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.

What other investments do you have? How's your pension looking? I know you say you have investments but how does their value compare to that of the property? My first thought is that you may not be diversified enough if these houses constitute a large part of your assets.

You may want to think about whether DD's actually going to want to live in the house her parents chose rather than in one of her own choosing- who knows what the future will bring and where she might want to live? (And is there an element here of wanting to keep her close?) Alternatively if these are simply financial investments then you need to approach them with that in mind and lose the emotional tie of thinking about DD with a roof over her head- after all, if you invest in equities then that money can buy a property down the line. What kind of return will the houses give you compared to equities? What are the risks? The days of landlords making money hand over fist are over- you need proper advice on returns, costs, tax etc etc.

I know that owning property can be appealing as it's right there- you can see it, you can imagine how it's going to provide you with an income, you can live in it. But as a long term investment, it may be that it's not the best option and your DD may end up better off if you sell and invest instead. As PP said, over the long term equities have historically provided a better return, and there's nothing happening now to suggest that this is likely to change- quite the reverse, in fact.

Because I've seen what giving everything to your kids can do. it's all well meaning but sometimes isn't the best thing you can do for them . Substance misuse , you can kill kids with over kindness and ruin their mental health. Having structure , routine and purpose is fundamental to happiness. I can take away the worry of her having to house herself but I won't be funding absolutely everything.

I have pension , savings and we have about 90k in stocks which is volatile to say the least at the moment. I really want to make money in investments rather than rely solely on pension. There's big penalities for taking early. I really don't think pensions will be good when I reach retirement age it's already going to 68 and I have a long long time to go. I don't think they will exist. I think the best thing to do is go to to seek financial advice. I don't want to stick money in an ISA which will erode with inflation.

I would only give her the property when she's settled. We would sell it if she wants to move away and give her the money to purchase one. If she wants to move abroad I'd be happy for her , I don't expect her to live round the corner. I want her to thrive and do what she's passionate about.

I see the morality but in reality you’d be wise to keep both and look after number 1. Or sell one and invest very sensibly.

@unclebuck

If you look at the amounts of money, they are worth less than the deposit on many london homes. Her dilemma is as valid as someone asking about buying a London property with £200k deposit

Definitely see an IFA. There are some confusions in this post- between state and private pension, for example, and what an ISA is- happy to explain if it's helpful but I think seeing someone who can do it all face to face is going to be more useful.

In a practical sense, I'd be thinking more along the lines of "our pension" / "DDs future"
Tbh I am shocked by how much things have gone up in price this past few years. I was looking into cars several years ago, so I knew what would be best to buy for DC when she turns 17, so she has a decent and safe car to see her through until her mid 20s, it was possible under 10k, now the cheapest I've found is £14k.

I'd not be getting rid of any assets that are likely to continue accruing money.

When it comes to morality, just be good landlords, provide stable tenancies in decent properties, many people cannot afford to buy. You can make a difference to your tenants lives allowing them the greatest chance of stability

Very soon, 95% of LLs will be private equity firm and moneyed investors who've never had to think twice when the price of any commodity goes up.

I have a private pension but there's penalties to taking it early. The age to draw it is increasing to at least 57 to take it so I'm wondering how old will I be when I can withdraw it as I'm some time away from then and the age could further increase.

Ah I see. I thought from your reference to pensions not existing that you meant the state pension.

An ISA is just a wrapper within which you can hold either savings or investments in order not to pay tax, so if you are investing (outside your pension) having an ISA would definitely be a good idea- you can hold exactly the same investments as you would outside the ISA so it simply saves you money. Anyway, things to talk to the IFA about.

Tesco, Waitrose, Glaxosmithkline, Pfizer etc all profit of some(many)thing(s) that is(are) actually a basic human need. Is it ok because the humans who own it operate from behind a corporate veil? Countries profit and continue to profit of many things that are actual basic human needs. The RF are the greatest land owners in the country yet the general public is conditioned not to require them not to own more than they actually need. Have you petitioned them to donate the land so that more social housing can be built perhaps? Why should a couple who've worked so hard not invest their money so that their child can perhaps have the option of pursuing a career they'll enjoy even if it paid less? They're not worthy I guess. They're commoners and should slave, pay taxes and hand down that burden to their children.

You mustn't be very financially literate then...

How does spoiling her with treats help anything or provide any long term security??

@Delectable best points on this thread!

It's crazy how conditioned everyone is yet I bet they will all be waving flags at the coronation!

You misread, I said NOT to spoil with treats. Many parents are sadly stuck in the grind of making a living and leave their children alone to bring themselves up via tv, internet etc. Having time to spend with kids can be a luxury. But some parents have that time and still don't spend it on their kids. I am working class but I spend my time with DD on education, soft skills & cultural capital.

Thank you! They know their inconsistent thought process is illogical and makes no sense; it's cognitive dissonance.

Your husband is financially adept and trying to secure your daughters future.

What a horrible man

Keep the houses and don’t tell your daughter that they will be hers. Let her think they’re for your retirement. You’re giving her and any future generations a huge advantage by ensuring their financial stability. Rich people always plan for the next generations . Don’t throw your opportunity to do so away !

The very last thing people who rent, want to rent or need to rent need is more rules, more government involvement

How do you think we have ended up with stratospheric rents.

Because every time the government brings in new rules to restrict landlords rents go up to pay for it.

A lot of what you are suggesting is about taking away a lot of peoples rights and freedoms to do as they please with their property.

Why should someone have to wait to throw there property open to the people who want to buy it.
We have enough restrictions and hoop jumping to buy or sell a place before adding other restrictions to it.
What do you do with the empty properties that won’t sell and need someone to move in and start putting on a new roof etc.
You are talking about unmortgageable properties where time is the essence to get in and start work to stop the rot.

You want them to remain empty whilst someone decides that it is deemed fit to bypass the people who are looking for a place to move into not one where they can’t enter unless wearing a hard hat.

Other countries don’t seem to have the level of bureaucracy that we do.
Other countries don’t have the restrictions.

Other countries seem to have got their mind round that even if a mortgage isn’t paid off until some one is 80 or 90 years old that as long as they feel that they can manage the payments then they can get a mortgage ay any age.

Take away the restrictions and you will see rents plummet
More restrictions means higher rents to pay for it.
It doesn’t lead to an influx of houses hitting the market.
It doesn’t lead to Slum Landlords being put out of business. They will operate no matter what the laws state.
Any sell offs by land lords just means fewer rental properties and less supply means more demand and that leads to inflated rents. The only people it will affect is those who are renting.

You want some rental properties for those who don’t need a life long tenancy and ask why does this have to be provided by private landlords?

Possibly because governments don’t understand how to run rental properties because if they did they wouldn’t have brought in all these restrictions and rules.

£500k in assets between a couple is hardly "vast wealth" 🤣🤣🤣

Absolutely perfectly put.

The 'warmth' that is a human right was provided by Russian Billionaires who buy up football clubs and live the life of Riley! Look at the life Lord Sainsbury and hos offspring have had profiting from food. And yet time and time again people happily vilify private landlords with one property.

Educate your daughter that her inheritance isn’t just for her . Encourage her to add to it in her own working life. That’s how wealth is created. She looks after it, adds to it and passes it on to the next generation. My children will inherit land and properties. They are already discussing how they will buy more! Start prepping them when they are young to spend their money on appreciating assets instead of the latest tech, holidays and cars.