Spending Your Redundancy On Property?

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This topic contains 22 replies, has 10 voices, and was last updated by Profile photo of Fuengi (Andrew) Fuengi (Andrew) 7 years, 10 months ago.

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  • #54720
    Profile photo of Anonymous
    Anonymous
    Participant

    The ITV1 current affairs show “Tonight” is looking for contributors to take part in a programme about Redundancy.

    Have you recently been made redundant and are now thinking about investing your payout in buying property abroad?

    If you’d like to find out more please email me at emily.burndred@itv.com

    Thank you

  • #89949
    Profile photo of Anonymous
    Anonymous
    Participant

    This, is the most unwise thing that one can do. In the current climate.

  • #89969
    Profile photo of Anonymous
    Anonymous
    Participant

    I’d be amazed if anyone is really thinking of doing this!

  • #89978
    Profile photo of Anonymous
    Anonymous
    Participant

    I’d be amazed if anyone is really thinking of doing this!

    This, is the most unwise thing that one can do. In the current climate.

    So where else would you invest that lump sum? The bank or stocks and shares? Who would consider them safe at the moment?
    There are many, many bargains to be had at the moment, in property everywhere. If you buy wisely, you couldn’t go wrong.
    Or there’s always gold.

  • #89979
    Profile photo of Anonymous
    Anonymous
    Participant

    I’d be amazed if anyone is really thinking of doing this!

    This, is the most unwise thing that one can do. In the current climate.

    So where else would you invest that lump sum? The bank or stocks and shares? Who would consider them safe at the moment?
    There are many, many bargains to be had at the moment, in property everywhere. If you buy wisely, you couldn’t go wrong.
    Or there’s always gold.

  • #89981
    Profile photo of Anonymous
    Anonymous
    Participant

    I don’t know about spending redundency money on Spanish property.

    I mean, who get’s 150,000 pounds as a redundency payment, which is about the price of a decent apartment in Spain.

    Now if you were making a program about where the RBS directors will be spending their bonuses, many up to 1 million GBP, then I would say Tuscany, Umbria and Provence.

  • #89982
    Profile photo of Anonymous
    Anonymous
    Participant

    I would have thought that most people would use redundancy payments to live, until they found another job. And as has been said, not many will get settlements that are sufficient to invest in property.

    As for a good place to put your money, I would rather get next to nothing in interest, than gamble on the (still falling) market in Spain.

  • #89983
    Profile photo of Anonymous
    Anonymous
    Participant

    @paulespana wrote:

    There are many, many bargains to be had at the moment, in property everywhere. If you buy wisely, you couldn’t go wrong.

    So says the man who wrote on this forum exactly a year ago:
    “We all live, or live and work, or aspire to, or have an interest here, on the Costa del sol, so why not be positive about it.
    There is so much to be positive about here, and there is no place for negativity, at all”.

    Still keeping up the good work then Paul?
    Personally, I’m happy for my house money to be where it is – sitting in a bank gaining 5% pa. That’s 5% in the last year since you wrote that – what out of interest do you think Spanish property has appreciated in the last 12 months?

    We’re supposed to be talking about whether property is a ‘wise investment’.
    So I suppose Paul, no matter how wisely one buys, I respectfully disagree with you.

  • #89984
    Profile photo of Anonymous
    Anonymous
    Participant

    “d be amazed if anyone is really thinking of doing this!”

    DO NOT UNDERESTIMATE HUMAM BEHAVIOUR.

    To me redundancy is not there as a windfall that is over & above ones normal requirements ( there are exceptions ) so it has to be parked in a safe environment, until such time that the recipient get back on his/her feet.

  • #89985
    Profile photo of Anonymous
    Anonymous
    Participant

    I don’t know about spending redundency money on Spanish property.

    I mean, who get’s 150,000 pounds as a redundency payment, which is about the price of a decent apartment in Spain.

    I suppose it depends where you choose to invest, but as an example I have an 85m2, two bed house in the campo, in excellent condition with 8000m2 land, reduced from €170k to €110, a fully refurbished village house, reduced from €150k, and the vendor will accept the first €80k, and urban building plots from €12k. 45 minutes from Marbella. You couldn’t lose money on opportunities like this. Even the original prices were realistic for the market as it is.

    PS. Before anyone makes the comment, I’m not trying to sell property here, which is why my phone no. or business details are not within my post. I’m using these as an example only.

  • #89986
    Profile photo of katy
    katy
    Spectator

    Can you enlighten us to why they haven’t sold?

  • #89991
    Profile photo of Anonymous
    Anonymous
    Participant

    @paulespana wrote:

    I suppose it depends where you choose to invest, but as an example I have an 85m2, two bed house in the campo, in excellent condition with 8000m2 land, reduced from €170k to €110, a fully refurbished village house, reduced from €150k, and the vendor will accept the first €80k, and urban building plots from €12k. 45 minutes from Marbella. You couldn’t lose money on opportunities like this. Even the original prices were realistic for the market as it is.
    .

    If these are so good bargains, why don’t they sell?

    12K should be peanuts money for a serious investor.

  • #89997
    Profile photo of Anonymous
    Anonymous
    Participant

    I woud expect the average redundency pay-out to be between 5K to 30K.

    I can’t see how anyone would be able to use that to buy a property in the campo, pay for their removal costs (approx 3k) and live on the balance until things improve.

    This is going to be a very short TV program.

  • #89998
    Profile photo of Anonymous
    Anonymous
    Participant

    @peter Good wrote:

    I woud expect the average redundency pay-out to be between 5K to 30K.

    I was made redundant a few years back, my colleagues and I compared notes, and I would say you are correct in your guestimate.

  • #90002
    Profile photo of Anonymous
    Anonymous
    Participant

    The statutory redundancy payments had been reduced to a negligible amount, during Mrs Thatcher’s period for obvious economical reasons .

    To get £30,000, you must have been used & abused by your employer for more than 30 years of your life. Besides any additional amount of more than £30k, will attract Taxes on the whole amount. This sealing has not been increased with RPI etc and it allows Employers to use as a bench mark in such instances..

  • #90003
    Profile photo of Anonymous
    Anonymous
    Participant

    Not all employers pay the minimum. My employer paid a bunch of stuff over the statutory level, IIRC I got about 11 times the minimum. Even so, it was not enough to consider buying property.

  • #90004
    Profile photo of rt21
    rt21
    Participant

    The economic cycle may be a roller coaster but in times good and bad the advice seems to be invest in property. Is there ever a bad time to invest in property ?

    Richard

  • #90008
    Profile photo of Anonymous
    Anonymous
    Participant

    Property is for a medium to long term period, In property you make your money at the time of the purchase or the price paid for it. This therefore means the timing of the purchase is crucial.

  • #90009
    Profile photo of Anonymous
    Anonymous
    Participant

    I agree. So many seem to “invest” by buying when the market is high, and sell when they “need” to. Justifying the high prices with the old BS, that you cannot go wrong with bricks & mortar.

  • #90010
    Profile photo of Anonymous
    Anonymous
    Participant

    @El anciano wrote:

    I agree. So many seem to “invest” by buying when the market is high, and sell when they “need” to. Justifying the high prices with the old BS, that you cannot go wrong with bricks & mortar.

    As was said above, much depends on the time period.

    For example, if you were to go through your whole life buying a property at top prices and selling them ten years later at the bottom, then after 50 years, you would be well in profit.

  • #90012
    Profile photo of Anonymous
    Anonymous
    Participant

    @rt21 wrote:

    The economic cycle may be a roller coaster but in times good and bad the advice seems to be invest in property. Is there ever a bad time to invest in property ?

    Richard

    2007 was a very bad time to invest in property in UK. 2005-2006 was the most awful time to invest in property in USA.

    Probably the same applies for Spain.

    Second half of 2009 or beggining of 2010 might be a good time to invest in USA, 2010-2011 might be a good time to invest in UK.

    I have no idea when would be a good time to invest in Spain.

  • #90015
    Profile photo of Fuengi (Andrew)
    Fuengi (Andrew)
    Participant

    @flosmichael wrote:

    If these are so good bargains, why don’t they sell?

    12K should be peanuts money for a serious investor.

    well let’s see. He’s resorted to advertising on a forum, hoping for a PM.

  • #90016
    Profile photo of Fuengi (Andrew)
    Fuengi (Andrew)
    Participant

    @paulespana wrote:

    I suppose it depends where you choose to invest, but as an example I have an 85m2, two bed house in the campo, in excellent condition with 8000m2 land, reduced from €170k to €110, a fully refurbished village house, reduced from €150k, and the vendor will accept the first €80k, and urban building plots from €12k. 45 minutes from Marbella. You couldn’t lose money on opportunities like this. Even the original prices were realistic for the market as it is.

    Just shows no-one is willing to pay that sort of money to be in the middle of nowhere.

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