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advice on investment oportunity needed
blushingbride_3
Posts: 1,043 Forumite
Hi!
I am about to get £12000 as a gift from my mums inheritance from her dad.
Now we currently have a mortgage for £69K and owe mum and dad £31k from our house.
I have two options
1) pay off mum and dad so only have £27000 left to pay meaning i own almost 50% of my house (not bad as i am only 23
)
2) use themoney from grandad to buy a property to rent out, could get a flat for about £55-65K 1 bed and rent for approx £400. but not sure i would be able to get another mortgage?
what do you think is the best option?
I am about to get £12000 as a gift from my mums inheritance from her dad.
Now we currently have a mortgage for £69K and owe mum and dad £31k from our house.
I have two options
1) pay off mum and dad so only have £27000 left to pay meaning i own almost 50% of my house (not bad as i am only 23
)2) use themoney from grandad to buy a property to rent out, could get a flat for about £55-65K 1 bed and rent for approx £400. but not sure i would be able to get another mortgage?
what do you think is the best option?
0
Comments
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If I could go back and do things again I would clear the debt as far as I could.
Debt in particular has a funny way of catching you out when you least need it to.
Good luck!0 -
i would agree with socrates pay ur parents/mortgage off. now is not the time to be speculating on property.
It is very risky to buy a buy2let property at the moment. could you afford to have voids on the flat? (ie time without a tenant paying the mortgage). Thats a major risk when buying a second property, also the tenants may stop paying rent and it takes months to evict them in the mean time if you defaulted on that property u could lose your own house. Also the buy2let mortgages at the moment are not competitive and many require a 40% deposit which you dont have.
Sorry to be so pessimistic but these really are troubling times!
Good luck OP!0 -
agree with other 2 posters, pay your debts off first.
At 23 why saddle yourself with the worries of B2L, concentrate on your job, relationship, family, paying off the other £27,000 and enjoying yourself.0 -
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Yup, REDUCE your debts - but in your shoes I wouldn't pay it all off, but leave say £10k in't bank "for a rainy day". Could get very rainy this year & next. e.g. (Not trying to be too gloomy..) what if you were to lose your job & couldn't get another for a year..
Congrats on your good furtune, though... Not many 23 yr olds are as fortunate as you (? spread some of that good luck around?? )Wisdom is the daughter of experience0
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