Buying a flat for my son

[Howcanwehelp]

I'm receiving an inheritance soon that I wasn't expecting, it's a lot and the person who it is coming from would like me to be responsible with the money. I'm thinking of getting a btl flat that can be used by my young son eventually, either to live in or to have the income. My child has a disability so the flat will be bought with that in mind. My husband already owns a flat from before we were together so both children would have a flat each. Is this a good use of funds? How spoilt is my child if we give them a flat each? I've had no help from family for anything (I had to leave home at 18 half way through my a levels) so don't really know if it's a good idea or not.

Will your children want to live in the building and location of their parents choice?

By the time you’ve paid tax / insurance / fees etc you’re not going to make a lot on BTL. I would invest the money and use it later when you have more of an idea of the needs of your son.

I would buy somewhere with a good rental market - eg a university town, so that you/your son can have the income, and then sell it and buy something more appropriate when he needs it.

In principle, it could be a good idea but do you know about income tax on property? Have you looked into legal implications of giving it to your son etc?

You’d also need to make sure that the numbers add up and rental yields are good.

It’s a huge sting on CGT if/when eventually sold. I would set up ISAs for everyone and pay into a pension instead. Plus buy to let us awful now as you can’t get the tenants out easily, even if they don’t pay...