70k to invest, buy to let?
Discussion
After selling a few assets I’ve ended up with around 70k
I know nothing of finance or investments or shares.
I’m not a risk taker just doesn’t sit well with me. I don’t undertsand or would dare buy shares.
If I leave it just sitting in the bank I know enough to realise inflation with deminish it over the years
So that leaves me buying somewhere and renting it.
It’s all I can think of, money has never been one of my motivations I’m thinking get a return and if I need money in future I can sell and probably not lose anything.
Pitfalls, is going into something like that going to be a huge headache for a novice?
I know nothing of finance or investments or shares.
I’m not a risk taker just doesn’t sit well with me. I don’t undertsand or would dare buy shares.
If I leave it just sitting in the bank I know enough to realise inflation with deminish it over the years
So that leaves me buying somewhere and renting it.
It’s all I can think of, money has never been one of my motivations I’m thinking get a return and if I need money in future I can sell and probably not lose anything.
Pitfalls, is going into something like that going to be a huge headache for a novice?
Pesty said:
I know nothing of finance or investments or shares.
I’m not a risk taker just doesn’t sit well with me. I don’t undertsand or would dare buy shares.
Just to point out that getting a good enough understanding of investing to do it well enough isn't that hard.I’m not a risk taker just doesn’t sit well with me. I don’t undertsand or would dare buy shares.
Note also that property is not entirely free of risk, especially if it involves borrowing.
Property can be one of the riskiest asset classes once rental voids, maintenance (annual) structural/cosmetic repairs are taken into account.
I sure you’ll get a good steer from here what way to go.
Tax changes and general cultural changes (from next March) could mean the demand on housing falls and prices/yields are suppressed or even reduce.
Kiv 70k is a nice bit of cash, likewise what you have said with inflation what’s the real value in a few years, in reality it’s 3 1/2 years ISA allowance, don’t discount placing some money in the financial markets, and having a balanced approach to your funds.
Good luck
I sure you’ll get a good steer from here what way to go.
Tax changes and general cultural changes (from next March) could mean the demand on housing falls and prices/yields are suppressed or even reduce.
Kiv 70k is a nice bit of cash, likewise what you have said with inflation what’s the real value in a few years, in reality it’s 3 1/2 years ISA allowance, don’t discount placing some money in the financial markets, and having a balanced approach to your funds.
Good luck
Pesty said:
I know nothing of finance or investments or shares.
So are you a property expert??The BTL party is well and truly over for Joe Average. Taxed on the way in, taxed on the way through and taxed on the way out.
In your situation the best starting point for many people is to look at investments which are partly or fully tax free, which gives you a massive head start. That generally means ISA and/or pension.
You don't need to know the first thing about stocks and shares to invest in a mainstream ISA or SIPP (pension) where things called "funds" are managed by a professional fund manager on your behalf. All you need to do is make some rudimentary decisions about where you want to be on the risk/return spectrum and how long you're investing for. You'll get loads of guidance on this forum if you want to. [Although watch out for anyone who pops up with superficially helpful answers but is actually touting for business.]
Here's the type of thing you need.
http://www.futurepropertyauctions.co.uk/property_d...
Bought separately no tax on the way in, very little annual tax to pay if strategised well, and ditto on disposal too.
Easy to get managed too for 10% of the rent.
Be very surprising if you didn't nett 10% of the price as your annual pocket money.
http://www.futurepropertyauctions.co.uk/property_d...
Bought separately no tax on the way in, very little annual tax to pay if strategised well, and ditto on disposal too.
Easy to get managed too for 10% of the rent.
Be very surprising if you didn't nett 10% of the price as your annual pocket money.
Edited by joyless lobotomised parrot on Saturday 16th June 15:31
joyless lobotomised parrot said:
Here's the type of thing you need.
http://www.futurepropertyauctions.co.uk/property_d...
Bought separately no tax on the way in, very little annual tax to pay if strategised well, and ditto on disposal too.
Easy to get managed too for 10% of the rent.
Be very surprising if you didn't nett 10% of the price as your annual pocket money.
How is there no tax on the way in by buying seperately?http://www.futurepropertyauctions.co.uk/property_d...
Bought separately no tax on the way in, very little annual tax to pay if strategised well, and ditto on disposal too.
Easy to get managed too for 10% of the rent.
Be very surprising if you didn't nett 10% of the price as your annual pocket money.
Edited by joyless lobotomised parrot on Saturday 16th June 15:31
Pesty said:
After selling a few assets I’ve ended up with around 70k
I know nothing of finance or investments or shares.
I’m not a risk taker just doesn’t sit well with me. I don’t undertsand or would dare buy shares.
You could learn a lot by Wednesday afternoon simply by watching a few videos and reading a few books.I know nothing of finance or investments or shares.
I’m not a risk taker just doesn’t sit well with me. I don’t undertsand or would dare buy shares.
It's £70k so it's worth putting some time and effort in.
I don't have any BTL and as others have said the benefits are slowly being taxed out.
The other issue is you have all your eggs in one big basket, which could turn sour and would be more difficult to liquidate. (For example, recession hits, you lose your job, property markets crashes and you cannot sell the property - never happened before...…;) )
I would look at spreading the investment/ risk somewhere else.
Mike
The other issue is you have all your eggs in one big basket, which could turn sour and would be more difficult to liquidate. (For example, recession hits, you lose your job, property markets crashes and you cannot sell the property - never happened before...…;) )
I would look at spreading the investment/ risk somewhere else.
Mike
Thanks guys,
A good man knows his limitations, I have mental block when it comes to those sort of things. Shares etc. I’ve tried I admit defeat plus add to scared of losing it all with nothing to show for it. I grew up with very little in a poor area ( get violins out) I’m scared of losing it with nothing to show. It’s going to take a lot of education to get around those mental road blocks I don’t even bet on the national. I don’t think I’ll ever get it.
The way I see it buying a property would leave me with a solid asset that I guess will not lose much maybe even increase in value although round here hmmm maybe not
If it turns out too much of a headache I could always sell it. I’m just worried about the hassles I might get from tenants
So why am I throwing this idea out to strangers on the net obviously where finance is concerned I’m not confident it’s just the way I am.
I have a place in another country that after 5 years is starting to pay for itself but it’s been too much hassle to be honest we’ve had some difficult people in, lots of repairs and lots of hassle.
It’s the hassle I can’t be doing with, just don’t have patience for paper work pretty sure I have some sort of condition or I’m just too stressed whatever
Sort of property you get around here for that is getting around £450 a month. For as little hastle as possible it look like an agency can take care of it for 15% plus I’d be taxed 40% on that. Painting,decorating etc I’m not sure it’s worth it.
Or is it
Oh I don’t know might just buy a grand Cherokee or something.
A good man knows his limitations, I have mental block when it comes to those sort of things. Shares etc. I’ve tried I admit defeat plus add to scared of losing it all with nothing to show for it. I grew up with very little in a poor area ( get violins out) I’m scared of losing it with nothing to show. It’s going to take a lot of education to get around those mental road blocks I don’t even bet on the national. I don’t think I’ll ever get it.
The way I see it buying a property would leave me with a solid asset that I guess will not lose much maybe even increase in value although round here hmmm maybe not
If it turns out too much of a headache I could always sell it. I’m just worried about the hassles I might get from tenants
So why am I throwing this idea out to strangers on the net obviously where finance is concerned I’m not confident it’s just the way I am.
I have a place in another country that after 5 years is starting to pay for itself but it’s been too much hassle to be honest we’ve had some difficult people in, lots of repairs and lots of hassle.
It’s the hassle I can’t be doing with, just don’t have patience for paper work pretty sure I have some sort of condition or I’m just too stressed whatever
Sort of property you get around here for that is getting around £450 a month. For as little hastle as possible it look like an agency can take care of it for 15% plus I’d be taxed 40% on that. Painting,decorating etc I’m not sure it’s worth it.
Or is it
Oh I don’t know might just buy a grand Cherokee or something.
mike9009 said:
I don't have any BTL and as others have said the benefits are slowly being taxed out.
The other issue is you have all your eggs in one big basket, which could turn sour and would be more difficult to liquidate. (For example, recession hits, you lose your job, property markets crashes and you cannot sell the property - never happened before...…;) )
I would look at spreading the investment/ risk somewhere else.
Mike
We yeah now you’ve done it, that’s that idea out the window The other issue is you have all your eggs in one big basket, which could turn sour and would be more difficult to liquidate. (For example, recession hits, you lose your job, property markets crashes and you cannot sell the property - never happened before...…;) )
I would look at spreading the investment/ risk somewhere else.
Mike
Spreading it makes sense what on?
xeny said:
b***hstewie will shortly be offering the "4 day course to equity investing success" , but more seriously, I find buying equities easier, cheaper and less stressful than buying property.
How much is this course I definitely need it.Saleen836 said:
joyless lobotomised parrot said:
Here's the type of thing you need.
http://www.futurepropertyauctions.co.uk/property_d...
Bought separately no tax on the way in, very little annual tax to pay if strategised well, and ditto on disposal too.
Easy to get managed too for 10% of the rent.
Be very surprising if you didn't nett 10% of the price as your annual pocket money.
How is there no tax on the way in by buying seperately?http://www.futurepropertyauctions.co.uk/property_d...
Bought separately no tax on the way in, very little annual tax to pay if strategised well, and ditto on disposal too.
Easy to get managed too for 10% of the rent.
Be very surprising if you didn't nett 10% of the price as your annual pocket money.
Edited by joyless lobotomised parrot on Saturday 16th June 15:31
I was looking at this. Just down the road
http://www.rightmove.co.uk/property-for-sale/prope...
I can stretch to 80 cash just wanted to have a little buffer in the bank for toys and issues
Pesty said:
I’m wondering that
I was looking at this. Just down the road
http://www.rightmove.co.uk/property-for-sale/prope...
I can stretch to 80 cash just wanted to have a little buffer in the bank for toys and issues
Have a look at the sales on the link from the street, area seems quite sensitive to prices ie 2008, sales of 60k ish, 2010 30k ish, now 80k ish.I was looking at this. Just down the road
http://www.rightmove.co.uk/property-for-sale/prope...
I can stretch to 80 cash just wanted to have a little buffer in the bank for toys and issues
Pesty said:
I’m wondering that
I was looking at this. Just down the road
http://www.rightmove.co.uk/property-for-sale/prope...
I can stretch to 80 cash just wanted to have a little buffer in the bank for toys and issues
F me!! £80k for a house. I know it's oop North but what else is wrong with it I was looking at this. Just down the road
http://www.rightmove.co.uk/property-for-sale/prope...
I can stretch to 80 cash just wanted to have a little buffer in the bank for toys and issues
I doubt that'd buy me a parking space round here. The tiny 1.5 bed flat I'm renting is about £600k to buy in a not brilliant area of SW London.
Pesty said:
How much is this course I definitely need it.
If I were to make some basic suggestions on first steps that have helped me try to go from zero to hopefully having some kind of basic knowledge:- Go to YouTube and watch every single Fundsmith AGM video you can find
- Go buy a copy of Buffettology and read it
- Watch as many Berkshire Hathaway AGM videos as you can sit through
- Go here http://kroijer.com and watch all the videos
- Ask lots of questions and get lots of opinions
- Look at getting a Stocks & Shares ISA
- Play with small amounts to get a "feel" for how things work
croyde said:
Pesty said:
I’m wondering that
I was looking at this. Just down the road
http://www.rightmove.co.uk/property-for-sale/prope...
I can stretch to 80 cash just wanted to have a little buffer in the bank for toys and issues
F me!! £80k for a house. I know it's oop North but what else is wrong with it I was looking at this. Just down the road
http://www.rightmove.co.uk/property-for-sale/prope...
I can stretch to 80 cash just wanted to have a little buffer in the bank for toys and issues
I doubt that'd buy me a parking space round here. The tiny 1.5 bed flat I'm renting is about £600k to buy in a not brilliant area of SW London.
It’s a sty area of Doncaster so double sty or st squared however they are doing lots of new builds and bringing the area up a bit. Similar has happened in villages nearby it’s old pit council house area. That one just looked in reasonable nick. I walk the dogs on the moors right behind there so I might take a look.
Hmm prices have been up and down.
Property is cheap in Doncaster. Where you buy doesn't have to be local but maybe have a look at commercial. Something like this (previously let at 13k pa) - http://www.rightmove.co.uk/commercial-property-for...
eta ^^^ bit out of date that advert but you get the drift
eta ^^^ bit out of date that advert but you get the drift
I've done BTL for 10 years.
Would I do it again? NO!!!
1. Not a liquid asset
2. Tenants not paying
3. Tenants trashing the place
4. Tenants thinking they're renting a hotel ('we need new light bulbs'
5. Tenants paying late
6. Repairs to boiler
7. Repairs to plumbing
6. Repairs to leaking pipes
7. Repairs appliances
8. Tax to buy (stamp duty)
9. Tax while you rent
8. Tax when you get out (capital gains)
10.Fees (agent, accountant etc)
Oh. Did I mention tenants?
Would I do it again? NO!!!
1. Not a liquid asset
2. Tenants not paying
3. Tenants trashing the place
4. Tenants thinking they're renting a hotel ('we need new light bulbs'
5. Tenants paying late
6. Repairs to boiler
7. Repairs to plumbing
6. Repairs to leaking pipes
7. Repairs appliances
8. Tax to buy (stamp duty)
9. Tax while you rent
8. Tax when you get out (capital gains)
10.Fees (agent, accountant etc)
Oh. Did I mention tenants?
Edited by audidoody on Saturday 16th June 21:21
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