What to do with 100K
Discussion
In a bit of a dilema, having almost sold my house, i'm starting to wonder about what to do with the money, ( I don't need to buy another house to live in ).
Options are, buy a property and rent it out, or invest the money, we are talking about £110K.
Have been to look at a new build 2 bed apartment, built to a very high spec, and renting for between 550-575 a month.
The housing market at the moment is still favouring buyers, but is it that good an investment, or are there other means of getting a decent return on 110K.
Thanx.
Options are, buy a property and rent it out, or invest the money, we are talking about £110K.
Have been to look at a new build 2 bed apartment, built to a very high spec, and renting for between 550-575 a month.
The housing market at the moment is still favouring buyers, but is it that good an investment, or are there other means of getting a decent return on 110K.
Thanx.
Thanx for all the info so far.
I suppose it depends on the property market as to whether buying to rent is a good investment, could it actually get any worse?
I really just need a decent return whilst protecting the capital.
After thinking about it, and taking on board what has been said, I will leave the property I was looking at alone, just doesn't add up after you take all the monies out, not really left with that much per month.
I suppose it depends on the property market as to whether buying to rent is a good investment, could it actually get any worse?
I really just need a decent return whilst protecting the capital.
After thinking about it, and taking on board what has been said, I will leave the property I was looking at alone, just doesn't add up after you take all the monies out, not really left with that much per month.
I suppose seeing as I started this topic I'd better come back with some more deatil of the property I was looking at as an investment.
Brand new 2 bedroom apartment, 2 equal size bedrooms, 1 en-suite, plus a decent size bathroom with shower fitted over bath, good size lounge/dining area, plus a decent size size kitchen.
Overall size was 679 Sq ft.
Asking price was £115,995 for a first floor, with balcony.
Ground rent £125.00 per year.
Service charge £880,00-£1,100.00 this was an estimated figure, as it was "plot specific".
Council tax £1,116.84 per year.
I found out that these will rent out for around the £550 per month mark, so taking all the figures at the max mark, this will return approx £4250 per year before tax.
Does this sound about right, or have I missed something.
Brand new 2 bedroom apartment, 2 equal size bedrooms, 1 en-suite, plus a decent size bathroom with shower fitted over bath, good size lounge/dining area, plus a decent size size kitchen.
Overall size was 679 Sq ft.
Asking price was £115,995 for a first floor, with balcony.
Ground rent £125.00 per year.
Service charge £880,00-£1,100.00 this was an estimated figure, as it was "plot specific".
Council tax £1,116.84 per year.
I found out that these will rent out for around the £550 per month mark, so taking all the figures at the max mark, this will return approx £4250 per year before tax.
Does this sound about right, or have I missed something.
Explain 1 months rent void, also the flat would be let unfurnished apart from white goods and carpet/flooring/curtains, and it would be made quite clear that apart from major breakdowns of goods, any unforseen wear and tear will be paid for.
Will be marketing myself, so no agents fees.
I actually never thought that tennants would pay council tax, so that's a bonus.
So my calcs. come to £5375 per year now, this is obviously before any deductions.
Is this reasonable.
Will be marketing myself, so no agents fees.
I actually never thought that tennants would pay council tax, so that's a bonus.
So my calcs. come to £5375 per year now, this is obviously before any deductions.
Is this reasonable.
quyen said:
steve1 said:
I am of the old school, if someone doesn't pay then they don't get, don't ask me to explain any more.
Sounds like you are a hands-on
kind of a guy.That's one way of putting it I suppose, as for deposit, I would actually go down the 2 months rent up front route, so no need for deposit insurance.
Legal documents can be downloaded from the internet for free, as long as there are no special circumstances regarding the tennancy then this will more than suffice.
A long term tennant would be ideal, but not always possible.
The more I look at the buy -to -let idea the more I think it maybe too much hassle at the moment/what ifs and maybe's.
So, what's the best place to put my money to earn a decent return, as well as protect the capital, don't mind tying it up for a year or so at a time, ( would have done this with property ).
Not keen on dabbling in shares, think you need to do quite a bit of research before going down that route.
I will probably be getting a call from my bank soon, they always want to talk when you have money, but just want to know what you guys think.
Thanx.
So, what's the best place to put my money to earn a decent return, as well as protect the capital, don't mind tying it up for a year or so at a time, ( would have done this with property ).
Not keen on dabbling in shares, think you need to do quite a bit of research before going down that route.
I will probably be getting a call from my bank soon, they always want to talk when you have money, but just want to know what you guys think.
Thanx.
haworthlloyd1 said:
you may be of the old school steve, but what about the tenancy deposit, your address on the letting agreement, you being traceable by the landregistry.
if you are of the old school it doesn't work that much nowadays - you may get someone paying up but equally you are just putting yourself in the firing line for trouble for no reason.
why be a reasonable man who has to resort to violence - they could ruin your noble, 'do' your family etc and for what? a few hundred quid a month?
its not worth it at all imho - i have vacant properties because i just don't want hassle. you may get lucky, you may not but the one thing i will say is when i'm lying on a beach i don't want to hear that my house is torched, someone is going to sue me, a tenant hasn't paid etc etc.
you hear the wonderful stories and i agree, when houses are appreciating 15% a year it makes sense however i think personally those days are gone.
You must have taken it the wrong way, I would never resort to violence if you are of the old school it doesn't work that much nowadays - you may get someone paying up but equally you are just putting yourself in the firing line for trouble for no reason.
why be a reasonable man who has to resort to violence - they could ruin your noble, 'do' your family etc and for what? a few hundred quid a month?
its not worth it at all imho - i have vacant properties because i just don't want hassle. you may get lucky, you may not but the one thing i will say is when i'm lying on a beach i don't want to hear that my house is torched, someone is going to sue me, a tenant hasn't paid etc etc.
you hear the wonderful stories and i agree, when houses are appreciating 15% a year it makes sense however i think personally those days are gone.
not myself anyway.It's one of the reasons I have decided to forget the idea of buy -to -let, not enough return for my money, and it's not as though property is going anywhere at the moment.
By the way, the noble has long gone.
haworthlloyd1 said:
quyen said:
NoelWatson said:
quyen said:
Only dabble in shares if you're comfortable with losing your capital
.
When did the FTSE last go to zero? Assuming that A BTL is a leveraged investment, is there not a danger of losing all your capital also?.Although the whole FTSE have never reach zero, blue chip companies can lose 90% or more of their value very quickly (e.g. RBS) and some have even gone bankrupt. This, for me, makes it too dangerous to dabble in shares directly. But horses for courses and all that...
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