University Accommodation
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Re: University Accommodation
Thought about it yes - looked online at several likely properties, especially when we thought DD might end up doing a PhD in Manchester. However she has now moved to Cardiff and I am relieved not to have the responsibility of a property at the other end of the country
Re: University Accommodation
But we live approx 20-30min from the Uni in Bowdon(Altrincham) but I want him to have the university experience but money is money it doesn't grow on trees ! I'm not a millionaire so have to think about the most cost effective way to secure his and his sister's future, who goes to state a school, so, the same has to be done for both-I don't want any bitterness between them in the future.solimum wrote:Thought about it yes - looked online at several likely properties, especially when we thought DD might end up doing a PhD in Manchester. However she has now moved to Cardiff and I am relieved not to have the responsibility of a property at the other end of the country
The idea of paying out up to £6000 a year to some shyster gets my goat up !!
Re: University Accommodation
Thinking of it yes. Would be interested to hear from anyone who's done it.
Surprisingly cheap for DD to have her car parked right outside her uni accommodation btw. She didn't do it the first term as they said no one was allowed but having seen all the empty spaces she asked and hey ho it's there now.
Surprisingly cheap for DD to have her car parked right outside her uni accommodation btw. She didn't do it the first term as they said no one was allowed but having seen all the empty spaces she asked and hey ho it's there now.
Re: University Accommodation
We did it but costs of buying/selling have gone up since, particular stamp duty.
If it's in your child's name then there is the advantage of it being deemed their home so no capital gains.
But there are incentives for first time buyers which they wouldn't subsequently be eligible for. So if you buy something in a cheap area but they subsequently move somewhere more expensive that could be an issue.
If you want them to live there in first year you need to be sure where they are going to be pretty early- unlikely to complete the process between mid August - mid September.
You also need to find housemates in that period which could be tricky unless there are others going from school?
If you need to wait for confirmation of results you could rent out for first year but probably only works if it's somewhere non students would be prepared to rent.
Another option is to buy somewhere during first year that needs renovation so it ready for second year.
If the house is in DC name they will be liable for income tax on net rental income but it will probably be negligible if you do the accounts carefully and they don't have significant other taxable income.
If you need a mortgage it's much easier if you can increase your borrowing on your own property. If that's not possible there are complications if you have to be included in ownership of the second property (not necessarily the case).
If DC is going to have a year away during the course there are issues with renting out and not having anyone in situ during that time.
Obviously issues overall in having responsibility for a property. Considerations: how far is it from you, have you got time to deal with problems, is it in decent condition, will DC be able to cope with minor issues both emotionally and in finding time.
Are you likely to keep the property after graduation? Either because they may stay in the area or as an investment either for yourself or for them ( eg if they are going to be moving around alot for a few years so wouldn't buy elsewhere or would be moving to somewhere where they couldn't afford to buy). All "unknowns' but you might have an idea what is likely.
Note of caution if you are borrowing money - rates are likely to rise over the next 4 years. For those of us of parental age thats probably something we would factor in - for young first time buyers it's not always something they would think of, having had such low rates for (to them) so long.
There are various factors that dictate if it's financially sound. Need to do homework on the students housing market. In one city one DC was in there were local rules about to be brought in limiting new HMO licences and at the same time significant building of new Uni accommodation, for example.
HMO licences another nightmare of red tape! Local councils seem to make it up as the go along
But if property doesn't already have one ( so you know it meets physical requirements) do check before purchase. Where one is needed can depend on location as well as total number of rooms. Some requirements are easily fixed but others like bedroom size and number of toilets might not be.
Apologies, bit of an information dump! Hopefully some useful pointers to consider in there somewhere
If it's in your child's name then there is the advantage of it being deemed their home so no capital gains.
But there are incentives for first time buyers which they wouldn't subsequently be eligible for. So if you buy something in a cheap area but they subsequently move somewhere more expensive that could be an issue.
If you want them to live there in first year you need to be sure where they are going to be pretty early- unlikely to complete the process between mid August - mid September.
You also need to find housemates in that period which could be tricky unless there are others going from school?
If you need to wait for confirmation of results you could rent out for first year but probably only works if it's somewhere non students would be prepared to rent.
Another option is to buy somewhere during first year that needs renovation so it ready for second year.
If the house is in DC name they will be liable for income tax on net rental income but it will probably be negligible if you do the accounts carefully and they don't have significant other taxable income.
If you need a mortgage it's much easier if you can increase your borrowing on your own property. If that's not possible there are complications if you have to be included in ownership of the second property (not necessarily the case).
If DC is going to have a year away during the course there are issues with renting out and not having anyone in situ during that time.
Obviously issues overall in having responsibility for a property. Considerations: how far is it from you, have you got time to deal with problems, is it in decent condition, will DC be able to cope with minor issues both emotionally and in finding time.
Are you likely to keep the property after graduation? Either because they may stay in the area or as an investment either for yourself or for them ( eg if they are going to be moving around alot for a few years so wouldn't buy elsewhere or would be moving to somewhere where they couldn't afford to buy). All "unknowns' but you might have an idea what is likely.
Note of caution if you are borrowing money - rates are likely to rise over the next 4 years. For those of us of parental age thats probably something we would factor in - for young first time buyers it's not always something they would think of, having had such low rates for (to them) so long.
There are various factors that dictate if it's financially sound. Need to do homework on the students housing market. In one city one DC was in there were local rules about to be brought in limiting new HMO licences and at the same time significant building of new Uni accommodation, for example.
HMO licences another nightmare of red tape! Local councils seem to make it up as the go along
But if property doesn't already have one ( so you know it meets physical requirements) do check before purchase. Where one is needed can depend on location as well as total number of rooms. Some requirements are easily fixed but others like bedroom size and number of toilets might not be. Apologies, bit of an information dump! Hopefully some useful pointers to consider in there somewhere
Re: University Accommodation
Thank you; very helpful. Lots to think about. 
Re: University Accommodation
Thank you KB, quite like the idea of renorvating a house while he spends the first year in halls then moving in with one or two hand picked lodgers.
Will have a chat with OH and DC at some point.
Will have a chat with OH and DC at some point.
