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Bubbles

Should She Buy Or Not That Is The Question

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Hello all,

After lurking on this site for a few months I have finally found the n*ts to write something. I am a STR, sold earlier in the year as I needed a bigger house for my family and was unhappy with the area. With the money from my house I bought two properties abroad which are well on the way to being completed next year. I suppose that makes me a uk bear and an overseas bull, whatever it makes me I have made my own decisions in life and dont give a t*ss what anyone else thinks (apart from my wife and family).

Having read a lot of articles on this site, I must say that I feel sorry for people in this country who cannot afford to own their own property and do feel that the market needs a healthy correction. My feelings for the btl bulls are mixed, on one hand I respect those of them who have taken the jump to try and better themselves in life but on the other see the negative side of fuelling a market which is pricing first time buyers out. For personal reasons I do hope that there is a market crash so I can purchase a cheap house in the uk again, but for the time being I am quite happy renting.

Now to the point of the topic, my mother-in-law who has been living with me for the last year has eventually sold her house following a seperation from her husband. She will be left with approx £130,000 in cash and is looking at property at the moment. She is on a low wage and when she is due to retire in a few years will be on a low pension. Her view is to buy a property outright now (two bedrooms in my area are going for about £130,000) as she will hold on to the property throughout retirement. My view is that she should make a decision which is what is best for her circumstances, but I cant help thinking that she is making a big mistake as she will never have any comfort in retirement (something which she is owed after putting in 20 years to the National Health Service). My view is that she should rent for a couple years and put her money somewhere else to buy at a later date.

Your view would be much appreciated.

p.s I am now likely to get an AWOOGA, would someone please give the definition

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p.s I am now likely to get an AWOOGA, would someone please give the definition

No AWOOGA. Hi New Member. I would stay well clear of UK property for the next two years. If she did spend the 130K on a house you should explain that the house could be worth 50% of that in two years. If she's happy with that, fine.

Edited by karhu

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Guest prudence

I had a friend whose circumstances were not completely dissimilar to those of your m-in-l. I tried - unsuccessfully - to persuade him to rent for a couple of years or so. The interest on the capital would cover the rent, and if in two years time prices had fallen significantly he would be able to buy the same property as now - but still have some savings as well.

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Hello all,

After lurking on this site for a few months I have finally found the n*ts to write something. I am a STR, sold earlier in the year as I needed a bigger house for my family and was unhappy with the area. With the money from my house I bought two properties abroad which are well on the way to being completed next year. I suppose that makes me a uk bear and an overseas bull, whatever it makes me I have made my own decisions in life and dont give a t*ss what anyone else thinks (apart from my wife and family).

Having read a lot of articles on this site, I must say that I feel sorry for people in this country who cannot afford to own their own property and do feel that the market needs a healthy correction. My feelings for the btl bulls are mixed, on one hand I respect those of them who have taken the jump to try and better themselves in life but on the other see the negative side of fuelling a market which is pricing first time buyers out. For personal reasons I do hope that there is a market crash so I can purchase a cheap house in the uk again, but for the time being I am quite happy renting.

Now to the point of the topic, my mother-in-law who has been living with me for the last year has eventually sold her house following a seperation from her husband. She will be left with approx £130,000 in cash and is looking at property at the moment. She is on a low wage and when she is due to retire in a few years will be on a low pension. Her view is to buy a property outright now (two bedrooms in my area are going for about £130,000) as she will hold on to the property throughout retirement. My view is that she should make a decision which is what is best for her circumstances, but I cant help thinking that she is making a big mistake as she will never have any comfort in retirement (something which she is owed after putting in 20 years to the National Health Service). My view is that she should rent for a couple years and put her money somewhere else to buy at a later date.

Your view would be much appreciated.

p.s I am now likely to get an AWOOGA, would someone please give the definition

In her shoes I would buy a home that she will still be able to manage when she's 85.

A lot of the houses we are looking at are old people's semi detached that they haven't maintained and should have moved out of 10 years ago whilst the property still looked ok.

The only problem I have with renting which I'm doing now is the fact that we could be asked to leave in 2 months, I hate that.

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130 K IN THE BANK AT 4.75%

surely this must give her about 400 quid a month at least

if it were me i would rent till i found my dream home or prices were reasonable

whichever came first

but surely this money coming in a month must pay a good chunk of the rent?

and she has still got 130k to play with

its up to her what she does let her decide

i would be quite happy to look after it for her

ps; i didnt mean awooga really just bored and being daft! sorry :D

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Hello all,

After lurking on this site for a few months I have finally found the n*ts to write something. I am a STR, sold earlier in the year as I needed a bigger house for my family and was unhappy with the area. With the money from my house I bought two properties abroad which are well on the way to being completed next year. I suppose that makes me a uk bear and an overseas bull, whatever it makes me I have made my own decisions in life and dont give a t*ss what anyone else thinks (apart from my wife and family).

You put your winnings on 2 nags that are yet to cross the finishing line :o I`m more worried for you than your in law. Good luck, where is the development, please tell me it`s not Bulgaria or Turkey or Cyprus or Estonia.....or? :P

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AWOOGA + Anyone With Opposite Opinions Go Away

(It doesn't really - just my definition)

Re your mother in law - maybe suggest that she buys (when she decides to) either a bungalow or a flat with a lift - just in case she finds stairs difficult as she gets older?

Also maybe near to shops?

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my mother-in-law who has been living with me for the last year has eventually sold her house following a seperation from her husband. She will be left with approx £130,000 in cash and is looking at property at the moment. She is on a low wage and when she is due to retire in a few years will be on a low pension. Her view is to buy a property outright now (two bedrooms in my area are going for about £130,000) as she will hold on to the property throughout retirement.

I think this probably a good idea in her case. Once she owns outright she will have no housing costs apart from council tax (which shouldn't be much for a £130K property, also doesn't she get a discount for living on her own?) and utility/heating bills and her pension would have to be tiny not to cover this, also her pension should be alright because she worked for the NHS, also I'm sure you as a dutiful son-in-law will bring her treats and things and generally help out as much as you can. That's my opinion anyway.

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Blimey 166 viewings already and 10 replies, this site does not mess around.

At the moment the jury is out.

Thanks for the advice so far and yes Landlady it is time she went on her own way!

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she will never have any comfort in retirement (something which she is owed after putting in 20 years to the National Health Service).

Doesn't she have a comfy public sector final salary pension?

And I think she should bank the money and rent. Then in 2-5 years time she can buy for less and have a bit of money left over for a few luxuries in retirement.

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Doesn't she have a comfy public sector final salary pension?

And I think she should bank the money and rent. Then in 2-5 years time she can buy for less and have a bit of money left over for a few luxuries in retirement.

If the interest on the money is greater (after tax) then rent and wait for prices to fall. Otherwise buy now. Her aim should be to own a house and have cash left over.

The other question is, if she doesn't buy a house will she spend the money. If the answer to that is not NO, then buy now and don't wait.

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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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