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

DRP

jumperabv3 wrote: »

If you have invested $600,000 you saved all your life ... and now the investment hasn't started yet and you are $40,000 DOWN - would you feel you are investing in the right place?

It's abnormal for a currency to lose 1000 pips in a week, that means there are serious troubles behind it. (From $1.63 to $1.53) .... We are going to experience something worse than Lehman Brothers in 2008, this is the entire European continent that is in troubles now ... I don't know when this will end ... I fear the GBP would go to be $1.00 (Parity), that's how I feel - which is why I don't know what to do ... it's losing value every day, it's completely unstoppable ....

I say it again, I haven't bought the flat yet (completely, I have the money), and I'm already experiencing this - this is why I don't know how to proceed, it's my first time and I got hit really badly.

who advised you to make this investment and who is advising you on this currently?

DRP

jumperabv3 wrote: »

How can you think long term where your investment on paper is already $40k down? Am I being wrong for this?

yes. totally wrong (probably).

jumperabv3

patd1967 wrote: »

This thread sounds like the typical greedy yank who thought he could come to the uk and make a fast buck and fell on his proverbial fat !!!!!! get a life you've bought a flat so move on!!!

Thank you for your support, it's really helpful to read such messages.
I lived in the UK for several years, I am not interested in high rent or return, just looked for a place to park my savings, I thought London is a good and safe place ... okay, we're making mistakes in life - question is how to deal with the situation now? This is what I'm trying to find out.

jumperabv3

DRP wrote: »

who advised you to make this investment and who is advising you on this currently?

A good friend of mine, a very good friend, he also bought a flat in London (and with mortgage) and he's not worried like me ... he thinks I'm also worrying for no reason but he's unable to explain this to me, he said the world has gone through so many crisises in the past and there's no need to freak out but it's hard for me to understand it or explain this to myself.

I think I made the investment in the very wrong spot/time that a person could ever choose to ..

DRP

jumperabv3 wrote: »

A good friend of mine, a very good friend, he also bought a flat in London (and with mortgage) and he's not worried like me ... he thinks I'm also worrying for no reason but he's unable to explain this to me, he said the world has gone through so many crisises in the past and there's no need to freak out but it's hard for me to understand it or explain this to myself.

I agree with him - i think it is right to be concerned , but that you are over-reacting a bit.

jumperabv3 wrote: »

I think I made the investment in the very wrong spot/time that a person could ever choose to ..

you don't know that yet. things can change very quickly (if you have a long-term view)

Idiophreak

jumperabv3 wrote: »

How can you think long term where your investment on paper is already $40k down? Am I being wrong for this?

Yes, basically. Currencies move relative to each other, that's just the way it is... You've made your investment, time to stop worrying about how many USD it's worth and just focus on getting a decent return on it from now on.

missile

Seems OP has changed his spots, see here > https://forums.moneysavingexpert.com/discussion/3346510

jumperabv3 wrote: »

With the way people treat me here I feel like not paying rent at all, the entire forum is full of landlords, no wonder why these guys are idiots, no brainers. (not you, but the others just acting like idiots)

pinkteapot

jumperabv3 wrote: »

Thank you for your support, it's really helpful to read such messages.
I lived in the UK for several years, I am not interested in high rent or return, just looked for a place to park my savings, I thought London is a good and safe place ... okay, we're making mistakes in life - question is how to deal with the situation now? This is what I'm trying to find out.

You have been told several times but I'm not sure you've taken it in - as you have exchanged contracts on the purchase you CANNOT pull out of it. You have to buy the flat. Legally, you have absolutely no choice.

Your options are to stick to the plan, or to put the flat straight back on the market after you've bought it. They are your two choices.

I find it hard to believe that $600k is your whole life savings and you decided to put it all into UK property? A portfolio of savings and investments should be diverse. Some exposure to property sure, but you should have a mixture of assets.

Loopgames

If you think the problems in europe are going to collapse then whar do you think will happen to the US? I agree that now cash is better than assets but since you have no debt and your investment is sound in fundamental terms i.e. location, supply demand is high for area - you should have no worries and enjoy a regular income within 6 months.

Stop flapping and get your emotions out of invesment deals. The problem with using 100% of your hard earned savings is this! You start panicking...if you used 50% or less then it wouldn't have been a big panic. Either way I still think you are over worrying.

Governments will NOT want a crash and will do anything to stop it...that seems so certain to me. Even if we experience the turbulence it will be VERY short term and then properties will be stable as inflation kicks in.

Emmzi

you are not $40k down. you are only up or down when you realise the investment. So you have to sit tight and ride it out as with any investment.