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What to do with 100k.....in Aberdeen

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  • What to do with 100k.....in Aberdeen

    Hi all!

    Ok I will be getting 100k to invest in property in Aberdeen this winter, so at the moment I am trying to figure out what to do with it!
    I am currently renting with my partner in Aberdeen so am looking at properties in this area.

    The two options I seem to have are:

    1) Buy a flat to rent it out - some properties go for offers over £60k at the low end of the market and would like the idea of buying it outright but I heard somewhere that what they actually sell for is 40% over this so that may not be possible or even a good idea anyway. Or I could get a buy to let with a big deposit and let the rental income pay off the mortage repayments.

    or

    2) I have an option of buying a flat with my partner and going 50:50 on the mortgage. We have worked out we can get a mortgage for around 150k with our combined incomes. So I could possibly pay my half of the mortgage off straight away or put the money I will have in a savings account grab the interest and pay the mortgage repayments out of that as I earn interest.

    I've got loads of time to think about what I want to do with this money, but just don't know what would be best for me at the moment. The main thing I want is to get on the property ladder! So anyone with suggestions, ideas, advise I would be grateful to hear from you as this is all rather new to me!

    Thanks!

  • #2
    First, I think it depends on whether you're happy where you're living and with your partner. If you two want to own, then go for it. The buy to let idea is good especially in Aberdeen these days so you can't really lose there either.

    I like being in something that I own and can do DIY stuff with, but that's me.

    Have you been looking at properties alot so far?

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    • #3
      I'm with vicki2. If you're happy where you are, why do you need to move right now? You could take your time looking until you actually get the funds, then make a more informed decision.

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      • #4
        If you want a property in Aberdeen for less than £100k you will have to move fast. Ours was valued at £85k in Dec and has now been valued at £105K. Market is crazy!!!!!!!! Good rental potential though. Try Torry, cheaper than town centre and a regeneration area. Our flat in Torry has increased from 39k to 105k in less than 4 years. Still money to be made though. Good luck. x

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        • #5
          If you're currently renting, then in my opinion you shouldn't be looking to buy a property to let as an investment, but a property that is an investment as a home.

          The buy-to-let market runs differently than buying a mortgage for a home, and simply put, there are fewer hoops to jump through when buying a home as opposed to an investment property.

          Also, if you actually stop and consider buying a property as a home, I'll bet you're much more likely to take further care on ensuring that it's a much better property.

          As for taking out a mortgage with your girlfriend - seriously not advised unless you've been together for a very long time - 5+ years - as if you should split up any time within the mortgage term (likely 25 years) then things would likely get very complicated indeed.

          If that's a problem, consider both of yourselves buying your own individual properties - that way, if you do find your relationship lasts for the long term or you get married (and therefore share assets anyway) then you can look to either let or sell the second property and gain from the property inflation, or simply sell both for a nice big home in Morayshire instead.

          Hope that helps.

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          • #6
            Brian, I think your advice is sound. I would agree that it's better to take the funds and apply them to a home for myself rather than JUST trying to make money with it. In the long run, you still have a home to live in, can sell it in the future (most likely for a profit if prices keep skyrocketing), and will likely be close to debt-free on it.

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            • #7
              I think she was considering that as her #2 possibility or scenario. I suspect that the relationship factors into this pretty heavily. Sometimes that's a harder call than buying the property.

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              • #8
                Doesn't Aberdeen have a pretty high standard of living ie property costs?

                Have you considered moving into a more rural area to get a property that's cheaper, but still has decent transport links to Aberdeen?

                Hey, I'm just thinking aloud here.

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