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Original poster

What would you do with 100k at 24?

92 replies

Bluesprinkles12 · 30/11/2023 08:21

So I’m soon to inherit £100k, but I’m wondering what’s the best thing to do is.

Im an average earner £33k a year right now and on a graduate scheme with guaranteed promotion in 2 years where my salary will go up to at least £55k. For context I live in North West and currently do not have kids but plan to in the future.

Im weighing my option at the moment and wondering what the best option is:

Buy a nicer, forever home for myself with a bigger deposit down

Buying somewhere a bit cheaper with an upgrade in mind later down a line and a bigger mortgage but also putting money down on a BLT

Any other options?

OP posts:
Geneve82 · 30/11/2023 08:22

financial advisor

Floopani · 30/11/2023 08:24

Personally, I would prioritise my own home, with the aim of it being a forever home if I were in this position. I wouldn't go down a BTL route at the moment and £100k might not go very far on your forever home anyway, although I appreciate the house prices might be a bit cheaper in the NW.

CreationNat1on · 30/11/2023 08:25

Buy the worst house on the best street, that you can afford.

Toohardtofindaproperusername · 30/11/2023 08:27

I probably wouldn't take knackered big mortgage with interest rates so high... but,it could be a fabulous deposit on a very lovely house. I'm sorry if you received this as a result of the death of someone you loved.

Feliciacat · 30/11/2023 08:27

Financial advisor is the best advice. DH and I got lifetime advice from one. It was £4k but if you’ve got £100k then that’s arguably worth it. They can advise on income, pension and investments. One thing is that they often cannot advise on mortgages as that’s a specialism (or that’s what he said). So if property is your main concern, a mortgage broker could be good.

Emmagr1981 · 30/11/2023 08:27

I also live in the North West and now is a good time to buy property as the market is depressed.

£100k would be an amazing deposit. It doesn't have to be a forever home but it would get you on the property ladder.

Toohardtofindaproperusername · 30/11/2023 08:27

Take on ..I donr know where knackered came from 🤣🤔

squeekychicken · 30/11/2023 08:30

I would buy a property that will do you for the next 5-8 years. I wouldn't buy too big due to running costs. Then start building savings in a high interest account from your salary and increase pension payments.

Oganesson118 · 30/11/2023 08:30

I’d speak to an IFA. Knee jerk is to buy a now home with a smaller mortgage given current climate, that you can then sell on when you want a forever home. You’re still quite early in your career and you never know if that might take you elsewhere. An IFA might be able to advise if you can split the funds somehow to put down a deposit and make some investments with bigger long term returns.

plumtreebroke · 30/11/2023 08:30

BTLs seem to be struggling to make money these days costs can be high and finding good tenants can be a problem.

If you don't know what to do initially put it into FSCS protected savings (not more than £85,000 in any one bank) or National Savings at the highest rates you can find, while you think about it.

Buying a house always seems to be a good idea, I would do that, look for something that should increase in value where you want to live. Maybe with the intention of upgrading when your wages go up.

C1N1C · 30/11/2023 08:31

CreationNat1on · 30/11/2023 08:25

Buy the worst house on the best street, that you can afford.

I'm actually with this way of thinking. Pay off a house quickly, save lots (be strict, don't live higher than you need to just because you're earning more), and you'll be more financially secure, less stressed.

So many people go for the absolute upper end that they can afford. If they lose their job, they lose their forever home. They also spend the rest of their life paying it off, not actually living life.

GreatGateauxsby · 30/11/2023 08:33

personally I’d go for a two bed with low ltv mortgage and get a lodger. It’s a btl model with none of the tax/hassle. then you’ll be able to leverage that equity to buy a big house if and when…. Either as full deposit or partial deposit and keep flat as btl.

In more detail
you are young and single/ unmarried? So rent a room out and get a lodger /flatmate (you get some company and £10k or so tax free income each year)
time flies and next thing you know it’s been 5 years and you have a chunk paid down on the mortgage…
I had almost fully paid off my mortgage in 8 years (£30k left) via lodgers.
if you get the right person it is a match made in heaven. They get lower than market rate you get some company and some space and a load of cash for sharing dead space.

if you don’t meet some one and have a family a large family home it can be a millstone around your neck.
if we couldn’t have had kids we’d have stayed in our flat a house would be a waste of running costs (the utilities and council tax were a shock to the system when we moved!)

Eatbetterthisweek · 30/11/2023 08:34

How much are the homes you are looking at?

I would look at homes with 75k deposit down and invest the other 25k in stocks and shares but I’m not sure how much mortgage you can get on 33k?

It may not be your forever home but a step on the property ladder now looking to sell in the next few years is what I would do if I couldn't find my forever home. Or keep it take the equity out and have it as a BTL when your salary jumps and you can get a bigger mortgage.

Original poster
Bluesprinkles12 · 30/11/2023 08:38

To add for context, I’m currently in a long term relationship but not married. We live together and will continue to do so if I buy a house, my boyfriend isn’t interested in getting a mortgage for a variety of reasons and would be happy to rent for the rest of his life.

But is more than happy to contribute his share to bills and mortgage once I buy. FYI I’m aware of the legal implications of this and will make sure that I’m legally protected.

On pension, I’m a CS worker so already paying significant contributions towards that.

OP posts:
Original poster
Bluesprinkles12 · 30/11/2023 08:40

I Live in between Liverpool and Manchester. Houses can range anywhere from £150k to 1.5mil depending on location and size. After looking I should be able to get a decent semi in an ok location for around £200-250k and with my salary I can get a mortgage of around £170k

OP posts:
Twiglets1 · 30/11/2023 08:43

I wouldn’t buy a BTL that seems stressful and not particularly worth it financially speaking when you can get the same return by putting money in a high interest savings account.

I would put the money towards a house to live in, though not necessarily a forever home as you’re so young.

2024 would be a good time to buy a property as the market is geared in favour of buyers right now. Mortgage rates are relatively high though, especially by the standards of recent years. So I would buy something that didn’t need a big mortgage.

determinedtomakethiswork · 30/11/2023 08:44

Can you tell us why your boyfriend doesn't want to have a mortgage ever? I can understand if he's the same age as you now, but it seems a strange decision to make for the rest of his life.

Original poster
Bluesprinkles12 · 30/11/2023 08:50

My boyfriend is a bit older than me, very early 30s and has a very odd outlook on mortgages (in my eyes) and debt in general. His dad never owned a house always rented and his mum purchased a house in her early 30s which lead her to struggling financially and racking quite significant debt in the process. She ended up having to sell the house for that very reason. So buying jointly isn’t an option basically.

OP posts:
Lovelydaytomorrow · 30/11/2023 08:51

I'd buy a house that you'd love to live in for now, and over-pay on the mortgage when possible. Priorities can change in a few years when/ if you have children.

Our first house (pre-kids) was walkable into the city, in a lovely leafy area but with a courtyard rather than a garden, three bed but one was a very small box room. Absolutely perfect for us at the time and we loved living there. We had lodgers and massively overpaid the mortgage, meaning that once we had children we had enough deposit to move to a house that then suited us as a family. We'd have had no idea what house we wanted and where before kids came along.

thedukeofbuckinghamshire · 30/11/2023 08:51

Just buy a house to live in. Honestly don't do a buy to let.

headcheffer · 30/11/2023 08:54

Honestly get advice from an IFA. Don't put it all in a house and don't leave yourself tight with outgoings.

I'm in a similar situation to you, but am slightly older and am about to inherit a bit more. Half is going in a private pension, then 40% into investments including an ISA wrapper and the rest im using to make some life improvements.

WonderingAboutBabies · 30/11/2023 08:56

Financial advisor!!!

I would say diversify whatever you do with the money. I.e.

  • a bit towards flat/house deposit
  • Cash ISA
  • Lifetime ISA
  • Stocks and Savings ISA
  • Investments
  • Premium Bonds
  • FUN! (go on a nice holiday)
IncompleteSenten · 30/11/2023 08:57

Buying a house is fine. It's an asset. But it's also a liability. 100k is not enough to buy a house so you'd spend it all and like you say, be left with the rest of the mortgage to pay off and nothing put away. That's never a good idea when you have a choice.

I'd get good advice from a financial planner about the best way to invest. That may be 20k isa's one this side of April and one the other (tax year limits) and putting more into your pension or it might be something different.

CotswoldGal · 30/11/2023 09:01

I think years ago people would say always put your money in bricks and mortar - well my dad did!

Nowadays I’m not sure that advice would be sound

JustGotToKeepOnKeepingOn · 30/11/2023 09:02

Definitely don't but a BTL property. The taxes and new laws are not in your favour. Buy the biggest house you can now, go to the absolute top of your budget. You know your salary is going to increase, so the pain will be very short lived. Keep 10k aside to invest while interest rates are high. Lock away for 2 years and you'll see a return of £5k.

And keep an eye on your partner... and away from any claims your money. Your statement 'he doesn't want a mortgage' sends shivers down my spine... he sounds like a cocklodger in waiting!

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