Advice - Should I purchase a home

jmurdock

Hello,

I am in a fortunate position at 21 years old after working hard during my apprenticeship to have accumulated 30k.
I have no debts and would like to purchase my first house as an investment.
I am however concerned with brexit regarding the housing market and wonder if its wise to lock up all my money in normally a stable market?
I am also weighing up putting a mortgage out on a house or buying outright a small terrace in northern Ireland or the north east of England where house prices are significantly cheaper than the rest of England.

I welcome any advice.

Unicorn_cottage

Where do you live? Are you after a buy-to-let?

jmurdock

Hi,

I live in northern ireland however study in Newcastle.
I am yes wanting to get a buy to let or just rent out a room

Bossypants

One of the things about owning property that people often forget is that you need to be able to cover unexpected expenses, sometimes quite large ones quite quickly. This is especially the case if you're a landlord (a good one, anyway). It's great that you've managed to save so much at such a young age, but what is your current employment situation like? Is it stable and lucrative enough that you could come up with the funds to, say, replace the boiler at a week's notice?

jmurdock

Thanks for your reply.

Yes thankfully I have a well paid job, however that is a primary concern, balancing putting as much as possible down for a deposit and keeping extra for excess expenses.

Thrugelmir

Might as well accumulate cash until such time as you wish to buy your first home. Open a LISA and you'll benefit from a 25% return on the cash deposited with no risk.

Pixie5740

jmurdock wrote: »

Hello,

I am in a fortunate position at 21 years old after working hard during my apprenticeship to have accumulated 30k.
I have no debts and would like to purchase my first house as an investment.
I am however concerned with brexit regarding the housing market and wonder if its wise to lock up all my money in normally a stable market?
I am also weighing up putting a mortgage out on a house or buying outright a small terrace in northern Ireland or the north east of England where house prices are significantly cheaper than the rest of England.

I welcome any advice.

There are plenty of threads already about Brexit on this board and the Debating House Prices and the Economy board where they belong.

Are you buying a property it live in? If yes, can you buy a £30k property in an area you would want to live in? If you can't, how much of a mortgage can you get to add to your £30k savings?

If you are buying the property as an investment, what kind of return do you expect to make? How does it stack up against other investment vehicles? What kind of tenant would live in a £30k property?

Marvel1

jmurdock wrote: »

Hi,

I live in northern ireland however study in Newcastle.
I am yes wanting to get a buy to let or just rent out a room

Since you want to be involved in the business side of it, read this first, note this is only for England/Wales, read every link by G_M:

https://forums.moneysavingexpert.com/discussion/5180214/tenancies-in-eng-wales-guides-for-landlords-and-tenants

knightstyle

Just to say that IMO buy to let is not worth it unless you have several and manage them properly.
This is due to recent tax and law changes.
So look elsewhere for a decent investment idea or buy a place to live in.

trailingspouse

Where do you live at the moment? If you're renting, then it makes sense to me to use your £30,000 (well done, by the way) as a deposit and get yourself a house to live in. Your mortgage payments will replace your rent payments, and you'll have something to show for it at the end. You can take in a lodger for a bit of extra money.
If you found the perfect house tomorrow, it would be unlikely to have gone through before 29th March anyway, so talk of Brexit is of limited significance.

Crashy_Time

trailingspouse wrote: »

Where do you live at the moment? If you're renting, then it makes sense to me to use your £30,000 (well done, by the way) as a deposit and get yourself a house to live in. Your mortgage payments will replace your rent payments, and you'll have something to show for it at the end. You can take in a lodger for a bit of extra money.
If you found the perfect house tomorrow, it would be unlikely to have gone through before 29th March anyway, so talk of Brexit is of limited significance.

Unless prices crash and he loses his deposit.