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Original poster

Would you buy a house for DS and GF to live in?

96 replies

DetailMouse · 18/03/2022 18:43

It's just a thought ATM.

DS's GF has secured a job about 3 hours from here. DS hopes to be able to tf with his current employer.

It's nice place to live, they'll be on national payscales the cost of living there is lower than here. It seems like a good move for them.

They'll need to rent, which I realise is perfectly normal, but does mean saving to buy at a later date will be difficult.

I have some money I need a home for. I'm thinking I could buy a small house for them to live in, they can either pay me a modest rent or I'll charge them full rent and save it for him them without their knowledge. In this new area I could buy outright at a fraction of the price a similar house would cost here.

I've got no intention of buying a house for them, I have another DC still living at home who I'd need to be able to do the same for if needed, among other considerations.

Anyway, great idea they get a good landlord and you should get good tenants

Or, stupid idea and likely only to lead to fraught relationships?

OP posts:
TheCanyon · 18/03/2022 20:26

sounds good except this part or I'll charge them full rent and save it for him why should she fund your family if they split? Charge enough to cover the mortgage, insurance and a bit for any upkeep/problems and let them save themselves.

Ragwort · 18/03/2022 20:28

No, I don't think I would, too many risks ... part of growing up is learning what it's like to rent a property, take responsibility, deal direct with a landlord etc. it's tough as a parent, you want to take away 'life's difficulties' but when I look back - many of the lessons I learned in life were having to stand on my own two feet, live in dodgy rentals etc (& they were very dodgy in the '70s Grin).

BritInUS1 · 18/03/2022 20:28

You will need to register and pay tax on rental income less relevant expenses. If you are renting at below market rate then you may not be able to offset all expenses

There would also be capital gains tax due on any profit made on sale

Original poster
DetailMouse · 18/03/2022 20:28

@TheCanyon

sounds good except this part or I'll charge them full rent and save it for him why should she fund your family if they split? Charge enough to cover the mortgage, insurance and a bit for any upkeep/problems and let them save themselves.
She wouldn't be "funding my family" she'd be paying market rent, or a bit less. As with any landlord that's then my money to do with as I please.
OP posts:
Mix56 · 18/03/2022 20:28

I know someone who bought a flat in a University town to lodge their DD, (& 2 other tenants). It worked very well, the DD was able to sort out the other tenants when they changed, & oversee if any repairs needed doing.
She eventually got married & moved to another part of the UK, they kept the flat for a few years after that as it was a great investment.

Original poster
DetailMouse · 18/03/2022 20:28

@BritInUS1

You will need to register and pay tax on rental income less relevant expenses. If you are renting at below market rate then you may not be able to offset all expenses

There would also be capital gains tax due on any profit made on sale

Yes, I'd have to pay tax on any kind of investment income
OP posts:
Okeydoky · 18/03/2022 20:29

Bear in mind you'll need to pay income tax

Original poster
DetailMouse · 18/03/2022 20:30

I don't actually see paying tax as the enemy. It's a necessary priveldge of a comfortable life. I really don't object to contributing.

OP posts:
Okeydoky · 18/03/2022 20:30

Sorry cross post

DarlingDarwin · 18/03/2022 20:31

If you charge them market rates and secretly save the money don’t be shocked if they’ve no interest in renting from you as from their perspective you’re not doing them any favours, and if they rent privately they can choose the house.

drawingpad · 18/03/2022 20:32

They'll need to rent, which I realise is perfectly normal, but does mean saving to buy at a later date will be difficult.

I have some money I need a home for. I'm thinking I could buy a small house for them to live in, they can either pay me a modest rent or I'll charge them full rent and save it for him them without their knowledge.

These 2 statements are contradictory. If they won't be able to save die to paying rent, surely they will apply still if they are paying rent to you? Full rent and sextet saving means he would never know buying was on the cards?

drawingpad · 18/03/2022 20:33

Secret saving Blush

Glendaruel · 18/03/2022 20:34

I'm surface looks good idea but I would be wary. If it all goes fine, great but if it goes wrong it could damage your relationship for long time. Think about if they split and she refused to move out, if they don't pay the rent, or damage the property. Properties can cause big arguements.

MrsSkylerWhite · 18/03/2022 20:35

Yes I would. In his name, though.

Original poster
DetailMouse · 18/03/2022 20:36

@drawingpad

They'll need to rent, which I realise is perfectly normal, but does mean saving to buy at a later date will be difficult.

I have some money I need a home for. I'm thinking I could buy a small house for them to live in, they can either pay me a modest rent or I'll charge them full rent and save it for him them without their knowledge.

These 2 statements are contradictory. If they won't be able to save die to paying rent, surely they will apply still if they are paying rent to you? Full rent and sextet saving means he would never know buying was on the cards?

No they'd be going into it thinking they're renting just like anywhere else, except they'll know they have a reliable landlord and security of tenure. And then if things go well I might be able to help them in the future.

If they don't like the idea that's fine.

OP posts:
Original poster
DetailMouse · 18/03/2022 20:37

@MrsSkylerWhite

Yes I would. In his name, though.
It would be in my name, not his.
OP posts:
roadrunnerrocks · 18/03/2022 20:38

@newbiename

Good idea but if she pays rent as well surely if you save the rent for a deposit it should be for both of them ?
Why? She’d be paying rent anyway?
MrsSkylerWhite · 18/03/2022 20:38

DetailMouse

MrsSkylerWhite
Yes I would. In his name, though.
It would be in my name, not his“

You’re not buying a house for him, then.

Original poster
DetailMouse · 18/03/2022 20:39

@MrsSkylerWhite

DetailMouse

MrsSkylerWhite
Yes I would. In his name, though.
It would be in my name, not his“

You’re not buying a house for him, then.

I didn't say I was buying a house "for him". I said I was buying a house for them to live in. Or might do.
OP posts:
Popetthetreehugger · 18/03/2022 20:41

We did this , for almost 5 years till they got the move they were hoping for . They paid about half rent. Insurance won’t be a problem, really cheap as family . Gas checks are a good idea anyway and electric only at first then in 5 years . House went up in value about 50,000 much more than saving would have .

SleepingStandingUp · 18/03/2022 20:42

@TheCanyon

sounds good except this part or I'll charge them full rent and save it for him why should she fund your family if they split? Charge enough to cover the mortgage, insurance and a bit for any upkeep/problems and let them save themselves.
But I'm funding my landlords lifestyle right now, what's the difference? She's not charging anything they wouldn't have to pay elsewhere. Is it better if OP spends her rent on food and then saves the money she'd have used on food?
Winter2020 · 18/03/2022 20:45

If you charge full rent I can see the AIBU from the girlfriends perspective now:

"My MIL is our landlord and despite owning the house outright charges us the market rent for the area .....(followed by many grievances)"

If you do want to follow this up, and you don't want your DIL to hate you the rent does at least need to be cheap. The fact that you think they should be grateful to pay you market rent simply because you won't kick them out on a whim is very patronising.

I have seen plenty of posts from similar situations when people have been promised cheap rent which then doesn't materialise - this is a recipe for resentment right there.

If you just want to own an investment property why not just buy one closer to home and vet your tenants well - keeping your son out of it.

tkwal · 18/03/2022 20:47

Could you save the rent and split it between your DCs ? Might save jealousy and you could continue renting it out when your son moves on

Original poster
DetailMouse · 18/03/2022 20:47

@Winter2020

If you charge full rent I can see the AIBU from the girlfriends perspective now:

"My MIL is our landlord and despite owning the house outright charges us the market rent for the area .....(followed by many grievances)"

If you do want to follow this up, and you don't want your DIL to hate you the rent does at least need to be cheap. The fact that you think they should be grateful to pay you market rent simply because you won't kick them out on a whim is very patronising.

I have seen plenty of posts from similar situations when people have been promised cheap rent which then doesn't materialise - this is a recipe for resentment right there.

If you just want to own an investment property why not just buy one closer to home and vet your tenants well - keeping your son out of it.

Yes, this is why I was asking
OP posts:
MrsSkylerWhite · 18/03/2022 20:50

DetailMouse

MrsSkylerWhite
DetailMouse

MrsSkylerWhite
Yes I would. In his name, though.
It would be in my name, not his“

You’re not buying a house for him, then.
I didn't say I was buying a house "for him". I said I was buying a house for them to live in. Or might do“

Sorry. You did.

Yes, I would if I could.