Hello all,
I have a particular family situation where a member requires accommodation. Without getting into to much details, they are currently in retirement age and in receipt of rent allowance.
My motivation here is to investigate whether I can find a solution to help with the situation by purchasing a property - in general though, I am not interested in becoming a landlord nor to invest in a rental property.
I equally do not wish to make any obvious mistakes which the more experienced rental property owners of you out there may spot right away so appreciate your feedback or comments.
My biggest concern is the exposure of financial risk to myself and my husband.
The jist of the situation is as follows:
married, mid 30's with no children as yet.
home owner (well, the bank owns it) with no other debts.
Both husband and I are as secure in our jobs as you can be in the private sector currently. I don't like high risk and am good saver and have been adding to a nestegg over the years.
My family member would be living in the house long term and in receipt of rent allowance. That said, if their health dis-improved, living alone may not be an option, so I could end up with an empty house to rent or sell in a very tough market which worries me.
What are your thoughts on the pros & cons of the following?
I could invest part of the purchase price from savings (say 50%) and mortgage the rest. Are there any rules of thumb as to whether its better to invest more or less savings versus mortgage?
Marge
I have a particular family situation where a member requires accommodation. Without getting into to much details, they are currently in retirement age and in receipt of rent allowance.
My motivation here is to investigate whether I can find a solution to help with the situation by purchasing a property - in general though, I am not interested in becoming a landlord nor to invest in a rental property.
I equally do not wish to make any obvious mistakes which the more experienced rental property owners of you out there may spot right away so appreciate your feedback or comments.
My biggest concern is the exposure of financial risk to myself and my husband.
The jist of the situation is as follows:
married, mid 30's with no children as yet.
home owner (well, the bank owns it) with no other debts.
Both husband and I are as secure in our jobs as you can be in the private sector currently. I don't like high risk and am good saver and have been adding to a nestegg over the years.
My family member would be living in the house long term and in receipt of rent allowance. That said, if their health dis-improved, living alone may not be an option, so I could end up with an empty house to rent or sell in a very tough market which worries me.
What are your thoughts on the pros & cons of the following?
I could invest part of the purchase price from savings (say 50%) and mortgage the rest. Are there any rules of thumb as to whether its better to invest more or less savings versus mortgage?
Marge