DH hoarding properties.

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Me and my DH want to upsize we have one 3 bed semi and a 2 bed house rental. DH wants to keep both properties and buy another to upsize too. He's said he wants to keep both for DDs future. The 2 bed is paid off worth about 150k the 3 bed semi one is 250k with 75 percent paid off. AIBU to think DD doesn't need 2 houses ? We aren't planning on anymore DC so wouldn't need a spare one. We could use the equity from one property and savings to have a very low mortgage on a bigger one. Part of me feels it's morally wrong to be keeping hold of houses.

This is a very insensitive post. Post in Money Matters to discuss how you distribute your vast wealth.

Everyone has different financial situations.
You DH is trying to provide your Dd with a secure financial future. I’m not sure that is morally wrong.

I don't see the problem as long as you can afford it. It's very sensible to plan for the future if you can.

Why do people always say this?

There's no rule saying you can only ask for advice if you earn under a certain amount.

If you can afford to keep all of the property them do. Property generally increases in value over the years. And even if she doesn't need the houses to live in they might be something she could use as extra income. Being a decent landlord isn't morally wrong, contrary to popular opinion.

It was clear from the title what it was going to be about, people should take some responsibility at least for any triggers they may have.

• then do, not them do!

If its about being debt free, you could sell upsize and then buy a 1 bed rental? By your own logic you don’t want more dc so why do you need more bedrooms?

Personally, I think he’s prioritising your family and your child whilst you’re prioritising your values on “moral” behaviour. Neither is wrong but, practically, his makes more sense. You owning three properties instead of two isn’t causing problems. Qatari nationals (as just one example) owning a quarter of London and landlords with a hundred rentals whilst residing abroad to avoid paying tax on it is causing problems.

Well, she won't need two houses, so he's unreasonable for that.

Owning roughly £330,000 in property isn’t really “vast wealth” 🙄

I want to start her out but not give her absolutely everything. I was thinking of gifting her the 250k one it's 3 bed so not a starter home and she could have children here if she wants to but selling the 150k and getting the equity. I think it gives her perhaps a bad message gifting her two properties. No one really gets that in life I want her to be hard working, my friend who had a large property gifted has never worked properly. If she gets the equivalent of 400k she can buy a detached straight off round here. She would get our estate one day anyway even with tax to pay.

It's a very personal thing and sounds like you and your husband aren't quite on the same page with this.

I would be with you OP, as I think it's wrong to buy up multiple 'investment' properties that you don't need.

He could invest his wealth elsewhere and still make a good profit and provide an inheritance/ security for your daughter.

Personally I don't agree with what he's doing - it causes problems in the housing market and in society when lots of people do this, but it's legal so it's up to them unless the government change it.

I would choose not to contribute to it and would find another way, even if it made me slightly less wealthy. But I blame the government for the issue rather than individuals trying to secure their financial future.

Rental income could be useful in older age as a pension.
Him wanting to grow your business is not a completely wrong idea. And that is what being a landlord is... a business. Would you say owning two coffee shops instead of one is hoarding coffee shops? Or opening a new branch of a gym? Or a new factory?

Not morally wrong at all. Sensible and prudent, I would say.

If you can afford to keep them then do.

Christ why do people always have to jump on threads and be so rude to people because they dared to ask a question??

I didn't realise Mumsnet was only for poor skint people

I mean, use some of the income from them to support yourselves into retirement eventually and gift one to DD.

I'd only own the house you actually want, sell the others and invest the money in a SIPP or something. Being a landlord is a ton of hassle, I think it's only worth it if you have a big enough portfolio to get economies of scale.

It's one thing to help DC with a deposit or subsidise rent a bit when they're starting out, another thing entirely to just give them a house. Doesn't feel right to me. What if they sell it immediately and fritter the money?

You also might find your DC have different ideas to you and don't want to live in a semi near you, at least until they'remid 30s and settle down!

What is he planning to do with the two he wants to keep? Rent them out?

It (quite rightly) is not easy to be a landlord these days so there will be work and obligations involved in doing this, which could involve a lot of investment, depending on the condition of the properties.

I assume your DD is particularly young as you said they are for her future?

What does he plan to do with them in the meantime?

How much capital gains tax is due if you sell the rental property ? How much extra stamp.duty do you need to pay if you already own another property when buying one (with no plans to sell)? Personally I strongly agree with you.

I would agree that it’s morally wrong. So many people are desperate to own their own homes. Put them on the market and let the next generation gave a chance at home ownership.

You wouldn't say he was "hoarding" pensions, if he was investing in that instead. It's just another form of investment. Your thinking is limited to "But where will DD live?" She just will have assets when you die, or before you die, whatever you want to do. She might sell the houses to realise the value and go somewhere else. It's the same if you have one big house or three little ones. You could argue you don't need the space in upsizing to one bigger house, if you're going down the moral route!

The moral question of how to be a good landlord is completely different.

The core question for you and DH is - given we have assets currently worth x amount, what's the best way for those assets to appreciate? How risky do we want to be with those investments (housing pretty safe, pensions ok, stocks a shares more volatile, cryptocurrency bonkers etc). See a financial advisor? But really you're only talking about 300k so any of the reasonable options will be alright.

And as others have said - watch out for the hidden costs of choices like stamp duty, upkeep etc. You need a total net value on a spreadsheet to make an informed decision.

It’s not morally wrong at all, nor is it “hoarding”. Your DH, rightfully so, wants to do the best by his child. Let him.