Buy to help your student child

Posted: 16 Aug 2007 12:10:48 GMT

Parents with children who are going to university have been told that they could help them buy purchasing a house.

Parents with children who are going to university have been told that they could help them buy purchasing a house.

Britannia has pointed out that the costs associated with going to university can be covered by investing in a buy-to-let property.

The mortgage would theoretically pay for itself, with the child and his or her student pals paying rent.

With house prices rising, the property is set to increase in value and, when sold after three years, should have amassed enough equity to easily cover the costs of buying and selling as well as the average £14,000 worth of debt that the average student graduates with.

"This is a great way of giving your child a solid financial start in life and a safe place to live while at university," said Neville Richardson, group chief executive at Britannia.

"Britannia's research showed that 42 per cent of potential buy-to-let investors feel that their property would be better maintained if it was rented to a family member."

Britannia calculates that the average £150,000 property will rise in price by approximately ten per cent per year, leaving the owner with a £45,000 profit.

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