How should I invest £30k?

100% invest in your first property, whether it be your own home or BTL.

You sound level headed and mature at 21 and I think you'll regret later in life not investing sooner if you don't. Then when you're older, mortgage free and raking in big money you'll have many options available to you, whether it be continuing in your field of work or retiring with property investments. You'll be able to enjoy that money more with fast cars and less burden.
 
I have friends who were in similar situations. One of them has retired at 44 as he put all his money into property and didn't blow it all. He rents out 5 properties and each makes something like +40% compared to associated mortgage. Quite a few others have just bought their first houses at 40-44 and won't be retiring until they are 70+ due to crippling dept.

Property
/thread.
 
grudas said:
I had to move.oit at 23 and even at 50k+ at 26 it's going to take me a good few years to save up for a deposit.
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The divide is so odd - seeing your salary at the same age as me is depressing but at the same time I managed to save up a deposit in 18 months. Could have been less than half that if I'd made even a conscious effort to live more frugally, not have a nice car etc etc.. And my house will be 3x as big as what people in this thread are talking about buying for over 2x the price :o
 
RoboCod said:
100% invest in your first property, whether it be your own home or BTL.

You sound level headed and mature at 21 and I think you'll regret later in life not investing sooner if you don't. Then when you're older, mortgage free and raking in big money you'll have many options available to you, whether it be continuing in your field of work or retiring with property investments. You'll be able to enjoy that money more with fast cars and less burden.
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doubtful that he'd regret it later in life simply by putting it off for a few years, I don't think property is going to go up significantly over that time period and frankly he'll likely save more money by not buying now and waiting if he's living at home... rather than potentially paying solicitors fees, stamp duty, mortgage interest and then another set of stamp duty, solicitors fees when upgrading to a better place than the tiny dump he can just about afford now
 
dowie said:
doubtful that he'd regret it later in life simply by putting it off for a few years, I don't think property is going to go up significantly over that time period and frankly he'll likely save more money by not buying now and waiting if he's living at home... rather than potentially paying solicitors fees, stamp duty, mortgage interest and then another set of stamp duty, solicitors fees when upgrading to a better place than the tiny dump he can just about afford now
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You might think that, I disagree though. Particularly if he buys a nice cheap place for BTL. Heck he could potentially buy 2x BTLs oop norf
 
RoboCod said:
You might think that, I disagree though. Particularly if he buys a nice cheap place for BTL. Heck he could potentially buy 2x BTLs oop norf
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perhaps not in the case of a BTL but in the case of buying for himself then no, unless we see a large rise in the property market which at the moment seems rather unlikely
 
dowie said:
perhaps not in the case of a BTL but in the case of buying for himself then no, unless we see a large rise in the property market which at the moment seems rather unlikely
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He's asking for potential investment advice and no one knows what the housing market will do. You don't.
 
Skillmister said:
The divide is so odd - seeing your salary at the same age as me is depressing but at the same time I managed to save up a deposit in 18 months. Could have been less than half that if I'd made even a conscious effort to live more frugally, not have a nice car etc etc.. And my house will be 3x as big as what people in this thread are talking about buying for over 2x the price :o
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It's an interesting one, the number might be bigger but what I can afford is probably the same. For a 2 bed terraced house here in south I'll need a good 300-350K so 30-40k deposit at LEAST before banks even start considering me. And while paying london rent prices etc I end up spending a lot of my income just for the essentials. I'd love to move to wales or something but I won't even attempt to get my girlfriend to sign up for it when all her family is here and she's very close to them.
 
RoboCod said:
He's asking for potential investment advice and no one knows what the housing market will do. You don't.
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neither do you!

you're missing the point, I'm not discounting that the property market could go up though there are significant costs if it doesn't go up, again I'm just referring to buying for himself not BTL - the idea that he'd regret it is therefore rather dubious and would require a significant rise in property prices which I think is rather unlikely
 
dowie said:
neither do you!

you're missing the point, I'm not discounting that the property market could go up though there are significant costs if it doesn't go up, again I'm just referring to buying for himself not BTL - the idea that he'd regret it is therefore rather dubious and would require a significant rise in property prices which I think is rather unlikely
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So you agree a BTL could be a good investment.

Buying for yourself would also be a good investment. Since interest rates are currently still low, locking in on a long term deal and getting yourself mortgage free sooner rather than in your 60s certainly seems more appealing to me. That way he'd have more cash flow to enjoy the finer things in life than paying a mortgage off up to retirement.

As with most advice, it's often experience based. Therefore my advice is buy a property sooner than later. Whether you agree or disagree with my experience isn't really of concern. Mind you, it is Dowie, loves a good argument.
 
I stick my money in a managed fund that deals mostly with ForEx... very good returns, it's averaged 20%/month since the start of the year.

A friend of mine has been doing it much longer and he's seen the same average return over a longer period.
 
RoboCod said:
Buying for yourself would also be a good investment. Since interest rates are currently still low, locking in on a long term deal and getting yourself mortgage free sooner rather than in your 60s certainly seems more appealing to me. That way he'd have more cash flow to enjoy the finer things in life than paying a mortgage off up to retirement.

As with most advice, it's often experience based. Therefore my advice is buy a property sooner than later. Whether you agree or disagree with my experience isn't really of concern. Mind you, it is Dowie, loves a good argument.
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It isn't anything to do with disagreeing with your "experience" but simply your argument - why is he going to be mortgage free any sooner simply because he choses to buy earlier? He's otherwise living at home rent free!

You're arguing that by introducing more costs (solicitors fees, mortgage interest etc..) earlier, when he's otherwise living rent free, will leave him with more money - that only works if you get rise in house prices.

And all this ignores that he'll likely be earning significantly more in a few years time, with a much bigger deposit and able to afford much more in the way of property - perhaps a house rather than a flat - if he buys now and decides he wants that in a few years when earning much more then you're talking more solicitors fees and he's in a chain rather than a first time buyer.

Basically for this to be worthwhile vs buying in a few years time (again not talking about BTL) you need, as I already explained, a rise in property prices. That has nothing to do with "experience", it is simple maths.
 
So you agree with my BTL advice.

You've chosen to ignore my point about interest rates though, which we know WILL rise (unlike the property market which we don't know anything about). I missed where op said he was living rent free too. Is this an assumption?

Good chat dowie. Thanks for your input.
 
BTL is a bit different - other risks involved there and you're otherwise tying up capital etc.. depends on the OP's priorities tbh.. it isn't something I'm interested in, I'm just commenting on buying for yourself. Not commenting on BTL doesn't imply that I necessarily believe it is a good idea.

I've not ignored interest rates, they're one of the costs mentioned above along with solicitors fees. You don't know for sure where they will be in say 3 years time but regardless they're a cost you'll have if you buy now and not one that you'll have if living at home rent free.
 
btl is unlikely on the table anyway. As its usually 25% deposit and 30k in that area isn't going to get you to 25%. Well maybe a studio flat somewhere dodgy.
 
I'd pay off the debt, just so it's gone. I'd stick the £4K of the £26K into a LISA to get the 25% bonus from the government. Invest the rest of it in Stocks & Shares. Save up while living at home. Bung another 4K into your LISA next April. Wait until you get your promotion at work. Use the higher salary to get a mortgage on a house that is more desirable. Use your LISA and S&S savings as the deposit.
 
RoboCod said:
Why does a BTL have to be in his own area?
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because that's what he said, buy in bedfordshire and rent it out.

Trying to get a mortgage to buy a house to then rent (location is Bedfordshire)... Can I actually do this with a £30k deposit?
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Also unless you use significant parts of the rent to pay for an agency to fully mange and repair then it is going to be extremely inconvenient to drive several hours to get to it, to fix things which will break regularly.
 
indeed, BTL is a potentially massive faff if located a long distance away

MG42Maniac said:
I'd pay off the debt, just so it's gone. I'd stick the £4K of the £26K into a LISA to get the 25% bonus from the government. Invest the rest of it in Stocks & Shares. Save up while living at home. Bung another 4K into your LISA next April. Wait until you get your promotion at work. Use the higher salary to get a mortgage on a house that is more desirable. Use your LISA and S&S savings as the deposit.
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^^^ I'd second this tbh.. utterly pointless to buy a 200k flat now (especially given what is likely available at that price in that area) when you'd likely be in a position to buy something for 500-600k in just a few years
 
What breaks regularly that requires fixing? My father has a number of BTL properties and can probably count on 2 hands the amount of times he's been called up to fix things over the past 3 years.

That being said, it wouldn't be advisable to manage a BTL yourself from many miles away.
 
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