Where would you invest £200k and why?

Clive · Feb 25, 2017

bobk said:
Sold our last house to a barrister , he buys ex council houses ... lots of them .

Well 6% isn't terrible given lack of other better alternatives right now, you can't afford to pay others to manage them though and certainly not the 10% mentioned above !

It's an ok way to make money as long as you don't get a bad tennant at which point it's hell and can be very costly

And there is always the chance we get a property boom and start making money from the rising market again ....... but I wouldn't hold my breath on that bit just now !

Clive · Feb 25, 2017

oldoaktree said:
Student houses in Carlise might be an idea £200 k should get you something decent.
Think Carlise are on 40 odd weeks of the year but not sure .
Rent should be £80 odd per week per room turn living room into 5th bedroom attic bedrooms? Beware HMO's but follow rules and it's not a problem.
Pays better than tenant farming

Students ! - now that's certainly not property investment for the faint hearted !

To many seem to think you simply buy a house and collect the rent ! Reality is there is much more to it than that

oldoaktree · Feb 25, 2017

Clive said:
return on investment

The entire point of buying houses you don't live in !

Yield ?

"How do you work out the yield on a rental property?
Gross rental yield. To calculate, take the 'Annual rental income (Weekly rent x 52 weeks)' and divide by the 'Property value'. Then multiply this number by 100."

bobk · Feb 25, 2017

Clive said:
Well 6% isn't terrible given lack of other better alternatives right now, you can't afford to pay others to manage them though and certainly not the 10% mentioned above !

It's an ok way to make money as long as you don't get a bad tennant at which point it's hell and can be very costly

And there is always the chance we get a property boom and start making money from the rising market again ....... but I wouldn't hold my breath on that bit just now !

Better than a pension /isa ... not that I've got either.

Clive · Feb 25, 2017

oldoaktree said:
Yield ?

"How do you work out the yield on a rental property?
Gross rental yield. To calculate, take the 'Annual rental income (Weekly rent x 52 weeks)' and divide by the 'Property value'. Then multiply this number by 100."

No, when investing what I want to know is the ROI % be that a house, a business,shares etc, a farm or even a building society account

oldoaktree · Feb 25, 2017

Clive said:
Students ! - now that's certainly not property investment for the faint hearted !

To many seem to think you simply buy a house and collect the rent ! Reality is there is much more to it than that

It's a job students are ok in the main .
Keep them warm bedded up and muck them out once a year jobs a good' n
Remember that students are not in residency 12 months of the year but often have to pay 12 months of the year

Clive · Feb 25, 2017

bobk said:
Better than a pension /isa ... not that I've got either.

IF it all goes well then yes it is, just

Clive · Feb 25, 2017

oldoaktree said:
It's a job students are ok in the main .
Keep them warm bedded up and muck them out once a year jobs a good' n
Remember that students are not in residency 12 months of the year but often have to pay 12 months of the year

I was a student once - I would not have wanted to own the house we lived in !!

bobk · Feb 25, 2017

Clive said:
IF it all goes well then yes it is, just

I don't envisage finishing tbh , make your money before 45 ... it doesn't get easier.

oldoaktree · Feb 25, 2017

Clive said:
No, when investing what I want to know is the ROI % be that a house, a business,shares etc, a farm or even a building society account

I have a house on 16% yield
And one that breaks even just others do around 10%
If you don't like it don't do it .
I left bottom of market years ago 40/50k housed rented at £450 a month . Waste of time- to much trouble .
Rent rooms to young professionals, students, high end barn conversions . Holiday lets ( they are my worst as wor lass won't have a bad review so spend a fortune on them )
Each to there own I've virtually given up farming to do this .

Clive · Feb 25, 2017

oldoaktree said:
I have a house on 16% yield
And one that breaks even just others do around 10%
If you don't like it don't do it .
I left bottom of market years ago 40/50k housed rented at £450 a month . Waste of time- to much trouble .
Rent rooms to young professionals, students, high end barn conversions . Holiday lets ( they are my worst as wor lass won't have a bad review so spend a fortune on them )

What would be the ROI of that 16% yield rental ? Ie whats it worth and what is the rent pa ?

bobk · Feb 25, 2017

oldoaktree said:
I have a house on 16% yield
And one that breaks even just others do around 10%
If you don't like it don't do it .
I left bottom of market years ago 40/50k housed rented at £450 a month . Waste of time- to much trouble .
Rent rooms to young professionals, students, high end barn conversions . Holiday lets ( they are my worst as wor lass won't have a bad review so spend a fortune on them )
Each to there own I've virtually given up farming to do this .

Do you do DSS?

oldoaktree · Feb 25, 2017

Paid 265
Spent 20k getting it up to speck
Rent per year £50 k
The property was valued to 450k I thought that's was high.
I could convert it into 3 separate properties at around 30 k per property which would get me 600 to 650 k. Or knock it down and build more on the site depending on planning.
But at the moment I'm happy with 50 k a year

oldoaktree · Feb 25, 2017

bobk said:
Do you do DSS?

Christ no !

Clive · Feb 25, 2017

oldoaktree said:
Paid 265
Spent 20k getting it up to speck
Rent per year £50 k
The property was valued to 450k I thought that's was high.
I could convert it into 3 separate properties at around 30 k per property which would get me 600 to 650 k. Or knock it down and build more on the site depending on planning.
But at the moment I'm happy with 50 k a year

Return (as a landlord) is 12% ish which is pretty good - not many properties do that unfortunately

Your ability make money out of it through improvement or conversion however is propert development and not rental - now there IS good money in property development I will agree on that !

oldoaktree · Feb 25, 2017

Clive said:
Return (as a landlord) is 12% ish which is pretty good - not many properties do that unfortunately

Your ability make money out of it through improvement or conversion however is propert development and not rental - now there IS good money in property development I will agree on that !

That's if it net or gross yield!
Like many say with development it's one good crop but with my rental I'll get an average crop until I choose what to do.
Then there's the gain issue
I've no intention of doing anything but rent it at the moment.
I unfortunately didn't go to college or completel my o levels .
I understand something that will make me money but the ins and outs of the complicated stuff I suffer with.
I admit that I not the sharpest tool in the box but I'll have go and understand the logic behind how to make money.
Growing wheat on rented land fatting cattle are things I enjoyed but returned little profits with very high inputs.

oldoaktree · Feb 25, 2017

Clive said:
Return (as a landlord) is 12% ish which is pretty good - not many properties do that unfortunately

Your ability make money out of it through improvement or conversion however is propert development and not rental - now there IS good money in property development I will agree on that !

As I said in an earlier post with development it's what you pay not what you sell it for .
I've had burnt fingers before with that .
Buy terraced house spend 20/30k on it on total refurb , you need to sell it for a least 20k after cost of refurb to make it worth while. There's the hidden cost of cap tax council tax solicitors fees ! Blar bla bla

welger · Feb 26, 2017

oldoaktree said:
Renting houses is the same as any business the more you have the more problems.
50 sheep it's ok 500 sheep there's lots of problems
10 cows ok 100 cows (beef or dairy) more problems.
You get the picture.
I have tenant house of different types and they'll always causes you problems it's not stick a tenant it and watch the money roll in .
Things happen- oddest thing probably was a tenant left owning rent but left a snake behind.
Dead rat under floor boards in student house .
It's just like farming in away problems arise and you sort them out .
Such as what's that noise out side ? Fat cattle have got out of shed at 2 in the morning.
Combine tyre decides to explode on Friday afternoon of the august bank holiday.
Things things get sorted same problems in rented houses .
It's just a mind set if you don't like dealing with tenants there are companies who will do it for , I'd say a small fee usually less than 10% of the rental income.
Some will even take the house off you and guaranty you full income regardless if the house has a tenant or not . I've never tried this so can't comment on the outcome for the owners, I get letters often offering this service

yes I know all that.but there is dealing with animals and then dealing animals least with cattle you have a fair idea what they might do next.got some very good tenants then same as everybody else just scum bags.but these last few years they just seem to get worse they just don't care about there self so what chance has the big bad landlord got only sort it out and go again

Fieldarcher · Feb 27, 2017

For me I would buy woodland or land I could plan a wood.
I could then set up a field archery club and run events for local schools and groups, showing how you can have a bio diverse environment and business.

nelly55 · Feb 27, 2017

Rentals are ok until you get the tenant from hell,just had to refit a house tenant removed year old kitchen,cut electric wires in walls,left it damp and dirty.Our holiday let is hard work,but does bring in more than an ast.Plus they go home without eviction costs.Our asts are 9.2,7.7,and 13.9

Where would you invest £200k and why?

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0 %

Up to 25%

25-50%

50-75%

75-100%

100% I’ve had enough of farming!

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