property a investmnt - sell or let

SISTER

Hi Everyone

Can you help. We have been given a house worth around 140k. We cant decide whether to sell or rent the property. Our plans areto be able to create an investment that gives us around 3000 per month. The amount we will have combined with the sale of the house is around 170k. Can anyone provide good advice for this money, Is the market a good time to buy property for an investment potential or should we stay clear of this route. Help please!!!

dunstonh

How have you been given it? gift, inheritance or what?

Our plans areto be able to create an investment that gives us around 3000 per month. The amount we will have combined with the sale of the house is around 170k.

£170k will not generate £3k a month. It will be closer to £700.

bendix

SISTER wrote: »

Hi Everyone

Can you help. We have been given a house worth around 140k. We cant decide whether to sell or rent the property. Our plans areto be able to create an investment that gives us around 3000 per month. The amount we will have combined with the sale of the house is around 170k. Can anyone provide good advice for this money, Is the market a good time to buy property for an investment potential or should we stay clear of this route. Help please!!!

You want £170,000 to generate a return of £36,000 income annually?

Easy as pie. All you need to do is find a safe investment vehicle such as a term deposit that guarantees 21% return per annum.

Go for it.

evenasus

bendix wrote: »

You want £170,000 to generate a return of £36,000 income annually?

Easy as pie. All you need to do is find a safe investment vehicle such as a term deposit that guarantees 21% return per annum.

Go for it.

And if they do :rotfl: I hope they let the rest of us know.

Techno

Now, now chaps - you know sarcasm is the lowest form of wit The lady would like some advice on whether to invest the money or rent the house out and although her expectations are rather on the high side (dunstonh has advised a more realistic target) some useful advice is what she is after

SISTER

:eek:Dear People
Thank you fo replying to my original request. I didnt explain myself properly - I am looking to use this money overthe nxt five years (as an initial platform) t enble a retun of 3000 per month.

I am considering buying two houses initially, then a further house within the next six mnths. Usng the rental off these three houses would enble me to buy a futher house (possible another). Accumulating roughly 6 houses would give me an income of around 3000 per month. However, this will take me about four years - I wondered whether anyone could advise a better way to achievethis or even a faster way. If somebody out there has the knowledge to turn 170,000 into a 3000 return a month, I would ask them why they are wasting their time giving free advice out!!! So, I note the sarcasm boys, and my fault for not explaiining myself but c'mon, a little assistance please

malik999

SISTER wrote: »

:eek:Dear People
Thank you fo replying to my original request. I didnt explain myself properly - I am looking to use this money overthe nxt five years (as an initial platform) t enble a retun of 3000 per month.

I am considering buying two houses initially, then a further house within the next six mnths. Usng the rental off these three houses would enble me to buy a futher house (possible another). Accumulating roughly 6 houses would give me an income of around 3000 per month. However, this will take me about four years - I wondered whether anyone could advise a better way to achievethis or even a faster way. If somebody out there has the knowledge to turn 170,000 into a 3000 return a month, I would ask them why they are wasting their time giving free advice out!!! So, I note the sarcasm boys, and my fault for not explaiining myself but c'mon, a little assistance please

I dont follow. Achieving a income of £3000 a month is easy then if you own enough houses however houses are not free.

It sounds to me like youre planning on taking a mortgage against each property to fund the next; therefore building a financial pyramid. All you need then is to lose a tenant and find you cant rent the property out and it all comes crashing down.

missile

Property rental is hard work and there is no guarantee of any profit. 3 properties at £1200 a month could generate £3000 per month income, but after expenses / decuctions you might find you have little or no profit.

I don't know where you would buy two houses for £170,000, but good luck.

dunstonh

If somebody out there has the knowledge to turn 170,000 into a 3000 return a month,

Only through gearing but the cost of the borrowing and tax would wipe it out anyway.

rockitup

I owned a few BTL properties from 1999-2007 and they offered a decent return then in the way of a capital gain but not such a good deal on the rental income after allowing for repairs, maintenance and mortgage interest.

The outlook for house price gains are not so good for the next 10 years anyway. The rapid gains before are what allowed Landlords to build up their portfolio of properties by utilising the profits in the way you describe.

IMHO I think you will need to be a lot more patient with regards to building up a portfolio, why not just try collecting the rental income on the one property you were given or maybe sell that and buy 2 on a 50% mortgage?

Personally I would not touch BTL using anything less than a 50% deposit now and would not really want to get involved in BTL anyway now, too much hassle and problems when tenants lose their jobs and income with the high unemployment we have now.

No easy way to reach your desired level of income within that time frame...

SISTER

Hello and Thanks

Especially to Rockitup - that wasr eally interesting and it sounds like you have gone through this, and bought the t-shirt. Funnily enough, we were thinking along the same lines, havig read on a number of sites that now is not a good tie to buy. I note what you say about renting in the current climate we are in. Mgh be worh sellng and investing th money in something. We have decided to get an independent financial advisor to help us with some advice and guidance but really appeciate the relieyou all sent out