£230k invested in Airbnb 2 years ago... Better investment?

[Leicesterdave]

I bought a flat in York as an investment. I had inherited the money and bought cash. Bought 6-8 months before the Covid crisis hit.

It did ok- and the grants I received during Covid helped a lot. It still averages out around £1,500 a month but I can't help wondering if there are better ways of investing money out there.

Is there?

[Simpo Two]

It depends how much risk you want to take. At the moment I'd say you're doing quite well for very little risk (if you're OK with being a landlord).

[supersport]

With tourists returning and York being in demand all year I would imagine future years to be better.

[Zoon]

See the Tesla thread....

[sealtt]

Leicesterdave said:

I bought a flat in York as an investment. I had inherited the money and bought cash. Bought 6-8 months before the Covid crisis hit.

It did ok- and the grants I received during Covid helped a lot. It still averages out around £1,500 a month but I can't help wondering if there are better ways of investing money out there.

Is there?

Is the £1500 your gross income or net income after all costs - and if net have you remembered to include everything, legal costs roughly split out into a monthly figure, same on repairs, upgrades, wear and tear on furniture, etc?

[greygoose]

Has it gone up in value during that time as well as generating the income?

[Ryan_T]

The S&P500 has returned approx 8% per year since the 50’s.

It wouldn’t take much compounding for this to be more profitable for you. No management / maintenance worries. Ideally it would all be in your ISA and completely tax free too.

[Countdown]

Ryan_T said:

The S&P500 has returned approx 8% per year since the 50’s.

It wouldn’t take much compounding for this to be more profitable for you. No management / maintenance worries. Ideally it would all be in your ISA and completely tax free too.

Is that 8% both capital AND dividends? OP's flat has been returning 8% income and property prices have been going through the roof over the last 2 years.

If it was me I would hang on to it as part of a diversified portfolio.

[Zoon]

Countdown said:

Is that 8% both capital AND dividends? OP's flat has been returning 8% income and property prices have been going through the roof over the last 2 years.

If it was me I would hang on to it as part of a diversified portfolio.

Funny you should mention roofs, the S&P 500 doesn't have one
Although they do have quite an impact on ROI.