Life science - Buy or rent

RobHT

Hello,

it's your friend again .
I was browsing around and as usual, I end up thinking that I need to buy a property, I'm also quite bored so I thought to that more than usual
I've 50k steak the moment, all invested, if it goes as planned, I'll have a nice ROI one day, one day ... ... ...
Possible issues:
1.  If this is really a huge bubble, I'll pay a price for a long time later on, one of the reasons why I'm renting, the recession is also possible, the inflaction will scare many for a while as well
2. I just realized that the taxes may be very high though, especially if I withdraw in one shot, but also if I ever want to get dividends only from these investments (example with 500k and 4% dividend income), so I realized that I can't reach the financial freedom in UK, no way.
So, it may make sense to start to think about a property again, but what would you do with such sum? I just ask this general question, let's see what comes up.

The positive thing is that I keep myself flexible, I can relocate quickly if something happens like bad neighbours or new job far away, freedom is the way to the success, if everything goes well .

Honestly, I would like to live in Edinburdg only, or surroundingds, but at the moment I work in London and I live very far away (aprox 50 miles by car).
In this area, I can't afford a mortgage, not at all to be precise, an house of my dreams (little dreams, just 2-3 beds, garden, garage, a bit of privacy) costs 350-450k... The mortgage affordability gives you a mortgage of max 4x times your salary, so with only 350k I need 87.5k salary.........................................................................................
Issues:
1. It's a big liability, it's kind of crazy if you think about it.
2. Obivoulsly the mortgage itself, even if approved, I think is out of mind to have such level of debt.
3. Whatever will break inside, it's gonna cost me a lot and I'm fully liable for everything
4. The council tax will be also extremely high, probably 170 for one person
5. Casually, the old houses, pre or post war are pretty much the same price of the new ones........................................................................................ There you understand how much housing emergency there is in UK, I will skip the building plan and quality in this thread.
6. For my understanding, this situation can't go on, I think we are gonna see soon an house crysis where the prices will drop a lot, in the end, the market is made by rents and purchases! But it's just a broad thought, nothing like a proper real estate market research. If that's true, I won't be able to sell the house for another decade at least, just looking how much they increased since 20 years...

To make it simple, what would you do with such sum? I just ask this general question, let's see what comes up

hazyjo

Stocks/shares or premium bonds.

You can't yet afford a house so I'm not sure what sort of answers you're looking for. How to make several hundred pounds? How to keep that money safe until you earn more or meet someone?

arthurdick

Bloody hell, 50K for steak, do you get the chips thrown in with that?

lookstraightahead

What mortgage can you get? 

jimbog

If having a mortgage is so unpalatable then renting is the best option 

RobHT

hazyjo said:

Stocks/shares or premium bonds.

You can't yet afford a house so I'm not sure what sort of answers you're looking for. How to make several hundred pounds? How to keep that money safe until you earn more or meet someone?

Yes, I invest most of it in stocks.

I was just asking what would you do.
Earning more it will be very difficult, it doesn't happen every day to take at least 87.5k...
Someone else is not an option, I would never take a joint mortgage.

RobHT

dimbo61 said:

I can't understand what your talking about 
Can you rewrite your post in clear English and what is your question 

Google Translate understands it, maybe it's you  

RobHT

arthurdick said:

Bloody hell, 50K for steak, do you get the chips thrown in with that?

Can you get a life? Or maybe laugh at it? You will live better  

RobHT

lookstraightahead said:

What mortgage can you get? 

Lower than that, it's difficult to get at least 87.5k, also in central London... Even the best paid jobs give you much less than that in general, I've seen only few positions that are really heavily paid in London, max 150k on my field but you need to have 20y of experience and be really the best out there, plus such projects don't last for a long time.
My salary range would be between 40-80k, I doubt do overtake that limit.

So, for me buying around London seems almost impossible, and I'm quite sure that most of the people interested to buy don't earn more than 40k in average, in fact the salary average in London is 36k, not even 2 salaries like that can give you a mortgage in London...

hazyjo

Okay, say you wait til you earn 60k. Should be able to get x 4.5 salary. Should have more than 50k deposit by then. You wouldn't be far short of 350k.

You can't expect to buy a house with your first property. I had to buy two flats to start with before I could afford to buy a house (with my first husband).

You can easily get a flat at that price. Even a roomy a bed in a decent area. For  example: https://www.rightmove.co.uk/properties/85871107#/

RobHT

hazyjo said:

Okay, say you wait til you earn 60k. Should be able to get x 4.5 salary. Should have more than 50k deposit by then. You wouldn't be far short of 350k.

You can't expect to buy a house with your first property. I had to buy two flats to start with before I could afford to buy a house (with my first husband).

You can easily get a flat at that price. Even a roomy a bed in a decent area. For  example: https://www.rightmove.co.uk/properties/85871107#/

I earn more than that, but I haven't such deposit yet, in any case, all this deposit for an house it's crazy for me, I also don't want to put all my savings/assets value on an house, it's like to invest only in one stock...

Thanks for the advice, but I'm not planning to move around like crazy, spending money for the advisors, laywers, surveys, moving company etc, and then take the risk multiple times to end up in an apartment/house with tons of problems...

Thanks also for the link, I would never live in such place, sorry, and it doesn't suit my needs at all, I don't see a garage or any sort of private garden.
I'm not sure what is a roomy, but that's not the kind of apartment where I would live, not even the area, London is not for me, too messy and expensive, it's just an illusion for dreamers. (no offense for who lives there)