getting a foot on the property ladder

Helen · 2004-06-26T10:57:18+00:00

I would be grateful for comments as to the potential pitfalls of an idea my sister has had to help us both onto the property ladder. I am single and still living with parents at the age of 30 (can't buy a garden shed around here on my single income, although am in professional, reasonably secure and reasonably well paid employment). My sister and her husband live in an army quarter. Her husband has no plans to leave the army, and they expect to continue living in quarters. I am desperate to have my own space but reluctant to rent, as it would make it difficult for me to continue saving for the ever increasing deposit I would need to buy a place on my own, and I can't get over the feeling that renting is dead money. My sister and her husband would like to get a foot on the property ladder to help them to buy something when he does eventually leave the army. My sister's idea is this. The three of us get a mortgage together to enable us to buy a reasonable property - probably a two or three bed house. We view it as a buy to let (they would have no intention of ever living there), but with me as the "tennant", effectively paying the full amount of the mortgage each month. On the surface, this seems like a good idea, as it means although I am paying "rent" each month, I have a 1/3 interest in the property. Depending on the housing market, we could either continue this arrangement long term, or if my circumstances change, get a new tennant, or sell up and split any proceeds. My sister is very enthusiastic, but being the sensible, cautious one, I can't help thinking this must be potentially fraught with difficulties. Any comments/advice would be much appreciated. Helen.

Jun 26, 2004 41 Replies

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Daytona 22 years ago

They certainly did in the 1990 decline. Prices for one bedroom properties seem far more given to extremes.

Also do not buy something just because of desperation, that will be difficult to sell.

Average earnings are sqewd by higher by relatively few high earners. Median earnings are around £22,000. But then the same can probably be said for property.

Daytona

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Helen 22 years ago

Exactly. I can't even afford a one bedroom place on my own. It makes me laugh when I hear on the news how poor first time buyers on "average" earnings require x times salary to purchase. I wish I was lucky enough to be on average earnings! I earn a good salary for this area (North Yorkshire), but it's nowhere near the average that is so often quoted. If people earning this mythical wage can't afford to buy, what hope is there for the rest of us?

Helen.

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