To buy or not to buy?

Penny_Racer

Just after a little advice.
I have some money to invest (approx £26k). I would love to invest in property as I already have a buy to let, but am thinking that this probably isn't a good time right now.
I did look into membership with Inside Track but have decided to follow my gut instincts and stay well away from them.
I have found a property in the village where my Mum lives. It's a " highly sort after village location ". Its a 3 bed semi that belonged to a couple who have recently passed away and its on the market for a very very good price.
I would like to either buy it, do it up then sell it on or do it up and rent it out.
However some of my family members are putting me off the project by telling me that now is really not the time to buy. I've done all of my sums and can afford the project but am worried about the timing...any advice??

Running_Horse

Do whatever your heart tells you is right. No one here knows if this is right for you.

Without wishing to be rude, wouldn't that £26,000 be better used reducing your £48,000 debt?

mlz1413

If your buying to sell I would probably not
If your buying to keep then I probably would
It's a lot of cash but a very small sum amount of equity.

It has to be your decision as it is your money, think about what you would do if you didn't invest it in property. IE does the stock market scare you or not?
Could the money go into a 6% account and pay for a holiday every year?
Would the money pay off debts and then you could save the monthly payments on them?

Good Luck

Penny_Racer

Thank you to both of you for the advice.
The plan was to use this lump sum to make a bit more money so that I could pay off my debts. All of the debts are on agreements and I don't pay any interest. I have offered a reduced full and final settlement to all of them but none of them are interested. They want more!

Running_Horse

Penny_Racer wrote: »

I have offered a reduced full and final settlement to all of them but none of them are interested. They want more!

Again, no offence, but so would I if you owed me £48,000 and had a spare £26,000, as well as a BTL. I'd insist on every single penny. Is borrowing more really the way to reduce debt? Perhaps it is. Perhaps its just me.

Good luck with whatever you decide.

Penny_Racer

No Running Horse, it isn't "just you" I didn't explain myself very well.
The buy to let is my husbands, I just "manage" it for him.

Catblue

I mean no offence either, honestly. However, if I were £48K in debt, then I would acknowledge the fact that I was not much cop at managing finances. The fact that you recently even considered Inside Track just reinforces this fact.

I certainly wouldn't be taking on even more debt to finance this new house. Would any reputable lender even consider lending you the money in your current state? And if your existing BTL is so lucrative, how come you are so much in debt now?

My advice would be to sell your existing BTL and use the £26K to settle as many of your debts as you can. You'll probably be happier for finally getting rid of them.

Running_Horse

There are a number of experienced BTLers here. If you give more details of the value of the house and likely rental income, I'm sure they would be able to give some really good advice. I doubt there is much capital growth to be had.

Penny_Racer

The fact that you recently even considered Inside Track just reinforces this fact.
Sorry Catblue, Can you explain why this makes me "not much cop at managing finances"?

Guy_Montag

I'm also not trying to cause offence, but is there no obligation on your part to let your creditors know you have come into some money?

I honestly don't know, but it would surprise me to find out that there is not.

Penny_Racer

I've let them all know. I've drawn up a full and final settlement ex gratia payment to them all. But they have all said that they want more than I have.