Buying a house with cash

nowagrownup

I have saved a big lump of cash and am thinking of buying a house outright.

I am returning from working overseas, but don't have a job in UK yet. I may stay in UK for a short while, then move overseas again and rent out the property. My wages in the future are likely to be quite low.

So as I don't have a job, I can't get a mortgage. But I really feel the need to get on this property ladder. Is it worth my while using virtually all my savings on buying a house? (I don't have a pension and I am no spring chicken). Perhaps a certain %?

I don't have any dependents, so no issues there. But not sure if putting all my eggs in one basket is a good idea.

I could get a cheaper place and invest the rest elsewhere, but I am not sure I would want to live in it and I need somewhere to live whilst looking for a job / as a stepping stone.

Any thoughts or suggestions would be gratefully received.

Pixie5740

How wide is the search area for a job?

If you're planning on renting the property out in the future as a means of income you should research the rental market in the areas you would like to buy in and then calculate the gross rental yield to see if it's worthwhile. Letting property can be good money but isn't necessarily easy money.

cattie

I think if I were you & could afford a nice place that is a bit bigger than needed in a decent area, then I would go for it. My intention would then be to downsize at a later date to give myself a financial cushion with the equity that the house would have made over the years.

Property tends to always outperform the markets & even during times when property prices might stagnate, you don't lose out as whilst the price of your house doesn't move much, neither does the price of other properties. So the monetary gains are pretty much the same when downsizing, be it in a buoyant market or a stagnant one.