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  • FIRST POST
    • patrickrjones
    • By patrickrjones 11th Mar 17, 11:37 AM
    • 4Posts
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    patrickrjones
    Better to get a mortgage or invest for income?
    • #1
    • 11th Mar 17, 11:37 AM
    Better to get a mortgage or invest for income? 11th Mar 17 at 11:37 AM
    Hi. I have been lucky enough to get a lump sum of £74k from the sale of a business. Now trying to decide what to do with it.

    Option a) could put it on a flat. But I live in London and my salary isn't enough to get a mortgage on a house that I could live in. Everything I've seen is too far out for me. So if I did put it on a flat, it would be an investment only and would still have to pay rent.

    Otherwise, I could invest it for income, in stocks and shares. What do you think? Anyone chip in with suggestions or similar experiences? Cheers.

    PRJ
Page 1
    • masonic
    • By masonic 11th Mar 17, 11:56 AM
    • 9,099 Posts
    • 6,232 Thanks
    masonic
    • #2
    • 11th Mar 17, 11:56 AM
    • #2
    • 11th Mar 17, 11:56 AM
    What other investments do you already have?
    • patrickrjones
    • By patrickrjones 11th Mar 17, 12:01 PM
    • 4 Posts
    • 0 Thanks
    patrickrjones
    • #3
    • 11th Mar 17, 12:01 PM
    • #3
    • 11th Mar 17, 12:01 PM
    I've about 11k sitting in 2 ISAs. And that's it.
    • masonic
    • By masonic 11th Mar 17, 12:08 PM
    • 9,099 Posts
    • 6,232 Thanks
    masonic
    • #4
    • 11th Mar 17, 12:08 PM
    • #4
    • 11th Mar 17, 12:08 PM
    Unless it is your dream to build a BTL property portfolio, I'd suggest the S&S route will be much easier and give you a much better spread of investments. There is also P2P lending you could consider for some of the money.
    • ColdIron
    • By ColdIron 11th Mar 17, 12:20 PM
    • 3,035 Posts
    • 3,450 Thanks
    ColdIron
    • #5
    • 11th Mar 17, 12:20 PM
    • #5
    • 11th Mar 17, 12:20 PM
    Any pension provision?
    • kidmugsy
    • By kidmugsy 11th Mar 17, 12:23 PM
    • 9,192 Posts
    • 6,015 Thanks
    kidmugsy
    • #6
    • 11th Mar 17, 12:23 PM
    • #6
    • 11th Mar 17, 12:23 PM
    The tax deal on owner-occupied housing is wonderful, the tax deal on BTL isn't.

    If you don't think you'll want to buy a house in the next five or ten years then maybe an S&S ISA would be a good idea. But in your shoes I'd be tempted to keep a fair chunk in cash and play the much discussed game of using current account switches, high interest current accounts, and regular savers. Those combined with S&S might constitute a usefully diversified portfolio. You could even ensure that some of your S&Ss are related to residential property values.

    You might also consider a Help to Buy ISA this tax year and a LISA in 17/18.
    • patrickrjones
    • By patrickrjones 11th Mar 17, 1:08 PM
    • 4 Posts
    • 0 Thanks
    patrickrjones
    • #7
    • 11th Mar 17, 1:08 PM
    • #7
    • 11th Mar 17, 1:08 PM
    @ColdIron, no, no pension
    @masonic @kidmugsy not interested in BTL. but would like to buy my own place later. what I was thinking was having a BTL would be good place to keep cash until i get a better salary and can borrow more. but more trouble than it's worth?
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