Son & Partner buying first home shld they take a bigger risk

I'm not anti council house at all, I've lived in them myself as a child and an adult, and one of my bugbears is there aren't enough of them. (Personally, i think they should have stayed in council ownership but thats a whole different debate.) But I would have concerns about buying one, mainly flats and/or on large estates.

My concerns are that LAs trend to treat leaseholders like shit. For example, when there's work to be done on the whole estate, the leaseholders have to fund the full price quoted by the council, regardless of whether they want it or being unable to get other quotes. Also at times they choose to demolish the whole estate and the leaseholders have to accept the price thecouncil offer, not the market price. This has happened a lot in London.

My brother bought an ex LA flat in a block. His adult children are currently in it. Apparently there is a big issue with damp/mould and the council have to do some of the corrective work but there is so much issues with it.

I do think that you need to research it thoroughly.

Well said! Some people have 0 nuance when making judgements and it is tone deaf.

My first property was a 3 bed ex council end of terrace. Did not have an issue selling despite council tenants either side and planning granted for a huge housing estate in the field behind..

I’d say the rubbish is a big red flag. You could knock on neighbours doors and ask what it’s like living around there, and you can also check with the local council about any complaint history regarding these neighbours. I don’t know how, but you definitely can!

Hmmm it’s a tough one. My parents were always of the opinion to stretch to the max and they always made their money working their way up the property ladder, stretching themselves as they did and finding a way to make it work and building wealth that way. With the mindset of it being an eventual pension if needed and would downsize.

However, I think it’s a lot tougher to do that now. Stamp duty to move up is a huge chunk and jobs are more volatile and mortgage payments extortionate.

I think there’s a lot to be said for sticking to a lesser mortgage payment and the certainty of being able to pay it.
But - from a stamp duty perspective and the fact you really need to settle somewhere for a while to give enough time to make some money on it, I would say they need to make sure it’s somewhere they are happy for the long term. Otherwise it may make sense to stretch a little more for somewhere they would love if there was a downturn and they couldn’t move for a while etc. It’s a balancing act!

I think it's a relevant point.
Council estate properties don't seem to appreciate as quickly as non council estate properties unless they're in London & happen to be a 10 min walk to a tube station. But it's still better than no property.

Reading the property news in papers currently - predictions are for prices to fall in many area eg Savills say prime London will fall 10% over next 5 years - depends where you are but warnings of price falls wide spread because of high Stamp Duty and general economy down turn with new higher taxes/uncertainty etc..

Hmm. I live in an ex council house so I am obviously not anti this.

But rubbish in the garden is a red flag. As PP has said, there's rubbish and rubbish.

If it's been there the whole time this has been proceeding then I'd have serious reservations.

Moving costs are very high and so moving up the ladder has become more difficult in the traditional sense. Perhaps you could have more of a general conversation about this.

You can advise them but at the end of the day, the final decision is theirs.

Why has the transaction taken so long?

Look at the sold prices published by the Land Registry to get an idea of how much houses on the estate have gone up in price.

It's always best to not stretch yourself on your mortgage if possible.

Ditto. I've been asked opinion on all the house purchases of my DCs because they asked me. Not because I wanted to force my opinion on anyone. It really is very normal. That's what parents do.

This is very strange advice.

Buying a house is the most expensive purchase you'll ever make, it's absolutely normal that adult first time buyers will discuss the matter with parents, and it's highly likely the parents will know what their financial commitments are.

What kind of family do you come from that you wouldn't discuss such a major purchase with your parents or family members?

My son and his wife( early 30s) discussed with me the purchase of their first flat and 5 years later their 4 bed house, I went to the second viewing of both properties, advised on certain issues etc.

Normal families discuss things with each other, it's no big deal.

Are there no new build options in the area? Just from personal experience we’ve found ours to be the perfect starter home, although we are mid-thirties not mid-twenties. They should only look at 2-beds if they intend to sell up and move in within 5 years, it’s not like in the good old days even 10 years ago this would have been normal, not not so much. They should be okay with the idea of staying put. They could lose their jobs or anything could happen.

I think it’s perfectly reasonable to have a conversation with your adult children about something which may not have occurred to them. It’s up to them what they do with the advice of course. Parents have more life experience than their children. Mumsnet always thinks children should stand on their own two feet as fully fledged adults the minute they turn 16 with no help or guidance from their parents ever again!

@Alfierabbit - I think they are being very sensible to buy somewhere they can manage easily without stretching themselves. If interest rates go up again, or if anything happens to add to their expenses or cut their income, ‘stretching themselves a bit more’ could easily tip over into ‘can’t afford the mortgage’, and cause them real financial stress.

When dh and I bought our first house, I was working as a staff nurse, but we chose not to take my earnings into account, when deciding how much mortgage we could afford, so that we knew we could afford it on his salary if I stopped working when the babies arrived - it’s the same sort of common sense approach your son and his partner are taking.

If the rubbish is bad there could be rats. It happened to me. They came from two doors away.

Really depends on the type and scale of the rubbish for me.

If it's a few broken kids toys and some gardening tools left out and gone rusty, a pile of cut down branches, that's a bit different to a junk yard of fridges and 6 feet of bin bags piled up in all directions.

But there will be a good profit in 5 years so don't worry.

Good grief - parents should be able to talk yo their childen and have an interest in their lives - it's sad how many people post here saying "keep out none of your business" when it's her son. It suggests many unhealthy and unhappy family relationships which is so sad\

Totally agree. I would never offer an opinion unless asked but surely if the couple have wanted advice as the OP says, you give your opinion?! One of my DCs was moving back to this area from 150 miles away and I did all the first viewings and gave my feedback which they took on board and then did a second viewing themselves if it felt right. I'm sure they didn't want me to 'keep out of it' and keep my mouth shut...
Just because our DCs reach adulthood doesn't mean we can't help them if they want that help.

Good grief - parents should be able to talk yo their childen and have an interest in their lives - it's sad how many people post here saying "keep out none of your business" when it's her son. It suggests many unhealthy and unhappy family relationships which is so sad

Personally I wouldn't encourage people to "stretch" because that can go so badly wrong but you should be able to talk about your concerns - that the neighbours may mean it's a hard house to sell amd affect its future value (although that's a risk with any home ) - is there much else , how much do they like that house as it's a HUGE commitment that people need to get right if they can and listen to what they say back - ask now before they are fully committed

Not your circus, not your monkeys

Keep your mouth shut & your nose out.

It's nothing to do with you & you have no idea what their financial commitments might be.

OP, do you have an issue with ex council houses?

I own one and in the last few days, my neighbours garden was pilled high with rubbish. However, they had only moved in, and I suspect they are clearing out ex neighbours rubbish.

My point is that 1) the rubbish may not be a normal occurrence.
2) Neighbours come and go

Overwhelmingly, the people who live in my neighbourhood are regular, decent people who work. Much, I suspect, like your son.

What is your issue with ex council?

If they ask for your advice and only if.
I wish I’d stretched myself a little bit more. I bought during the pandemic and played it safe because I wasn’t sure what was happening to the world and more importantly my business at the time. I could’ve comfortably afforded another hundred thousand which would now be translating into at least another 150 thousand in equity.
Another bedroom, a garage in a bit more space would be very welcome. But now it genuinely is a bit of a stretch.
I would always advise everybody to Max out on their mortgage capacity. It’s the cheapest loan you’ll ever get.