23year old with £290,000

[Deleted User]

beckysbobbles1 wrote: »

Romford, Hornchurch, Dagenham.... All areas close to London and easily get a flat for that price in a good area (Ok maybe not Dagenham!)

ok, i'll give you that one - maybe I'm biased towards outer North London. I did find some ok looking flats in Romford from a quick search. You could buy a 4 bed semi-detached in Romford for £325k though. Now, imagine charging 3 lodgers £400 a month to live in your home (which only has a 50k mortgage on it)

beckysbobbles1

ringo_24601 wrote: »

ok, i'll give you that one - maybe I'm biased towards outer North London. I did find some ok looking flats in Romford from a quick search. You could buy a 4 bed semi-detached in Romford for £325k though. Now, imagine charging 3 lodgers £400 a month to live in your home (which only has a 50k mortgage on it)

Not everyone finds the idea of living with strangers desirable though.

[Deleted User]

beckysbobbles1 wrote: »

Not everyone finds the idea of living with strangers desirable though.

It is pretty commonly done by a lot of young people in London. It can be quite an interesting way to meet people.. but yes, it can also be quite a headache also if you don't get on. It's a great learning experience really

Worst case - the OP gets a big house and a small mortgage to cover

cinderfella

beckysbobbles1 wrote: »

Not everyone finds the idea of living with strangers desirable though.

It is sometimes known as marriage:rotfl:

beckysbobbles1

cinderfella wrote: »

It is sometimes known as marriage:rotfl:

Ok this made me laugh!

TightScot

The difficulty in giving sound advice in these matters is the lack of detail regarding your precise circumstances. After all, this is why good IFA's exist and will employ you in a 2/3 hour FSA Fact Find. Your future aspirations are very important, but there will be steps to take to achieve them..some taking years. With a capital sum of your magnitude, I would definately employ the services of one as the decisions you make now will impact you for the rest of your life and those around you EG future family. This is no mean amount as you are clearly aware. One thing that did occur to me is that you could easily get much better value for money in Scottish investment property rather than having your leg lifted in the Home Counties. My son, who is in the armed forces based in Brecon and only 24 has just purchased a substantial 3 bedroom property in Wales in a nice quiet area near Brecon for less than £90,000. It was a repossession, and will require some fixing up prior to his living there. There are all sorts of avenues you can take before parting with this untimely windfall. I would take months to consider your options and start thinking outside the square as they say.
In Scotland for example you could easily buy 3 Buy to Let flats which would return around £1,500 in pre-tax monthly rent.Wales is pretty much the same. Clearly the geography is of no use to you, nor would it put a roof over your head but I'm sure you get the point. Have a think about buying your own, something small easily managed, and buying a property somewhere that could be summer-rented or permanently rented by a specialist. They are worth their 20% cut if they are any good..so more homework there. Look at it as a permanent pension subsidy in two ways. One, the rent, two..the fact the property will likely be worth 5 or 6 times what you paid for it in retirement.
Even in Scotland, our 3 bed semi bought new in 1982 for £28,900 is now worth over £160,000. So saying, a teachers take home pay was £106.00 per month back then..so everything was relative.
Working in the NHS, I am sure you have considered how long you will have to keep your nose to the grindstone before you could afford to retire and have some financial dignity. Putting in candidly, you need to have some sort of fall back so that one day, if it takes your mood, you can politely two finger them and resign when you want, not when they say.
£30/40,000 saved now with a clever purchase of property will turn into hundreds of thousands by the time you retire.
Caveat Emptor is the watchword with any financial investments when you hand your cash over to someone else. Revolving commissions & charges strip the profit away ( depending on what type of investgment you choose) The public generally get the crumbs from the rich merchant bankers...and yes...I did say "bankers".... table. Far better you are the boss than they.

cinderfella

There is an article on this site regarding IFA's

http://www.moneysavingexpert.com/savings/how-to-pay-for-financial-advice

If the OP has a definite idea as to what they want to do, then the IFA is someone that most people would not seek out in order to buy a property.
Many people that I have known over the years have been disgusted at the charges IFA's have wanted for simple financial advise, & steered a wide berth.
Two tips I would advise with property hunting besides taking your time - loads of time. (a) possibly employ a professional property hunter (not cheap) (b) look into the options of taking out a mortgage in a non £ currency. Seeking advice here is absolutely vital.
Follow your gut feeling as to whether you think you need an IFA.
There is an army of IFA's on this forum & no doubt will jump on this post for one reason or another, so I am signing off this thread now.

[Incidentally, when anybody mentions IFA to me I always have a vision of circling vultures in the sky. A bit like Reggie Perrin always seeing a Hippo when the word 'Mother in Law was mentioned]

Interesting article in moneyweek:
The end of the IFA ‘long con’

http://www.moneyweek.com/investment-advice/rdr/penny-sleuth-the-end-of-the-ifa-long-con-61100

Almo

cinderfella wrote: »

I know where you are coming from. London is a bit of a dreamers city. That is people like to get out of the place within a couple of years - they have had enough.
At the tender age of 23 the OP could forge a wonderful life in Australia or New Zealand & perhaps also find the man of her dreams.:T

Yes, if she qualifies for a visa she could go. The money would be a massive boost, obviously, but the exchange rate and whopping Australian house prices are against her somewhat although she'd still be advantaged massively compared to her peers.

OP, sorry to hear of the circumstances that lead to your windfall.

AlwaysLearnin

Just to add if you go down the route of property purchase, as a cash buyer/someone that can move quickly if necessary you are in a pretty strong position. This is worth bearing in mind in any negotiations as it should increase your chances of getting a good or better deal, or at least give you an advantage over other potential bidders.

Sorry for your loss. Good luck.

TightScot

Cinderfella,
Feel free to throw your toys out your pram and flounce off. I note you say "If the OP has a definate idea" The OP does not as yet, which is why the OP posted an open question to cast a broad net of opinion. Many people are also disgusted at Main Dealer garage charges, dental fees, lawyers fees, and a host of others. Conversely, you advocate using expensive "property:rotfl: hunters"? Eh?:eek: We don't need or have them up here. We use newspapers and property columns...for free.
All you need is Zoopla etc & a bit of common sense.

Like any industry, there are good and bad IFA's, and as I said it's caveat emptor out there. If the OP is intelligent and professional enough to work within the NHS, it's a safe bet he or she has the wit to enquire about fees and in any case IFA's have to declare beforehand. It's far better to part with a few hundred quid now for solid advice at a reputable firm than take bad advice down the pub or some NHS canteen full of barrack room lawers, then make a huge financial mistake.