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AIBU?

To ask your advice re house buying?

34 replies

KimSpears · 30/12/2016 20:22

i recently was lucky enough to inherit a sizeable house deposit - c250k. I am very grateful for this indeed!

My question is, where and how to invest it?

I'm 25, single, no kids with a grad scheme job in financial services in London. I'm on 30k and this is hopefully going to increase every year, contingent on exams etc being passed.

I currently live with friends and pay 650 or so per month in a nice house in a good area of London, which I like. I love the company and enjoy the experience of sharing although admittedly aspects of it can be annoying!

Just wondering what others would do in my position? Get a mortgage for a 1 bed in London (if possible - would be lonely though?), invest in another part of the country (?), leave in bank until I'm ready to buy with someone else in future? Once again I do recognise how lucky I am and am v grateful indeed!

OP posts:

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Babyhiccups · 30/12/2016 20:26

Could you buy in London and rent out? I see that as the one area in the U.K. Where you're guaranteed to make money on your investment and not have any problem selling should you ever need to. You then always have the option of living there when you're done with sharing?

UrethaFranklin · 30/12/2016 20:49

Fuck me, 250K is a deposit???? That would buy me a nice detached house with money left over! Not London, obviously x

KimSpears · 30/12/2016 20:51

I know, it's a huge huge help and I'm very lucky! London property is beyond comprehension though - I'd like to buy somewhere to let out and continue flatsharing but I would have to contribute each month and couldn't afford both, totally understandable but ridiculous that London is so crazy!

OP posts:

JenniferYellowHat1980 · 30/12/2016 20:52

Me too - my detached 4 bet cost £190k

Vixxfacee · 30/12/2016 20:53

Buy a 2 bedroom flat and rent out 1 of the rooms and live in the other.

FourToTheFloor · 30/12/2016 20:53

Buy a 2 bed flat and rent out the other room.

dowhatnow · 30/12/2016 20:55

Get one/two of your friends to rent out rooms in a bigger london property?

Domino20 · 30/12/2016 20:57

Ditto to the above. Get a two bed, rent one out. (London)

IcanMooCanYou · 30/12/2016 21:14

Yep- definitely buy a property and rent out rooms. You can get around £7000 tax free from the government's 'rent a room' scheme. It will give you the company you like at the moment and help pay the mortgage on a larger property. As a live-in landlord you are in a much much better position than if you bought somewhere as a but to let. You will have lodgers rather than tenants, you don't need to put deposit in the deposit scheme and you can (if ever needed) kick bad lodgers out soooooo much more easily than you can remove bad tenants.

DailyFail1 · 30/12/2016 21:53

Buy a 400k property within commuting distance to London. If you're a solicitor or accountant Milton Keynes or Bedford is a good bet. Then rent out rooms to your friends. You can all share the commute by car if desired too, so would massively lower all of your costs.

EmmaC78 · 30/12/2016 21:57

I would buy a two bed in London, getting a mortgage to cover the additional purchase price if needed, then get a lodger in to cover some of the mortgage.

Girlwhowearsglasses · 30/12/2016 21:59

Yep rent a room - as PP said it's tax free. South east London Nunhead or Crystal Palace or New Cross is buzzing and great social life

icy121 · 30/12/2016 22:05

Whereabouts in London are you looking OP?

Kanga59 · 30/12/2016 22:07

I'd get a mortgage and get a bigger place and.rent a room. The rent may even cover most of the mortgage payment

SquinkiesRule · 30/12/2016 22:14

Call Phil and Kirsty they'll help you find a place thats in the right area.

CrotchetQuaverMinim · 30/12/2016 22:15

I was told that it was pretty hard to get a buy-to-let mortgage as a first time buyer (though I was also self-employed, which probably make things harder). So I think you'd have to buy and live in it yourself and rent a room out.

GinIsIn · 30/12/2016 22:15

It depends what area of London you are looking at - £250k will get you a 2 bed, or most of one, in some areas and you could rent the second bedroom out, others you'd be looking at twice that for a 2 bed.

ShowMePotatoSalad · 30/12/2016 22:25

*was lucky enough to inherit a sizeable house deposit - c250k"

I'm 25, single, no kids with a grad scheme job in financial services in London. I'm on 30k and this is hopefully going to increase every year

Bloody hell. That's all I have to offer. Just..bloody hell.

specialsubject · 30/12/2016 22:29

And your problem with someone else's good fortune ( or maybe dead parents?) And hard work is ...?

OhTheRoses · 30/12/2016 22:30

One bedder in Croydon. Croydon is being invested in heavily and is presently undervalued. Buy outright and put the profits into savings. London property will do little in the next 3-5 years. Meanwhile live like a 25 year old and enjoy yourself. And keep schtumm about your assets. Focus on your career.

VeryBitchyRestingFace · 30/12/2016 22:32

Bloody hell. That's all I have to offer. Just..bloody hell.

What's the issue?
She likely wouldn't have been able to afford a cardboard box in London on that salary without the inheritance.

OP, are you committed to staying in London for the forseeable future?

NonnoMum · 30/12/2016 22:35

How much would a flat (one or two beds) be near to your work? Any time/money/effort saved commenting would be worth its weight in gold to me and London property is unlikely to depreciate unlike some other areas of the country (IMHO).
Buy the biggest place you can realistically and rent out rooms to friends/fellow single young professionals.
Good luck (can you post some examples of the type of properties that you may be looking at (I'll be like a poor-relation virtual version of Kirsty if you like...)

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lalalonglegs · 30/12/2016 23:49

You can get a two-bedroom flat in a lot of good neighbourhoods such as Brixton/Camberwell/Peckham/Dulwich for

ChasedByBees · 31/12/2016 00:44

You could also buy a house outright in some places which are commutable to London. You could rent them for now and as they are commutable they shouldn't lose their value (and will most likely gain). Some places in Oxfordshire walking distance to a station are just about affordable with your investment.

ColaSpangles · 31/12/2016 00:55

Buy a buy-to-let at the highest value this deposit will get you, in the most expensive part of London this will buy you. Go for a two or three bed flat as easier to rent out and maintain. The investment will accrue in proportion to the overall property price as opposed to the deposit price. And expensive area as the smaller the property, the less to maintain, but rent will be proportional. Make sure it's near a tube station, not in the basement and no higher than first floor if no lift.

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