What to do with £70,000

bigadaj wrote: »

If you can buy then you can rent out one or more rooms for company and extra income.

If you don't have a conventional job then getting a mortgage might be more difficult, not impossible but potentially more expensive and maybe through a broker for example.

Not sure where you get the rent versus service costs comparison though, dependent on the property and that is highly variable, then I'd guess what you list is probably around half your rent on average.

True - can rent out a spare room, if I can somehow afford a 2 bed around here. It is possible though.

I think I will end up getting a conventional job.

£540 rent versus General costs of owning a property excluding the mortgage:

TV License: £10
Council Tax: £143
Broadband and Phone: £25
Home + Contents Insurance: £25
Gas/Electric/Water: £140

This comes to: £318......

Though......

If I added in the Sky package we have that would probably be an extra £70-£80.
I'd personally go without that luxury if I bought somewhere.

+

If I ended up buying a flat I'd likely have to pay some ridiculous Ground Rent/Service Charges per month/year. If I somehow managed to buy a house (extremely unlikely), I would have to maintain it. A boiler could blow. Locks may need changing. May need to call a plumber etc..

So it's getting close to that £540. So I'd be losing that kind of money if I was to buy. So renting isn't so bad. Especially with luxuries like being able to park on a driveway, Sky TV, a cleaner every 2 weeks, a garden to use...

mariotr wrote: »

The main problem I personally have with buying a house, especially at a relatively young age (I'm roughly the same age as you) is that it ties you to a place. Sure, you can sell it, but if you don't know for sure that you're going to want to be living in a given place for 10+ years, you're risking losing money in the process, as well as overcomplicating a potential move out.

Buying is usually more expensive than renting, all things taken into account, as you point out. Also, it is true that house prices tend to go up which can offset any extra expenses, and this is one of the main reasons for buying (I've considered buying myself because of this reason alone), however, with Brexit in the works, you really don't know which way house prices are going to go.

True - a house ties you to one place.

As a renter I am completely free to go where I like. As said in a previous post - I am a renter with plenty of savings, so I am also free to spend what I like, when I like, as well as have no worries about my income or when the next pay cheque is going to come.

I have so much freedom, and I am totally stress free financially.

Buying makes sense in the long-term (retirement). But getting locked into a location, having less money to fall back on, becoming a lot more restricted in my spending ie. less luxuries, and worrying about paying bills at the end of the each month will definitely restrict my freedom.

If I had a secure salary of £25k+ I wouldn't worry too much about it. That is what I need to achieve.

As for Brexit. It would be nice if prices fell, but don't see it happening. I don't understand how my generation and younger are getting on the property ladder and into reasonable family sized properties. You are talking ridiculous money for 3/4 bed houses around here. I'm not sure if people are moving far away, or are getting more help from parents these days. Maybe parents are passing their parents inheritance straight onto their children. It would be interesting to know what percentage of current 25-35 year olds have got onto the property ladder compared to 10, 20, 30 years ago, and how many bedrooms on average they have compared to previous generations.

Maybe Teresa May will bring in some scheme for 1st time buyers that will truly help. It sounds like she wants to at least get more houses built, but that isn't going to affect house prices for many years, and by then house prices are surely going to be out of reach for the young at their current price acceleration.

bscjapan wrote: »

With your job, you cannot buy a place, it's too risky and you could lose everything, including your 70k. In London, 70k is not a lot, so those above you are saying it is a lot, are probably Northerners, or Southerners with a lot less in their bank.
I had 10k at 21 and got my first job and bought a central apartment in Leeds. Then at 31 I bought a central apartment in London, with 50k deposit because I was on a bigger income. Now in my 30s, I am pretty semi-retired, as I have 2 properties renting out, and I don't need to work for anything other than food and rent.
Ulimately, its all about the job, get a better job, if you need to retrain, use that 70k to retrain. Unless you can get a mortgage, you might have 70k at 30, but you will have 70k at 40 too, and so on and so forth.
You mentioned at 50 you will get an extra 35k, thats nothing, that will just buy you a car.

You have done very well.

I'm in West Surrey. Not so crazily expensive as London, but not very affordable.

70k obviously helps. But in comparison for what you get for your money around here....it will only help me get a 1 bed flat.

I looked at Portsmouth out of curiosity and that is mega-cheap compared to here. Can get 3 bed houses with a garden for the same price as a 1 bed flat around here. Maybe a possible location to consider. Though my first thought is to stay in West Surrey.

Yes - will need to consider my future work-wise. Always been a problem with me. Have been in mediocre employment for a while and made my savings through running small online retail businesses. Hasn't been bad, but feel I need to become more conventional and work a contracted 9 to 5 job......or should I say 8am - 6pm as that's what it seems to have become these days.

Will need to look into what jobs are available and consider whether to spend time/money in training.

atush wrote: »

Isnt east surrey cheaper than west? have you thought of moving out of surrey to hampshire or another nearby county? What is your employment, and is it in West surrey?

I have browsed areas like Bristol and Portsmouth. Not with any strong motivation to move to these places, but because they are a lot more affordable than the West Surrey area. It may be a choice for the future.