Is property still a sensible way to spend either terminal grant or redundancy money?

Discussion in 'Finance, Property, Law' started by AndyTargetFive, Jul 11, 2013.

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  1. With mixed views up and down the country currently on property, do members of the forum feel that property investment is a sensible use of cash lump sums given either on completion of service, or redundancy, from the Armed Forces?
     
  2. With property prices going up at the moment yes, but what goes up must come down one day!
    But you could put tenants in it and invest that money in an ISA or similar?
     
  3. Property should be like any other investment. They can go up as well as down. For some unknown reason though people freak out when they go down.

    I still find it amazing that if I buy a car I expect it to drop in price yet when I buy a house I expect it to continually go up.
     
  4. A wise man once said. "Buy land. They don't make it any more". I get my terminal lump sum in about 6 weeks and am paying off my mortgage toot sweet. That'll be cause for celebration.

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  5. Buy somewhere, stick a tenant in and let them pay the mortgage for you. Worked twice for me.
     
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  6. No where else to stick your money at the moment. Booze and loose women is the mans option though.
     
  7. Buy some land on the HS2 route cheap and sell it for more later on.

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  8. Totally agree with what Afghan A, devex and the RQ have said, property purchased (or even part purchased) with cash and not mortgaged to a bunch of shysters will always be the way to go. I would be wary of any long term mortgage whatever the rate right now because at some time in the future interest rates have to return to realistic levels and not to the artificial low levels currently much enjoyed by the city slickers who are doing again what they did in Blair and Browns day.
     
  9. TheIronDuke

    TheIronDuke LE Book Reviewer

    Yes but be careful. Property, like the horses sees more shagged than shaggers. The big money at the moment is in buying ex-student lets as distressed properties. Because the Muppets that have milked them for decades have not spotted the fact that students now want to live in the purpose built blocks being stuck up by the likes of me.

    Buy a distressed property and spend £15-£20k making it into en-suite apartments for people who can afford it (young professionals) and see a 12% yield. Watch out for Direction 4 or whatever it is called. A planning permission thing for action to stop multi-occupancy. If you get hit with Direction 4 torch the place, claim the insurance and build a Tesco. Ensure no humans or family pets are in the gaff when somebody torches it.
     
  10. I would suggest you keep a very small amount as a mortage, should you ever need to borrow money in the future its easier to add to the mortage.