I missed the second emergency fund after you have paid off all unsecured debt of 3 to 6 months expenditure.
Thanks for all the replies guys. I will add some more context to my situation as you guys have given some solid advice and I guess it will help with my decision. Are you doing the UK investments based on Brexit? Do you think it's a thing where the UK will slowly build back up which will lead to a profitable investment? I understand, I'll give more context now. Yes, I'm British and living in the UK. *Deep breath* I don't have a house. I was considering using my money to buy a property and become a landlord but with the current climate on UK landlords, I've been advised that is very hard nowadays with all the new legislation etc. I don't have a house of my own. I am currently paying my mom's mortgage which will be transferred to me in the future. I am 33 years old. I have a partner and a 9 month old daughter and we are currently renting. When we had my daughter, it really rocked our relationship to the point where we almost broke up. So I'm a bit uncomfortable doing a joint mortgage with her in case we break up. Especially as in the UK if you break up and have a child the man can be kicked out the house and have no rights until the child is 18 even if the house is solely in my name. So I could have to pay a mortgage for a house I no longer live in while paying child support AND having to afford my own place to live. This is what's putting me off getting a property. I know some people may think I'm being crazy, but I think anyone who's been through divorce will understand. Although most people I have spoke to have said the best investment I could do for myself right now would be a house even over the SP500 so if that is the general consensus on here also, I'm thinking I may have to bite the bullet. Any advice will be taken on board. Thanks again
You have inheritance tax risk. If your mother dies you will have to pay 40% over £325k. Dave Ramsey will have you buy a house for yourself and stop paying your mothers mortgage. You should also get married as he doesn’t approve of roommates buying property together, have pre marriage counselling and go through financial peace university so you stop arguing. Www.daveramsey.com on YouTube in the U.K.
If you don’t get married your partner has inheritance tax risk. You can since the 2nd December 2019 enter into a civil partnership that gets round the iht problem. If you have a mortgage you should have life insurance to pay it if you die.
Cheers for this. Relationships complicate all financial planning. I understand why you're hesitant about a joint mortgage, at least until the child reaches adulthood and moves away. You're already avoiding marriage to your partner, so this seems realistic. But by the same token, you're paying for your Mum's mortgage. It might be a bit indelicate of me but how do you know for sure that her house will come to you? Has she other children who may object? Suppose she meets someone and they move in. Suppose she re-marries. Suppose she meets someone and they start paying the mortgage. Suppose she makes a Will and leaves the house to her cats. Suppose she already has......
Unfortunately while it MAY double or triple in 30 years, you WILL pay double the original price in interest payments even in today's low interest climate. 165K loan will pay 135K in interest. Add in taxes of 2% per year, that's another 100K+ over 30 years. So that 205K house has cost you 400K before maintenance. I have a niece and a nephew who are still underwater from 2008. Whoulda thunk it? I own my house and 8 rentals. I am not advising the same for my 30 year old son.
I have been an investor and trader for 30 years you can buy companies with strong management. in 1994 my father bought some shares of HDFC bank in the IPO. in 2019 I sold these shares.it was 100000 bagger. have you heard of shares of any company multiplying 100000 times? there may have been many. 5 years is too less a time for a company or an economy to grow. 15 years is the minimum. I am a day trader in the forex market but I had a look at the monthly chart of the S&P. while 'small corrections' may be expected to take place there is no sign of a major top being in place. all dips should be bought :but how big the dips will be no one can really say. such trends only end by a blow off one such blowoff occurred in jan 2018 after which the correction was 10 months and almost 30%.
Simple long term trend following system using ES or MES. Daily, 200SMA. When MA goes from down to trending up, note its value. Multiply that value by 1.02, enter long when MA gets to that number, exit when trend of MA turns down (again note value, multiply by .98 and get out or go short at that value) EZ PZ if you have the patience to hold.
No probs. Thanks for your time. I completely understand what you're getting at. I will be transferring the property over in three years time. The only reason I'm not doing it now is due to legality issues but as soon as it's possible I'll be doing it and there will still be mortgage payments due so it's not exactly something my mom can disagree with so I feel quite secure in that aspect. I think I may just get a property solely in my name. There's still risk of course, but no where near as much. Would you say the same to someone who can knock like 70% down off a property to live in as well then? Genuine question, cause if property isn't quite the investment people make out, I will consider other options. I do worry brexit may affect housing prices in the future. I would love to be lucky enough to get one of those big bagger companies but I assume someone of my trading skills which is literally basic, I would just be gambling which I'm not sure would be the choice for me. But you do recommend the SP500 I gather from what you're saying? Sorry for the delayed responses guys. Can't seem to reply on my mobile for some reason. So have to get the laptop out.
My personal residence was bought 50% financed and in fantastic shape when we bought it. Those 2 first houses made money. 105% in 12 years on the first one and 56% over 8 years on house 2 (net,net) The rentals were bought one by one, cash. No appreciation on those, which was expected, as they were purchased for cash flow. Good luck in your endeavors.