Newbie after investment advice
Discussion
So bit nervous about posting here but here goes.
Come April, I expect to have around 40k saved up from contracting that I want to invest.
For the investment, I'm looking for the return to cover my pension when I decide to retire, as I stopped paying into a pension when I left permanent employment.
I'm currently thinking investing in property, hopefully grabbing something cheap if the property market drops due to Brexit, going interest only and re-investing the returns into another property with the hope of getting a good capital return at the end. These are just my ideas at the moment, pretty boring I suppose.
I would welcome some advice from folks on here..
Come April, I expect to have around 40k saved up from contracting that I want to invest.
For the investment, I'm looking for the return to cover my pension when I decide to retire, as I stopped paying into a pension when I left permanent employment.
I'm currently thinking investing in property, hopefully grabbing something cheap if the property market drops due to Brexit, going interest only and re-investing the returns into another property with the hope of getting a good capital return at the end. These are just my ideas at the moment, pretty boring I suppose.
I would welcome some advice from folks on here..
B_Tank88 said:
So bit nervous about posting here but here goes.
Come April, I expect to have around 40k saved up from contracting that I want to invest.
For the investment, I'm looking for the return to cover my pension when I decide to retire, as I stopped paying into a pension when I left permanent employment.
I'm currently thinking investing in property, hopefully grabbing something cheap if the property market drops due to Brexit, going interest only and re-investing the returns into another property with the hope of getting a good capital return at the end. These are just my ideas at the moment, pretty boring I suppose.
I would welcome some advice from folks on here..
You can buy a property for 40k? Come April, I expect to have around 40k saved up from contracting that I want to invest.
For the investment, I'm looking for the return to cover my pension when I decide to retire, as I stopped paying into a pension when I left permanent employment.
I'm currently thinking investing in property, hopefully grabbing something cheap if the property market drops due to Brexit, going interest only and re-investing the returns into another property with the hope of getting a good capital return at the end. These are just my ideas at the moment, pretty boring I suppose.
I would welcome some advice from folks on here..
If this is for pension covering......why not put it into a pension plan?
Government will give you a chunk (20%, potentially more if you are HRT payer).....invest into S&S, perhaps 'drip feeding' over a year to avoid any pain of massive drops.
If you want it for *before* a pension can be paid, then S&S ISA might be worth a look.
Perhaps have a look at the 'sticky' thread at the top - could be some informal information available there to help!
mikeiow said:
You can buy a property for 40k?
If this is for pension covering......why not put it into a pension plan?
Government will give you a chunk (20%, potentially more if you are HRT payer).....invest into S&S, perhaps 'drip feeding' over a year to avoid any pain of massive drops.
If you want it for *before* a pension can be paid, then S&S ISA might be worth a look.
Perhaps have a look at the 'sticky' thread at the top - could be some informal information available there to help!
I will have 40k saved up if all goes well. I plan on spending 35k towards a deposit with interest only mortgage on a rental property, assuming 25% deposit. 5k I will leave for buffer. This should put me in the market for properties upto 140k. By paying interest only I plan to use the 'extra' income to go towards another deposit down the line, and hope for a capital return at the end. Would prefer to build portfolio quicker rather than trying to pay one property off.If this is for pension covering......why not put it into a pension plan?
Government will give you a chunk (20%, potentially more if you are HRT payer).....invest into S&S, perhaps 'drip feeding' over a year to avoid any pain of massive drops.
If you want it for *before* a pension can be paid, then S&S ISA might be worth a look.
Perhaps have a look at the 'sticky' thread at the top - could be some informal information available there to help!
Thank you I will have a look at the sticky and read up on it to see if there are other ideas!
mikeiow said:
You can buy a property for 40k?
Dear Sirs . 17 September,2019
For the purposes of this offer and the Scottish Standard Clauses (Edition 3) aftermentioned:
The Purchaser means Mr. XXXXXXXX
The Property means:-2/3 17 Ravel Row Glasgow, G31 SEW together with any garden ground exclusive and common rights pertaining thereto
The Price shall be THIRTY TWO THOUSAND POUNDS (£ 32,000.00) STERLING, and
The Date of entry shall be Wednesday 3 October 2019 or such other date as mutually agreed with our Clients, in writing.
(Comes with private tenant. Been in since June 2017. No plan to leave. £380pcm. Tenant and agent happy with internal condition)
Edited by Groat on Wednesday 18th September 21:03
With a small % deposit, you may struggle to cashflow your next property in the portfolio.
The maths isn't as easy as £500 rent, £150 mortgage. Netting £350 pcm.
You have all sorts of costs coming out most don't take into account; estate agent fees, management company fees, periods of no occupancy (and then paying council tax during periods of no occupancy), repairs, etc.
And then when all is said and done ... you get to pay tax on the income from the property!
This is not to demoralise what could be a good idea, just preparing you. Investing in BTL property can be a good investment strategy as part of a balanced portfolio.
Definitely have a look at the other thread too.
The maths isn't as easy as £500 rent, £150 mortgage. Netting £350 pcm.
You have all sorts of costs coming out most don't take into account; estate agent fees, management company fees, periods of no occupancy (and then paying council tax during periods of no occupancy), repairs, etc.
And then when all is said and done ... you get to pay tax on the income from the property!
This is not to demoralise what could be a good idea, just preparing you. Investing in BTL property can be a good investment strategy as part of a balanced portfolio.
Definitely have a look at the other thread too.
rockin said:
Groat said:
17 Ravel Row Glasgow, G31 SEW
Have a click on google maps and take a walk around the area."Welcome to the Hotel California."
Of course it's an area of high housing density, but the strange thing is it's only got, well, it's only got 7 (seven) properties showing as available to let on Rightmove. And here they are:
https://www.rightmove.co.uk/property-to-rent/find....
The cheaper ones (like mine) are all gone. But hey, the low-waged/unwaged can't afford the posh parts of town so......
'welcome to the hotel California' right enough!
(and all for (considerably) less than 40 grand too
so none of that pesky 3% lbtt add-on....ps: How illiquid is a property that takes 2 weeks to complete sale on? (hint: faster than cashing an ISA, what what!! )
Edited by Groat on Wednesday 18th September 23:49
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