Save, invest or buy?

chairmanofthebored

Hi

I have recently found out i'm coming in to some money to the tune of 90k. Naturally this is rather a shock to me and i've just about come to terms with the fact.

By the time i've paid off my debts and bought myself a big telly (priorities!) I imagine there'll be a good 80k left.

Putting it into a savings account seems the most sensible option right now but with a interest rates on the floor it's not going to grow or do much work for me at all.

Investing it scares me somewhat, the financial doom-mongers don't paint the prettiest picture there and I just don't know if i'm prepared to risk it going down the pan.

My final option is to put it into a house. I've never owned my own place on account of the fact I come from a generation and location where the property ladder has been just beneath my reach but this changes the situation somewhat.

Everything I read paints a pretty bleak picture for savers at the moment, the government just wants people to spend spend spend to boost the economy and every step they take seems only to benefit the home owner.

With property prices falling, savings earning nothing and investments providing little certainty, I find myself not having a clue what the best course of action here is.

I desperately want to own a home of my own, I always have done, I'm in a stronger position than many FTBs at the moment with regards to the mortgage market on account of the deposit I can now front up but I don't want this desperation to lead me to make a decision I later regret.

Also made the mistake of reading the forums on housepricecrash.co.uk. If the guys on there are right i'll be able to buy myself a small village for cash in a few years time, but i'm not nesessarily convinced.

All advice welcomed and appreciated.

Thanks.

pinkshoes

chairmanofthebored wrote: »

I desperately want to own a home of my own, I always have done

Well we have already established you will be buying for the right reasons i.e. you're after a HOME, so this is a good start! Presumably you'll be looking for somewhere that you intend to stay for 5 or 10 years, maybe more?

With a large deposit, you should be able to get yourself a good mortgage deal.

There's some really good bargains about at the moment, and keep an eye out for repossessions. You can be picky in this market, so work out what you're looking for, don't buy until you're sure it's the house for you, and remember to haggle on price!

Personally I'd say go for it.

currynchips

Get the house you want. Put down a really good deposit, £50k+, and spend wisely correcting it to how you like it. Get a small mortgage on it too, this will really extend your options.
Nice to hear of some good fortune.

poppysarah

90k could be a house without a mortgage. You could then save the money you'd be paying on rent/mortgage to do it up over the next few years.

afterglow_2

....personally i would invest it in property, even if the price falls a bit at least your still paying into an investment rather than wasting money,
wish i had done this few years back when i had some inheritance, at the time would have had to still take out a small mortgage, now i aint got no money left, so invest and keep hold of some, and hopefully all of it!!!!

gld73

I bought my home a year ago - house prices have dropped ever since ...... but at least I've still got something tangible for my money, even if it'll be a few years before it's back up to what I paid for it. With the size of deposit you can put down, and the fact you're wanting it to use the place as a home rather than some speculative Buy to Let venture, I think buying a house is a good option if you see somewhere you like and can picture yourslef living there.

Good luck with whatever you do!

chairmanofthebored

Thanks for the replies, nice to hear a little positivity at the moment.

Still got a lot of thinking to do on this one but you've given me a new perspective.

Thanks

poppy10_2

If it's going to be your home, and you'll be able to live mortgage free or with a very small mortgage, then why not. Go for it. You may lose a few thousands that you could have saved if you'd waited a few months, but then again if inflation lets rips the cash you leave sitting in the bank may become worthless.

hethmar

Buy the house - god knows what will happen to investments and savings - but at least you will have a roof over your head and a tangible asset which will at some point increase in value.

zone

Buy somewhere for cash if you can?

LisaLou1982

If you want a house then buy one - simple as that!!
Only you know what will be right for you - there is a infinate number of different ways to invest money, all of which are a good option depending upon your situation and point of view.

If you're going to live in the property which you invest your money into then why not do it? Its better than paying someone else rent!!! Just remember though - the house should feel like home and this may be the 1st house or the 100th that you see!!