buying a house for our children

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asdfg

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were thinking of investing 70.000 euro as a deposit on a house for our adult children and getting a mortgage to pay of the rest not sure how much needed as this is something were thinking about for now.we want to put there names on it and we will pay the mortgage.my husband is not there dad.what are the pros and cons of this .
 
Are your children old enough to get a mortgage in their own right or are they interested in being home owners.
Have you discussed this with them.
If you intend putting their names on it then it is their house.
Remember your will be paying this mortgage probably for the rest of your working life while they may choose to live in Australia.
 
The pros are really in favour of your lucky children. If their name is on the deeds then you are effectively buying them a house.

Don't know the full story but it sounds like you may not be doing your adult kids a favour in the long run if they have not been thought to be independent.
 
this is there inherintance ,worried about it being in the bank ,thought this would be a good way to secure it.what would be the legal and tax implications .
 
If your only reason for doing this is because your worried about your savings then with the state guarantee I don't think you should be worried.

The cons are

You are not teaching your children to be independant
You might be upset if they sold the house
You are trying to control where your children live
What if you suffered a loss of income and couldn't afford to pay the mortgage payments
As you get older you may have need of the 70K plus the amount you propose to spend on the mortgage, especially if you need medical and retirement home fees
They may get into debt and lose the house

The pros
You house your children
They get their inheritence now rather than later and as your husband is not their partner you ensure they actually get it

If you give more of an outline of your reasonings for doing this and the ages/job status of your kids you will get some better responses. I come from the school of I'd rather pay for my kids to be independant through education than to just give them a house but not everybody has that viewpoint.
 
I don't think you do your children any favours by giving them 1 house forall of them. This might well lead to them falling out over it at a later stage and much of the money being lost, if they have to sell it in a rush over the falling out. if you want to give sem something now, you should do it in a way that everyone gets something independet of their sibblings. So if they fall out over something else, at least they have not the aggravating hassel of having to own something together.
 
If you are worried about your money being in bank, maybe find somewhere else for it?

As far as buying ahouse for your kids, you might think this is a brilliant start for them, but I don't know that it always is. I had a friend in college whose parents had bought him a house & he rented out the spare rooms & basically spent the money on "recreation" whereas their intention was that his sister would live with him, they's rent out 2 rooms & that money would put them through college. (She didn't like his "lifestyle" and moved out) . His parents weren't too happy about it but there was nothing they could do because the house was his. They weren't kids BTW - both in their late 20s - so-called adult children.

Basically, what i am saying is that while it's great that you want to give your kids this start in life, things may not work out as you planned. What if they chose to emigrate, as one of the other posters pointed out? Would you be happy that they rent out the house you bought for them to live in?

If in years to come they want to buy houses then maybe that's a good time to help them out?
 
asdfg said:
this is there inherintance ,worried about it being in the bank ,thought this would be a good way to secure it.what would be the legal and tax implications .
Click to expand...

If you spread the 70K over a few banks (with very good savings rates at the moment imo considering the deflation thats under way) with the government guarantees (inlcluding deposit guarantees) I cant see any risk here realistically. I see far more risks in investing in property (of all things!!). The exclamation marks are not intended as aggressive but to do you a favour I think the riskier strategy is what you're suggesting doing unless its really long term thinking and you get an amazing opportunity and teh property is in a location you're sure they want to live in who knows they mightnt even want to stay in this inefficient (imo) country with bad weather??
 
I have to say, I agree that investing in a property could be an extremely poor decision from an investment standpoint.

Firstly, dividing one house between your children sounds like a recipe for a family bust-up. I know personally, I love my family but I could never live with them! Secondly, if your children need to move on, you've just wasted the costs of buying and selling the property. Finally, as we've seen in the last few years, the investment returns on property have been erratic.

Rather than worrying about the hassle of buying a house, renting it in the mean time, maintaining it, etc; I would take the easy option and put the money on deposit. You can view the best value interest deposit rates here - http://www.askaboutmoney.com/showthread.php?t=101813

That way, in a few years time when your children are ready, they can buy their own houses with a handy deposit. If you're worried they'll squander the money on bling and crap, you can simply withhold the money until they actually go about buying a house or doing something productive with it.
 
My parents did something similar for me. It gave me a great start in life. I never lived in the house so I wouldn't buy it in the hope that the children will remain close by. I did rent it out. I was the sole owner and was not in shares with siblings.

My parents made it clear that it was my house to do with what I want. They wouldn't stand in my way if I wished to sell it. This gave me the sense of independence to move forward and purchase my own property when I was relatively young. My only main concern is whether I am going to be crippled with Property tax in the next budget on the second property. It has served me well up till now. Only you know your children well enough to tell whether they will blow the money or use it for more productive things.

Personally I think that it is a great idea to provide a roof over their head when your partner at the moment is not their Dad.
 
Hi OP,

I think it is a great idea to give your children their inheritance now and have them secure and you happy in your home with your partner.

I recently came into my inheritance at the age of 30 and i was able to buy myself a new home which is exactly what my grandparents wanted me to do with the money. Not only have i bought the house of my dreams but having some financial security has enabled me to follow many of my career dreams too, in many ways it has made me more independent, secure, confident, mature, it has also given my future family a great start in life.

There is nothing wrong with embracing a better life for yourself, if someone helps you get a home it does not mean you become lazy and idle it just makes way for more opportunity, I also love the fact that i am now in a position to help others, with my career changes i am really in a position to give back to the community, My boyfriend has also had a break from the 13 years of hard grafting running his business as a landscaper and he is now able to follow some of his dreams.

Setting someone up in a home may not take away from them learning independence, it may add to their lives enormously.

It is a good time to buy a long term property investment, if your children are going to buy a house in the future with it anyway then i can see why parents are thinking this way now.
 
maggiemae - just wondering if you still qualified as a FTB on your first or second property.. or did you lose this benefit? thanks
 
From Revenue

Can I avail of first time buyer relief if I previously received a gift of a house?

The relief can be claimed where the gift of the house was received prior to 22 June 2000 (or prior to 27 June 2000 in the case of part of a house). A gift received after the above date(s) is regarded as a prior purchase and would preclude a person from claiming the relief.

mf
 
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