Please or to access all these features

Add post

Watch this thread

Save thread

Start a new thread

Flip thread

Hide thread

My feed

Active Unanswered threads

Getting started FAQ's

Unanswered threads Acronyms Talk guidelines

Hide shortcut buttons

Talk

AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Flip

1 2

Original poster

To buy a house for DS to rent off me?

32 replies

PoshFaye · 30/11/2016 11:15

DS is going to uni in September. He's staying in the same city but wants to move out. We've been looking at nearby student flats etc and they're coming upto £85 a week. I could buy a cheap little house for less than £200 a month!

Therefore I'm thinking why I don't I just buy a house, let him rent it off me for say, £50 a week - if he shares with someone at £50 each a week that's a monthly rent of £400 a month. Mortgage would be around £190 a month. Extra would be saved in a pot for improvements, damages and essentially - paying off the mortgage quicker.

Therefore he gets somewhere to live cheap. I get an investment property and DS isn't paying off some strangers mortgage.

Is it as simple as it sounds???

OP posts:

livelyredjellybean · 30/11/2016 11:16

My parents did this for me when I went to uni in 2005.

Just bear in mind that they still own the house..! I dont think they regret it, though.

ThroughThickAndThin01 · 30/11/2016 11:18

Yes I think it is quite simple.

Downside ds is a bit stuck and has to live there. No flexibility.

Student houses can get A LOT of wear and tear.

NancyDonahue · 30/11/2016 11:19

If you can afford it then why not? We've got the same idea in the back of our minds for dcs when they move out. They would benefit twice - cheaper rent and more property to inherit. There would be some stamp duty payable if it's your second home though.

MrsJayy · 30/11/2016 11:20

My friend did this for her son was less than student accommodation . Why not he could get a flat mate if it's going to work out better for everyone do it.

notgettingyounger · 30/11/2016 11:20

Stamp Duty Land Tax is an extra 3pc on second properties...
Insurance costs are quite high for rental properties.
You will be liable for capital gains tax on sale.
You would need to pay for an electrical safety certificate and an annual gas safety certificate (together with any upgrading needed), and a Legionnaire's report to be legal when renting.
Tax returns will be a burden every year and you may need an accountant to get it right (shouldn't really though if just this one property).
Your tax deductions will be capped if you are letting at an undervalue to your son.
Your buy-to-let mortgage might cost more than you think if you are getting one as you imply.
Property values might be about to go down - who knows?
These things will eat into your profit.
It is also a very illiquid investment.
Otherwise a good idea.

Original poster

PoshFaye · 30/11/2016 11:21

I don't think he'll want to move out anytime before the end of uni, he'lol more than likely stick there for 3 years then I can dump my youngest son in it when eldest buggers off 😂

OP posts:

lilyborderterrier · 30/11/2016 11:24

Think that's a great idea if you can, I went to uni in the late 90's :( ( feeling so old) and I knew people who's parents did this, rents are extremely high and as it's your child you I'm sure they will look after your house, ikea stuff to furnish it and checked out flatmates, I had a wild time at Uni but we didn't trash our houses, the lads rooms would have needed a deep intense clean but that's why you take a months bond from each tennant.
And you get a house which you can continue to rent out especially if it's a popular uni place if sell it. Thanks to the internet they'll be tons of advise and suggestions on how to do it !!

Zampa · 30/11/2016 11:28

My buy to let mortgage won't let me rent to relatives so check the Ts & Cs carefully. Also bare in mind your legal responsibilities whilst letting, as per not's advice above.

ego147 · 30/11/2016 11:28

That's what I lived in when a student. The parents brought a house for their child in a Uni town. Once they left, they realised it was a gold mine and kept it out for future students.

SlottedSpoon · 30/11/2016 11:42

Yes it is that simple. But if you are planning on renting to other students when he leaves then do your research and make sure you buy in an area where they actually want to live. If it's too far or not on the right bus route or whatever you will struggle to rent it and he will struggle to find a friend to share with.

SlottedSpoon · 30/11/2016 11:42

And the houses that are in the prime student rental areas do tend to carry a price premium so it might cost a bit more than you think to get the right sort of house.

thecatneuterer · 30/11/2016 11:43

Notgettingyounger - you don't have to get a Legionnaires report, you just need to have considered the risks. So if there is no water tank or air conditioning and a normal combi boiler that is all low risk and you don't need any reports. (I think the rules may be different in Wales though). My source for the is the National Landlords Association in case you are wondering.

OP - it sounds like a very sensible idea to me.

ZoFloMoFo · 30/11/2016 11:45

As well as all the above, check that you'll have council permission to turn it into an Home of Multiple Occupancy (HMO). I live in a uni town and there a lots of streets now where turning any more houses on those streets into HMO's are forbidden.

Cocklodger · 30/11/2016 11:45

No, but only because I'd never let to family if possible. I'm doing it now and hating every minute of it, but theres more to it than that (young NEET who I'm bankrolling and trying to assist in finding employment, no fault of her own),
I've had many bad experience however with people who think they don't have to prioritize paying rent because Y'know its only me they're paying not a real LL
If you go ahead with this then do so at your own risk and make sure you can be prepared for your son and his friends/housemates to piss you about. because it 'only mum/x's mum'

LemonBreeland · 30/11/2016 11:46

My Auntie did this for both of her daughters when they went to uni. She still owns both houses and rents them to students for extra income.

80sWaistcoat · 30/11/2016 11:46

My friend's parents did this - in the 90s. They've only just sold the house as successive tenants after that. Worked out really well for them.

TinselTwins · 30/11/2016 11:47

I think it's not a bad idea and I would consider it for my DCs but there are downsides:

If the DCs really wanna experience student life, being the kid of the landlord is not the same as being a housemate, they're kinda half landlord half mate/housemate, and one of my houseshares has the landlord's daughter in it and it was a bit shit, she was a bit stressy and not very liked but everyone felt they "had" to be her friend because she was the landord's daughter, next year, we all moved out to somwhere else, she had to fill her house with random first years while all other 2nd years were with their mates in "party houses"

It depends on what they DCs want out of their student experience, if yours WANTS to move out when uni is commutable, then I'm thinking they want the independance from you which would be limited if you're managing their house.

What if they want to move into a BIG houseshare in second year, or do an exchange year or year in industry in second year? Are they free to do so and would you be happy managing a student let rented to strangers for that year?

Think carefully who you are doing it for, if you want to invest in student lets, you can do that without it being your DCs student let.

Will you expect your DC to do some "management" e.g. chasing up their housemates for rent etc?

I'm not saying "don't", just that you need to be very clear about what everyone wants out of it, and how it is to be managed in the short, medium and long term.

GummyBunting · 30/11/2016 11:53

Does the £85 per week student halls not include all bills and internet? If it does it might be cheaper than your renting off you plus paying for all bills and internet, tv etc.

Shiftymake · 30/11/2016 11:55

Does this 50 p/w include gas/el/water/net/tv/CT aso? If not then the 85 per week, which often includes all bills, is cheaper for him.

user1471439240 · 30/11/2016 11:55

It entirely depends on the area. What seems like a no brainier in a rising market can quickly become a millstone in a falling one.

TinselTwins · 30/11/2016 11:56

Since he doesn't have to move out but WANTS to, it seems kinda pointless to put him in a small flat/house with just one or two "lodger" types. He might as well just not move out!

If he really WANTS to move out for uni, then he wants the "experience", so let him go into halls for first year, that's where I met my uni "friends for life", then re-assess for second year when he has good mates from halls who he could have fun with in a smaller house?

EssentialHummus · 30/11/2016 11:57

My buy to let mortgage won't let me rent to relatives so check the Ts & Cs carefully

Yup.

From painful experience, students/sharers are difficult to manage, to the extent that I suggest you buy the place and hand it over to a letting agency. You will get calls/texts saying that Johnny hasn't flushed the loo, that Mary had her BF round, that they're a bit skint this month but will pay you back next week, promise...

RB68 · 30/11/2016 12:08

I think to make this work financially you need to put it in his name and be guarantor for the mortgage, especially as you are not doing this as a business more to provide his accommodation. Make him responsible for the payments and bills (although monitor obviously) by only renting out one other room there is no tax implication for him as it comes under the rent a room scheme. As a small place it won't become the hub of student life, as the owner son will hopefully look after it and it will be a lesson in DIY as he will need to keep an eye on and do small jobs, he also then gets a nest egg from what is his money and hopefully won't need to save a deposit in future as he will already be doing that. Get a guarantor from parents of other student for rent/bills share if you go down this route.

I would however second the halls for yr 1 and year 2 maybe consider this - this gives him time to suss out whereabouts he wants to be and who his mate is that he can trust to be the other roomie.

Also do not go upmarket, keep it basic - a friend of mine does this for a business and she literally chucks all white goods at the end of the year and replaces as students so disgusting. I would also encourage them to have a cleaner personally.

EssentialHummus · 30/11/2016 12:13

RB I agree with your logic, but BTLs for first-time buyers are already an unusual thing - BTLs for an 18 y.o. with no job and a gifted deposit... Do they exist?

Sonders · 30/11/2016 12:40

My parents offered to do this for me (around 2005). We looked at around 10 properties and me and 2 best friends fell in love with one surprisingly cheap penthouse flat.

DM then changed her mind and decided to give retire instead (her money, her choice). However, it was so late in the uni year we then ended up renting an absolute hell-hole as nothing else was left.

I would have absolutely loved it, and still think back to the gorgeous flat with the massive roof terrace, it's also tripled in value so would have been an excellent investment, but hey-ho.

I guess I don't know what this adds, maybe just if you're going to do it, make sure you're totally sure before you get DS's hopes up!

Flip

1 2