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We have inherited £300,000 - should we invest in buy-to-let?

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Will buy-to-let offer the best return on a £300,000 investment? Or are there better options?

My wife has inherited £300,000 and we are wondering what we can do with it. I'm retired with a decent pension and my wife works part time. We're lucky enough to have paid off our mortgage. Our main priority is keeping it safe as we know the Financial Services Compensation Scheme only protects £75,000. The next step would be looking at investing it to get a decent return. Savings rates are currently unimpressive so we have been looking at purchasing some buy-to-let property. However, we are unsure of the risks involved.

 

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BTL article in the Telegraph?  Well I never..

Then again, the grey old men at the Telegraph appear to piss all over BTL and advise Stocks, Shares and ISAs instead - so hopefully the message is sinking in to invest in something worthwhile rather than the ethically dubious BTL.

(have nothing against rental properties and landlords, but to me that is a service-provider/company and so a lifestyle or business decision, not an investment)

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BTL really is a sickening obsession with people, regardless of whether they're skint and using leveraged debt or already extremely cash rich... it's all they can think of.

I recall the story of that Scottish woman who won £148m on the euromillions a while back... first thing she did was buy a load of apartments to rent out. Why? Just why? Surely she couldn't have been worried about needing a steady income with that amount? 

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29 minutes ago, nome said:

I recall the story of that Scottish woman who won £148m on the euromillions a while back... first thing she did was buy a load of apartments to rent out. Why? Just why? Surely she couldn't have been worried about needing a steady income with that amount? 

I didn't know about that.  It is interesting, isn't it.  Almost as if for the average middle class person the existence of a buy-to-let portfolio is the definition of success, more even than the fancy car, house...  

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Boomers only identify two places where they can put spare cash - cash savings accounts and property. As far as they are concerned, everything else is witchcraft.

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That's true. And with the current economic system which is more secure, stocks that crash and halve every 10 years, cash which is only guaranteed up to 75k, or houses, which don't go anywhere.

The issue is what the government and banks have created. Houses are the only safe place left to put your money.

Now it's the last safe place, that will surely end.

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1 hour ago, winkie said:

Divide it into how many years approximately got left and spend it.....or give it away. ;)

That's actually my thoughts, you lose the desire to accumulate, you don't want the hassle. Doubt it is boomers driving this insanity anymore but someone younger and entrepreneurial. they tend to drive GDP and assets growth.

 

Look to maximum insanity and mental disorder, Cambridge, young age demographic, forty something landlords most likely.Not driven by retiring boomers in their rural retreats unless they are particularly selfish, greedy and immoral. What's the point, sometimes you need to know when enough is enough, you can't take it with you.

Edited by crashmonitor

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At least it is actually "buying" to let, as opposed to "borrowing" to let.

Got to be said if i came into £300K and had the house paid off, difficult one to know where to put it what with every asset class bubbling.

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25 minutes ago, Crumbless said:

At least it is actually "buying" to let, as opposed to "borrowing" to let.

Got to be said if i came into £300K and had the house paid off, difficult one to know where to put it what with every asset class bubbling.

Well we have a third in our house and  two thirds in cash. Bruce has all his in cash, i believe. Seriously as you get older you don't want the hassle, and what is the point to it  all other than sheer greed if you can get by on what you have. Your desire to muck about with speculation wanes with age.

I believe you need to look to under 50s  to see what is driving this collective madness. Youth is what drives GDP, speculation  and asset price movement.

Edited by crashmonitor

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2 hours ago, honkydonkey said:

That's true. And with the current economic system which is more secure, stocks that crash and halve every 10 years, cash which is only guaranteed up to 75k, or houses, which don't go anywhere.

The issue is what the government and banks have created. Houses are the only safe place left to put your money.

Now it's the last safe place, that will surely end.

This is the key isnt it.I know quite a few people who bought a BTL with the lumpers out of their pensions and redundancy.The main reason they didnt trust banks not to go bankrupt and kiss their money goodbye and shares crash too often to sleep at night.Of course because of this its likely its houses that will crash,probably alongside everything else thats in a bubble due to free leverage.

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3 hours ago, nome said:

I recall the story of that Scottish woman who won £148m on the euromillions a while back... first thing she did was buy a load of apartments to rent out. Why? Just why? Surely she couldn't have been worried about needing a steady income with that amount? 

I don't know if it's the same lady but a Scottish lottery winner that I read about owned a small cafe. As soon as she got her winnings, she closed it and have all the staff the sack. I pity her tennants 

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I've given up giving financial advice. I was very concerned when my inlaws used their inheritance to buy (outright) a flat they are letting out.

However they are getting 5% return on the purchase price (allowing 1% per year expenses) and in equity terms it has gone up £100k.

If they'd put it in the bank they'd be getting 2% max with no additional equity

If they'd put it into shares they'd have had a rollercoaster ride but probably be about equal with property now.

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1 hour ago, Diver Dan said:

I don't know if it's the same lady but a Scottish lottery winner that I read about owned a small cafe. As soon as she got her winnings, she closed it and have all the staff the sack. I pity her tennants 

http://www.telegraph.co.uk/news/2016/04/04/lottery-winner-gillian-bayfords-cafe-staff-to-get-just-100-after/

I remember this lady well. As soon as won the Lottery she invested £3 million in .... property!

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3 hours ago, Timak said:

I've given up giving financial advice. I was very concerned when my inlaws used their inheritance to buy (outright) a flat they are letting out.

However they are getting 5% return on the purchase price (allowing 1% per year expenses) and in equity terms it has gone up £100k.

If they'd put it in the bank they'd be getting 2% max with no additional equity

If they'd put it into shares they'd have had a rollercoaster ride but probably be about equal with property now.

+1. I have been proved wrong time and again. In a year my .sig will "mature"... maybe did make sense for the North, but London has shot up since '07 However I just stick any money in stocks and cash and live in the house. You cant really expect to win, and all things considered life is OK...

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