Investments and don't buy house

Rocksolid

Hi,

It seems that the plan to buy an house in UK is not what I was expecting, super expensive, most likely not safe locations and I don't even like anything about UK, just few locations in London that cost millions and they are not even very well built, just a bit outside London (15-50 miles)) I need at least 600k for something decent...

So, the plan is to invest in stocks rather than buy an house (that is a kind of investment anyway), so I can bring these investment returns wherever the life will bring me.

There are different things I could do:

- Daily trading (too aggressive and time consuming, I work Full time, no time to follow personally unless a broker/platform will do the job for me...)

- Stock investment (on Vanguard I see interesting ETF, I know people that reached financial freedom with them or similar platform/way to invest, but... You need to invest a couple of grand per month)

- Other stocks? Play now with the tech bubble?

- Crypto currencies (similar to betting, no way, unless some one off)

- Life insurance (investment) - something like 100 pounds per month for life... It's for sure low budget, high return, safer than any other... But I guess it will be a problem if I switch country... Different currency, regulations, maybe the platform is not available in that country and they'll lock my account...

In both life insurance and stocks with high budget, I can't be sure to maintain always the same investment flow, if I count in 3-5 years from now...

For what I understand I need to set up goals and then start to build a portfolio, and keep an eye on it

Moreover, I need knowledge and skills that for sure I haven't, they are on the way.

Any recommendation?

El_Torro

Unfortunately investing in the stock market isn't a get rich quick scheme. If it was everybody would be doing it and the returns would quickly be diluted. Sure, you can make a good return in the stock market, but we're talking over the course of a decade or more.

Owning your own home is still a big step on the road to financial independence. Not only do you stop paying rent, it also gives you security. If you rent all your life then be prepared for your landlord to essentially be able to kick you out whenever they feel like it. This becomes more of an issue as you get older. 

Sure, having your money invested in stocks and shares is likely to give you a better return than putting the money in a deposit and then paying off a mortgage. Will it give you a better lifestyle though? I'm not convinced it will.

Thrugelmir

If making money from investments were that easy we'd all be multi millionaires. 

jjdc

London is a ****hole, as are most cities. Property is cheap up north. Find a nice village somewhere, Midlands. £600k would buy a mansion and an acre of land in a peaceful area, in London it would buy you a garage.

Buying a house to live in is nowhere near the same thing as investing. Would be like saying I'm thinking of buying a nice car but they're too expensive so will buy a coat instead.

Presumably if not buying, you're renting, which is money down the drain before you've even looked at investing.

What a strange thread.

kinger101

If you're buying the property as an investment, then it shouldn't matter that you don't like the area or you think it's unsafe.  The only opinion that matters is that of prospective tenants.  If you do need the property to live in, then investments aren't much good.  You can't sleep in an ETF or bitcoin. 

Rocksolid

I just added this part to the 1st message:

- Life insurance (investment) - something like 100 pounds per month for life... It's for sure low budget, high return, safer than any other... But I guess it will be a problem if I switch country... Different currency, regulations, maybe the platform is not available in that country and they'll lock my account...

In both life insurance and stocks with high budget, I can't be sure to maintain always the same investment flow, if I count in 3-5 years from now...

El_Torro said:

Unfortunately investing in the stock market isn't a get rich quick scheme. If it was everybody would be doing it and the returns would quickly be diluted. Sure, you can make a good return in the stock market, but we're talking over the course of a decade or more.

Owning your own home is still a big step on the road to financial independence. Not only do you stop paying rent, it also gives you security. If you rent all your life then be prepared for your landlord to essentially be able to kick you out whenever they feel like it. This becomes more of an issue as you get older. 

Sure, having your money invested in stocks and shares is likely to give you a better return than putting the money in a deposit and then paying off a mortgage. Will it give you a better lifestyle though? I'm not convinced it will.

Eheh... What to say, difficult to find an answer, houses here are too expensive, it doesn't make any sense, my life style would be ruined anyway from the place where I live, it doesn't matter London 3 or 50 miles away where I currently am I. I always do so many miles just to do something...

If the owner can kick me out, also the bank could take the house and I can loose everything... I prefer to rent at this point and I can be flexible from every point of view.

The financial freedom that I talk about can be reached in less than 5 years if you can invest 3 times more than your currently expenses, every month.

At least, if I got it well with the math .

@jjdc I can't relocate where I want, I still need to work, I'm young, not going for retirement, what should I do in a remote village?

Despite I work in IT and I can work remotely, it's always hard to find these jobs and they would pay you based on the location where you live just to use you, I hope you got the point, so the salary will be adjusted to the crappy location where you live, and at that point, whatever previous cool life plan will be smashed.

I mentioned the house to buy because I need to decide, or I focus on that, or on investments, that can be from money and time point of view all together.

I would like to buy an house, actually I need to, but here is impossible.

To get 600k mortgage I need... Boh probably 135k salary.

To get 400k I need to gain 80k.

In both cases I won't even qualify for help to buy, but obviously is normal to pay 2k mortgage  

Rocksolid

@kinger101 I need to buy an house for me, not for investment, I understand is weird to talk about both house to buy and stock investment, but I'm not comparing, just saying that they money have to go somewhere

Emmia

You don't necessarily need £600k to buy, but you do need to be realistic with what the money you have will get you - that might mean not right in the centre of a city, but instead a train or tube ride away, or perhaps it is a 1 bedroom flat, rather than a 12 bedroom mansion. 

The riskier your investments the greater the potential return, but also the potential for loss.

fred246

You can rent all your life but you need a much higher income in retirement. You don't want to be on the streets at 80 years of age because the landlord has put the rent up and you can't afford it. So it makes sense to buy a property. Property is normally quite a good investment too in the long term. If you want financial freedom and retire early you can buy the smallest cheapest property possible. Whether you are happy living in it is your choice. Most people would want a better property.

Rocksolid

Emmia said:

You don't necessarily need £600k to buy, but you do need to be realistic with what the money you have will get you - that might mean not right in the centre of a city, but instead a train or tube ride away, or perhaps it is a 1 bedroom flat, rather than a 12 bedroom mansion. 

The riskier your investments the greater the potential return, but also the potential for loss.

Look, around Harrow, 600k is not even right, I was terribly wrong, because for 600k that's what I can get, a 2 bed bungalow, old inside and outside, quite pathetic: https://www.zoopla.co.uk/for-sale/details/51151925?search_identifier=db59b07c8f50ef6b3091e7d50f46879a , probably I need 900k for a detached house with 3 bed, garden and private parking.

Look an example here of something decent, at more than 3 times the real value (I don't expect you to get it ): https://www.zoopla.co.uk/for-sale/details/55528034?search_identifier=f58ed5dffbda2d66ac675eb6a834d825

fred246 said:

You can rent all your life but you need a much higher income in retirement. You don't want to be on the streets at 80 years of age because the landlord has put the rent up and you can't afford it. So it makes sense to buy a property. Property is normally quite a good investment too in the long term. If you want financial freedom and retire early you can buy the smallest cheapest property possible. Whether you are happy living in it is your choice. Most people would want a better property.

Man, if I reach 60 is fine, who cares about 80... I don't think to retirement, it's a mistake to think about it, I think till I can work, I'll be alive, otherwise no life, in fact you are useful for the society till you work, and that's your life, after you are too old to enjoy, considering always if you are lucky to reach 60 .

I can't buy an house and invest, the down payment will kill my plans for financial freedom of only investments, but yeah, it could be possibly ATM to pay a mortgage and invest as well.

ATM, for example, I have the possibility of only 15% mortgage (covid rulez), but much better than before at 35% though, apparently I've been a good boy with my credit history building recently , and I got also much higher credit limit in cc.

Let's be serious for a moment, in Harrow is impossible, around 50 miles away from London center I need at least 350k house, also that is quite expensive man... Looking few stats almost no one can make it... The people that make it will be in debt soon, I won't be in debt neither, oh wait, for now, later with a less paid job? Mmm...

Then ok, I'm not British and my idea of house doesn't match, if you guys around London are happy of 200k house/apartment, go 5 seconds on Zoopla and see what you get, I would never buy something like this, pay for life, renovate inside every 5-10 years if I'm lucky (due to IKEA cheap !!!!!! stuff) and major maintenances and renovations every 15 for sure.

Up north is a bit better, but not that much, probably Manchester, Edinburgh and some other city that I probably like and offer me something in IT.

I would like do not focus this thread on houses, it's time wasted guys, despite your tentative to help, thanks.

fred246

Sounds like you would be better being homeless and focusing all your time on investments.