Oh come on! Stake through the heart. A little sunlight. It's like falling off a log"

Buffythedebtslayer

SO...............

bit nuts but seriously for how long do I play it safe?

I have borrowed 24000 pounds.

Feel slightly sick but I figured I either

a) buy a cheap flat up north - found about 5 suitable properties today but would obviously have to look into it more carefully than Rightmove!

b)use it as deposit

In any case I can afford the monthly payment and will over pay (loan has 3.9 % and no penalty for over payment)

If the right property comes up I can use the money and if it doesn't then I work on paying as much off as I can as quickly as I can.

I understand people reading this may think I am stupid - I do understand why - I have voluntarily put myself in debt, but I can't afford a house here and doing a proper buy to let mortgage means expense, by the end of the year I will have 28000 to spend on a flat. I know could save for another 6 years and then do it, but frankly I could be dead by then!

It will obviously cost me money, but I have to get on the property ladder. I have wanted it for so long.

xxx

in_need_of_direction

Use it to buy a share in your mum's property. More stability! lower risks and removes some concerns about you're muM's finances. Btw, did you ever see a solicitor?

beanielou

in_need_of_direction wrote: »

Use it to buy a share in your mum's property. More stability! lower risks and removes some concerns about you're muM's finances. Btw, did you ever see a solicitor?

From me too.

Pooky

I'll third that!

No risk!

Chocforever

But what if she needs her money back - how would her Mum ever buy out her share without selling up?

Chocforever

I would go for option b even if it means your mum has to equity release to comfortably stay in her property. Maybe get a job, say, 50 miles away (however far you have to go to get a small flat in a reasonable urban area or perhaps a small house somewhere more rural), and buy there but go back to your mum's Friday to Sunday to support her if that's what works for you both.

I don't think you will get much, if any, appreciation on a £20k house. The trend in the housing market is for desirable properties to get much more expensive whilst cheap properties in less desirable areas aren't moving or even depreciate in value. If you are feeling brave, there are some very knowledgeable (and straight talking) folks on the property forum who could advise on BTL on a single low value property.

Buffythedebtslayer

Well at least none of you have called me a nutter

It does feel a BIT mad.

I feel really sad today. Was a bit excited. but work soon knocked that out of me. It is funny to be honest. Also worrying but when is it not!?

SO I closed all my little savings pots, felt a bit sick. Put all the money (820 pounds) into one account - technically It should be 1820 but spending over summer (holiday, rabbits, Ikea...my new bed) meant my emergency fund took a battering (but I can honestly say I am ok with that)

I have 248 saved for Christmas (have already used some for presents)

The ISA is plodding along at 3350.That will still get 200 a month.

Aims

1. pay 400 off the loan each month
2. Pay 200 to the ISA
3. Spend very little
4. Sell stuff.........

Obviously will explain more about 3 and 4 later

but right now have developed a sore throat and am feeling dizzy.
so tired.
XXX

Sun_Addict

Hope you make the right decision Buffy. Don't feel like I can offer any advice though.

Buffythedebtslayer

Had a nap and drinking Beechams.

I will try and talk to Mum re the house but I don't think she would go for it. She would feel that we should all be treated the same. Not sure though. She is full of surprises. I don't know that I would be popular with my sisters. I never did go for an appointment, the women recommended to me didn't have any time and I never bothered. Ugh. time. Am not finishing work till six these days so need to figure out a time.

Really my first priority is to pay the loan off. The quicker I pay it off the better all round. I am aiming for 5 years, less if I don't save.


In fact if I gave up the savings it could be 3 years. Meanwhile buying somewhere and having if not an income the possibility of one. I don't expect to sell for a profit, I think really I am doing to be on the property ladder and for some kind of income (not much, the margins are tiny)

I can't really explain it, I have a two week cooling off period, so it is not set in stone. However it just feels right. Like it might make things happen. shake things up a bit.

Oh in other news, am over the crush. I can't put my finger on it. Just not there now. Which is good.


xx

Chocforever

I think what you are saying is that owning a property would make you more content and you are less concerned about whether you can live in it or whether it makes you any money. If that is the case, then I can see that it makes sense to buy the cheapest property possible which is capable of being rented out.


If the property doesn't make any capital profit and there is a low rental yield, it won't enable you to move up the property ladder any faster than if you had the money in a cash ISA.


Maybe I'll see you one day on homes under the hammer! It's a shame you couldn't buy something more local that you could do up. I think they get quite a few teachers on there looking to leave the profession early and make some money to tide them over until their pensions pay out.