DH hoarding properties.

[Feefee00]

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.

There isn’t a lack of housing for people to buy. Them having 3 houses doesn’t stop others buying.

There are so many factors at play here. Do you need the extra income? Is it worth the hassle of being a LL? Would it be a good pension plan?

Providing for your dd’s future isn’t necessarily about gifting her one. You may choose to keep them and help her with a deposit etc.

Basically it is an investment vehicle and you need to decide if this is a prudent way of investing for the future or if you’d rather save a different way, or use some of that capital to have a smaller mortgage in the here and now and thus benefit from the money now rather than in the future.

There are plenty of houses and flats for sale already that the next generation can buy if they want to. The idea that 'hoarding' houses pushes up house prices is not accurate. Property prices have always gone up in this country even before Thatcher's government passed the 1988 Housing Act which made BTL easier and more profitable.

Someone has to rent properties. No matter how many are available, there will always be people who can’t (or don’t want to!) but. It’s not immoral to rent properties out if you’re a good landlord who abides by all their obligations. It’s not realistic to think that everyone can own. Not everyone wants to for a start! You’d be doing a good thing my renting out a well maintained property, long term, maybe allowing pets or accepting someone on benefits and being a decent landlord. What we’re missing is fair rentals. Rental HOMES.

Oh do f*#k off.

Please PLEASE let him buy the house and rent it out. There is such a shortage of rental properties and it's making life so difficult for families like us.

We have two disabled children so both parents can't work which means we know we will never be able to afford to buy a house (£400k minimum where we live) and will always have to rent.

The government is making life difficult for landlords which means more and more are selling up so the number of properties available is falling fast. I live in fear of out landlord selling as I know we would struggle to find somewhere else.

In my opinion buying the house and being a good landlord will be both a good thing morally to do, and also a great investment for you.

Property is a scarce asset in the UK and successive governments have encouraged normal people to invest in property and propped up property prices, because it is a UK vote winner. Tons of people have made a lot of untaxed money on property (especially capital gains taxes on a main residence - build, live there for 2 years sell at untaxed huge profit etc). There is now an onslaught on small time landlords so make of that what you will.

If you can afford to do as your husband suggests it might work out just fine. Your DC can take one property at 18 and use the rental income for eg uni fees/support life in general or even live in it. The second property can be your pension/downsize house in the future. If you still get your main residence CGT free by then it may make perfect sense. If you are a good supportive landlord who provides decent well maintained housing at a reasonable price I do not see a “moral issue”.
However, personally I do not trust what the chancellors will do in the future with regard to property. I think increased council tax/wealth tax/CGT on all property will come in time. Could be totally wrong though!

DH wants to rent both then gift her them when shes at the right age maturity . We have shares and investments it's how we have the money to potentially upsize . Next house will probably be around 500k an extra 150k would mean it was a nothing mortgage but with our income it will be fine. I just don't want her getting everything for nothing , I feel like I have worked so hard for everything I have but maybe that's the working class in me.

I'd potentially keep both and rent them out if you can afford all the associated costs of buying a 3rd property.

Why on earth is it ‘morally’ wrong
he is right

Oh please. Not another stealth boast post.

I already rent one out so know what being a landlord is like. it's been 7 years had the same tenant for 5 and I haven't increased the rent apart from when the first lot moved out. As the mortgage is paid off I won't have to increase rents much at all just for the gas safety . I allow pets , it's not really about making money but allowing it to tick over. Really they won't be sold for another 15 - 20 years

Ah so it's the gifting to her you object to rather than the investment? That's a different AIBU.

Yes, there is a lack of housing. Why do you think rental prices are so high and it's so difficult for first time buyers to save enough for a deposit/ be approved for a mortgage?

The more people buy and own multiple properties, the more this will continue.

Of course this one person owning three properties doesn't make much diffrence. But when you've got 10,000 people who own 30,000 properties between them, all of which are rental rather than available to buy? - well, it scales up and becomes an issue for first time buyers.

I'm not saying he shouldn't do it - it's perfectly legal and he can do what he wants. People will always do the best for their families at the end of the day. But I think the government should step in and do something about it.

Not morally wrong or insensitive. You're both providing for your children, well done.

Yes it's the gifting of two properties really will mean she can jump straight into a 4 bed detached house. I have a friend who's parents bought her a house she's never worked or really done much. I'm not sure if it's good to be given so much wealth unearned at a young age. My plan was to give the 3 bed semi which is enough to have children and would be a large deposit for a bigger property in future.

@Feefee00 - how old is your DC? It is normal to want to gift everything to them on a plate when they are little and adoring. Once you have lazy teenagers on your hand and you are middle aged yourself, you and your DH might feel differently…. So you need to make sure it makes sense for all of you. And you need to protect yourself in case of divorce. Multi prong approach is best.

There’s a lack of rental properties. There is not a lack of property to buy.

Hang on one side your questioning your dh’s morality and then you are saying you want to gift your dd a 3 bed house immediately! Seriously I’d listen to your dh’s plan rather than yours. His method would give you an income in retirement plus a boost for your dd.

She's 9 she will definitely get a property, DH is from east Asian background and the culture is they set up their kids up as much as they can. I doubt he will change his mind. I have a good career so not reliant on my DH earnings.

OK, but why do you think there's a lack of rental properties?

Because people can't afford to buy, so everyone's renting.

And why can't people afford to buy?

Because they're wasting all their money on rent, which is going up and up, and they can't save for a deposit/ mortgage.

That rent is often going to landlords who own multiple properties and are making a tidy profit from it.

If people owned fewer properties and were not putting so many out on the rental market, but instead those properties were available to buy, the price of properties to buy would drop, and people would be more able to afford them.

Everyone should be able to afford to buy one home to live in.

Whilst that is not the case, people should not be able to buy up multiple homes and charging people extortionate rent to live in them.

From a tax perspective you’re better off holding the money from the second property in your principal private residence, ie your home. Why pay CGT on the transfer of the property when you could just have the equity in a more valuable first home? Talk to an accountant about the tax implications of your various options

It’s sensible to make provisions for your DD when she is older so I’m kind of with both of you; keep the 3 bed for DD, sell the 2 bed and put the equity towards paying off the mortgage on the 3 bed and the new property.

Why is buying investment properties wrong?

For anyone moaning about landlords and such. One nearby me is dumping their portfolio (as many people wish for) into the market for people to buy vacant. Guess what happened with rents...🤷🏻

I think 3 it is, OP. I would compromise here but with clear agreement that there are no more bought. Since one is paid off I am assuming the rent would go towards your nee mortgage repayments and the 3 bed would pay for it's own.
I can see his logic absolutely