What sort of a return can I get on £650k?
Discussion
The wife and I will be retiring and moving up to our place in norfolk either late this year or early next year.
We can't decide whether to sell our current home, probably worth about £650k, or rent it out.
Renting would give us about £23k a year after deducting agents fees, landlords insurance, etc.
Can we do better than that by other means?
Whatever we decide on, we will need a monthly income from it to live on.
Thanks
We can't decide whether to sell our current home, probably worth about £650k, or rent it out.
Renting would give us about £23k a year after deducting agents fees, landlords insurance, etc.
Can we do better than that by other means?
Whatever we decide on, we will need a monthly income from it to live on.
Thanks
That's a yield of 3.5% on the property which isn't brilliant.
I would imagine you could beat that without doing anything overly high risk, and you have the added benefit of not having to deal with a property and associated headaches.
As per the poster above, it depends on your risk appetite.
I would imagine you could beat that without doing anything overly high risk, and you have the added benefit of not having to deal with a property and associated headaches.
As per the poster above, it depends on your risk appetite.
bogie said:
Up North you can buy 2 bed houses for £40k ish which rent for £500 a month.....do the maths on that. If you can cope with the hassle of being a landlord and managing say 10-15 properties, you should be able to get £60-70k a year coming in
That sounds pretty impressive. I guess the ratio of house price to rent is much lower up north!Hoofy said:
bogie said:
Up North you can buy 2 bed houses for £40k ish which rent for £500 a month.....do the maths on that. If you can cope with the hassle of being a landlord and managing say 10-15 properties, you should be able to get £60-70k a year coming in
That sounds pretty impressive. I guess the ratio of house price to rent is much lower up north!Phooey said:
4% Risk free? Out of interest where?
Not risk free - I'm pretty sure they're referring to this concept https://www.mrmoneymustache.com/2012/05/29/how-muc...xeny said:
Not risk free - I'm pretty sure they're referring to this concept https://www.mrmoneymustache.com/2012/05/29/how-muc...
Ah ok, I thought I'd heard the "4% rule" mentioned somewhere... I didn't want to be missing out on something I'll have read of that later, thanks
Phooey said:
xeny said:
Not risk free - I'm pretty sure they're referring to this concept https://www.mrmoneymustache.com/2012/05/29/how-muc...
Ah ok, I thought I'd heard the "4% rule" mentioned somewhere... I didn't want to be missing out on something I'll have read of that later, thanks
bogie said:
Up North you can buy 2 bed houses for £40k ish which rent for £500 a month.....do the maths on that. If you can cope with the hassle of being a landlord and managing say 10-15 properties, you should be able to get £60-70k a year coming in
I live "up north" and those 40K properties are actually 60-75K and are filled with the kind of people who are not very house proud. A lot of the properties come up for sale then go to let and then come up for sale again. I'm guessing bought buy people thinking its easy money and then realising they have bitten off more than they can chew. moonigan said:
bogie said:
Up North you can buy 2 bed houses for £40k ish which rent for £500 a month.....do the maths on that. If you can cope with the hassle of being a landlord and managing say 10-15 properties, you should be able to get £60-70k a year coming in
I live "up north" and those 40K properties are actually 60-75K and are filled with the kind of people who are not very house proud. A lot of the properties come up for sale then go to let and then come up for sale again. I'm guessing bought buy people thinking its easy money and then realising they have bitten off more than they can chew. Though I cant imagine it being a passive investment managing these places
its an interesting topic though -
out of interest for those who are alot more financially savvy than myself, what sort of things would you be looking at doing with your 650k on these 3 scenario's and how would you manage this?
Low risk (lets say 3%) (19,500pa)
Medium risk (lets say 7%) (45,000pa) <-- also is 7% considered medium risk?
High risk - sky is your limits
out of interest for those who are alot more financially savvy than myself, what sort of things would you be looking at doing with your 650k on these 3 scenario's and how would you manage this?
Low risk (lets say 3%) (19,500pa)
Medium risk (lets say 7%) (45,000pa) <-- also is 7% considered medium risk?
High risk - sky is your limits
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