Should I use inheritance of 250K to buy first house?

F

froger

Guest
Hello,

I am looking for some advice on what to do with inheritance that I received lately of 250,000, this sum of money for me is huge. I having been renting for the last five years without issue. But now that I have such a large amount of money and with all the banking/euro troubles should I be looking at putting this money into a house as soon as possible? Or could I wait a year or two before buying?

Thanks :)
 
It's a matter of choice.

If you are reasonably settled and have a life plan, then now is as good a time as any.

If you are asking will prices drop dramatically, then that is pure speculation.

mf
 
Prices are still dropping and will probably continue to do so for sometime, especially given that banks are not lending.

I'd think long and hard about it and when you do decide to buy, remember you are buying a home, and not a house to get on the housing ladder. In other words, think longterm. In the meantime, I'd suggest getting out and seeing what is out there, where you'd like to live and what you can get for your budget. Remember, as a cash buyer, you're in a great position to negotiate
 
I agree with mpsox ( surprise!), especially about building up your knowledge over the coming months.

Whatever ther story about property prices the fact is that Winter has traditionally been the deadest period for property movement
Wait until the present economic storm settles a bit, and especially untuil we know what is in store for the property owner in the Budget.
 
What age are you, are you single, what is your long term plan?

There have been massive price drops and we're not allowed to discuss property prices on here, but you read the papers don't you.

Cash buyers can get even lower prices. Be aware of this if you do decide to buy. Try not to buy an appartment, and certainly never a one bed. The most important decision is location, location, location.
 
Not only have you to weigh up the downside of a property purchase i.e. prices falling but also the downside of putting money in any bank given the times we're in because thats not risk free either.
 
House might be better than loads of (possibly) useless Euros in the bank! At least you can live in the house and it will save you on rent
 
I have been looking around for a bit now and am amazed and what people are looking for with asking prices. There is still a bit of money out there though as a few houses had offers on them which were way to high for what they were, either that or somebody trying in inflate the price.

There is nothing at all coming on the market now so it looks like a lot of people are not willing to sell at the moment. There are plenty of boom built cardboard boxes out there though.

I am taking my time in looking for a house, but with all this euro stuff it introduces a huge fear.
 
froger - am intrigued by your comments that prices are way too high.
I suppose, like many property owners, I'm shocked (and depressed) by how low they are - half of what they were five years ago .
Where very roughly - you don't have to say the exact area - are you looking ?
 
froger said:
I have been looking around for a bit now and am amazed and what people are looking for with asking prices.
Click to expand...

Don't forget they are just that - asking prices. The price of a house isn't a fixed sum, like an item in a shop. They are negotiable. They ask (hope for) 500K; you offer 300K; then the negotiation starts. Many people are advising offering 40% of the asking price!! (You'll be told to eff off, often, but I guess a brass neck helps.)

Go and see as many houses as possible, it'll give you a good idea of what you want and what is a realistic price. Even if you decide not to use the full inheritance, or not to buy till next year/later.

PS - Never tell the Estate Agent how much you have to spend! They are working for the seller, not for the buyer.
 
oldnick said:
I suppose, like many property owners, I'm shocked (and depressed) by how low they are - half of what they were five years ago .
Click to expand...

Prices were so ridiculously high 5 years ago, that half of that is still ridiculously high.
 
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