100k Decisions Decisions

John118_2

First Post guys. Ok I have been looking over my options time and time again and all I have achieved is a sore head.

I have been working abroad for a little while and have managed to save £120k I am planning to come home soon and wondering what I should do with the money.

I am 24 Years old Still officially living with my Parents, I have a Fianc! who is 24 and also living with her Parents. Together we have managed to save up this money and are wondering how to best spend it.

We have set aside 20K for a wedding so we have no worries with that and I have just bought us a nice car so no car payments we have literally 0 bills at the minute and are looking at the best way to start our life.

Obviously a house is our major bill and are wondering weather to stick the remaining 100k on a house and look to be mortgage free as quickly as possible.

I would like the money to stretch a little, I was thinking 50-60k on getting in our house and setting up then using 40k to invest in properties, I am an Electrician by trade and have loads of contacts in the building trade so was thinking about renovating houses and starting to work for myself.

Going over these ideas is just giving me a headache, I am going round in circles so looking for a little advice. Do I buy a nice big house and stay there forever or do I buy a smaller house and invest the rest and look to move house in a few years.

Thanks in advance for any replies.

G_M

No one can tell you - it's your life!

Buying a property gives you security and stability. But 'stability' restricts you! Do you know where you want tolive? Will you be staying in one place? Might you get a job elsewhere and need to move? Go abroad again?

If so, rent, don't buy!

There are many other options for your savings, fromlong-term pensions plans, to medium term stock market investment, to shorter term savings accounts where you get access if you need it.

Which is best for you? Only you can say!

julieb1987

I know it doesn't really help much but only you and your fiance can know what's right.

I know I'd like your dilemma!

Stacyluvya

How about giving it to me for safe keeping...?

Melaniep101

Wow - I am in the wrong job! Well done on your savings!

sniggings

I would buy a place that needs doing up, live in it, then sell on, it covers both options of having your own roof over your head and also is making you money at the same time, £100k is a lot of money but split up it doesn't go far, buying somewhere for £60k will more than likely not be able to be sold for that much more, so a lot of work for not much profit, you would have to turn around quite a few of those to make a good profit, £100k in one place has the potential to make a much bigger profit in one go.

John118_2

Thanks for the Advice guys.
Melaniep101 - Its not all great I'm working in Afghanistan at the Minute.
Sniggins - That is a great idea I have never thought about that before. Conscious though of my credit rating if I never have any Debt. That's an avenue I am defiantly going to explore.

I know there is a few options, I am about to make probably the biggest decision of my life that's why I am trying to make sure I have looked at everything possible first.

sniggings

It makes sense expenses wise too, think of paying out 2 lots of solicitors fees, 2 lots of estate agents fee, 2 lots of electric bills, 2 lots of water bills, travel costs between properties etc etc the list goes on, the only problem maybe the new misses not wanting to be carried over the threshold of a !!!! tip

John118_2

Yeah that might go down like a lead balloon :rotfl: It is the smart move renovate and move on bigger and bigger until we have the house we want mortage free. Thanks.

Fire_Fox

Generally property is a gamble short term but a sound investment longer term. You need to do your own maths as to any profits you might be able to make in property development, offsetting the thousands it costs in estate agents, surveys, legal fees, mortgage arrangement and so on. For most people it is most cost effective to jump rungs on the ladder - so start with a two or three bedroom then move up to a four or five bedroom and stay there long term.

Being mortgage free is absolutely lovely, IMO people should aim for that. You can have children without worrying about returning to work, retire early, even both of you work part time!