What should I do with my money???

phoebe1989seb

Our DS was named as one if two beneficiaries (along with myself) in my late uncle's will when he passed away in 2008. DS was in his first year at uni at the time and had already been going out with his GF for 18 months or so. We and his grandparents (my mum is my late uncle's sister) advised him to invest in savings accounts until he had graduated and at that point he had absolutely no intention or interest in buying a property. My dad helped him decide where to invest as he knew far more about that sort of thing than DH and I

After graduating (and still with his GF despite spending three years at different unis ) the two of them decided to take a belated gap year. DS utilised some of his inheritance to buy a newer car and fund half their travelling costs (his GF paid the other half) as well as paying for a CELTA course whilst they were in Europe. On their return last year it happened that his GF's mum was selling one of two properties she owned and she decided to give each of her three daughters (including DS's GF) some money to put towards a property if they so wished. As DS and his GF had just both started graduate jobs in London they made the decision to buy a flat and thanks to the inheritance and gift they were able to do so at 21/22 without taking on a mortgage

As they had been together 6 years by then we had no qualms about giving their decision our approval (although they would have gone ahead anyway, lol!) and several months on they are very glad they made the decision to buy.........

Obviously it's a personal choice - I certainly wouldn't advise rushing into spending the money on property if you are not sure this is the right decision for you. I would definitely discuss it with your family - our DS didn't as such, he merely told us after they had started viewing properties, but he is (and always has been) very mature and independent and hasn't lived at home at all (worse luck ) since starting uni in 2007......

Good luck with whatever you decide - and definitely don't feel guilty about spending the money......it was obviously meant to help you start out in the world and you are very fortunate to be able to choose how to make it work best for you....

jemcart

If I were you I’d invest it in a saving account until you graduate to get some modest interest on it, and then once you get a job use it as a deposit to get a mortgage.

Then if you can afford a house in the area you are working (sometimes it’s difficult if it’s central London for example), then I would buy and live in it. That way, you don’t need to worry about finding good tenants, making sure they look after the house or paying estate agent fees.

If get a job somewhere where property prices are very expensive and you don’t want a long commute, then invest in a cheaper area but one that you think is up and coming where property prices should rise over time. Although estate agents charge a fee for finding tenants and managing the property, I think it is worth using them as they are experts at it and save you a lot of hassle.

It puts you in a really great position to get on the property market at a young age!

G_M

jemcart wrote: »

If I were you I’d invest it in a saving account until you graduate to get some modest interest on it, ...

Just to be picky, either the OP should invest the money (stock market - ups and downs, bigger risks, bigger possible gains) OR save it ( in a savings account - secure up to £85K slow steady limited growth).

jgh

If you do decide to use the money as a deposit for a house for you and your boyfriend, I would strongly recommend that you make it clear in the mortgage/title that the £40k is yours, and that you are not gifting £20k to your boyfriend, and be tenants in common, not joint tenants. Also, MAKE A WILL at the same time as you get a mortgage. If you get married, change over to joint tenants and update your will.