How much rent to charge 18 year old?

[TakeALookAtTheseSwatches]

My daughter left college last year and started looking for a job, she started working just after Christmas. She works part time hours and her take home pay per month is around £900. She's putting £50 in to a lifetime ISA and she has no other bills (I currently still pay her phone contract which is about £30 a month)

We provide all her food, she eats tea with us and we have breakfast things/snacks in the house. She doesn't usually eat dinner but will sometimes buy herself a meal deal if she wants something.

So what would be reasonable? I was thinking around £200 a month and I'm happy to put £50 of that in her lifetime ISA too if she wants. She is saving up for a car so isn't spending frivolously. Is £200 too much?

What good is the asset when you need to live in it? I don't gain anything from owning my place, except repair bills

Really surprised at the result!

Ofc if you plan to settle abroad that doesn’t make sense. I don’t understand your point exactly, as my children don’t plan to settle abroad and they do go on holidays.

Holidays are a completely different things from long term travelling and working abroad though.

Why would anyone want to bring up their kids to be so obsessed with home ownership that they don't think outside the box.

It's a very narrow minded point of view.

My DS regularly tells me he doesn't understand why people think no further than school, uni but house get married and have kids and he's grown. up surrounded by people like it

How will you pay rent in old age if you are not earning anything? Or should I say WHO will pay your rent?
I can’t imagine on purpose not wanting to build equity and be on dependent on landlords my whole life into old age.

Well I don't need to pay rent so I. But at present I don't gain anything from the "asset"

It's only any good if I sell it really.. before then it's not really equity as I can't do anything with it

What??! 😆😆

Most of my children’s friends still live at home to save for their own home because they recognise that they now have to pay the same amount each month to rent a room in a houseshare as they would pay towards a mortgage and building equity. It makes sense to them. It doesn’t mean they are
obsessed or can’t travel or live abroad.
My children are dual nationals who have lived in 3 different countries and travelled a lot so I think you are making huge leaps about us in your imagination.

I charge my daughter more than £200 a month. I am a single parent and a carer to her sibling so money is tight. I also drive her a round a lot (to and from work which is 40 minutes away) and I pay her mobile phone.

I paid £50 a week when I was 18……26 years ago.

Obviously it depends on your home and what you can afford. I wish I could charge my dd less or save some of her money for her but she’s doing pretty well on what she gets and has more money than I do. To rent a room somewhere would likely be over £450 per month in our area….plus bills.

You can downsize and release equity and believe me when you get to 50 it’s really nice to have paid off your mortgage and not worry about monthly payments. I now put everything into my pension. Financial security is very important to me.

We were given 1 year without rent (once working) then 10% of salary was rent. I think that’s fair.

For us it’s 10% of her take home pay . She rarely buys food but does buy her own toiletries , phone bills and runs her car inc insurance

we don’t need the money but feel it’s important that she gets used to paying some sort of rent . Dd is good at saving and also adds £300 per month to her lifetime ISA

been paying since she started full time work at 18 and we have put into an account that she doesn’t know about . Currently stands at around 4.5k which we will give to her when she lmoves out for a deposit / furniture

Not all homeowners can downsize.

Renting, for some people, is an attractive option. Housing benefit, plus possible pension credit. A landlord to sort out and pay for all your maintenance issues.

I paid off mortgage at 48 actually.

And downsize it to what? It's a 2 bed flat

But it’s not a sustainable model with lots of people living on benefits to pay their landlords in old age. Paid for by the younger generation of course.

How do they all manage both at the same time Must have heaps of money to do that

We are all comfortable yes.

Then it's a different world to mine. .

❤️

£100.

put it into a savings account and give it to her when she leaves home. She'll be made up.

Im so puzzled by this. How. Buying a house at 18. Presumably maybe salary has gone up since starting the apprenticeship but by enough to save and get a mortgage lender to lend enough?

@anospayfgoIt was a long time ago now, but we bought our first flat when I was 20, without any help from parents or any savings. I was a clerical officer and my husband was a junior surveyor. We got a 100% mortgage, which I understand some lenders are giving again, and we struggled for a couple of years until we got promoted and our salaries increased. It can be done, although with difficulty.

Ah that's interesting thank you. I didnt know 100% mortgages were a thing again and dont really understand how they work.

You don't need a deposit.

I had a 95% mortgage at 21. Kkit cost no more than my previous rent.

Helpful thank you. I understand more now the point of view of getting on the property ladder straight away..
I think theres still advantages and disadvantages to either way of doing it or in fact of never owning. Waiting with a bigger deposit, you could have a lower interest rate, more earning power to overpay, buy something you are more likely to stay in, not have to move as much. But of course you're not paying landlords for no return. But possibly paying more to the banks and in moving costs, stamp duty etc. Shared ownership too, home owner on paper I guess but seems to be more expensive overall and potentially difficult to sell.
Still buying a property isnt the be all and end all and isnt what everyone wants. And I still wont be convinced that adults especially those who are earning shouldn't be contributing at the expense of saving. Its life. Maybe a few months to get back on their feet but more than that I disagree. And mobile phones, they can pay them from 18 latest. It doesnt have to be that expensive. Finding deals, budgeting, prioritising and compromising are all useful lessons. Personally I think living with others who you may not like and dealing with landlords are too.