60k where/what to buy?

[Milloew]

Because of divorce, exh and i are selling our London home. I live in the EU now with the dc, but would like to keep a base in the UK. Dc consider uk home, and would possibly like to return there in 5/8 years..
Ive been looking on zoopla, but obviously cant afford anything in the SE, which is all i know.
So, where/what would you buy if you had approx 60k cash? Something rentable with good transport links. Not too dodgy or remote. Interesting enough for a young adult?

That has only a 48 year lease - there are reasons why properties go to auction rather than the open market.

Have you budgeted for the stamp duty at second home, non resident rates? Also the council tax?

If you're buying somwehere for your kids to live in if they want to return to the UK, it's very unlikely they'll actually want to live in a place just because there's accommodation available. What young person would pick Bradford over London, Manchester or Edinburgh? (Sorry Bradford residents, but the things people appreciate at 18 or 20 aren't good schools, access to lovely counntryside etc)

If they come to the UK to study, obviously they'll live near their university - you don't want to limit their choices to say, universities in Liverpool only.

If one of your kids comes back to the UK to work or study, they could be very lonely living in a one-bed or studio flat, with no local contacts - better for them to be in a shared house.

If you want an investment property that you might return to live in yourself, you can pick an area that you'd be happy in, not your kids. Otherwise invest the money in something with decent return, or earmark for education costs for your kids.

Sorry but this seems like a really terrible idea?

You will be stuck with service charges and maintenance costs and after all of that, what are the odds that your kids want to live in that specific location? The only places you can afford will be areas where the local economy is so poor that it's incredibly unlikely your kids will get jobs there

You're better off getting an Airbnb when you want to visit the UK, and investing the money so your kids have a house deposit they can use to buy somewhere of their choice

My dc want to return when they're old enough. It might seem daft to you.
I currently own a 3 bed property in London with exh. It was our family home for several years and our dcs first home. It gives me a peace of mind to have an address in uk if the worst came to worst. We have some friends/family in Uk that we could stay with short term also. But i like having an address. Maybe emotional/daft, but i like considering my options and be prepared if needed.

The only places you can afford will be areas where the local economy is so poor that it's incredibly unlikely your kids will get jobs there

For crying out loud, this is not true!

Estate Agents have got warped ideas on "beautifully presented" 😆

By this I don't mean that no one in these areas works - I mean if you're moving internationally and thinking from scratch about your career as a 20 something, the chances your dream job is in any of the locations where you can buy a flat for 60k are pretty low

This really doesn't make financial or practical sense but as long as you acknowledge this is a purely emotional purchase. I can see it causing financial issues and stress on future but only you can decide if that risk is outweighed by the emotional comfort

There’s a lot of prestigious employers with bases in Glasgow, Manchester, Leeds. So easy to commute to if you can buy a one bed flat or studio in cheaper parts of the north west. Presumably you were only thinking of potential employers in the south east or Bristol?

I wasn't saying there weren't but it's very unlikely that the OP will be fortunate enough to hit on the very location that her kids want to be in in 5-8 years time. And let's be honest while there are some great jobs in those locations, there aren't as many as London/SE so it reduces the chance of her getting it right.

And even if her DC do happen to get a job commutable from the flat she has chosen, they might well prefer to have a deposit towards a nicer place in central Manchester or Leeds than a long commute from a place bought outright. They may also have partners by then also with opinions about location.

Invest in the stock market and give them a deposit in a few years is just so much more sensible

It may not be what you have asked, but have a look online and see how much more you might be able to get for your money if you took a loan and stretched the budget out to 75/80k.

The mortgage would be relatively small and the rent should cover it. By buying a better property, you’re also more likely to do better with price growth over time. So in 10 years if you decide you don’t need/want it any more, it would have grown in price more than the 60k property.

Putting the money in the bank is not likely to earn you more than 5%. Rental income and property price growth should exceed that. So if you did decide to seek one day and buy in a different area, your money will have worked harder for you than if it sat in the bank.

I'm inclined to agree with Op. If she does want to return, it could be very difficult to return without a property to go to, the longer she's away the more likelihood she'll get priced out of the UK market.

I'm very risk adverse which impacts my decisions and I just wouldn't expect a 60k property to appreciate that much. I'd rather invest in a sto ks and shares tracker, especially given the work and stress of renting a property

I live quite near Leeds and I used to work there. I know it well and that's a big fat no from me.

You are not going to get anything with those criteria and that budget anywhere you would consider acceptable.

I wouldnt consider this either if the security situation would be what it was for the past decades. But its changing now. I was planning on investing the money somewhere else, but now im keeping my options open.

Invest the money and give it to your dc as a deposit when they want to move back. Not what you asked for but in every way a better idea.

I understand your dilemma OP and I feel for you.

It seems to me your best option is to prioritise getting your sons' passports sorted out, and investing the money somewhere safe with easy access to it if you should need it in a hurry.

May I ask, is your soon to be exH a British citizen? If so, might it be possible to delay the divorce? Sorry if this is not appropriate, just trying to think through the options.

Divorce is done. Its just the assets that need dividing now. Exh is not a uk citizen but has indefinite leave to remain. He is where we are right now, but i have no idea what his plans are for the future. He is well connected internationally. He has options.

@Hairylegs202SI picked a city similar to Bradford over London, Manchester or Edinburgh as a young person. Not everyone wants to live in a massive city like London or can afford it, Edinburgh is also crazy expensive and I don’t like Manchester at all (sorry to anyone from there). Having a rent free place to live in would absolutely have influenced my decision of where to live, have you seen the price of rent nowadays relative to the wages a young person earns, even in a good job.
I think a little cheap flat in a town close to a big-ish city sounds like a great idea. It’s the sort of property many young people start out in when they first start renting on their own or get on the property ladder. Except it would be rent free and they’d have security. It doesn’t need to be a forever home, just somewhere they can start out in.

You can get small flats around Shipley and saltaire for that . Management costs can be dear though. It's a lovely place to live too.

I think you need a financial advisor (UK). You could buy something more than £60k with rent paying the mortgage. Or make an investment in property some other way (for example you can invest in things like private student hall of residences). But some good advice is needed.

Also Auction properties usually go for 2 or 3x the guide, usually have serious problems, are safer for builders/developers and should never be bought without viewing/ searches and investigation.

If this is your main reason for doing it - it's an even less good idea TBH

To evict tenants with all of the (reasonable!) regulations about it, takes several months at minimum and can take longer if your tenant is difficult. Meanwhile you are still liable for maintenance and service charges etc.

You would be better off having your money easily available so you could quickly rent somewhere while you consider your options if this is really your concern

Or leaving the place vacant but that has a lot of risks

@ProfessorDrPrunesqualerThats in a really horrible area of Preston. Definitely wouldn’t recommend.

This is perhaps off the wall, but what about a holiday chalet? While they don't appreciate in value - in fact, you'd lose money and have to pay site fees - you could rent it out to cover costs, and be able to holiday there.