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£400k to invest for life
ice777_2
Posts: 1 Newbie
A sister and a brother (both in their 40s) living together have inherited £400K. (House worth £300k and £100K Cash) Both of them are on very low part time incomes, no pension plan etc.
They are living in the inherited house worth about £300K. It is not really suitable to rent out rooms
What is the best way for them to invest this money for the future.
I suggested they should sell their current house
They live in a student town and I was going to suggest that they buy a flat for themselves to live in for £130K and a house to rent to students for £250K (making about £10k a year minus council tax etc)
They could maybe wait for a few months to see if house prices fall.
Is this the best way for them to go with regards to future income and pension etc?
They are living in the inherited house worth about £300K. It is not really suitable to rent out rooms
What is the best way for them to invest this money for the future.
I suggested they should sell their current house
They live in a student town and I was going to suggest that they buy a flat for themselves to live in for £130K and a house to rent to students for £250K (making about £10k a year minus council tax etc)
They could maybe wait for a few months to see if house prices fall.
Is this the best way for them to go with regards to future income and pension etc?
0
Comments
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Selling the house and buying a new one is fine if they are happy to downsize.
However I am not so keen on your idea to get a buy-to-let house as their sole investment, particularly as your expected yield is only 4% before you have begun to knock off council tax, periods of vacant possesion, repairs etc.
I would suggest a range of investments - cash ISAs, S&S ISAs, pensions, etc. Might be an idea for them to see an IFA (not bank advisor) to properly plan for their future.0 -
What do they want to do with their lives? Do they want to administer the rental of this house (which sounds like it's been their family home for some time), and watch over it as a succession of tenants exert wear & tear on it, or would they rather move on to something else? I feel it's best not to rent out a home that you may still feel attached to.....
If they're perfectly happy staying there, then there's plenty of ways to invest the £100k.
Whatever they do, they shouldn't put all the investing eggs in one basket.0
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