Stay with MIL to save money or move back into our own house?

(37 Posts)
BatCrapCrazy Fri 14-Feb-14 12:17:23

DP and I own two properties which we rent out. Property A is a beautiful 4 bed house, not a 2 minute walk from DCs school and a 5 minute drive away from the school that I work in. Property B is a 2 bed house in the welsh valleys.
We live with MIL and are saving to buy another house (to live in). We had intended on staying another 6 months, a year at max. Thing is, DP has just lost his job and has gone self employed. He has plenty of work on and we are actually better off with him working for himself. But we are aware that mortgage lenders need a minimum of 2 years statements of earnings.
We have two DC age 2 and 3 and we need our own space desperately. There is a lot of building work going on here and it's not safe for the DC. I've just come home from work and FIL has decided to knock a wall down so there are blocks and rubble EVERYWHERE.
Should we stick it out and think of the money or give our tenant in property A her notice and love in there? then we could save for another buy to let and buy in a couple of years.
MIL charges us 410 a month rent here. Our mortgage on property A is 320 so with additional bills, we would only be paying out a couple of hundred more a month.

Would love your opinions on this.

BatCrapCrazy Fri 14-Feb-14 18:45:06

Bumping
But there has been a development in situation. My grandfather has offered to lend us money for a deposit for a house and said there's no rush to pay it back.
Obviously we would need to sort out a mortgage quick to use DPs last few payslips as proof of earnings.
But is that even legal? He's not officially redundant for another week or so.

MaryWestmacott Fri 14-Feb-14 18:52:34

Op, if I was you, I'd move into property A, then you can apply for schools from that property, continue to save and if you are happy there, always use that money to buy an investment property. Be aware, your DH as self employed now has a lot of work, but things can change, so I'd take that money offered and pay down the mortgage on property A, minimising your outgoings.

BatCrapCrazy Fri 14-Feb-14 18:58:26

The mortgage on property A is tiny. Our repayments are 200 a month and we get 650 rent from it pm. The mortgage on property B is 120 pm and we get 430 rent from it pm.
I'm torn. We really don't know what to do.

BatCrapCrazy Fri 14-Feb-14 19:00:33

Mortgage repayments are 320 on property A, not 200 sorry. Was 200 but we've upped our payments to pay it off quicker

I would move into Property A but that's because I don't see the point of all this saving and staying with someone else (probably not great for you or them) when you could be happy and self-sufficient.

MaryWestmacott Sat 15-Feb-14 11:43:59

Move into property A, you aren't suitably housed now, it might seem like a good idea to stay with your inlaws and live for free but the cost to your family standard of living doesn't seem worth it.

You can always save up or use any gifts of money to get another rental property later, but you need somewhere to live now, and given the ages of your DCs, you need it to be near a good school at least until you've got them a place.

You need a family home, there are other investment opportunities other than property, but if you only see property in terms of investment, then you'll end up living with a crap standard of living throughout your DCs childhoods just so you can be richer in your retirement.

perplexedpirate Sat 15-Feb-14 11:49:34

Definitely move into property A. Send like the obvious decision to me (although I wouldn't live with my mil for a gold clock!).

Weetabixwife Sat 15-Feb-14 11:53:12

Moving in to A seems a bit obvious to me. Though I understand wanting to invest money and BTL can be a good way I don't see the point of doing it if you have to live with your in laws.

brettgirl2 Sat 15-Feb-14 12:03:27

fgs move back into the house. It doesn't sound like you need to move anyway. I think yabvu to free load/ pay low rent to in laws in the position you are in anyway.

BatCrapCrazy Sat 15-Feb-14 12:54:15

It was the inlaws idea to move in with them as they aren't working at the moment and needed the money we give them for rent. When we moved in with them, my job was looking uncertain (I'm a learning support officer and our LA were making cuts) so it seemed like an all round solution.
But I'm dreadfully unhappy here. The children have no routine, DFIL gives them sweets when I'm trying to put them to bed. DP is very reluctant to give Tenant her notice as she wants the property long term (but we only do 6 months contracts. Think she has about 6 weeks left on contract). She has also spent a lot of money transforming the house so if we were to give her notice it would only be fair to not charge her for her last months rent

LIZS Sat 15-Feb-14 12:58:41

Surely you might as well enjoy the convenience and space of your house A.

BatCrapCrazy Sat 15-Feb-14 13:04:55

I'm set on moving into house A. Buying another house seems a bit silly when we aren't sure what the future holds for DPs work and we would obviously have to pay the money we borrow for deposit back.
DP wants to stick it out with his parents.
I need to persuade him house A is the better option for the sake of my sanity.

MaryWestmacott Sat 15-Feb-14 13:32:15

So tell your DH you tried it, it doesn't suit you, so you need to move out, the 'where' is the only question but you aren't prepared to live with your PIL any longer.

Preciousbane Sat 15-Feb-14 22:25:01

Tenants change the decor of a house at their own risk, in theory you could make her return it to exactly how it was. I'm assuming the house changes were purely for taste reasons and not because you were a bad LL.

You need to tell your DH exactly what the problems are.
Sounds like his parents need to downsize as well.

BatCrapCrazy Sun 16-Feb-14 09:19:48

When the tenant moved in, the house was in perfect condition and it was all neutrally decorated. She has wallpapered half the house and painted the rest. It looks stunning in all fairness. She loves the house and we did say we had no plans to sell or move back in so I would feel bad if we gave her her notice.
PIL only moved into their house in September. It's the worst thing they ever did. It's barely habitable, and quite frankly, they don't have enough money to sort it. They don't have a mortgage so what we pay in rent covers all the household bills and we buy all our own food obviously. We don't feel welcome there, even though we have been doing each other a favour. I think MIL is panicking now that she knows we are weighing up our options as she needs our rent money. DP has offered FIL work though so if that works out I wouldn't feel so bad about that.
I think it would be better to move back into the property. It would be too tight financially to buy another house right now. We would still be in a position to save while living in the property so we could buy another buy to let in a year or two.
I briefly spoke to DP about it this morning and he thinks I'm mad.

horsetowater Sun 16-Feb-14 09:28:50

Move back into house A, offer the tenant some cash for the inconvenience, get a lodger or two in to your spare rooms if you need money now.

I would be offering to help your parents as well. You living there can't be very helpful.

Preciousbane Sun 16-Feb-14 10:18:04

My FIL and SIL are dreadful with money and have made some shocking decisions regarding housing just like your jn laws. They have made their decisions they have to live with them. I'm all for helping relatives that have a bad time due to illness, redundancy etc but you can't bail out people who are idiots with money.

You sound like a nice person op and I can see why you feel bad giving notice but you need to for the sake of your family. When renting as I have done in the past you never know when you can be given notice. I think if you take the financial hit and don't charge your occupier the last months rent that is a generous offer. When leaving our last rental house to buy we made such a good job of cleaning it the landlord didn't have to get his usual cleaning firm in so he let us off the last two weeks rent.

BatCrapCrazy Sun 16-Feb-14 10:31:32

If we were to move back into our house We would have to charge her the last months rent but return it to her the day she leaves along with her bond. I have visions of not charging the last months rent at all and her completely wrecking the place.
I think this is what we need to do. DD is suspected ASD and is struggling with the lack of routine here and we struggle with their behaviour in such a confined environment. DPs heart is in the right place, he wants to give us a good head start in life but I need to show him this comes at a massive cost. We won't be having any more DC and we are spending the best time of their lives miserable all to save a few hundred quid extra a month. We are better off than many people could dream to be and we should count ourselves lucky for what we have and be happy with what we have already achieved.

horsetowater Sun 16-Feb-14 10:36:36

For someone who is batcrapcrazy you sound extremely grounded. Kids come before money. Do what you know is right for them. Good luck. smile

BatCrapCrazy Mon 17-Feb-14 18:27:47

Aww thanks horsetowater. Still having trouble persuading DP though sad

eddielizzard Mon 17-Feb-14 18:32:55

don't get into more debt. don't borrow off family. don't buy another house with another mortgage.

def move into house a. for your sanity if nothing else. sounds to me like kids are not thriving in this environment.

explain situation to tenant, that you hadn't foreseen this and that you will drop last month's rent to compensate her for work done.

themessyapron Mon 17-Feb-14 18:35:41

You have two houses with teeny mortgages. Use one of them!

BatCrapCrazy Mon 17-Feb-14 18:38:05

I'm so glad you all agree with me - it seems it's only DP who thinks I'm mad. He's always on such a mission to make money. In only 23 and he is 28, we have plenty of time to invest again. It's so frustrating!

themessyapron Mon 17-Feb-14 18:39:18

Tell him to get a grip and grow up. He's only in a position to make money and invest because his family are bankrolling you. It's considerably harder when you actually have to financially support yourselves.

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