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one property or two

Started by pepsi2020, March 28, 2017, 12:53:38 PM

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pepsi2020

Hi

Within the coming months my father will be helping me get onto the property ladder I am based in London I have a salary of 20k a year and I need advice on what to do so I'll tell you a little about me and please help with advice anyway which you see fit..

Ok as I mentioned above I earn 20k a year I am 36 years old no partner or kids and I'll have the sum of roughly 360k and the majority of that will be given to me by my father who has made it clear no cash will be given to me but I can pick a house in London or within close proximity or get 2 houses or flats outside London one to live in and one to rent so if you were in my situation would you do look at buying a house to live in and therefore be mortgage free or try a more risky alternative and for example buy 2 flats or a house and a flat in kent ( I like the look of Canterbury ) or Luton or herts live in one rent one out

I appreciate it is a wonderful problem to have but it is still a problem that I am looking at finding the best way to maximise my gains long term or maybe even short term

I will be a first time buyer and I plan on quitting my job once I have brought my property or properties and try something else as my job isn't what I want to do long term

I also am debt free

Thanks in advance for you're help

Andy

Simon Pambin

Well, if you buy one property and just live in it yourself, it won't really be earning anything other than any gains (or falls!) in value that won't crystallize unless or until you sell it. (You could, of course, take in a lodger or two, if that wouldn't cramp your style too much.) If you're genuinely prepared to look further afield, things get a lot cheaper outside London, so £360k might get you, say, a couple of two-bed terraced houses. Live in one, let the other out at, say £750 per month  Effectively, then, £750 per month is the "cost" of living in a bigger/London-er property, compared to something that's just big enough, out in the sticks. If I were you, though, I'd sort out the career side before I took the plunge on the properties. It would be galling to buy a house and then, six months later, realize that my dream job was a hundred miles away!

pepsi2020


Hippogriff

No partner, no kids, no job (you are tied to) in London... hmmm... move up North... buy 3 or 4 houses. Live in 1 debt free and then grab around £1,500 per month from the other 3 combined.

I note your comment about the restriction on what you can do with the money... London or close proximity. Too limiting for my idea. But my idea is the best one.

pepsi2020

Thanks

I appreciate you replying to my question

So if I did consider buying up North where would you suggest I can always buy a studio to live in for myself down south and buy one or two places up North.

The reason I want to live in close proximity to London is because all my family are here  I visit Newcastle frequently and I love it there but I know nothing about the markets up north..

Thanks

Hippogriff

No, I'd not recommend buying property you're not close to.