What would you do with my money?

G_M

What would you do with my money?

Only one way to find out. Transfer it to me (PM me for sort code/account number) and I'll show you.

Cakeguts

Marvel1 wrote: »

Just to add, my house and next door sold the same time. Next door is rented out.

My mortgage is currently £207 a month, rent next door is about £400.

Yes but the difference is that the rent cost also pays for property maintenance the mortgage cost has property maintenance on top as well as the risk if you can't pay the mortgage.



The person renting can claim benefits to pay the rent if they lost their job. The person with the mortgage will have to use their savings. So although the mortgage is only £207 on top of that you have to save for the maintenance and to offset the risk of having to use savings to pay the mortgage. This means that the amount of money left to spend out of earnings for the mortgage payer could actually be significantly less than for the person paying rent. Which is you always need to spend a lot less when you are paying a mortgage than when you are renting and why if you aren't good at saving money rather than spending it buying a property is a risk especially if you are on a low income.

Cakeguts

DestinyGamer wrote: »

Thank you everyone for your honest feedback. What we will probably end up doing is using 20k-30k for a deposit and get what we can afford mortgage wise. The rest of the money will be saved for emergencies.

It’s important that we get on the ladder because as AnotherJoe said...









and we don’t want to be worrying about how to pay rent when we are retired.

My OH is very good at saving and will buy a car if we end up having to move further afield but I prefer to rely on public transport for work. We haven’t been on holiday in years, and we don’t spend frivolously. I think it’s possible to use the money wisely enough to get our first home.

The dream of a buy to let will have to stay that, a dream.

How much have you got in savings? Have you got enough to pay 6 months rent without having any earnings because this is what you are going to need to do if you want to buy a house and possibly a car. I can't really understand why you need to use part of the £50k for a deposit because surely if you are good at saving you already have most of that money saved as a safetly net for if either of you loses their job? £50k may seem like a lot of money but it is actually less than the two of your earn in 2 years so not a fortune and running a car will make a big dent in your finances.

dimbo61

When you get this lump sum put into easy access savings accounts.
Start looking for a property to suit your needs while considering the future !
Maybe a downstairs WC or even wet room ! ( With a ground floor shower and toilet)
Now I like modern houses because I am lazy and after a full day at work don't want to start WORK on a house or live in a building site.
Modern houses have better insulation and modern heating so cheaper bills.
Modern houses tend to come with downstairs WC
Double glazing made from uPVC so no painting.
A small rear garden with patio, off road parking and maybe a garage
Buy freehold not leasehold and try and avoid estates with management charges.
Consider location with a bus route nearby and maybe a good train station.
I would also consider an Offset mortgage as you can use some of the lump sum as deposit while putting the rest into the offset account as emergency savings.
Good luck in finding that perfect home.
2/3 bedrooms should be fine

Retired_Mortgage_Adviser

Congratulations on the windfall.

With no dependents, assuming no debt and a deposit of 30k, on your combined income you may be able to afford a property costing 150-160k.

In your place I would talk to a mortgage broker, get a clear idea of my potential budget and start looking for a suitable property.

Good luck!

DestinyGamer wrote: »

I’m about to come into some money from a medical negligence claim - around £50,000.

My partner and I haven’t had this kind of money before and want to get on the property ladder after renting for the past 11 years. I’m intrigued to find out what you would do in our position with this money and if you have any advice for us.

To help you I’d like to share a couple more things about us:

• We are both in our late 30’s

• We can’t have children and have no interest in adoption

• He’s an Assistant Store Manager earning 16,000 p/a

• I’m a retail assistant earning £12,000 p/a but would like to cut back on hours due to my health

• I’ve always expressed an interest in owning more than 1 property

• He wants a forever home

• We don’t have a car right now

If you’d like more info please ask

dwsjarcmcd

I notice from your signature that you have circa £8,500 in debt. I think I would deal with that first, so use some of the remaining money (after your £30k deposit) to clear that. If you don’t, you would be less likely to pass any lenders affordability tests on such low salaries.

ToadsFriend

Forget buy to let...buy your OWN house. It's the best feeling ever not relying on anyone else or living with the threat of eviction.

You won't need housing benefits etc then either. You have the security in old age and THAT can be your nest egg

lees80

One other thing to consider is your expected quality of future health, and how you will be able to afford to maintain the property if you buy. A standard workplace pension on the salaries quoted is unlikely to offer anything huge in terms of a return.

Not very often I say this, but in your scenario it might be a more secure option to continue renting, especially if it is a local authority property.

SnooksNJ

DestinyGamer wrote: »

I’m about to come into some money from a medical negligence claim - around £50,000.

My partner and I haven’t had this kind of money before and want to get on the property ladder after renting for the past 11 years. I’m intrigued to find out what you would do in our position with this money and if you have any advice for us.

To help you I’d like to share a couple more things about us:

We are both in our late 30’s

We can’t have children and have no interest in adoption

He’s an Assistant Store Manager earning 16,000 p/a

I’m a retail assistant earning £12,000 p/a but would like to cut back on hours due to my health

I’ve always expressed an interest in owning more than 1 property

He wants a forever home

We don’t have a car right now

If you’d like more info please ask

If you aren't moving to somewhere like Detroit I would either start a home business or some kind of continuing ed program. Stash the rest.

onwards&upwards

DestinyGamer wrote: »

I appreciate what you are saying however there isn’t anything I can think of that I’d like to retrain to do. Here all the jobs are either healthcare, teaching or retail related. I’ve worked in retail all my life and have a Higher National Diploma in Textiles. I have student debt already from this which I currently don’t pay anything towards due to my low income. Retraining would mean more expense with no guarantee of a better job at the end.

I bet there are loads of potential career paths that you aren’t aware of. Is it worth talking to a careers adviser or similar maybe? What are you good at?

A good seamstress can run a pretty profitable business from home doing alterations and commissions and selling little pieces on Etsy/eBay for example. They’re always in demand and there aren’t loads about anymore.

What about your OH? Would he be interested in a change to a more lucrative career?