House purchasing info/ideas for possible first time buyer
Discussion
A while back I posted this, asking advice on renting -
http://pistonheads.com/gassing/topic.asp?h=0&f...
Which is still something I'm considering.
However, been having some proper sit-down talks with my Parents. They have been helping me look at the possibilty of renting, getting ideas together etc.
Obviously, they are as keen for me to move out as I am, and want to help. As I said - I'm far too old be be still at home and really ready to move on in life.
I am lucky enough that, while not exactly rolling in it they are very financially astute and 'stable'. They have no mortgage themselves, paid off a while back.
They've made a suggestion though. Rather pleasingly, she is now saying that as I've paid rent since I was 18, (I'm now 24) there is a possibility of them giving me a bit of a financial 'boost' in terms of deposit.
Obviously, for the purposes of this, as a single person on a 'juniors' type wage there not a cat in hells chance of me buying somewhere myself.
We are looking at the possibility of my parents helping me with a deposit, then going halves on the mortgage, with a rental income to cover their half.
At some very rough calculations, the monthly cost for me would end up about the same, based on the current buying price and renting price of the kind of house we would be looking at - (small 2 bed semi with preferably 2 good sized double rooms) is in the same ballpark. Mothers half of the mortgage would be covered by then having a room to rent out.
Obviously - there is LOTS of calculations and costings to work out and to be sure of - and lots of potential issues.
Not least of which is determining the future of my career and my likely future earnings - I'm not on a lot now but I've finally got myself into a proper 'career' with good potential.
Some of the main, most obviosu problems/issues we can see are -
- Securing/guaranteeing the rental income which would go to my Mother to cover her half - and how would I 'cover' it if needs be.
- The end of the agreement - what happens with regards to ownership, passing the balance ofthe mortgage on (for instance If a partner were to move in with me or I decide I want to move).
- Tax implications for my Mother regarding profits etc (she wouldnt be looking to actually make any money out of this, and I think we would agree that we would work on 50% of the value of the house at the time when it was bought)...
... which obviously leaves the (doubtful but not impossible) situation where the value drops, leaving a shortfall, and what happens then.
And lots, lots more.
I wonder though if anyone has any thoughts on this kind of setup? Has anyone done it? Buying with a friend of course gives the same kind of issues to overcome.
Does anyone know some good places to get info on this? As said, its not the kind of thing I would be going into 'dumb' as luckily I've got parents who are very good at this stuff, but I would like to do my own research not least because it keeps me looking keen and in the good books!
http://pistonheads.com/gassing/topic.asp?h=0&f...
Which is still something I'm considering.
However, been having some proper sit-down talks with my Parents. They have been helping me look at the possibilty of renting, getting ideas together etc.
Obviously, they are as keen for me to move out as I am, and want to help. As I said - I'm far too old be be still at home and really ready to move on in life.
I am lucky enough that, while not exactly rolling in it they are very financially astute and 'stable'. They have no mortgage themselves, paid off a while back.
They've made a suggestion though. Rather pleasingly, she is now saying that as I've paid rent since I was 18, (I'm now 24) there is a possibility of them giving me a bit of a financial 'boost' in terms of deposit.
Obviously, for the purposes of this, as a single person on a 'juniors' type wage there not a cat in hells chance of me buying somewhere myself.
We are looking at the possibility of my parents helping me with a deposit, then going halves on the mortgage, with a rental income to cover their half.
At some very rough calculations, the monthly cost for me would end up about the same, based on the current buying price and renting price of the kind of house we would be looking at - (small 2 bed semi with preferably 2 good sized double rooms) is in the same ballpark. Mothers half of the mortgage would be covered by then having a room to rent out.
Obviously - there is LOTS of calculations and costings to work out and to be sure of - and lots of potential issues.
Not least of which is determining the future of my career and my likely future earnings - I'm not on a lot now but I've finally got myself into a proper 'career' with good potential.
Some of the main, most obviosu problems/issues we can see are -
- Securing/guaranteeing the rental income which would go to my Mother to cover her half - and how would I 'cover' it if needs be.
- The end of the agreement - what happens with regards to ownership, passing the balance ofthe mortgage on (for instance If a partner were to move in with me or I decide I want to move).
- Tax implications for my Mother regarding profits etc (she wouldnt be looking to actually make any money out of this, and I think we would agree that we would work on 50% of the value of the house at the time when it was bought)...
... which obviously leaves the (doubtful but not impossible) situation where the value drops, leaving a shortfall, and what happens then.
And lots, lots more.
I wonder though if anyone has any thoughts on this kind of setup? Has anyone done it? Buying with a friend of course gives the same kind of issues to overcome.
Does anyone know some good places to get info on this? As said, its not the kind of thing I would be going into 'dumb' as luckily I've got parents who are very good at this stuff, but I would like to do my own research not least because it keeps me looking keen and in the good books!
Edited by snotrag on Friday 12th February 15:08
Edited by snotrag on Friday 12th February 15:10
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