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

jumperabv3

Lavendyr wrote: »

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!

No, I wasn't being happy before buying the property, the markets would drive me nuts either way, I lost a substantial amount of money from currency exchange already and that's why I wanted to put the money away from me and let it sit into something that I cannot simply undo ...

The issue is it's possibly all in my head ... yet I would like to imagine how people who did what I did when the £1 = $2 and collapsed to $1.35 felt ... that would have been terrible if you bought the GBP from $2.00 each, and then it fell during 2008 to $1.35

But I'm not sure with this European crisis that it won't get there again, it just lost 1000 pips in 1 week - that's very unusual and scary but I'm starting to think less about it for now (thank god weekend there was no trade) ... and I'm thinking if I can really hold on to something for 10+ years...

mjdh1957

jumperabv3 wrote: »

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?!

The kind of people who can answer these questions charge a lot of money for doing so.

jumperabv3

bitsandpieces wrote: »

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.

Thank you for your help.
I don't know professionals I can talk to and to be honest I'm just exhausted already - I think I just need to learn how to live with it and stick to this property and just forget about the rest, I'm just not in a position right now to do that ... I am in a very bad state right now, emotionally and pschologically ...

jumperabv3

mjdh1957 wrote: »

The kind of people who can answer these questions charge a lot of money for doing so.

What are they called?

shegar

Phychiatrist..!!

DELLBOY_2

even buy it or dont
stop panicing make a desicion and go with it ..
in short put up or shut up .

Loopgames

Well i have just moved into east london again and believe me the area you have bought in is highly desirable...for people like me who can't afford to live there, lol.

You have no worries there. Will be popping into wanstead tomorrow though to enjoy a posh breakfast and a trip to the nice parks in the area. From my perspective that area is regarded as stable and desirable so like many pockets of london may not be as affected by the crisis as you may be inclined to believe. Well done for at least getting that bit right:T.

jumperabv3

Loopgames wrote: »

Well i have just moved into east london again and believe me the area you have bought in is highly desirable...for people like me who can't afford to live there, lol.

You have no worries there. Will be popping into wanstead tomorrow though to enjoy a posh breakfast and a trip to the nice parks in the area. From my perspective that area is regarded as stable and desirable so like many pockets of london may not be as affected by the crisis as you may be inclined to believe. Well done for at least getting that bit right:T.

Thanks for that ...

londonlydia

Well, I'm no expert but if I was going to invest in a foreign country I would probably go for the capital. In times of recession, people flock to places where they think they can get work, and generally in the UK that means SE and London.

Of course the UK will be hit with the euro mess, but equally so will the US. Everyone is intertwined. It's all about the far east having the money now. Interestingly though, I heard a few firms are returning their manufacturing to the UK now as 'made in China' is getting pricier by the day.

ruggedtoast

I think you lot should look at this users past activity, all his other many posts are talking about things like Kwik Fit car insurance and how to log in to his Halifax account.

I very much doubt he is suddenly a half millionaire from the states who knows nothing about UK property but has decided to buy one on a whim.