24. £100,000 No help.

voltec

Hi all,
This is the first time I have ever done this but I am so confused what I want in life/want to do with the money I have saved. I talk to lots of people my age and know one knows what to do if they where in my position.
I am currently 24.
I set up my business when I turned 18.
My dad hasn't been around in my life and my mum struggled to raise me with money issues as a child. I struggled going through school finding it difficult to sit focused and failed all my GCSE'S due to poor coursework grades. However on exam days I managed to do fine...
I bought my first house off of the council which is valued at £95,000
I currently have £45,000 in equity in the house I currently live in and I have managed to save up £50,000 through work.
I am going to spend £14,000 and buy a house to rent out.
All I ever wanted as a child was money and now I have some it is messing around with my head and I don't know what to do with it.

All I'm asking is, if you were 24 and didn't have a helping hand in life and had to find out how to be a man by yourself...WHAT WOULD YOU DO?

fishpond

Join the army.

voltec

no.........

atush

Too late for you, but coursework has been downgraded for qualifications, those like you who do better at exams would do better now.

I would not buy a house to rent (at this stage), i'd buy one to live in. You have one, great.

Then i'd have an emergency pot of cash, to live on for 3-12 months AS a SE person, i'd say 6-12 for you.

Then, you could perhaps look to be a limited company over a SE state for tax breaks (incl a pension which could be paid for by your company). Ask your accountant/ a tax specialist

Mojisola

voltec wrote: »

All I ever wanted as a child was money and now I have some it is messing around with my head and I don't know what to do with it.

Having money can prevent a lot of sadness but just having it won't make you happy.

Now you've achieved a level of financial security, you need to find other things to do with your life. Is the work you do satisfying? Is there the opportunity to progress?

Would you like to take time out from work and travel or do voluntary work?

Have you thought about going back to studying?

Archi_Bald

voltec wrote: »

I am going to spend £14,000 and buy a house to rent out.

Being a landlord is a business, not an investment. It may or may not fit with the line of business you are already in.

voltec

No, the work I do is not satisfying anymore, it used to be but I feel like I need a change...
I am an electrical contractor and I feel like it is boring to me now. There is always opportunity to progress however I feel I don't want to progress in this sort of work. I have traveled when I was 17 and recently started going on holiday to de-stress. Voluntary work doesn't interest me as I'm always busy and finding time is difficult.
Studying interests me a lot however the thought of going to Uni for 3plus years dwells on me...In all honesty I couldn't do that either.
The reason of me buying the house to rent out is it is valued at £65,000-£70,000 and someone who I know is letting me buy the house for £50,000. They originally bought the house for £12,000 and has made his money out of it. I want to put £14,000 on a deposit so I owe £36,000. The monthly rental income is £450 pcm... so in 7 years time the house will be paid for. Me buying that house is a real 'no brainer'...
I have joined a gym to keep my mind focused off of some negative thoughts, I am always trying to better myself at any opportunity. Most 24 year olds would be out getting !!!!ed but that just isn't me.

Archi_Bald

voltec wrote: »

I want to put £14,000 on a deposit so I owe £36,000. The monthly rental income is £450 pcm... so in 7 years time the house will be paid for. Me buying that house is a real 'no brainer'

May be a few more brains would be helpful? How will you be funding any repairs/maintenance, insurances, periods of non-occupancy, mortgage interest, taxes?

Eco_Miser

You've done well in your adult life, but yo probably need to re-evaluate and determine your future goals.

With £100k, you can afford to take a sabbatical and do something that interests you, without trying to fit it round your job. Go along to your local college and see if they've any short courses that interest you, you don't have to commit to 3 years at uni.
Again, look at voluntary work, or even paid work in that sector, like a youth leader, you tend to meet a different group of people, with a wide range of experiences, both volunteers and 'clients'. I know it helped me de-stress.

tiger_eyes

Archi_Bald wrote: »

May be a few more brains would be helpful? How will you be funding any repairs/maintenance, insurances, periods of non-occupancy, mortgage interest, taxes?

If the OP has £50,000 in savings ... and puts down £14,000 of it as a deposit on the house, plus a bit more in fees etc ... why would he have difficulty covering those costs from his remaining savings?

voltec

I am in the construction industry so I meet lots of different people each day, all my friends are in the construction industry too so maintenence on the house is nothing to worry about.
I like to take a risk, 2 times out of 10 it might not pay off however I am in a brilliant financial position in my life, especially not having a helping hand.
My mum was a teacher and later in her life when I was around 19 she graduated university with first class honours and the university offered her a full time job...I honestly don't feel going back to 'learn' is the way for me. I have a short temper and I would rather learn something new by actually doing it and not reading from a book or taking someones advice about business studies who doesn't even own a business.....