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  • FIRST POST
    • TriciaC
    • By TriciaC 6th Sep 17, 9:22 AM
    • 2Posts
    • 0Thanks
    TriciaC
    Way to go?
    • #1
    • 6th Sep 17, 9:22 AM
    Way to go? 6th Sep 17 at 9:22 AM
    I have savings of £85K sitting in a bank earning peanuts. I have been thinking of a buy to let property. My partner is dead against this. But is unsure of how else to invest this money. Any advice would be welcome. Thank you..
    TC
Page 1
    • AnotherJoe
    • By AnotherJoe 6th Sep 17, 9:33 AM
    • 7,602 Posts
    • 8,204 Thanks
    AnotherJoe
    • #2
    • 6th Sep 17, 9:33 AM
    • #2
    • 6th Sep 17, 9:33 AM
    Well, you could invest it in the stock market in an ISA or a SIPP.
    Or in P2P.
    Or in bonds.
    Or reduce your mortgage.
    Or increase your current pension contributions.

    Or a combination of those.

    What is it about being a landlord that attracts over these ? Is it the doubling of all the house maintenance you have to do now ?
    Is it the extra legal responsibilities ?
    Is it the additional taxes ?
    Is it the thrill of the risk of knowing that one bad tenant could cost you tens of thousands ?
    Is it being bugged by a tenant for all those little jobs round the house you do now in your own place ?
    • macman
    • By macman 6th Sep 17, 10:14 AM
    • 41,351 Posts
    • 17,001 Thanks
    macman
    • #3
    • 6th Sep 17, 10:14 AM
    • #3
    • 6th Sep 17, 10:14 AM
    Two Santander 123 accounts would take care of £40K at 1.5%, then the other high interest (I use the term relatively) current accounts on top of that. Nationwide, Club Lloyds etc.
    It all depends on your attitude to risk: if you want to get a return above inflation then you have to invest in the market, not in cash accounts. But if you do so, you accept the risk of loss.
    What is your definition of 'peanuts'? If you are currently earning 0.75%, then 1.5% is doubling your return.
    No free lunch, and no free laptop
    • xylophone
    • By xylophone 6th Sep 17, 10:21 AM
    • 23,480 Posts
    • 13,653 Thanks
    xylophone
    • #4
    • 6th Sep 17, 10:21 AM
    • #4
    • 6th Sep 17, 10:21 AM
    Do you really want to be a landlord?

    You might split your money into short term/longer term savings.

    Interest paying current accounts/regular savers are a good home for your cash.

    http://www.moneysavingexpert.com/banking/compare-best-bank-accounts

    There are savings accounts which pay better than peanuts.

    http://www.thisismoney.co.uk/money/article-1583859/Best-savings-rates-General-savings-Internet-branch.html

    Then consider stocks and shares, using your ISA allowance.

    http://monevator.com/investing-for-beginners-the-global-stock-market/

    http://monevator.com/how-to-chooose-total-world-equity-trackers/

    http://www.telegraph.co.uk/investing/isas/charging-just-015pc-britains-cheapest-investment-firm/
    • jimjames
    • By jimjames 6th Sep 17, 12:15 PM
    • 12,194 Posts
    • 10,711 Thanks
    jimjames
    • #5
    • 6th Sep 17, 12:15 PM
    • #5
    • 6th Sep 17, 12:15 PM
    I have savings of £85K sitting in a bank earning peanuts. I have been thinking of a buy to let property. My partner is dead against this. But is unsure of how else to invest this money. Any advice would be welcome. Thank you..
    TC
    Originally posted by TriciaC
    Plenty of ways to invest the money and with far more flexibility than a BTL. If you own a house you can't easily raise £5k by selling the kitchen like you could sell some funds from a S&S ISA.
    There are also tax changes coming in for BTL which will make a big difference for many people
    Remember the saying: if it looks too good to be true it almost certainly is.
    • Money Help
    • By Money Help 7th Sep 17, 9:49 AM
    • 34 Posts
    • 15 Thanks
    Money Help
    • #6
    • 7th Sep 17, 9:49 AM
    • #6
    • 7th Sep 17, 9:49 AM
    The first thing you need to decide is what you want this money for. Is it for the long term? Retirement? Or did you have a savings goal in mind to purchase something in the future? Did you want this money to pay you an income?

    If you have any debts you may want to consider paying these off first if you are suffering from high interest rates. It's always good to keep some money back in an easy access cash account which can at least cover you for 6 months expenditure in case of emergency.

    After looking at the above you then need to decide how much risk you are prepared to take with the money. Higher risk will mean investment into stocks or property. Lower risk will mean keeping it in cash/bonds.
    • TriciaC
    • By TriciaC 7th Sep 17, 1:55 PM
    • 2 Posts
    • 0 Thanks
    TriciaC
    • #7
    • 7th Sep 17, 1:55 PM
    • #7
    • 7th Sep 17, 1:55 PM
    Thanks for the replies. I didn't mention that I am sixty and my partner is seventy two so if we did buy a buy to let it would probably be until I fully retire and get the state pension. I am getting a occupational pension £200 a week net. My partner has just the basic state pension. We own our ( house mortgage free) probably worth £35K I am working as a contractor on short term contracts( when working) I earn approx £1500 gross a week. I sometimes go a couple of months between jobs.
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