What Does the Future Hold For Student Landlords?

Jonathan I did the same and for the same reasons. I think that it is vital that a parent realises that making their child a "landlord" is not a good option. I do think, however that for many people it can be a good option if they do use a managing agent because even if they bought a property close to home, as we do, they would probably still need to use an agent becuase they are not experienced and as you have said there are many challenges, particularly if they choose an HMO for the maximum return. At least if they were providing a home for their own child and friends they would make certain that the property was in good condition and that the young people were safe.

You can't. They're old enough to make their own choices. The harder question is at what point do you pull the plug on a bail-out in the hopes of creating an incentive to work.
As to credit, Mary, it has it's place. It doesn't imply stupidity, or lack of work ethic. It's about making an informed choice and being aware of the risks and consequences. We all have mortgages. Who knows what we can afford if interest rates were ever as high as they got with my first ever mortgage. People laugh when you talk about 15%. Memories are short.

Hello Pogo king! Long time no chat! 🙂
I know a child who's parents purchased a flat and did the Ikea fit out. Girl moved out friends, moved in boyfriend and now they're getting married. Hmmm. Now there's a consequence the parents didn't think through! 🙂

I would not complete the paperwork for my girls and therefore they could not get a student loan. I also warned them that if they took a credit card or any other form of debt, above their overdraught, I would deduct the same amount from their allowance ( this covered their tution fees and rent). When they graduated I paid off their overdraughts of £2k'ish each and told them that they were on there own after a month - they have never asked me for another penny. Most students only attend around 15 hours of lectures in my experience and rarely see the light of day until after 13.00 but they would get out of bed if they were hungry and needed to work to buy food. My eldest taught swimming and was a life guard at the local pool ( because she listend to her parents and gained the skills and qualifications before she left home) and my youngest (who did not listen) cleaned offices at 6 am 6 days a week and worked in a shop 17.00-21.00 5 days a week. My youngest told me that she could not afford the cost of the journey home for the first Christmas so I paid for her train ticket - I gave her the receipt, along with shampoo, shower gel and deoderant for her Christmas present.

Tough love is how you stop them. Both of my girls are grateful and neither have any debts to this day, nor do either of them have credit cards

KP My dear dad used to ring British Gas on Friday if they had read the metre on Monday and he had not received the bill. We used to laugh at him and say that the staff at British Gas were waiting for his call because he was the only customer who ever did that. I am not laughing at him now because he taught me that no matter how tough things get debt makes them worse.

As a landlord I have built my portfolio on very low gearing because I needed to be certain that whatever the market I owned much more than I owed.

I remember 15% too. Thank you Dad without your "training" I may not have survived that time

It's not always through personal irresponsibility that people have debt and it's not always because they are wanting material excess. Sometimes it is about getting through what life chucks in the way. It's an informed choice.
I'm not sure it's as clear cut for kids as you seem to suggest. What you have achieved for yourself and your family is amazing. To suggest that is replicable for kids with no parental support or guidance assumes a different world to the one many kids deal with every day. Equality in education is about a lot more than funding structures. And I think most parents are just trying to do their best by their kids whatever route they take.

Hi Mary

Trouble is, he's not my son. he's my future stepson so I didn't have to sign the papers. My dilemma is how to help him gain the motivation to develop a work ethic. I am not supporting him financially, other than paying formeals and drinks when he's at home. I do feel compelled to help him though. When he finishes his course he will be 10's of thousands in debt if nothing changes. Unless I can show him the way now, by the time he realises his mistake it will be too late.

@kitschenspink

You lived on beans on toast and worked to get your education becuase you had no choice. Did all this student interest free credit stuff exist when you went to Uni? IMHO this easy credit has caused more problems than it has solved. The kids that are using it will all pay the price later in life. The Universities are, of course, in clover. Going to Uni is now the easy option. What a great sales opitch; Gain independence, no need to work, 15 hours a week of studies and 153 weeks to sleep and play and get a degree at the end of it all. Sounds tempting doesn't it. No wonder kids don't want to get a job!

When I returned to college in 1989 rental prices were at their peak and then the poll tax was introduced. Student loans were introduced the year after I returned to college and I used the full amount every term, on top of working two jobs throughout.
I started paying off my student loan 2 years out of college when my salary got to the level where repayments kicked in. I never resented it. It got me through college when no other support was available. I do, however, wish I'd had the guts to do a vocational course and not worried so much about a degree. The sooner we remove the gloss from these over-rated qualifications and become more employment focused the sooner we'll have a skills based workforce worth a damn.

I'm sure the two young lads in the office who went through University would agree with that having gained a bit more life experience.