking for that purpose too.

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You can still offset the interest if you buy the house though a limited company just not as a personal investor. Ridiculous rule as any landlord invoked costs always get passed to the tenant