1st time buying a flat - and so so sorry for this!!!

jumperabv3

becominganobsessivesaver wrote: »

A safe investment is surely placing your funds in a bank account/government bonds - you have the guarantee you get back what you put in. There isn't any guarantee that you'll get back what you put in with property, and then there's the added element of foreign exchange, which I would consider pretty speculative/risky. I'm sure you could have got close to the 3.6% ROI from a savings account.


A risk averse investor would generally spread their investment, putting all your eggs in one basket, especially without guarantees, is pretty risky IMO.

I understand that that could be a better deal ...
Question is what should I do now?

1) Lose the 10% deposit and risk the option of being pursued even more?

2) Pay the whole thing, buy the property and try to sell it (there is extra £12,000 stamp duty and unknown exchange rate as well which should be factored)

3) Speak to the solicitor and try to stop things and pay maybe £5,000 negotiable exit price, if that works?

4) Just get the property and sit quiet with it and whatever happens happens ...

jumperabv3

mjdh1957 wrote: »

You've got half a million dollars so you're richer than 99.9% of the people who live on this planet.

If financial downturns happen life goes on. I've lived through several and though I don't have as much money as you, I have my health and my sanity so I am grateful for life as it is.

I see no reason to panic.

I see reason to panic.
It's no fun losing your life savings ... yes, I made a mistake - just need a best strategy out of it?

So far no one said the property is a good buy ... no one has said it's a good deal - so I'm feeling ****ed .... what should I do now, that's the main question?

jumperabv3

Anyone ?!

marliepanda

becominganobsessivesaver wrote: »

This thread is an interesting read, but essentially you are now asking for very specialised investment advice on an internet forum. If I had about half a million to play with never in a million years would I just follow the advice of some faceless randoms who thought fit to post on my thread, I'd be finding a specialist financial advisor (which may have been wise in the first place, but hindsight is a wonderful thing).


To be honest I find it difficult to fathom how someone who comes across as extremely risk averse on this thread made such a risky investment based on the advice of a friend a matter of weeks ago!

Reread all of the above.

jumperabv3

marliepanda wrote: »

Reread all of the above.

What would a financial advisor help me if I have to close the deal now?! That's something I should have done BEFORE and not AFTER ... this is what I'm asking before getting to the stage of consulting with an expert - what should I do now?

1) Lose the 10% deposit and risk the option of being pursued even more?

2) Pay the whole thing, buy the property and try to sell it (there is extra £12,000 stamp duty and unknown exchange rate as well which should be factored)

3) Speak to the solicitor and try to stop things and pay maybe £5,000 negotiable exit price, if that works?

4) Just get the property and sit quiet with it and whatever happens happens ...

Anyone, please?!

geoffky

London is the only place left for the bubble to burst from the insane rises and bust that bubble will....when?

jumperabv3

geoffky wrote: »

London is the only place left for the bubble to burst from the insane rises and bust that bubble will....when?

What's the difference between London and NYC ? The bubble will never burst in NYC, right?

ILW

jumperabv3 wrote: »

What's the difference between London and NYC ? The bubble will never burst in NYC, right?

Did prices more than treble in less than 10 years in NYC?

Lavendyr

jumperabv3 wrote: »

Anyone ?!

You need to go and see a specialist investment adviser who will actually be able to give you impartial advice based on your personal circumstances. They can help you to understand your (apparently very low) risk appetite and guide you as to what products would suit you best. They may also be able to advise on how best to act now that you have committed your money.

No one here can do that in a sufficiently personal way, and if you are talking hundreds of thousands of pounds or dollars, you're mad if you are going to take advice on how to invest it from a bunch of strangers on an internet forum. You need proper, professional, independent advice.

As for whether something is 'safe' or not, if you have put your money into a government-backed savings account where you cannot lose your initial investment, then that is safe. Anything where you could get back less than you put in is risky. You are speculating on markets - in your case you are speculating both on the property market and on the currency market. In whose book is that a 'safe' investment...?

However, as a long term (read: 10 years +) investment, property can be a good investment. But you need to be prepared to sit, wait and not react or panic at every downtick.

At the end of the day, life's about being happy, not about having money. If you think that you will be happier by selling this property ASAP, even if it means making a loss, because you won't be panicking every time something goes wrong, then you may be better off taking the hit now and living a happier and more relaxed life!

bitsandpieces

jumperabv3 wrote: »

I spoke to financial advisors and I wasn't happy with what they offered to me ... I think best friend's advice can be sometimes better than one from a financial advisor who has interest to offer you what's good for him but not for you ... My friend did the same thing and he's completely not worried about it and he thinks I will be mad/crazy to pull off from this investment.

Why do you call what I did a "risky investment"? I guess real estate in London is no longer safe, correct? Can you please elaborate on this if you can, why do you see it as a risky investment? It's not a stock in the market after all, no?

If you made clear to the financial adviser that you have a desire for low risk investment - which seems to be what you're wanting, from your posts here - one would really hope that they suggested lower risk investments than what you have gone for. If they didn't, consider submitting a complaint.

What you did looks risky for a number of reasons:

• Property prices in London could go up or down a fair bit.
• Rental return could go up or down a fair bit. Demand might soar and you could have tenants in the property all the time, paying high rents. Alternatively, you could end up with void periods or - even worse - have a tenant move in, trash the place and not pay rent while it takes months to evict them.
• You're not investing in 'London real estate', but in a single property. The rental and capital value of the property itself could rise or fall a fair bit, regardless of the broader London trend: for example, the area could suddenly become very fashionable or you could find anything from rising crime problems to nightmare neighbours hitting the value.
• You're investing in a foreign currency. This adds additional volatility - you could make or lose a lot of money as the £/$ exchange rate shifts.

I'm sure other people could bring up other reasons - and have elsewhere on the thread - but that's an example of some of what you might think about. Note, none of this means it's a bad investment. Higher risk investments can be profitable - and property has been a good investment over many time periods - but it's important to be aware of what you're dealing with.



You can't turn back the clock, though, and you have exchanged contracts. If you're thinking of backing out, seek professional advice - don't rely on strangers on an internet forum to deal with complicated issues around international law etc. In the medium-term, I'd suggest you get personalised advice on how to invest your money.