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Buying house for student DS

(16 Posts)
iamamug Fri 01-Jun-18 11:19:29

I have one DS already living and working in a city paying rent to share a flat. Youngest DS thinking of moving to same city for university. I will have already saved enough for a deposit by then as I've saved to pay the rental costs of youngest DS while at university.
Can anyone see any issues with me buying a house instead for them both, oldest will pay me reasonable rent. I could get a 3 bedroom and rent out another room to cover mortgage. Am I missing anything?

iamamug Fri 01-Jun-18 11:21:34

For info, I'm intending to own the house myself , not gift to them.

HollowTalk Fri 01-Jun-18 11:23:59

I suppose it depends on whether the two brothers want to live together.

It's a great idea, though, as long as your younger son wants to live in the same house for three years, though of course you could rent to other students if he wanted to move.

HollowTalk Fri 01-Jun-18 11:24:41

A lot of three bedroomed houses have a very small third bedroom. Who would be expected to live in that one?

iamamug Fri 01-Jun-18 11:39:01

They get on brilliantly although 8 year age gap, I would love the idea of older DS looking out for younger DS. They are already talking about potentially living together so I'm thinking it's madness for me to pay rent for youngest when I could buy a house for them both.

iamamug Fri 01-Jun-18 11:41:03

And it's not an expensive city so could get a 3 bed for £125K and perhaps use second living room for Third bedroom.

MaggieFS Fri 01-Jun-18 11:43:09

If you own your main home already, don't forget the higher stamp duty on second properties in your calculations.

Is your employed DS happy to share with a student? What about when younger DS leaves uni, if he moves elsewhere, is there demand for shared houses from non-students to occupy the other rooms in the long run?

Also what rules and regs do you have to confirm to? Would you fall under house of multiple occupancy rules if one or two tenants were your sons (I have no idea!)? What about insurance costs etc.

All considered though, property is a good long term investment, I'm not trying to put you off, just throwing out there the things off the top of my head you need to consider. I suspect there's probably a handy guide on the internet somewhere or a more knowledgeable person than me on mn who can me more specific. If I could find a way to have a property investment though, I'd be doing it.

iamamug Fri 01-Jun-18 11:57:14

All good points, older DS has only ever shared since going to uni 6 years ago so would be delighted to be with family in their 'own' house.
I don't actually need another tenant , would be a 'nice to have'.
It's been a pipe dream of eldest to have a place of his own and to share with his brother would feel like that. I'm aware of IHT implications further down the line. Our own house is mortgage free so it seems a more sensible way of sorting university accommodation costs for younger DS while giving older one a chance to choose a property to live in for as long as necessary. Neither will necessarily stay there in the long term so could then revert to HMO or sell.

iamamug Fri 01-Jun-18 11:59:36

It's also a major city so rentals in demand, similar to London for professionals needing to share but much cheaper housing stock.

Lifeaback Fri 01-Jun-18 12:02:46

Would this be for DS2 to go straight into, or go into after first year? I think students are at a bit of a disadvantage missing out on student accomodation for their first year as it’s a great way of meeting people.

It seems like a great idea on paper and great for DS1 but is DS2 on board with not having the opportunity to live with friends through uni and get the full student experience? That would be my only concern

MaggieFS Fri 01-Jun-18 12:04:09

Wow - sounds spot on then! Mind sharing which city?

Minor aside, I meant stamp duty at point of purchase not IHT impact, but even for a second home, at &125k it's less than £4K

TimeToDash Fri 01-Jun-18 12:04:19

We did this with each of my stepsons. We lent them the money to buy the houses and they are now paying it back on very very low interest rate so they save money, can get a 'mortgage' and we also have an income.

iamamug Fri 01-Jun-18 12:24:41

It's Manchester. I agree that DS2 should go into halls for 1st year. For the rest of the time he would enjoy being with DS1. He's not a social butterfly and is unlikely to suddenly become one so he would actually get a better experience with his big brother, also likely to have 3rd year abroad. DS1 would be able to fill other bedroom quite easily in the meantime. I'm thinking well ahead as DS2 not due to go for 2 years. I'd love to give them both a secure rental for the time they want to be in that city.

moira123io Mon 25-Jun-18 03:55:51

Go ahead and get the house. Money's only lost in the hands of a landlord, you can always sell the property once they have graduated. We did the same thing for our daughter when she was at uni. She was away from home for the first time, naive and the halls had a bad reputation so weren't an option. We were able to visit a lot and she could concentrate on her studies as she wasn't living in basically a hostel.

guessmyusername Wed 27-Jun-18 21:34:15

Also take into consideration if/when you come to sell it you would be liable for Capital Gains Tax as it is not your main residence. Also if it is a mixed student / workers household they will be liable for council tax, only a student only household is exempt.

caroldecker Wed 27-Jun-18 21:57:11

For renting to family you cannot get a BTL mortgage. You would need to get one based on your income.

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