What would you do with 250k ?

padington

If you were left 250k and had no debts but were currently renting in a cheap housing association flat and hoped to buy a place of your own in london but at the same time unsure about the current wisdom of buying into the housing market right now, what would you do with 250k?

Would you take the plunge and buy a property on the basis london will probably not lose too much value if things get bad ? Or would you hold and invest in something else in view of jumping into the property market later hopefully with more capital after a clever investment strategy possibly after property prices have stagnated for a year or two.

I'm particularly keen to know peoples thoughts on a non property investment strategy. What percentages of what would you invest in ?

I appreciate i should speak to an IFA but would like to hear independent opinions also.

bendix

padington wrote: »

If you were left 250k and had no debts but were currently renting in a cheap housing association flat and hoped to buy a place of your own in london but at the same time unsure about the current wisdom of buying into the housing market right now, what would you do with 250k?

Would you take the plunge and buy a property on the basis london will probably not lose too much value if things get bad ? Or would you hold and invest in something else in view of jumping into the property market later hopefully with more capital after a clever investment strategy possibly after property prices have stagnated for a year or two.

I'm particularly keen to know peoples thoughts on a non property investment strategy. What percentages of what would you invest in ?

I appreciate i should speak to an IFA but would like to hear independent opinions also.

What anyone else other than you would do is entirely irrelevent. Everyone has their own objectives, personalities, hang-ups, likes and dislikes. It's a meaningless exercise.

There is only one important question and that is: what should you do?

We can't answer that. Our opinions are worthless noise, and potentially harmful. Only you can answer that and if you can't answer immediately, then an IFA will help you tease out the answer from within.

Just remember though - there is no right strategy, per se. There are only more appropriate strategies than others, based on your unique circumstances and attributes.

CloudCuckooLand

A two-year timescale is insufficient to carry out an "investment strategy".

Find yourself a home, buy it and live in it...

Linton

A house is something to live in. IMHO it is a mistake for the small investor to view it as an investment opportunity.

So I suggest that if you have reached a stage in life when you really want your own house then buy one now, otherwise talk to an IFA and invest in funds and shares which are a lot less hassle and likely to be more lucrative.

Funds and shares investing is for the long term: 5 years as a minimum. So only invest the money you wont need for the next 5 years.

Enterprise_1701C

In your position I would buy a house to renovate - you have a cheap place to live, so find an old place with loads of potential and put your mark on it.

I have a friend who bought a new house, and they have had a lot of trouble with various parts of it. It has always been mour ambition to buy a good solid old house (preferably not listed), totally rip out the innards and get it exactly as we want it.

No-one can ever say for sure what will happen in the property market so you can only do what is right for you at the time, and now you have the perfect opportunity to take your time looking around for the right house.

greenface

Every answer is about spot on and its your problem .My tuppence worth . If you use some of the cash to put down would you get a mortgage ?? can you afford it ?? If you buy a place "cash" could you have used the money better.
What would i do (without knowing any of your details) You've been left quarter million youve never had it. Saving the rent on a place every month will be like 12 mini lotto wins every years and enhance your life also. What else do you want out of the present and future

snowqueen555

I'd go travelling for one year with say 10k and put the rest in a nice 1 year savings rate

Hope I'd have a better idea when I get back.

-

But house prices are expected to fall in 2010-12, I'd rather not buy a house to make money

paddyrg

Make a feature film! A good producer could lever that 250k into a reasonable sized film!

padington

Thanks everyone,

I'm not sold on the idea of buying into the property market right now, think its a bad time to make that move myself and do think that the money could work harder in the short interim. Any more idea's welcome.

jimjames

If you're currently renting then thats money you won't be spending out. If you are buying in 2 years time anyway then it could cover any loss and you'll already be 2 years down on a mortgage.

Otherwise buy a portfolio of investment trust shares, giving around 4% yield and good possibility of capital growth.

greenface

padington wrote: »

Thanks everyone,

I'm not sold on the idea of buying into the property market right now, think its a bad time to make that move myself and do think that the money could work harder in the short interim. Any more idea's welcome.

But you were well up for it at half eleven last night . DYOR.