advice needed
Sorry,
I should say, when i mention invest, i mean some kind of high interest savings account where the money is locked up.
Like i say i have no knowledge of this area, which is very confusing to research online without help.
Kind regards,
Olly
Fri, 27/02/2009 - 02:35
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£150K aged 26?
How on Earth did you manage to acquire that?
Fri, 27/02/2009 - 17:33
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You are young, hopefully fit, go out a blow a big heap of it NOW.
Get boozed up, have a leg over do whatever you want.
I have saved all my life & wish i had blown the lot of it as soon as i earnt it, as its worth very little now.
Fri, 27/02/2009 - 18:08
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I would buy the flat then rent the other room out using the Government tax free rent a room scheme. If you rent to another student you won't even have council tax to pay and that means you can invest any profits in National savings certificates which are 100% safe, or if you want a gamble put them in premium bonds, (again tax free).
If you need advice regarding anything at all to do with renting, join the National Landlords Association, (NLA). You will get loads of advice, discounts and there is always some-one on the end of the phone to help.
They even cover you for tax investigation.
Fri, 27/02/2009 - 18:39
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I understand the dilema you are facing. I received approx £140k when I was 28 and am now 31. I took 8 months off work and enjoyed a break and that 8 months off helped me decide what to do. Although that break cost me money in rent I was glad I did it. I used to partly live off the interest earned on my savings; but now I hardly earn interest due to the low interest rates. I have now put in an offer on a house, as prices are "lower" I am hoping it will be a good investment, as the mortgage will be lower than my rent. I do not think there is a right or wrong answer, but I am personally hoping a house will be a relatively safe for of investment. Dont forget to enjoy some of the money too and spend some of it on what you would like to as you are in a good position.
Fri, 27/02/2009 - 21:16
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It's a tough decision as no-one is certain of what what happen to housing prices and interest rates. Eventually housing prices should go back up, but not immediately. Some analysts say the pressure applied to prevent recession may result in inflation going back up, so interest rates will go up to tackle it. Just be wary of having all the money with one bank as you could be left with a fraction of it if the bank fails. It looks like your best option would be property. That way, you save on rent, and eventually get an income from it whilst watching it grow in value. Hope that helps a bit.
Fri, 27/02/2009 - 21:37
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Hi Olly, What a lucky position to be in. Savings are poor so I see why you'd want to put your cash into property and I think you are right to explore this. Prices are relatively low at the moment so it's a good time and having cash gives you a head start. Firstly are you sure you will stay at Uni for another 3 years? If you are then I'd buy a property. If you are not sure then decide what you will do and where you might end up living. As someone with buy to let property I have some advice. Whilst you might save in rent and bills you will still have bills to pay, service charges if leasehold, maintenance etc. Try and buy Freehold not Leasehold then you have control of maintenance costs. Firstly take a good look at property auctions - you have cash! I've just bought a flat at auction and it was a bargain. However it's very important to research any area and adjacent prices. Walk the area and get to know it. Remember "location location location", Be near trains, busses, shops etc. Think about you you might let to in the future, can you park outside etc. Auctions are not necessarily cheaper then using an Estate Agent, but they can be and when the hammer falls the place IS yours. Personally I'd buy, and at auction if possible. A word of caution - "Cash is King" so don't blow it all. Keep a reserve fund and good luck.
Sat, 28/02/2009 - 11:03
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I always look back and wish I had invested in a property to live in and then rent out when I went to university. It's a great way to do it and although prices are pretty unsettled at the moment in the long term they should increase.
Investment returns are pretty poor at the moment - unless you are an investor who is open to risk.
I'd definitely be tempted by the property - we're currently trying to sell our house to move up the ladder - it feels like a good time at the moment as there are some real bargains out there!
Good luck whatever you decide!
theclaims-warehouse can legally eliminate your debts employing specialist solicitors to challenge lenders who have issued unfair credit agreements.
Sat, 28/02/2009 - 20:08
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Hi,
We did exactly this a few years ago when my son was at Soton Uni and have still kept the house on and let it out to students who have stayed in the area but are now working. Do some research on the area. We bought in the Highfield area which is more expensive/desirable but should be easy to sell on when we decide the time is right. Not living in the area we had picked some houses out on the interent which seemed remarkable value but on further investigation were very undesirable areas. Best advice I can give you is talk to the estate agents and other students about where they are living. With 2 beds you wil always have the option to rent second room out so I think you are doing exactly the right thing.
(Avoid the 'flowers' estate, even tho I thought the street names were lovely. They're not flats anyhow but you might be able to afford them...)
jsy44
Sun, 01/03/2009 - 17:24
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Oh and post on SUSU forums!
Sun, 01/03/2009 - 17:31
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Hello,
I would appreciate any advice people may care to offer. I am currently torn between 2 senarios;
I have money in a savings account (150,000). I am thinking about buying a 2 bed flat in southampton. I am very lucky in that a will not need a mortgage. I am a student and i am going to have another 3 years still if i continue with university. At 26 however I am begining to want to have my own place and not with people who have proven , thus far, to be rather un-desirable housemates.
I do not know what i will be doing after university. What should i do;
1.) buy somewhere before june (when my contract runs out) and live in the property. I will not have to pay tax as i will be classed as a student and as it is a flat - heating etc should prove equally relative to the large 4 bed, gas guzzling house i am in now (yet bills are shared between only 3). This option will save around £300 a month in rent. Also if i move after the 3 years, i should be able to rent the 2 bed property out for at least £350-400 (even studios are going for this :( Then sell in, say, 5 years as the market is recovering (unless i am still living there).
2.) invest the money and continue to rent. Investment rates are very low so i dont think i would get much return, even if i choose to lock it up for a slightly higher rate. I doubt it would even cover 2/3rds of a months rent let alone bills etc. I have limited to no knowledge in this area so would great appreciate a take in this area.
Many thanks for your time in advance. Please fee free to email me your response or any offers of advice.
Sincere regards
Olly