Me and my dad are buying a house together and I want to know if it’s a good idea or not

[ambunny]

@strivingforgodsglory Problems:

1 Many auction properties unmortgageable, everything needs a 10% cash deposit paid on the day and balance within a month... it is for cash buyers generally.

Either you risk paying for a survey on something you might not buy, or buy without survey: caveat emptor

(correct me if I'm wrong here...)

2 Assume you in 30's dad in 50's now? even if you paid it off 100% in a decade, 'deprivation of assets' rules generally used to be about 7 years...so fast forward to 2040 earliest that you are complete. Also assumes Dad will be able to finance this mortage commitent long term.

You are stuck in an illiquid investment which may impact you if you wanted to upsize or move/have family/new partner etc

3 If Dad becomes ill/unemployed, a joint mortgage would be messy and housing benefit won't pay rent to a relative.

4 As many here have said, and from personal experience, money and family can be difficult and cause a lot of problems. Also if Dad has/was to get a long term partner then think through all possible implications here.

5 if you do this, have some pre-agreed formula that if the property was sold before being paid off, you can split the profit, or losses.

 

[kevingil]

@strivingforgodsglory I spend a lot of time looking at auction houses and the vast majority of them go for at least 15/20% above the guide price. The very few of them that don't you litterally would never want to buy.

 

[rawscot]

@strivingforgodsglory I just need to know where in the UK houses are 40k thanks

 

[cqbchase]

@rawscot I've seen some for that price in Hull.

 

[jonternet]

@strivingforgodsglory Seems like an odd arrangement. Why would he buy half a property, pay off his half of the mortgage and then transfer it to you? Why would he leave himself vulnerable should you then kick him out, sell it if you get into financial difficulties or get divorced, or if you die and leave it to someone else who charges him rent?

Can you afford all the repayments if he stops making his share as if not you are putting yourself at risk too.

Can neither of you afford to buy it on your own as that would make much more sense and be less risky?