Q1. If you had £200k cash whats the best way to buy a £150k house.
 

Assuming it was a first house and you had no outstanding debts or were in need of the money for anything else.

Don't forget to ask for the change :)


Just tell agents that you are cash buyer ready to go and strike a good bargain.

£200,000 in cash? have you been selling nose candy per chance :norty:

What i mean is pay cash,get a mortgage,or what about those offset mortgages?
Surely paying cash is the best because you save all that interest?

Well thats £625 purely in interest per month at 5% :)


If you had the cash you'd be mad not to save 25 years interest

Used 50s, I reckon....

Should fit in a holdall :thumb:

Pay Cash. I thought about this as well .... but by the time you fcuk about getting a mortgage & then some other fcuker getting you money you would make more on buying the house with cash than with a mortgage.

With my last house i took a very low mortgage & paid as much as i could into it. It will work out well when i get the money on friday :D

Why not buy a couple of smaller houses that might rise in price more over the years rent them out and get a house with the income from the rents?

S'what I'd do!

"Discount for cash?" :D

Sorry,not interested in becoming a landlord. Too much hassle.

Buy the two next door neighbours properties and rent them to immigrants for 6 months, then wait till the value drops and then offer them £100k ;)

use the cash to buy as many properties as you can with mortgages on each low enough to be paid entirely by the rent you rake in on them.

(as deposits if you get my meaning)

might not be bothered about becomming a landlord, but the hassle is worth the dividends!! :)

all down to your attitude to risk....you can borrow at just under 5%....can you make that net in investment return with the money you no longer need because you got a mortage? the anwser is very propably yes.

can you live with "probably"?

ignore the "buy to let" posts......they are the same as suggesting steroids for the folks that ask what to eat to tone up a little!

Thanks.
What do mega rich people do in the same situation?

depends on the same quetion

Okay,thanks.

pay 150K cash for the house then its finished with (no silly interest to pay)


then spend the 50K on

Booze and Hookers :D:D:D


you will remember it for the rest of your life

paypal ? :lol1:

Ignore everyone else.

I would advise you to shop around, seek to negotiate and then buy the property for £150k.

That will be £50k please for the advice - my invoice will be in the post.

Rannoch :D

:luxhello:

Don't listen to any of these muppets. Take a 100% mortgage for the £150k flat and invest the £200k in the following: There is a prince in Nigeria who needs to use someones account to move £10million out of Africa. He will need the £200k for admin and minor bribes and then will split the £10million with you.

Seriously though there are simply two options

If you feel you can make more than 5% net profit from investing your cash take a big mortgage and invest the cash. If you can't then buy the house cash.

Mortgage the full amount, go to the casino and stick the 200 gees on either red or black.

Simply put, whilst you can get a guaranteed return on about the same rate as a mortgage, you'll pay tax on it. I have nearly that amount in the bank as I'm "between houses" at the moment (living in rented while a purchase goes through). I'm paying £150 / month tax on the interest. You might not get tax relief on the mortgage, but you don't pay tax on any rises in the property value.

On top of that, I'd stick the max allowance (£7k IIRC) in a good ISA with suitably managed fund(s) or similar, as that can give you a good tax free growth; in good years the right funds increase lots (one of mine went up 30-odd % last year). If you still have plenty of savings next year, do the same on the ISA again. In the meantime, I hope you're getting well over 4.5% on any savings you have via a suitable internet account as a minimum! ;)

Oh shut up, at leest aye can spel!!

:D