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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

DH hoarding properties.

173 replies

Feefee00 · 31/01/2023 10:51

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.

OP posts:
OnlyFannys · 31/01/2023 12:03

I dont know why people are being so rude it's a perfectly reasonable question. I dont think its morally wrong as long as you commit to being good landlords. I think you just need to make sure you balance planning for DDs future with living your life well now and if that means putting more money into a better house and only having 1 investment property (which is plenty) then I would probably do that

TheMagicDeckchair · 31/01/2023 12:03

If you plan to sell and have capital gains in the property, bear in mind that the capital gains allowance reduces significantly to £6k in the 23/24 tax year and then down to £3k in the 24/25 tax year. It may be cutting it fine to complete this tax year at this stage though.

Assuming that your daughter will be your sole heir, this is surely just a question of investment choices? Whether she inherits a 2 bed house or say £200k in an ISA, she will still be inheriting wealth.

Whilst interest rates are so high and BTL regulations so onerous, I would be tempted to offload the 2 bed property and put the money into your new home, reducing your mortgage interest payments. You can always use the surplus savings to reinvest.

lowclouds · 31/01/2023 12:04

CanStopWillStop · 31/01/2023 12:01

Why is buying investment properties wrong?

Show quote history

See my explanation a few posts up ^

It's not wrong for an individual to do it and I don't blame them. As I said, I understand the decision because it is a pretty easy way to make money and most people will do what's in their self interest.

However, I think it would be in the best interests of society/ first time buyers if the government introduced some limits on it - at least limited people to buying one or two rather than ten.

FlimFlamBam · 31/01/2023 12:12

DH and I have recently discussed how we will help our DS, I was all for buying him a starter 2 bed house outright. DH was vehemently against this saying it will make him lazy. I think helping children if possible is great, we were not helped but I think my DH put forward a good argument. Gift her a decent deposit at the time.

Thehonestbadger · 31/01/2023 12:12

unclebuck · 31/01/2023 10:53

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

It’s important to remember that all of MN are not destitute and when making references like this it’s important to go by the median average rather than the perspective of the lowest end. MN is a mixed bag, Some will have much less than OP but plenty have much more.

£337.5k in property equity is hardly considered ‘vast wealth’! We are in our 30’s one income and two toddlers and we have that much house equity due to a well timed covid move. My parents have it simply because they bought a crappy 2 bed terraced in the 80’s. It’s also not like having that in a savings account you can’t go out and spend it if you require the home to actually live in!

OP is definitively ‘comfortably off’ maybe even ‘well off’ but ‘vast wealth’? Noooo ‘vast wealth’ implies private school fees, million pound homes and fancy cars/boats. Not £300k home equity.

Qwayserdeyas · 31/01/2023 12:12

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This has been deleted by MNHQ for breaking our Talk Guidelines.

WhatATimeToBeAlive · 31/01/2023 12:14

YANBU, your DD doesn't need 2 houses. She will grow up with a complete sense of entitlement and poor work ethic. You might both actually need the money to pay for your retirement and social care at some point so you need to bear this in mind.

Beautiful3 · 31/01/2023 12:18

Well one would be good to sell for your pension pot. The other could be gifted to your daughter. If you can afford it, then why not.

Thingshavebecomeweird · 31/01/2023 12:20

What are your pensions like? If you can afford it, I would release some capital from your current two and buy a third. My ex and I did something similar and thank god we did as we got divorced and then he lost his job. It meant he had capital to tide him over the year he was out of work.

Cantstandbullshitanymore · 31/01/2023 12:20

Is he keeping the properties empty and locked until DD is of age? If yes that doesn’t make sense but if he is renting them out then he is proving housing to people who would otherwise be unable to buy.

trust me there is no scenario where everyone in the UK will be able to buy a house with no re take required. If he was being a mean selfish landlord trying to tel his tenants for everything they’ve got then that’s a different story.

lieselotte · 31/01/2023 12:22

I don't have an issue with people owning rental properties - they are still homes. It's the people with second/holiday homes which I find immoral. We don't have a shortage of housing, we have an inequitable distribution of it.

As for giving a house to a child, I would do it if I could afford it. However, I would make sure the house was partly in my/DH's name so a grasping future partner couldn't get their hands on it.

GoodChat · 31/01/2023 12:23

This reply has been deleted

This has been deleted by MNHQ for breaking our Talk Guidelines.

They're looking after their own young person, to help her look after her own future young people.

lowclouds · 31/01/2023 12:24

if he is renting them out then he is proving housing to people who would otherwise be unable to buy.

@Cantstandbullshitanymore This is often the argument put forward by landlords who own multiple properties. "I'm a good landlord!" "I'm providing a service!" "Where would people who need to rent live if it weren't for me?"

Sorry but that's all bs.

If these landlords did not buy the houses in the first place, there would be many more properties available, and they would be cheaper. People would not need to rent because buying would be more affordable.

It doesn't matter how good a landlord you are, you are still taking a property off the market to make a profit for yourself.

Again, not saying it's evil - the government allow it so it's fair enough. I don't think the government should allow it (at least, they shouldn't allow people to own 5, 6, 7+ properties that they don't need).

lieselotte · 31/01/2023 12:24

Oh, someone mentioned social care costs. The way things are going, you might want money in the bank to pay for private GPs and a knee replacement or similar if you need it in the future.

lieselotte · 31/01/2023 12:25

If these landlords did not buy the houses in the first place, there would be many more properties available, and they would be cheaper. People would not need to rent because buying would be more affordable

There are over a million second homes in the UK - that's the issue that needs fixing. Imagine if all of those second homes were brought back into residential use (either sale or rental) and not just used for weekends or as holiday homes.

lowclouds · 31/01/2023 12:26

lieselotte · 31/01/2023 12:25

If these landlords did not buy the houses in the first place, there would be many more properties available, and they would be cheaper. People would not need to rent because buying would be more affordable

There are over a million second homes in the UK - that's the issue that needs fixing. Imagine if all of those second homes were brought back into residential use (either sale or rental) and not just used for weekends or as holiday homes.

Yes, this is true. It's an additional issue. Both of these things are issues.

OtterDisgrace · 31/01/2023 12:29

all sounds a bit tabloid-y …ups page views tho!

Mosaic123 · 31/01/2023 12:32

If your DD marries and gets divorced her partner will be entitled to half her assets.

Might it be best to wait until you are happy with who she marries?

If she knows she owns a house potential partners may (hopefully not) have different attitude to the relationship.

I would wait until you know all is well.

Fam23 · 31/01/2023 12:38

I think you should also look at it in the way that it may benefit you both in the future too, circumstances can change and you may not have the same income at a different point of your lives so having the rent coming in from your properties may be what keeps the bills paid up on the house you’re living in at the time.
I wouldn’t think you can hoard properties.

Badbadbunny · 31/01/2023 12:42

Helenahandkart · 31/01/2023 11:27

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.

Trouble is, it will probably be another BTL landlord who buys it!

2Good2Gooooo · 31/01/2023 12:43

I don't know how you gift a whole property to a child in the future, does this ensure some tax ?

Will you be gifting with zero strings attached ?

What happens if the child sells the property & goes travelling around the world with the money

What happens if they don't want to live in that particular location, sell up & move somewhere else

What happens if they emigrate

It seems that you assume too much about the future

Tekkentime · 31/01/2023 12:44

Bloody hell, some of you need to get a grip.

It's 2 rental properties. OP is such a small fish!

oldtree54 · 31/01/2023 12:48

You may be a drop in the ocean, but it's the mentality of 'Oh, it's only 3 properties I'm hoarding owning' that's simply adding further to the housing crisis. There are so many breathtakingly greedy people living in the UK today and it is so sad.

TwoLeftSocksWithHoles · 31/01/2023 12:51

I thought it was going to be about DH cheating at Monopoly by hiding some of the cards.

I'm a bit disappointed really as Monopoly usually ends up in an argument, in the early hours, at our house at Christmas and I was hoping for some winning tips.

Moraxella · 31/01/2023 12:52

is your DD going to want that house specifically? What if she wants to live somewhere else? You basically need an investment that keeps pace with house prices for her.