Good time to buy?

Beatrice78

Hi, just wanted some advice,

I have just received some inheritance £40k and Im thinking of buying a house.

I will be a FTB, although Im thinking of buying it as a buy to let.

I was just wondering if now would be the right time or do people think house prices are going to continue to drop.

The money is from the death of my Mom and I really dont want to risk / waste it.

I am on a low wage £18k, was thinking of spending £120k ish

Any guidence would be greatfully received.

Becky

lincroft1710

No one knows for definite which way house prices are going. As you will need mortgage of £80K, that is 4.5 times your annual salary at BTL rates and no guarantee of rental income if you are even able to get mortgage.

There are still some "reasonable" savings options available, check Banking/Saving section of this website.

PasturesNew

There is a lot lot lot more to owning a BTL than putting money down and getting a mortgage.

It is hard work and a big risk - especially right now.

With a salary of £18k there are very limited lenders who would lend £80k to you in any case (many like you to earn more than £25k). You'd need a few thousand to do the buying and be able to cover the legal side of things (landlord insurance, gas certificate, energy certificate) and a contingency pot in case something needed fixing (electrical problem, heating breaks, etc). Then what if you get the tenant from hell who doesn't pay the rent and trashes it.

Get yourself onto the savings board and invest the money somewhere nice and safe, then keep adding to it and in a couple of years' time buy yourself a nice home for yourself and enjoy your mother's memory knowing that the inheritance has enabled you to have a roof over your head. If you're going to buy property, live in it and use it as a memory of your mother; don't buy something that could go horribly wrong for you and spoil her memory.

Beatrice78

Thank you both very much for your reply.

I have £15k in an isa also and the inheritance has been invested for the last 5yrs and has just matured. I was going to use the 15K for buying costs, and furniture if I can afford to live in the property myself. Im just so worried that if I dont use this slump in the housing market to get on the property ladder that I might never be able to afford to do it.

As you say I dont want to risk the money either I would hate to waste the money that my Mom worked hard for.

Is buying a property really such a bad idea?

Thank you once again

Becky

gizmo111

Is buying a property really such a bad idea?

Not if you are looking for a home and can afford the mortgage and other related expenses.

Running_Horse

Beatrice78 wrote: »

I was just wondering if now would be the right time or do people think house prices are going to continue to drop.

The money is from the death of my Mom and I really dont want to risk / waste it.

Don't buy a house with a view to making a profit. That's partly what got us into this mess in the first place. If you really want a place to live then you won't risk/waste your inheritance. If you want a profit, no doubt those kind people on the house price forum can supply endless graphs and argumments.

poppysarah

Can you afford an 80k mortgage? can you get an 80k mortgage?
do you have money for fees etc?