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TheMadJock

Spending The Inheritance

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Following our decision to buy (as previously) posted, I have been prompted to wonder just how many people are 'investing' their inheritance in property.

A colleugue has just inherited around 30K from his late Gran and decided to use it to buy his way up the ladder a bit. He put his flat up and it has gone under offer for near-asking price to a potential BTL-er. My colluegue then goes on to tell me that this particular guy has inherited some money and is using it to put down deposits on 'several' properties.

Then I start thinking, of the six houses we viewed two of the owners were also looking to move upmarket on the back of an inheritance.

Finally, today I go into Your Move to meet the 'Financial Consultant' about mortgages (5Yrs fixed @ 4.59%, Skipton BS) and mention the BTL bubble to him. He does no more than tell me that purchases by BTL-ers are still going strong round here and that many of them are Regular Joes who have inherited a lump of cash. True or not, he says one particular local lady has bought six such properties in the past five weeks having inherited a large sum.

The thing is, with property so dear it's not uncommon for people to inherit 200K+ which they can use as the deposit on 3 or 4 properties I suppose. How much effect do you guys think inheritance is having on keeping the BTL market and therefore the overall bubble going?

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Guest Bart of Darkness

Quite a lot of people inheriting money. Very suspicious.

Have sales of cyanide shot up recently. :lol:

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Guest Charlie The Tramp
Following our decision to buy (as previously) posted, I have been prompted to wonder just how many people are 'investing' their inheritance in property.

Chatting to my plumber today aged 29 inherited 300k from gran, just bought his 4 bed bungalow for cash. :o

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Nah, the inherited wealth is most likely from the property of the deceased. The price of that ultimately depends on the first time buyer at the bottom of the chain. You can't keep house prices in the air for ever based on this.

Edited by Matt

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Not that much money floating around I'm afraid. Here is a study from the US, but it gives you the general idea.

Essentially:

You can't take it with you

Percentage of the population receiving inheritances.

Inheritance              % of population $0                       91.9% $1 - $25,000             4.3% $25,000 - $50,000        1.1% $50,000 - $100,000       0.1% More than $100,000       1.6%

Source: Calculated from the Federal Reserve Board's 1998 survey of consumer finances.

Remember, this is lifetime expectations of inheritance. So 9 out of 10 of you will receive nowt.

Have a nice day. :)

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Plus my mum has written me out of her will as she's so f**ked off with me moving to Oz, so I'm firmly in the 91.9%.

Still at least I can hold my head up high and tell my kids "all 'ard graft earned this - ah got nowt and tha's gettin nowt an' all"

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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