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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:

axolotlfloof · 18/03/2022 20:53

I think it's a good idea OP.
I would charge them below market rate, and explain you want to give them an opportunity to save for their own property. If they do is obviously up to them.
I will hopefully be in a position to do similar. I have existing rental properties and there is a lot of paperwork but it is doable.

Original poster

DetailMouse · 18/03/2022 20:55

@axolotlfloof

I think it's a good idea OP. I would charge them below market rate, and explain you want to give them an opportunity to save for their own property. If they do is obviously up to them. I will hopefully be in a position to do similar. I have existing rental properties and there is a lot of paperwork but it is doable.

Yes this is what I was thinking. A bit of a discount, but not so low as they don't get an idea of what the cost of living is

OP posts:

TheYearOfSmallThings · 18/03/2022 20:55

I think it is a good idea, the main risk being that they settle in very comfortably, and the house effectively becomes theirs. This has happened with a cousin of mine (and his wife, and now their child), which is generally fine, but he has two siblings who don't benefit in the same way.

It's less of a risk if they will be in a position to buy a similar or better property in the foreseeable future.

Original poster

DetailMouse · 18/03/2022 21:01

@TheYearOfSmallThings

It's less of a risk if they will be in a position to buy a similar or better property in the foreseeable future.

Yes, but I don't think it would matter as such. There are assets that mean DS2 could have the same share on my death without them having to sell and I don't need the cash.

The main problem I see from that pov is that whilst I could use the same amount of cash for the benefit of DS2, if he stays in this area it would come nowhere close to buying a house for him to live in.

OP posts:

ovenchips · 18/03/2022 21:06

Agree with PPs - it's premature. I'd let them rent themselves first (if the whole idea pans out and they end up doing it). They get to see what normal renting is like and the rights and responsibilities of it. Give them a year or two then see how you feel about buying somewhere for them to live.
There's no way I would do it now - too many things could go wrong in all your inter-relationships.

MrTumblesSpottyHag · 18/03/2022 21:19

My (now) MIL did this for us and we are eternally grateful! She made a profit on the house in the end too.

AllOfUsAreDead · 18/03/2022 21:23

No his "ex" will have paid me the same, or slightly less, rent than she'd have paid to rent anywhere else. That landlord could equally well have given it to his sons.

Well no if you're charging them full rent, then she is helping to pay towards full rent, that you are then saving for your son. Yes another landlord could do the same thing, but your sons girlfriend isn't dating that landlords son. It's a different relationship when you are the landlord.

gmailconfusion2 · 18/03/2022 21:41

I you'll need a gas safety certificate, electricity safety certificate, self assessment tax form for income, less tax benefits nowdayd too, insurance will say it has to be landlords. Check that you don't have a rental licensing requirement for the afea

lisaandalan · 18/03/2022 22:29

Great idea and will earn rent for you and will be worth more than you paid, so will earn interest. X

whatwouldsueheckdo · 18/03/2022 23:07

I’d be inclined to wait a while.

Assuming you own your current home you’ll be paying the higher ‘second home’ rate of stamp duty, as well as all the other legal etc costs of a house purchase. All those costs of the investment wouldn’t be recoverable if the relationship broke down, or jobs moved again, etc.

Plus it’s not as easy as saving the rent they pay you. Don’t forget (depending on your income level) you’ll likely need to pay 20% (or even 40%!) in tax.

The idea does have its merits but I wouldn’t rush it.

caecilius1 · 18/03/2022 23:44

I'd discuss it with your son and ask him to discuss it with his girlfriend, and make it clear that you won't take offence if they don't like the idea.
Putting myself in the GF's shoes, I'd absolutely hate an arrangement like that because I've always been independent and would feel I was being controlled.

caringcarer · 19/03/2022 00:17

If you can buy outright it should be fine. You will have to pay stamp duty for btl property. If you needed a mortgage it would not work as BS won't let you rent to a relative. You could look on Rightmove to find cost of other similar rentals then charge £100 less pcm. You could use rent after tax for repairs/maintenance and saving for both your ds's future. DH and I are doing something similar. DH and I have a btl already with only £26k mortgage left to pay on it. My youngest DS wants to live there. He wants to buy a 2 bedroom house but can't afford to buy where we live. His job and all his friends are here. He has a LISA for savings and can draw it out for deposit next April. He will only be able to get mortgage for about £100k on his current salary. Our btl house is worth about £160k. We will let him buy it from us for £90k. He will have £14k deposit by then so mortgages of £76k. DH and I will pay off small mortgage from sale then pay capital gains tax between us and son will gain £70k equity. Our other 2 DC have houses. We will have to put someone into our will that ds2 gets £70k less when we die than other 2 DC. We helped dd with nursery fees twice and ds1 with deposit in cheaper area. Nice to help your kids out if you can. My dDad gave me (and my dsisters) deposit for my first home. I also inherited from my dMum when she died.

ChiefPearlClutcher · 19/03/2022 01:52

Extended family member have done this for their daughter. Imvho it has robbed her and her (now) husband of so many things they would have had to do as a rite of passage into adulthood in a way, if that makes sense. Also had an impact on the dynamic in their relationship. I would proceed with caution OP. Invest your money and sit tight.

custardbear · 19/03/2022 06:11

Lovely idea.
I'd charge full rent, quietly save what you can after repairs etc then offer a deposit to purchase their own place later

findingsomeone · 19/03/2022 06:30

I'd make it clear it's for x time and not forever. Don't want them thinking oh this is great let's have a family and then never being in a position to afford market rent or to buy their own place. Also shafts you if you need to sell it to help other DC.

Beautiful3 · 19/03/2022 06:30

I know.people.who have done this. They've charged cheaper rent, and when the house was sold (they gave a chunk of money to their adult children) for deposits on a house.

Runnerduck34 · 19/03/2022 08:33

Could go either way ,in theory it sounds great but there are clearly pitfalls. I think as pp said you need to make it clear that if they accept its just for x amount of time, so house is sold to help with deposits for both your DC. Otherwise younger DC would be disadvantaged if you can't afford to do the same- not good for family harmony!
Tbf if I had enough to buy a house I might be more tempted to give both DC deposits for their first homes.
Tricky about putting away rent, do you return it just to DS or to his GF as well( in event of a split) or do you look as it as investment income to be split between your DC???
I think I would very towards charging a low rent to give them responsibility of saving for themselves. Use rent for house maintenance and anything left over as investment income.

Dinoteeth · 19/03/2022 08:57

Op don't mix business with pleasure.

I'd wait let them rent see how they get on. Let them find their feet. They might decide its not the area for them but if you've bought the place they'll feel tied to it.

What they want as a first house, won't necessarily be what they want in 5 years time. But you'll have lost a load of money in legal fees and stamp duty.

More by accident than design we ended up with a rental 2hrs away, honestly it was a pain in the arse.
Having to find someone local to deal with stupid things like a clean between tenants, fixing a dripping tap, needed a plumber but how do you get keys to the plumber.

My suggestion is wait until they are ready to buy themselves and give them some money towards their deposit.

PutThatDownNow · 19/03/2022 10:31

Have you considered whether you would need to pay tax on the rent they pay? If you have other income then you may well have to pay tax on the rent.

WhatAWasteOfOranges · 19/03/2022 10:35

Don’t buy a house. What if they don’t like the area or they split up and your sons wants to come home or something? They might feel like they have to stay in an area they don’t want to otherwise. A better bet would be giving a lump sum to be used as a deposit only - it would make him think more seriously about where to buy I’d imagine

timeisnotaline · 19/03/2022 10:39

I would expect the gf to be fairly wary of this suggestion. If the house is not one she’d actively choose to live in, then she should say no. She is free to spend her rent money where she chooses to get what she wants. And- as you’ve noted above I suppose the sensible thing would be to let them rent privately for a while and then float the idea if the move is a success. Then they might also come to realise what a good landlord I am, if they have experience of others grin

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