Getting on that property ladder??

MOOBAGS

Hi room,

I know this may seema bit of a strange question, but I will ask it anyway!

It's hard to get on to the property ladder these days, we know that!

I have done some research and say for instance, I could buy a house in Burnley for about £15, 000 outright (not that I would personally want to live there mind!)

If I was to do that, and rent it, or whatever... how would that help me in the future?

I know I seem a little clueless and naive, I probably am, but it is a serious question!

Help would be appreciated!

Thank you

kingstreet

How would it help you?

No idea. How do you think it might help you?

Other than giving you a potential future home in a place you don't want to live, I can't really think of anything else...

Future capital growth or the prospect of increased rent during the 2028 Colne Olympics, perhaps?

Werdnal

If you buy a property to rent, it can give you an income and you would still have the capital value in the property when you want to sell it. However, property values are still likely to fall, or atleast remain stagnant for some time to come, and places like Burnley will likely be the last to recover in value when we eventually start coming out of the black hole that is the UK economy!

That is of course if you want the hassle that goes with being a LL - see here for all you need to know:

http://forums.moneysavingexpert.com/showpost.php?p=41160642&postcount=12

However, whether this will benefit you depends on a whole lot more than simply buying the property.

How old are you? Are you working? In full time education/University? Do you have a good income? Are you still living at home? Renting your own place? Single? Have kids? Is any of the above likely to change for the better ... or worse in the foreseeable future.

We don't know you, or your circumstances, so cannot constructively comment on such a vague query!

MOOBAGS

I was thinking along the lines of capital and buying future property. im 22, studying at uni and living at home, i have no children. im due to come in to some inheritence from my dad of 30,000 and wanted to put it to some use. Burnley was just an example. so yes, i was thinking of buying it to rent out. as i said, i am naive in all this property bussiness but it was a genuine question

MDG

I wouldn't recommend the path you're thinking of heading down.

Alternatively, have a read of Ten Steps To Financial Freedom on Fool.co.uk's website, due to your age I think you'd find it useful/enlightening.


Whatever you decide to do, make sure you take the time to fully understand any investment you're thinking of getting in to.

Good luck.

Werdnal

MOOBAGS wrote: »

I was thinking along the lines of capital and buying future property. im 22, studying at uni and living at home, i have no children. im due to come in to some inheritence from my dad of 30,000 and wanted to put it to some use. Burnley was just an example. so yes, i was thinking of buying it to rent out. as i said, i am naive in all this property bussiness but it was a genuine question

TBH, I would look into other investments for the money and keep you options open. You are young and probably do not want the stress and commitment that can go with letting a property (have you read the link I mentioned). The capital growth on a property of that value in the current climate would be negligible, and rent could give you an income, but things can go wrong and end up costing you more than you make!

Personally, I would invest wisely and leave it alone and it will give you a great deposit when you are ready to buy something you want to live in yourself.

MOOBAGS

MDG wrote: »

I wouldn't recommend the path you're thinking of heading down.

Alternatively, have a read of Ten Steps To Financial Freedom on Fool.co.uk's website, due to your age I think you'd find it useful/enlightening.


Whatever you decide to do, make sure you take the time to fully understand any investment you're thinking of getting in to.

Good luck.

thanks for your help, i will have a look at that website tonite, im greatful for your help

MOOBAGS

Werdnal wrote: »

TBH, I would look into other investments for the money and keep you options open. You are young and probably do not want the stress and commitment that can go with letting a property (have you read the link I mentioned). The capital growth on a property of that value in the current climate would be negligible, and rent could give you an income, but things can go wrong and end up costing you more than you make!

Personally, I would invest wisely and leave it alone and it will give you a great deposit when you are ready to buy something you want to live in yourself.

thankx for that mate, youre prob right as i said it was juist an idea but im greatful for the inputs :beer:

pioneer22

The idea was you buy a house for say 100k then in a few years it would go up in value as it has been up until 2008. Then you sell the house for more than you bought it for for example 110k you then sell and use the 10k profit to buy a bigger house and so on and so forth. Thus moving up the ladder worked well for a lot of people until the bubble burst.

DVardysShadow

"Property ladder"? You have heard of Snakes and Ladders no doubt. Property is not always a ladder.

DannyboyMidlands

Crazy idea. Keep your options open, invest the money wisely (ie don't risk the capital) and use the money as a future deposit on a place you actually want to live in.

Don't spunk it on some shabby old house, There's a reason it only costs £15k.