Are you homeless then ?
Where would you invest £200k and why?
- Thread starter Scrambler
- Start date
Daniel
Member
- Location
- Mildenhall, Suffolk
No I live in a house which is owned by our farm. It is not in my name and doesn't belong to me, thus any house we bought wouldn't be our second home.
- Location
- South Molton
I live in a house i don't own and have bought a house with land. The mixed use, land and house sorted the second home issue for me.
If you buy to let then look at best return, rent, for money invested. Friend had 3 houses in roughest part of town , cheap to buy but good rental value.
If you buy to let then look at best return, rent, for money invested. Friend had 3 houses in roughest part of town , cheap to buy but good rental value.
I think if it's a specific first time buyers mortgage there will be a clause in it saying you can't rent it out. We're selling my wife's house for that reason as she was on a help to buy sort of scheme.
I've got a few friends with buy to let's and many have had their figures burnt.
Hilly
Member
- Location
- Scottish Borders.
Pension first houses second would be for me.
- Location
- Boroughbridge, york
isnt the interest being treated differently on buy to let over the next few years, effectively killing the idea.
our accountant said it may be better to increase my farm mortgage to pay off my buy to let mortgage. not now but in 2-3 years time
our accountant said it may be better to increase my farm mortgage to pay off my buy to let mortgage. not now but in 2-3 years time
- Location
- Dorset/Wilts
It would have to be a buy to let mortgage. Which immediately means you'll need a higher deposit, 25% I think. Plus repayment rates will be higher. Bug*ers don't want people to buy to let anymore. Alright if you got on that particular ladder before they shot that market down. The rich get richer
- Location
- Dorset/Wilts
If you are settled and secure where you I would still aim to get somewhere and let it out. I have a mortgage cos my old man is too stingy to let me live in one of the houses, as they are rented out. If I did live on site I would move in one day and start looking for another house, to buy and let, the next day.
I certainly think it's good planning to be able to stand on your own two feet and have a little income of your own. Cos you never know.
- Location
- Yorks
Just one thing to think about there.
If no borrowings on the buy to let house, then full value of house may all come into inheritance tax calculation.
No borrowings on land and can still get Ag property relief on it.
- Location
- Boroughbridge, york
Agreed its a bit of an escape plan should we ever be troubled by 40% tax. Just the accountant thinking out loud rather than full recommendation
smcapstick
Member
- Location
- Kirkby Lonsdale
How about this for boring - invest it all in my business as trading capital. It's safe and reliable.
pensions are one of the worse ROI there is, I have two houses as they are easily sold if needed but with the changes in taxrules, stamp duty I wouldnt do any more, I would invest in small business units/selfstorage as its decent return for smaller investments less risk of bad tenants that leave houses in bad repair
What sort of return on investment you offering ?
smcapstick
Member
- Location
- Kirkby Lonsdale
I'd be happy with 5% APR. Maybe double for reinvested dividends? It depends on the repayment terms, I suppose. Obviously, access to £200k for £10k per year would be handy.
I know very little about this - credit and investment are subjects I have never really looked into.
It's supposed to be about investing £, with a view to getting more back than you put in.
Don't get a lot back from your choices apart from an expired ticket, a load of p***, and a nasty rash.
Just sayin'.
I was playing 'devils advocate', as I know a couple of fund managers who are doing 'extremely well' from the 2% their firms are charging their clients on similar investments.
One of whom just happens to be following the Lions Tour, and another who has a penchant for...
What I'm trying to get at is sometimes it's best to invest in leading a 'life' while we can, with or without family or other company along the way.
Those memories are worth more than an elderly misers ££££ any day of the week.
- Location
- roe valley
I am in the buy to let business, when the figures are done and dusted our average yearly return is around 11% which is nothing spectacular. The buy to let itself has many different routes to go down. There are the low value houses with smaller rent but you can have more of them, higher value house with slightly higher rent but you have less of them. The main difference is resale value in X amount of years time the % rise difference between the two of them. Yearly income/Investment. For example we have a new build 4 bedroom detached house in a decent area whos rent is lower than a 4 bedroom terraced house in a slightly run down bit of town. Where as if i went to sell in 10years the detached house has the ability grow 100k + the terraced would be lucky to grow 30k. If you were open to the trading idea, there is a market for houses that need minor renovations eg. house in a goodish area/older part of town thats just been neglected maybe an elderly person has been in 40 years. Go in gut it head to toe ikea style kitchen, bathroom, bedroom spruce the whole place up but do it right and put it back on the market. You have to be efficient no dicking about for 12months, 4months put it back in the ring. With the landlord thing as well you cant mess about, phone rings something wrong with the house it gets done immediately not this "i'll get round to it sometime" carry on. A house lying empty for 2 months can take the shine off the rental market as well.