Quote:
Originally Posted by Dan1971
Depends where you are in the country. Everyone acknowledges that (pretty much with everything) you tend to start small and build up. A one bed flat in Harlow on the 9th floor of a block will cost you £130K. £32.5K deposit required.... Compare that to my home town - Hawick in the Scottish borders - and £130K will get you a 3 bed house.
Not easy even getting started is all I'm saying.
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Oh I know finding the larger deposit is still not easy, a studio in a poor part of Bristol here is £90k, a 1 bed in "better" parts is £250k (more than my 3bed house is worth)....
I was looking to buy a 90k studio at 24/25 as my start point with a 10-15% deposit (to get the 15% the ZS would have been sold) - but my life took a different turn....
But if there were more properties available to be bought the price would be lower. And I feel it is the rental market that *is* the cause of it. + a little down to life expectancy and changes to lifestyle in older years.
2 friends who are my peers (35-40yo) each bought a small flat as single people in their 20's, they've married and in the time they've known each other, they've kept one flat that they rent out, sold the second flat to buy another to rent out for a larger rental income, and using income (rent + salary) they've now bought a 3rd place to live in. (While they built up the deposit for the 3rd place they rented)
They're stopping two lower income/younger people from getting their foot on the ladder but saw that financially it made more sense to not sell up.
Quote:
Originally Posted by peterzs
you need to check into that, re signing the house over. You have to pay a commercial rent back to the girls or IR say it is not a genuine contract. and they can still go for death duties or claw back if you go into a home. All to do with you having the benefit of the house.
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Yeah you have to pay more than a peppercorn rent nowadays to avoid some of the loopholes I seem to recall - my folks looked at some of the options before.
Think they settled on the trust and the 7 year rule as the "safest" option for them at the time.
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