Got 30 grand, but only to buy with!

cray

Heres my situation, i have £30,000 from my father (woo hoo vegas here i come) but only to buy a house with (i am sure he is giving me a hint because i live at home) I can't do anything else with it but buy a property to live in he will make sure of that. I currently have about 1,500 of debt and earn approx 13,000 p/a. I have no idea what to do, use the money and get a morgage for a house? Alot of people are telling me a house is a great investment but i should save another 10,000 and use that to for it to, but then alot tell me its a great liability also. Any suggestions? (if i don't buy its just sitting in his account racking up the interest, but for him)

FaTB

I don't see that you have much option, how can you afford a place,regardless of whether you want to buy or not ?

In my area you are looking at paying £150k for a very ordinary 2 bed flat,

With a 30k deposit, you need to borrow £120k, with repayments of around £725 per month, and i'm guessing you take home about £1000 per month.

Surely that is not possible.

I am in a similar position to you, but I would not even consider trying to buy at present, as I think If you over stretch yourself now, you could be financially ruined in a year or two.

I believe we are heading for a major recession, which means you and many others may be out of a job in the near future. ( I was made redundant 7 weeks ago )

Also consider Interest rate rises, I believe they will be on the way up next year, could you afford even a 1% rise ?

IMHO the only way for house prices in the next few years is DOWN !!

My advice would be hold off for a while, pay off your debt, and save like mad !!

Read this it may help.

http://www.housepricecrash.co.uk

Ian_W

Hi Cray and welcome,
Yep, daddy could be dropping a big hint!! Perhaps if you kept your room tidier, turned the music down, .... he might want you to stay. :snow_laug

No seriously, it's a great thing that he's prepared to give you a start buying a property of your own BUT without knowing the prices of starter props in your area it's difficult to give you any sensible answers. Your present salary combined with your debt is such that your max mortgage isn't likely to be much more than £45k which is likely to cost you over £200 a month on a 25yr mortgage.

Can you buy a place you'd like for £75k? Can you then afford £200pm? Can you afford the running costs on top of that? Council tax, gas, electricity, water, insurance, food, spends, costs of getting to/from work etc, etc - they all add up. Sounds a bit doubtful to me - but only you can decide that. If you can't afford them don't even consider buying ATM as a default or repo of your property will seriously damage your creditworthyness for a long time to come.

Perhaps discuss it with him and explain your present salary doesn't make it viable but if he adds the interest he's making to the £30k, when you're earning more you'll gladdy take up his kind & generous offer. :xmassign:

micheleen

It really depends what prices are like where you like.

follyfoot

FatB , why do you we are heading towards a recession?

micheleen

follyfoot wrote:

FatB , why do you we are heading towards a recession?

He's a member of HPC (as am I)

black-saturn

Move to this area and you will get a decent sized house with 2 - 3 bedrooms for about £50k.

micheleen

Bit more expensive here if you want Central Heating and Double Glazing but £60K is quite enough

follyfoot

what is HPC?

Penny-Pincher!!

Where do you love Black-Saturn & Micheleen? Here an average 2 bed semi is £200,000 :mad:

PP
xx

davidjohndean

In Bournemouth, where I live you can't even get a leaking bedsit for £100K!!!

In regard to mmm, I would ask your Father to put the money into a high interest savings account for you.

Then personally, I would SAVE SAVE SAVE until I was in a postion to be able to afford a place of my own.

I'd love my parents to give me £30K towards a house/flat! Im on £19K a year and cant afford to move out of my parents and get a place!

:xmassign: