Best way to invest £190k to generate a monthly income
Discussion
JulianPH said:
FredClogs said:
selmahoose said:
http://www.futurepropertyauctions.co.uk/property_d...
There's yer dinner!!!
That's at least the second thread you've posted a link to that auction... Are you the agent? There's yer dinner!!!
Edited by selmahoose on Wednesday 5th December 12:44
6% with no risk is indeed a fantasy in today's economy.
I run a small company and wanted to build an office/workshop/garage using company funds but was advised that i couldn't get any tax relief on construction costs. I'd get the vat back though of course, which helps a bit. There are capital allowances which can help a little bit too. A mate is a farmer and if he wants to build a new barn or grain store or whatever he doesnt get any tax relief on the costs - it just seems wrong!!
Sheepshanks said:
If that's so mind-numbingly brilliant as it appears, why wasn't there a battle over it at the auction?
Hahaha!! Seriously, if I had any spare that wasn't going to pay my surprise bill I'd be all over it like a rash. Unfortunately it's going to be a few months at least before I'm in a buying position (cash only these days) so it'll be long gone.
More seriously, it isn't by any means a unique deal. You're still at a form of open market prices at an auction. Some of the deals for especially prime site shops these days that are being done off-market would make you gasp.
And imo it never was going to go via the room. That isn't really how the auction game works.
What'll happen is that it'll be returned to the auction - possibly more than once - and a vulture currently watching it will swoop in - and get it - with a lo-ball private offer within the next 3 months.
The thing with BMV is that it erodes the illiquidity factor for dealers. Cheap property sells quick and property bought cheap can always be sold again cheap (and quick).
Baron von Teuchter said:
I often wondered this, I do consulting work for a huge company, one of the biggest in the world and they still lease their offices in the UK. I think it's because you get tax relief on rental but not on purchase...?
I run a small company and wanted to build an office/workshop/garage using company funds but was advised that i couldn't get any tax relief on construction costs. I'd get the vat back though of course, which helps a bit. There are capital allowances which can help a little bit too. A mate is a farmer and if he wants to build a new barn or grain store or whatever he doesnt get any tax relief on the costs - it just seems wrong!!
I suspect the answer isn't to do with tax relief but is one of the following;I run a small company and wanted to build an office/workshop/garage using company funds but was advised that i couldn't get any tax relief on construction costs. I'd get the vat back though of course, which helps a bit. There are capital allowances which can help a little bit too. A mate is a farmer and if he wants to build a new barn or grain store or whatever he doesnt get any tax relief on the costs - it just seems wrong!!
i) They don't want the hassle of owning the building
ii) The money the company has available is already committed to other projects
iii) Or they can get better return on their capital by using it in other parts of their business
iv) They don't plan on being a tenant in that property long term.
FredClogs said:
That's at least the second thread you've posted a link to that auction... Are you the agent?
6% with no risk is indeed a fantasy in today's economy.
It’s almost as though he wants to insult Sidicks even when he’s completely right.6% with no risk is indeed a fantasy in today's economy.
Suggesting buy to let as low risk is idiocy / trolling.
EddieSteadyGo said:
I suspect the answer isn't to do with tax relief but is one of the following;
i) They don't want the hassle of owning the building
ii) The money the company has available is already committed to other projects
iii) Or they can get better return on their capital by using it in other parts of their business
iv) They don't plan on being a tenant in that property long term.
Also, the tenant may be Big Company UK No1 and the landlord, Big Company UK no2, which is often more efficient.i) They don't want the hassle of owning the building
ii) The money the company has available is already committed to other projects
iii) Or they can get better return on their capital by using it in other parts of their business
iv) They don't plan on being a tenant in that property long term.
The problem with small lot sizes in auctions is that your generally buying rough stock, at high transaction cost. If you have a pot to play with then fine, but it is often a high risk low return market.
Baron von Teuchter said:
I often wondered this, I do consulting work for a huge company, one of the biggest in the world and they still lease their offices in the UK. I think it's because you get tax relief on rental but not on purchase...?
I run a small company and wanted to build an office/workshop/garage using company funds but was advised that i couldn't getting t any tax relief on construction costs. I'd get the vat back though of course, which helps a bit. There are capital allowances which can help a little bit too. A mate is a farmer and if he wants to build a new barn or grain store or whatever he doesnt get any tax relief on the costs - it just seems wrong!!
I do enjoy the pub opposite that place, but surely Hamilton high Street is not the place to be investing, that area of the town is getting more and more derelict with everything moving to the bottom end of town or closing altogether. I run a small company and wanted to build an office/workshop/garage using company funds but was advised that i couldn't getting t any tax relief on construction costs. I'd get the vat back though of course, which helps a bit. There are capital allowances which can help a little bit too. A mate is a farmer and if he wants to build a new barn or grain store or whatever he doesnt get any tax relief on the costs - it just seems wrong!!
James_B said:
It’s almost as though he wants to insult Sidicks even when he’s completely right.
Suggesting buy to let as low risk is idiocy / trolling.
LOL@ "the gambling economist"Suggesting buy to let as low risk is idiocy / trolling.
Ok YOUR notion and attempt at playing at landlord isn't lo-risk, which is why it sits on your CV as 'another fine mess' and is to become a 'cut your losses' bargain on the London Price Dropper Special listings in Spring.
BUT: Everyone from the Duke of Westminster to Granny McSporran and her airbnb but n' ben hielan hame have worked out btl operations which present very low risk operations which pay them sustenance and more -far more in some cases - month in month out year in year out decade in decade out and even generation in and generation out.
In fact many people who have involvement in btl know that it takes a very special type of idiot to make a khunt of it. That's why it's lo-risk. Because it's something anyone with a bit of common sense can get involved with and benefit from.
Which is why so many do.
Heartworm said:
I do enjoy the pub opposite that place, but surely Hamilton high Street is not the place to be investing, that area of the town is getting more and more derelict with everything moving to the bottom end of town or closing altogether.
Hmmm. That's a realistic-ish if slightly over pessimistic comment. I heard that the 'modern' trading estate at the bottom end ain't doing too well either. Scottish satellite towns in general are a bit "the towns that time forgot". Actually the whole of the UK's satellites can be a bit dumpish.
BUT and it is a big but - the negatives aren't universal. Specifically in Hamilton most of the big names seem to be doing ok. And the Park Family seem to be prospering. And the "dereliction" isn't even approaching the level of dilapidation in, say, Paisley which still staggers on. And actually the Remploy building appears to be pretty sound.
Are there many empties in its IMMEDIATE vicinity?
selmahoose said:
But a well selected property isn't necessarily a greater risk than three - some would say it's 1/3rd the risk.
Numbers really aren’t your thing, are they?Edited by selmahoose on Wednesday 5th December 13:48
May I ask, given how you seem to struggle with the basics, why are you trying to give advice?
BoRED S2upid said:
selmahoose said:
Recommended for the over-70s
No it’s really not and I’m sure the OP won’t be suggesting this as a low risk strategy for his fathers inheritance. Are YOU an over 70? I nearly am. And I cannot think of an easier and safer way to live than off the rental income from decent well managed commercial property.
I'd be very happy to hear your alternative ideas for an easier and safer way to allocate £190k.
b
hstewie said:
hstewie said: If someone handed me £200k out of the blue I'm not sure I'd choose property as a "relatively lower risk" thing to do with it.
I'm just a normal bloke, am I missing something?
Nope nothing.....apart from the fact that half the country's normal blokes are actually doing it, and mostly doing it successfully. There's even an outcry against them and their greedy profit-centred rentierism in some circles....I'm just a normal bloke, am I missing something?
selmahoose said:
BoRED S2upid said:
selmahoose said:
Recommended for the over-70s
No it’s really not and I’m sure the OP won’t be suggesting this as a low risk strategy for his fathers inheritance. Are YOU an over 70? I nearly am. And I cannot think of an easier and safer way to live than off the rental income from decent well managed commercial property.
I'd be very happy to hear your alternative ideas for an easier and safer way to allocate £190k.
selmahoose said:
LOL@ "the gambling economist"
Economist? Sorry champ, I’ve never been one of those. I’m a trader, which I think I’ve mentioned before.I’ll ask you again, by the way, you seem to struggle with numbers, so why are you trying to give financial advice.
I’ll not respond any more, you are a moron and / or a troll and I already feel foolish having engaged you.
James_B said:
selmahoose said:
LOL@ "the gambling economist"
Economist? Sorry champ, I’ve never been one of those. I’m a trader, which I think I’ve mentioned before.I’ll ask you again, by the way, you seem to struggle with numbers, so why are you trying to give financial advice.
I’ll not respond any more, you are a moron and / or a troll and I already feel foolish having engaged you.
selmahoose said:
Hmmm. That's a realistic-ish if slightly over pessimistic comment. I heard that the 'modern' trading estate at the bottom end ain't doing too well either.
Scottish satellite towns in general are a bit "the towns that time forgot". Actually the whole of the UK's satellites can be a bit dumpish.
BUT and it is a big but - the negatives aren't universal. Specifically in Hamilton most of the big names seem to be doing ok. And the Park Family seem to be prospering. And the "dereliction" isn't even approaching the level of dilapidation in, say, Paisley which still staggers on. And actually the Remploy building appears to be pretty sound.
Are there many empties in its IMMEDIATE vicinity?
Yeah the shop opposite is vacant and possible a similar size, and maybe 200m up the street and you get quite a few empty retail units. The pound stretcher opposite is closing, the old vodafone store on the opposite corner has been a few shops since and never reopened and then the old bairds building on the other corner is also empty - although possibly becoming a Wetherspoons.Scottish satellite towns in general are a bit "the towns that time forgot". Actually the whole of the UK's satellites can be a bit dumpish.
BUT and it is a big but - the negatives aren't universal. Specifically in Hamilton most of the big names seem to be doing ok. And the Park Family seem to be prospering. And the "dereliction" isn't even approaching the level of dilapidation in, say, Paisley which still staggers on. And actually the Remploy building appears to be pretty sound.
Are there many empties in its IMMEDIATE vicinity?
I'd agree the retail park has more empty units than can be healthy , Wren kitchens & maplins closed.
I like Hamilton, but this end doesn't seem to be getting any funding, down by inkspot and the cinema seems to be doing well at the moment, the old hotel has been pulled down and a new hotel being constructed soon it seems to be the focus.
selmahoose said:
Nope nothing.....apart from the fact that half the country's normal blokes are actually doing it, and mostly doing it successfully. There's even an outcry against them and their greedy profit-centred rentierism in some circles....
I'm not doubting it can be done, I know a couple of people who do so. I'm simply suggesting that it isn't the "relatively lower risk" no-brainer that you make it out to be if someone happens to gift you £200k.bhstewie said:
hstewie said: If someone handed me £200k out of the blue I'm not sure I'd choose property as a "relatively lower risk" thing to do with it.
I'm just a normal bloke, am I missing something?
I think you have to be of a certain mind-set. I know several people who do BTL, with varying degrees of success / hassle. Those who got into it 20+ years ago are making out like bandits - based on purchase price, which isn't the way yield is calculated, but seems a fair enough way of loooking at it to me.I'm just a normal bloke, am I missing something?
Commerical property seems a step further away in terms of what ordinary people are comfortable with. Maybe that perception is wrong and it's less risky than domestic BTL?
I'm not good at sharing things - it would stress me out, someone else being in my property.
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