Property purchase versus Savings account in the recession.

Property purchase versus Savings account in the...

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Mother has savings earning very little.

Son has some savings but not enough to buy a property unless he combines with mothers savings.

Mother thinking of loaning or gifting money to son as long as she receives some regular income from the property.

My thoughts:-
a) Mother wouldnt be able to receive income from property she didnt own.

b) If son receives all income, tax will be quite high as there will be little to offset against income.

c) Mother could receive interest on loan to son and son could claim against rental income. What interest rate would be acceptable in current economic climate considering the mother and son connection and how would this be administered?

d) If mother gifted money to son to buy house and in any way was 'given' amounts from the rent this would be a gift with reservation.

Should I be considering anything else / are any of above thoughts off the mark?

Anon

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