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I have just read this again and I still can't for the life of me understand those people who are against parents (in general) investing in a property for student offspring.

There is some strange amateur psychology on here and some even stranger economics.

So, let's first start with a couple of assumptions - the parents I'm discussing are those fortunate enough to be able to support their children while at university and most students (and from my experience I'd put it at 90%+) want to get out of halls of residence as soon as local rules allow.

OK, so the parents will help their children by paying their rent for them. And that's where the decision on whether or not to purchase is a no-brainer. The size of the house, within reason, is irrelevant. Let's say "within reason" means from one to four bedrooms. Any bedrooms apart from the one - or more - which are nt required by the purchaser's offspring are let to other students, obviously preferably friends, at market rates. The amount paid in mortgage payments, less any rental income, is not going to be more than than forking out for rent to a landlord and the parent has the benefit of capital growth. At the end of the student's university life the house can be disposed of and the profit gained will help to offset the £20k to £30k that it will have cost the parent over the previous three years. Or, the house-owner may now have grown fond of being a landlord and wil continue to rent his property to students.

It really is as simple as that.

<blockquote data-quote="BrianH" data-source="post: 2087705" data-attributes="member: 64960">I have just read this again and I still can&#039;t for the life of me understand those people who are against parents (in general) investing in a property for student offspring.&nbsp; There is some strange amateur psychology on here and some even stranger economics.So, let&#039;s first start with a couple of assumptions - the parents I&#039;m discussing are those fortunate enough to be able to support their children while at university and most students (and from my experience I&#039;d put it at 90%+) want to get out of halls of residence as soon as local rules allow.OK, so the parents will help their children by paying their rent for them.&nbsp; And that&#039;s where the decision on whether or not to purchase is a no-brainer.&nbsp; The size of the house, within reason, is irrelevant.&nbsp;&nbsp; Let&#039;s say &quot;within reason&quot; means from one to four bedrooms.&nbsp; Any bedrooms apart from the one - or more - which are nt required by the purchaser&#039;s offspring are let to other students, obviously preferably friends, at market rates.&nbsp; The amount paid in mortgage payments, less any rental income,&nbsp; is not going to be more than than forking out for rent to a landlord and the parent has the benefit of capital growth.&nbsp; At the end of the student&#039;s university life the house can be disposed of and the profit gained will help to offset the £20k&nbsp; to £30k that it will have cost the parent over the previous three years.&nbsp; Or, the house-owner may now have grown fond of being a landlord and wil continue to rent his property to students.It really is as simple as that.</blockquote>

[QUOTE="BrianH, post: 2087705, member: 64960"] I have just read this again and I still can't for the life of me understand those people who are against parents (in general) investing in a property for student offspring. There is some strange amateur psychology on here and some even stranger economics. So, let's first start with a couple of assumptions - the parents I'm discussing are those fortunate enough to be able to support their children while at university and most students (and from my experience I'd put it at 90%+) want to get out of halls of residence as soon as local rules allow. OK, so the parents will help their children by paying their rent for them. And that's where the decision on whether or not to purchase is a no-brainer. The size of the house, within reason, is irrelevant. Let's say "within reason" means from one to four bedrooms. Any bedrooms apart from the one - or more - which are nt required by the purchaser's offspring are let to other students, obviously preferably friends, at market rates. The amount paid in mortgage payments, less any rental income, is not going to be more than than forking out for rent to a landlord and the parent has the benefit of capital growth. At the end of the student's university life the house can be disposed of and the profit gained will help to offset the £20k to £30k that it will have cost the parent over the previous three years. Or, the house-owner may now have grown fond of being a landlord and wil continue to rent his property to students. It really is as simple as that. [/QUOTE]

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