Advice on where to live?

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username5785455
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Hi,
I have just finished my final year at uni and my parents have given me £350k to spend on a property. They have said that it is the right time to give me this money as they think I am old enough to make a sensible decision, that it would be better for me to get on the housing ladder as soon as I can and so that I don't waste money on rent. I am wondering though where should I move to that would make the best use of the money? I was thinking about moving to London but the prices are so high there and I wouldn't get as much for my money. There are areas of London that are cheaper but I don't know whether it would be a good investment. Any recommendations?

Thanks
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Imboredasf
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House prices are an all time high right now.

Better to stay with your parents for a bit until you make a decision.
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username5785455
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(Original post by Imboredasf)
House prices are an all time high right now.

Better to stay with your parents for a bit until you make a decision.
I think I will wait for a bit given how high prices are. I think my parents would like me to buy within the next year or two though and don't want me to just leave it in the bank. I'm trying to think ahead and start planning.
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Quady
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(Original post by jameshanson01)
Hi,
I have just finished my final year at uni and my parents have given me £350k to spend on a property. They have said that it is the right time to give me this money as they think I am old enough to make a sensible decision, that it would be better for me to get on the housing ladder as soon as I can and so that I don't waste money on rent. I am wondering though where should I move to that would make the best use of the money? I was thinking about moving to London but the prices are so high there and I wouldn't get as much for my money. There are areas of London that are cheaper but I don't know whether it would be a good investment. Any recommendations?

Thanks
Where do you work.....?
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Wired_1800
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(Original post by jameshanson01)
Hi,
I have just finished my final year at uni and my parents have given me £350k to spend on a property. They have said that it is the right time to give me this money as they think I am old enough to make a sensible decision, that it would be better for me to get on the housing ladder as soon as I can and so that I don't waste money on rent. I am wondering though where should I move to that would make the best use of the money? I was thinking about moving to London but the prices are so high there and I wouldn't get as much for my money. There are areas of London that are cheaper but I don't know whether it would be a good investment. Any recommendations?

Thanks
You are very lucky to have parents who want to eliminate one of the biggest barriers to wealth in the country.

I agree with them that you should not spend the money on rent because you would just be paying another person’s mortgage. Here is my suggestion but speak to your family to see whether it makes sense:

Split the money into 3 buckets, £175k (bucket A), £125k (bucket B) and £50k (bucket C).

Bucket A: Use this bucket for a down payment on your own property. This could be in London or the Counties around London. Best to buy a place on freehold to ensure that you don't get into the leasehold trap. I have recently seen stories of leaseholders in mortgage prisons because their leasehold is crazy esp with ground rents. I think the Government is probably looking at fixing the problem.

Bucket B: Use this bucket to pay a deposit on a rental property. Also get this property on a freehold so you can own the entire property and the land it sits on. Then rent it out to get yourself a passive income. You can add this income to your core income from your job or keep it separate for your children’s future, if you prefer.

Bucket C: This £50k should be for your emergency funds. This amount would ensure that you are not left stranded if anything negative occurs such as you losing your job or having a significant need for cash.

It is obviously up to you to spend your 350k how you want but i wouldn't advice you to put everything into one project. As they say “never put all your eggs into one basket”.

Good luck. Let us know how you get on.
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Quady
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(Original post by Wired_1800)
Bucket A: Use this bucket for a down payment on your own property. This could be in London or the Counties around London.

This amount would ensure that you are not left stranded if anything negative occurs such as you losing your job
What job have they got and where is it?
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Wired_1800
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(Original post by Quady)
What job have they got and where is it?
I have no idea but I assumed that it would probably be in London or surrounding areas since their family has 350k to give to them for a property.
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username5785455
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(Original post by Quady)
Where do you work.....?
Trainee solicitor in central London.
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londonmyst
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Congratulations on being gifted the £350k!

It's probably best to divide the cash into at least four separate pots with the funds held by several different uk banking groups.
The FSCS deposit protection limit is only £85,000.
The £85k applies per individual and includes all savings accounts & isas with uk regulated financial institutions or banking groups.
Set aside an emergency easy access savings fund of between £30k-50k.
Plus remember you can place up to £20k a year taxfree in a cash isa.

Do you prefer a short commute to work (under 1.5 hrs daily) or are you more flexible in terms of usual weekday travelling time?
Do you prefer living alone, renting a room in a professional houseshare, living with friends or staying with family members?
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