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Original poster

What to do with 100K?

37 replies

hoppingthrough · 01/03/2019 14:57

I will be receiving approx 100K from sale of the house I owed with ex. In terms of a new property I will need at least a 2 bed with DC but even with a new sole mortgage it looks unlikely I will be able to buy anywhere new in this area unless shared ownership. I have read mixed views about these types of properties.

So, WWYD with 100K? I could either buy a very small cramped property with 2 bedrooms, shared ownership property or going back to rental market and investing in money some other way? Thank you!

OP posts:

IwantedtobeEmmaPeel · 02/03/2019 11:41

Definitely see an IFA to see if they can maximise your mortgage options to enable you to go for something bigger. I would avoid renting, your £100k would disappear in a couple of years and you would be unlikely to ever have a lump sum that size again. Will you be able to go fulltime in the future? If so then buy what you can afford now and look at increasing your mtge/buying a 3 bed when you are earning more. I think taking a hit on the size of the property would be preferable to shared ownership when you take into account the financial costs involved in those schemes.

Maybe think of this as short term pain for long term gain. So home will be a bit cramped for a couple of years and hopefully as your earning capacity increases you will then be able to afford something larger.

stanski · 02/03/2019 11:50

Buy! This type of money doesn't come around daily, don't waste it on rent. Unless I'm wrong shared ownership is for new builds. Look at a house converted into flats, with a big enough kitchen to convert into bedroom and move current kitchen into open plan living room. If that makes sense. 30 m school run isn't that long tbh but you'd have a lot more disposable cash on a monthly basis

nrpmum · 02/03/2019 11:52

Call London and County. They are free mortgage brokers and ime exceptionally good.

Original poster

hoppingthrough · 02/03/2019 19:18

Thanks all. Working part-time now as DC still young but will go full-time in 2-3 years. I guess I am looking for the easy life so thought rental but as others have pointed out that will be gone if I rent for a few years. I'll look at all of the suggestions mentioned on this thread. Thanks

OP posts:

lifebegins50 · 02/03/2019 19:33

Definitely buy, rental costs will just keep going up and you have the insecurity.

Can you say roughly what area you are in?
Do you get cms and if court ordered it could be used as income.

BackforGood · 02/03/2019 19:50

Definitely talk to a mortgage advisor.
With such a massive deposit, different borrowing will be available to you from what was previously on offer.
As everyone has said, that money will be gone in a very short time on rent, but, for short term bit of being a bit squashed, you will own your own property.
Think about how you would feel still paying rent 26 years from now - and then from then until you die, when you could own your own property.

DrCoconut · 03/03/2019 17:08

If you get any tax credits these can sometimes be counted as income for a mortgage. Maybe you don't get any or have already taken it into account but just wanted to throw that in. I found out through going to a mortgage advisor.

Original poster

hoppingthrough · 03/03/2019 18:01

Thanks all. I've had a bit of think about this. I'll get some proper mortgage advice and hadn't thought about cms/tax credits counting towards it all. We live in a nice area in Cambridge (very high house prices here), close to school & big park and friends etc so the problem for me is to buy somewhere solo we'd have to leave it all to move to outskirts of city with 30 mins commute. I'm not sure if it's worth it atm especially as still recovering from divorce etc and it would only be for 30% share... The girls would also be moving away from some friends who live in our area. If I did rent I wouldn't lose the 100K as such as my salary can just about cover rental costs without going too much into savings. Ideally I'd like to buy and have probably forgotten how tedious renting is.

Out of curiosity, have any of the posters here bought a property solo?

OP posts:

eatingtomuch · 03/03/2019 18:51

I have a 100k mortgage and it costs me £428.52. I'm a single parent and got the mortgage alone without as much deposit as you.

Please seek advice from a financial advisor before you decide not to buy.

BackforGood · 03/03/2019 19:28

I bought my first property on my own - but long time ago now.

Linguaphile · 04/03/2019 14:33

We did shared ownership and it worked well for us. We bought in London in late 2012 and sold in early 2016 though, so we caught the peak of the price hike! We had a 40% share and walked away with an extra 50k in our pocket. The only thing I’d say is to pay attention to the terms and conditions of the shared ownership scheme as not all schemes are the same. Some won’t let you let out the property even if you staircase to full ownership, for example. We did feel it was good value for money on a monthly basis though, as our money wouldn’t have gotten us something as nice or as big if we’d been renting or buying something on the regular market

BlueSkiesLies · 04/03/2019 22:44

Buy on the open market or SO if you really can’t get anything suitable.

You have small children. You’d be daft to stay in private rent.

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