invest in property?

snooping_around

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qpop

Auctions are high risk events. (First time) buyer beware. Buying a house is a complex enough affair without them.

Some of the worst problems with house purchases I saw whilst working in the central mortgages department at a bank were to do with properties bought at auction.

guitarman001

Would you invest in the stock market if it was going down?

Saying that, I do get your points about inflation and poor bank rates, so I'd see why some WOULD want to put their money into a home (not property as an 'investment') even if the market was on a downer.

Linton

guitarman001 wrote: »

Would you invest in the stock market if it was going down?

Yes:
1) You dont know if it will continue to go down. If you and everybody else did know this it would already have gone down further yesterday.
2) Investing in the stockmarkets is for the long term. IMHO Minor ups and downs now are pretty irrelevent.

kidmugsy

The art is to invest in stuff while it's good value and sell when it's overvalued. I suspect that shares and (especially) bonds are overvalued. London property: I don't know. Of course, if for other reasons you very much want to own a house of your own, then fine. But it sounds as if you want it merely as an investment. Beware: sometimes it costs an awful lot to maintain a house in good order. And houses are illiquid.

atush

I don't hink shares are overvalued as a whole, but I do beleive that buying a property to live in is generally a good investment esp if investing after large market falls. After all, if it is to live in (and not to flipp) then you hve time on your side for it to grow in value all the while (hopefully) saving money over paying rent.

Will you need the whole 100K for a deposit? Or will you be able to ho,d some back?

Buying at auction can be a great way to go, but only if you do your research, know the costs of renovation, have someone who knows property like a builder to view with you and if you get in a surveyor for any major problems. And don't forget to read the legal pack!!! This is a route thatn can cost you dear if you don't go into it with your eyes open. I would start research now, months ahead of any buying.

IronWolf

Are you renting now or living at home?

If the former then property is usually a good investment, regardless of what house prices do in the short term as you would be paying rent anyway.

FLAPJACK

At your age you have time on your side to ride out any further downturn in the property market, if you are comfortable with the present valuation then go for it.....as long as it doesn't wipe out your cash reserves.

My wife and I had this decision to make earlier this year...money in the bank making a pittance etc..

At our age we have realised the way things are our cash deposits will deminish eventually...thankfully our day to day spending is covered via pensions so in effect sheilding our deposits.

Out thoughts turned to what are we going to leave the kids (albeit they are both grown up).....the only thing we could think of which is "almost" future proof is property....as we were mulling this over the place nextdoor came on the market, got it for a fair price and now we have the option of increasing our income (if we want to go that route) and have two houses to pass on when the time comes.

Of course this is only do-able in our case as the purchase has still left a 6 figure sum....and in your case you still have your income....and maybe a second income if you rent it out.

I'd go for property....but also diversify and again because of your age put some on the stock market as a longterm investment.

snooping_around

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