Invest in bricks or self?

ttaylor

Hey there, my mind is going round in circles trying to decide the best thing to do. I have £60k to play with which I have saved in the last 10 years. Should I:

1. Buy a 1 bedroom property (up to £100k) with a small mortgage for myself and invest all my time in trying to get better qualifications? I have had to take a job which hasn't a great future or pay for the time being and I am doubtful I can get a better job without retraining.

2. Buy a 3/4 bedroom property (~£200k) with the maximum mortgage, and rent the rooms out, whilst living there too. With the view that this property is my future income and retirement and not be concerned about my job, so long as I have minimum wage job then later live off the income of the rooms?

3. Carry on renting/sharing as I have been and just slowly adding to the pot every month? Then possibly buy property outright in the next 5-10 years?

I am 32 buy the way. Any thoughts most welcome!

MoneySaverLog

But what if you are no better off in 5-10 years time if house prices have gone up by what you've saved over that time?

Just playing devils advocate as in the same boat kind of.

dealer_wins

Also remember in 5 years you may be married with kids and need those extra rooms!!

ttaylor

I just can't see how house prices can go up like they did? If wages aren't going up then where are the buyers going to come from?

saintalan

ttaylor wrote: »

I just can't see how house prices can go up like they did? If wages aren't going up then where are the buyers going to come from?

First well done on your savings, from all you say you have done really well.

I wouldn't try and second guess the house market, think of it as somewhere to live thats yours. Option 1 would allow you to feel your way in a little.

Option 2 you need to do the numbers but you will still be sharing of sorts. As you get older you just might enjoy the peace of your own home.

This is maybe not so much a financial decision as a lifestyle one!

Cheers

Aln

xylophone

I would incline to buying the best one bedroom flat I could afford (ground floor, very long lease/share of freehold/ close to transport links/shops/ etc and then studying part time for the qualification.

Remember that unless eligible for grants/bursaries, you would be self funding and so would need to set money aside for this and for your emergency fund.

Make sure that any course you do is well regarded in your chosen industry and directly relevant to the work you wish to do.

atush

I am with xylo on this.

You can't get a flat with a mtg, then quit your job and study- what will you live on? Pay the mtg with? So you'd need to keep working to some extent while retraining.

Opt 2 leaves you long term sharing (which will get old) in a job you don't like (which will get old).